In This Article:
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Revenue: $29.3 million for Q3 2024, flat compared to the prior year.
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Recurring Revenue: 98% of total revenue, up from 81% in the prior year.
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Net Loss: $3.9 million for Q3 2024, compared to a net loss of $2.2 million in the prior year.
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Gross Margin: Decreased to 67% from 73% in the prior year.
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Non-GAAP Gross Margin: Decreased to 73% from 76% in the prior year.
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EBITDA: $2.2 million for Q3 2024, down from $3 million in the prior year.
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Adjusted EBITDA: $5.4 million for Q3 2024, down from $6.2 million in the prior year.
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Adjusted EBITDA Margin: 19% for Q3 2024, compared to 21% in the prior year.
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Cash and Cash Equivalents: $11.2 million at the end of Q3 2024.
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Debt: $7.5 million at the end of Q3 2024.
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2024 Revenue Guidance: $119 million to $121 million.
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2024 Adjusted EBITDA Margin Guidance: 18% to 19%.
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2025 Revenue Guidance: $134 million to $138 million.
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2025 Adjusted EBITDA Margin Guidance: 23% to 24%.
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Contracted Backlog: Over $67 million, a 250% increase from the previous year.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Recurring revenue now represents 98% of total revenue, up from 81% in the prior year, indicating a more stable and predictable revenue stream.
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The company achieved a 20% growth in recurring revenue, driven by acquisitions and organic growth.
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Sales bookings increased by 141% compared to the previous year, and the backlog grew by 250%, setting the stage for future growth.
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Asure Software Inc (NASDAQ:ASUR) has successfully acquired 12 companies over the past four quarters, adding approximately $15 million in repetitive revenue.
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The company is expanding its product offerings, including the launch of Asure Pay, a new financial services product, and other solutions like 401k and workmen's compensation for small businesses.
Negative Points
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Third quarter revenue was flat compared to the prior year, primarily due to a $5 million decrease in non-recurring ERTC revenue.
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Net loss for the third quarter increased to $3.9 million from $2.2 million in the prior year period.
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Gross margins decreased to 67% from 73% in the prior year, with non-GAAP gross margins also declining.
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EBITDA for the third quarter decreased to $2.2 million from $3 million in the prior year period, with adjusted EBITDA margin dropping to 19% from 21%.
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The company faced challenges with the timing of large enterprise tax deals and new product introductions, impacting revenue expectations for 2024.
Q & A Highlights
Q: Can you provide more color on the lower revenue for the quarter compared to expectations and the confidence in the 2025 growth guidance? A: Patrick Goepel, CEO, explained that the lower revenue was due to timing issues with large deals and professional services. Despite this, sales bookings were up 141%, and backlog increased by 250%. The company is confident in achieving 13% growth in 2025 due to strong sales momentum and backlog.