ASUR Earnings Prediction
The chart below shows how ASUR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ASUR sees a -2.58% change in stock price 10 days leading up to the earnings, and a -4.79% change 10 days following the report. On the earnings day itself, the stock moves by +1.11%. This data can give you a slight idea of what to expect for the next quarter's release.
ASUR Key Earning Data
2024/Q4
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ASUR Earnings Analysis
Asure Software Inc Corporation (ASUR.O) Earnings Conference Call
Positive
Modest Revenue Increase: Total revenue increased modestly to $119.8 million in 2024, with a 17% increase in total revenues excluding ERTC revenues.
Recurring Revenue Increase: Recurring revenues grew by 15% year-over-year, now representing 96% of total revenues, up from 84% in 2023.
Innovative Product Launch: The company launched innovative products like SurePay, which offers on-demand pay through a mobile app, enhancing employee retention and attraction.
Successful Acquisition Strategy: Acquisition strategy was successful, with a focus on payroll resellers, leading to new client acquisitions and a robust pipeline for future deals.
Payroll Units Momentum: Strong momentum in new payroll units and a significant increase in 401(k) product performance, leveraging the US government's Secure 2.0 Act.
New Bookings Surge: Sales efforts resulted in an 86% increase in new bookings compared to the previous year, indicating strong demand for services.
Backlog Growth Update: Contracted backlog grew by 17% since the third quarter, reaching $79 million, with a third expected to be recognized in 2025.
2025 Revenue Guidance Reiteration: The company reiterated its 2025 revenue guidance of $134 to $138 million, indicating a positive mid-teens growth rate.
Partnership for Payroll Solutions: Signed a multiyear agreement with a leading firm to resell payroll and payroll tax management solutions, expanding market reach.
Negative
Earnings Miss Report: Asure Software, Inc. missed earnings expectations with a reported EPS of $0.15, falling short of the expected $0.16.
Net Loss Increase: The company experienced a net loss of $11.8 million for the full year, which is an increase from a loss of $9.2 million in the prior year.
Modest Annual Revenue Growth: Despite a 17% increase in total revenue for Q4, the overall revenue growth for the full year was modest, with total revenue only slightly increasing to $119.8 million.
Gross Margin Decline: Gross margins decreased from 72% in the prior year to 69% for the full year, indicating a decline in profitability.
HR Compliance Challenges: The company faced challenges in its HR compliance group related to ERTC upsell activity, which impacted revenue growth.
EBITDA Decline Analysis: Adjusted EBITDA for the full year decreased to $22.5 million from $23.3 million in the prior year, reflecting a decline in operational efficiency.
Subdued Revenue Growth Outlook: The anticipated revenue growth for Q1 2025 is expected to be subdued, with challenges in the HR compliance group continuing into the first half of the year.
ASUR FAQs
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ASUR Earning Call Sentiment
Asure Software, Inc. (NASDAQ:ASUR) Q4 2024 Earnings Call Transcript
ASUR.O
4.04%Positive
The company shows strong recurring revenue growth and promising product launches. However, challenges like ERTC revenue decline, financial constraints, and competitive pressures dampen optimism. The Q&A reveals uncertainty in revenue contributions and deal implementations, while the absence of a share repurchase program is neutral. Despite positive guidance and backlog growth, the lack of clear management responses and financial constraints balance the sentiment.
