Asure Reports Q4 2023 and FY 2023 Financial Results Highlighting Revenue Growth Excluding ERTC
- Total revenues for Asure in full-year 2023 were $119.1 million, up 24% y/y.
- Recurring revenue reached $99.7 million, with y/y growth of 16%.
- Net loss improved to $9.2 million from $14.5 million in FY 2022.
- EBITDA increased by 63% y/y to $14.3 million, and adjusted EBITDA surged 97% y/y to $23.3 million.
- In Q4 2023, total revenue was $26.3 million, representing 15% y/y growth.
- Recurring revenue in Q4 was $25 million, up 15% y/y.
- Net loss for Q4 was $3.6 million, compared to $1.1 million in the same period last year.
- EBITDA for Q4 was $1.1 million, and adjusted EBITDA was $2.8 million.
- Asure plans to focus on technology advancements and strategic partnerships in 2024, aiming to drive new client additions.
- The company issued guidance for Q1 2024 and FY 2024, expecting revenue and adjusted EBITDA growth.
- Asure plans to invest in research and development to benefit small business clients and provide innovative HCM solutions.
- None.
The reported financial results from Asure Software, Inc. demonstrate a significant year-over-year (y/y) revenue growth. Specifically, a 24% increase in total revenues and a marked improvement in net loss reduction from the previous fiscal year are key indicators of the company's improving financial health. The substantial jump in EBITDA and adjusted EBITDA by 63% and 97% respectively, suggests that the company is effectively controlling its operating expenses and optimizing its earnings before interest, taxes, depreciation and amortization. The provided guidance for Q1 and FY 2024, projecting further revenue growth and a healthy adjusted EBITDA margin, indicates management's confidence in continued financial performance and operational efficiency.
However, the contrast between the reported net losses in Q4 2023 compared to the same period in the previous year raises concerns about the company's profitability in the short term. This could be a point of interest for investors evaluating the sustainability of the company's growth trajectory. Additionally, the exclusion of the Employee Retention Tax Credit (ERTC) from future guidance suggests that Asure is adjusting its financial projections to a post-ERTC environment, which could impact its revenue streams and profitability margins.
Asure's strategic focus on advancing technology through partnerships and product development, such as the 401k bundled offering with payroll and the recent invitation to join the SAP PartnerEdge Open Ecosystem, is indicative of the company's commitment to innovation and market differentiation. The emphasis on HR Compliance, a best-in-class tax platform and the Asure Marketplace™ positions the company to capture a larger market share and potentially high-margin revenue streams. This strategy aligns with current market trends, where businesses are increasingly seeking comprehensive, cloud-based HCM solutions.
The planned investments in research and development, aimed at enhancing the product offerings for small business clients and providing enterprise clients with tools to navigate complex tax laws, reflect a targeted approach to meet the diverse needs of its customer base. Asure's proactive approach to expand its annual recurring revenue through acquisitions, as evidenced by the $7 million in signed agreements, is a strong move to bolster its market position and could lead to increased investor confidence.
Asure's focus on HR Compliance and its efforts to streamline payroll tax processes through the partnership with SAP could be seen as a strategic response to the increasingly complex regulatory environment. With tax laws and labor regulations constantly evolving, Asure's ability to adapt and provide compliant solutions is crucial for its client base. The integration with SAP systems is likely to enhance Asure's payroll tax engine, offering a competitive edge by simplifying compliance for existing SAP clients and potentially attracting new customers seeking robust compliance solutions.
This legal and regulatory foresight can be a significant value proposition for Asure's clients, as non-compliance can result in hefty penalties and reputational damage. By focusing on compliance, Asure not only safeguards its clients but also creates an environment of trust and reliability, which is essential for customer retention and acquisition in the HCM software market.
AUSTIN, TX / ACCESSWIRE / March 8, 2024 / Asure Software, Inc. (NASDAQ:ASUR) ("Asure" or "the Company"), a provider of cloud-based Human Capital Management (HCM) software solutions and services, released its fourth quarter 2023 and full-year 2023 financial results on February 26, 2024.
For the full year 2023, Asure reported total revenues of
During the fourth quarter, Asure reported total revenue of
Asure Chairman & CEO Pat Goepel: "We are excited to build on the success we had during 2023 in multiple areas of our business. During 2024 we plan to continue this momentum and our focus will be on advancing our technology with leading partnerships and strategic sales initiatives such as the 401k bundled offering with payroll, which was launched in the fall of 2023 and thus far has produced positive results, to help drive new client additions. We continue to advance our technology with partnerships as evidenced by the recent invitation to join the SAP PartnerEdge Open Ecosystem. The partnership with SAP will allow Asure to enhance its payroll tax engine by integrating with the SAP systems and streamlining payroll tax processes for its existing SAP clients. Our focus on areas of differentiation, such as HR Compliance, our best-in-class tax platform, and our Asure Marketplace™, is anticipated to account for an increasing share of our revenue moving forward into 2024 and is expected to generate high-margin revenue streams during 2024."
Management also took the opportunity to issue Q1 2024 and FY 2024 guidance for revenue and adjusted EBITDA:
Guidance Range | Q1-2024 | FY-2024 | ||||||
Revenue | $ | 30.0 M - 32.0 M | $ | 125.0 M -129.0 M | ||||
Adjusted EBITDA(1) | $ | 6.0 M -7.0 M | ||||||
These forecast operates under the assumption that the ERTC program will continue to be paused for the foreseeable future and thus are not included in the guidance.
Mr. Goepel continued: "We expect that the growth of our business will continue during 2024 and our expectation is for performance on a combination of organic and inorganic basis. We have signed agreements to purchase approximately
For more information about the company's services, latest news, and ongoing initiatives, visit https://www.asuresoftware.com and https://spotlightgrowth.com/moving-past-ertc-asure-nasdaq-asur-reports-meaningful-growth-in-q4-and-fy-2023/
About Asure Software
Asure Software (NASDAQ:ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.
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Disclaimer
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Contact:
Asure Software
patrick.mckillop@asuresoftware.com
Spotlight Growth
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SOURCE: Asure Software
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