Winners And Losers Of Q3: Asure (NASDAQ:ASUR) Vs The Rest Of The HR Software Stocks

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Winners And Losers Of Q3: Asure (NASDAQ:ASUR) Vs The Rest Of The HR Software Stocks

Looking back on HR software stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Asure (NASDAQ:ASUR) and its peers.

Modern HR software has two powerful benefits: cost savings and ease of use. For cost savings, businesses large and small much prefer the flexibility of cloud-based, web-browser-delivered software paid for on a subscription basis rather than the hassle and complexity of purchasing and managing on-premise enterprise software. On the usability side, the consumerization of business software creates seamless experiences whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy-to-use platform.

The 6 HR software stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 1.7% below.

Luckily, HR software stocks have performed well with share prices up 13.2% on average since the latest earnings results.

Weakest Q3: Asure (NASDAQ:ASUR)

Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).

Asure reported revenues of $29.3 million, flat year on year. This print fell short of analysts’ expectations by 6.5%. Overall, it was a disappointing quarter for the company with underwhelming revenue guidance for the next quarter and a miss of analysts’ EBITDA estimates.

Asure Chairman and CEO, Pat Goepel, stated, “Our third quarter performance reflects strong, continued growth, with recurring revenue up 20% year-over-year. We’ve made great strides in transitioning to a more valuable revenue model, with 98% of our revenues now recurring, compared to 81% in the same quarter last year. Additionally, new bookings were up 141% year-over-year. Our backlog has grown significantly — over 35% from Q2 2024 and over 250% from Q3 2023. While large enterprise tax product deals have contributed to our success, their pace of implementation can vary. That said, we remain confident in our ability to maintain this positive trajectory.”

Asure Total Revenue
Asure Total Revenue

Asure delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 8.2% since reporting and currently trades at $9.12.

Read our full report on Asure here, it’s free.

Best Q3: Paycor (NASDAQ:PYCR)

Found in 1990 in Cincinnati, Ohio, Paycor (NASDAQ: PYCR) provides software for small businesses to manage their payroll and HR needs in one place.

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