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Asure (ASUR)
NASDAQ:ASUR
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Asure
(NASDAQ:ASUR)
50Neutral
Positive Factors
Future Revenue Potential
The company's backlog grew over 300% year-over-year to $79M, and new bookings were up 86%, reflecting strong future revenue potential.
Growth Strategy
Asure completed 14 reseller acquisitions and 2 technology extensions, emphasizing acquisitions as a key part of its growth strategy.
Organic Growth
Organic growth in the quarter saw a nice step up at 9% from 4%, indicating strong internal growth momentum.
Negative Factors
Acquisition Challenges
Recurring revenue was below estimate due to an acquisition that fell through, impacting the expected revenue.
Earnings Performance
Asure reported Q4/24 non-GAAP EPS of $0.15, which was less than the forecast of $0.17 and the FactSet consensus forecast of $0.18.
Guidance and Growth Challenges
Management maintained their initial guidance, although it will be increasingly weighted towards the second half due to headwinds from specific revenue streams and slower growth in HR Compliance.
Asure (ASUR) vs. S&P 500 (SPY)
Market Cap
$262.51M
Dividend YieldN/A
Average Volume (3M)88.25K
Price to Earnings (P/E)―
Beta (1Y)1.05
Revenue Growth0.60%
EPS Growth-10.27%
CountryUS
Employees621
SectorTechnology
Sector Strength45
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.45
Shares Outstanding26,979,485
10 Day Avg. Volume73,408
30 Day Avg. Volume88,247
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.27
Price to Cash Flow (P/CF)6.90
P/FCF Ratio6.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.50Price Target Upside49.02% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Asure Business Overview & Revenue Model
Company DescriptionAsure Software, Inc. (ASUR) is a provider of cloud-based human capital management (HCM) solutions that help organizations streamline their workforce and business processes. The company operates primarily in the technology sector, offering a suite of services that include payroll management, time and attendance tracking, benefits administration, and human resources management. Asure's solutions are designed to enhance productivity and compliance for small and medium-sized businesses across various industries.
How the Company Makes MoneyAsure Software generates revenue through a subscription-based model for its comprehensive suite of HCM solutions. The company charges clients a recurring fee for access to its cloud-based platforms and services, which are typically priced based on the number of employees managed through their systems. Additionally, Asure offers professional services, such as implementation, training, and support, which contribute to its revenue. The company also forms strategic partnerships with other technology providers to enhance its service offerings and expand its market reach, which can lead to additional revenue opportunities.
Asure Financial Statement Overview
Summary
Asure demonstrates moderate financial health with positives like improved gross profit margins and positive operating cash flow. However, challenges such as consistent net losses, negative EBIT and EBITDA, and fluctuating free cash flow present concerns for sustained profitability. The balance sheet is stable, but enhancing profitability and operational efficiency remains crucial.Income Statement
Asure's income statement shows a moderate performance with a fluctuating revenue growth trend. Gross profit margin has improved from the prior years, but persistent negative net income indicates ongoing challenges in achieving profitability. The EBIT and EBITDA margins are also negative, highlighting operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reflects a relatively stable financial structure with a moderate debt-to-equity ratio. The company has managed to maintain a healthy level of stockholders' equity. However, the return on equity is negative due to sustained losses, which could be a concern for investors.55
Neutral
Cash Flow
Cash flow analysis reveals a mixed picture. While operating cash flow is positive, indicating that the company is generating cash from its core operations, free cash flow fluctuates significantly due to capex variations. The free cash flow to net income ratio appears positive, but net income remains negative, which could impact long-term sustainability.50
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 119.79M | 119.08M | 95.83M | 76.06M | 65.51M | Gross Profit |
| 82.11M | 85.54M | 62.51M | 46.56M | 38.09M | EBIT |
| -10.74M | -3.00M | -9.92M | -12.81M | -13.75M | EBITDA |
| -10.74M | 15.81M | 10.49M | 23.85M | 1.42M | Net Income Common Stockholders |
| -11.77M | -9.21M | -14.47M | 3.19M | -16.31M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 21.43M | 30.32M | 17.01M | 13.43M | 28.58M | Total Assets |
| 436.64M | 443.87M | 419.91M | 433.25M | 515.42M | Total Debt |
| 17.73M | 10.44M | 43.22M | 41.32M | 31.73M | Net Debt |
| -3.69M | -19.88M | 26.21M | 27.90M | 3.16M | Total Liabilities |
| 239.32M | 252.21M | 274.84M | 275.00M | 369.77M | Stockholders Equity |
| 197.31M | 191.66M | 145.07M | 158.24M | 145.65M |
| Cash Flow | Free Cash Flow | |||
| 8.70M | 2.64M | 4.84M | -28.42M | -5.34M | Operating Cash Flow |
| 9.39M | 18.90M | 13.67M | 1.38M | -1.71M | Investing Cash Flow |
| -19.26M | -29.52M | -36.00M | -36.97M | -201.13M | Financing Cash Flow |
| -22.04M | 24.20M | -12.38M | -90.65M | 202.59M |
Asure Technical Analysis
Positive
9.73
Price Trends
10.03
Negative
10.31
Negative
9.67
Positive
Market Momentum
-0.15
Negative
52.80
Neutral
69.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ASUR, the sentiment is Positive. The current price of 9.73 is above the 20-day moving average (MA) of 9.34, below the 50-day MA of 10.03, and above the 200-day MA of 9.67, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 52.80 is Neutral, neither overbought nor oversold. The STOCH value of 69.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ASUR.
Asure Risk Analysis
Asure disclosed 44 risk factors in its most recent earnings report. Asure reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Asure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $253.21M | ― | -8.78% | ― | -7.60% | 77.10% | |
59 Neutral | $10.59B | 10.09 | -6.37% | 3.05% | 7.44% | -10.67% | |
52 Neutral | $116.55M | ― | -27.24% | ― | 13.62% | 30.26% | |
51 Neutral | $230.46M | ― | -40.78% | ― | -2.23% | 19.48% | |
50 Neutral | $262.51M | ― | -6.05% | ― | 0.60% | -10.27% | |
48 Neutral | $277.32M | ― | -92.62% | ― | -1.64% | 9.99% | |
48 Neutral | $194.70M | ― | -24.82% | ― | -9.55% | 12.28% |
* Technology Sector Average
Performance Comparison
ASUR
Asure
9.73
2.67
37.82%
EGHT
8X8
1.75
-0.57
-24.57%
NRDY
Nerdy
1.64
-0.96
-36.92%
FRGE
Forge Global Holdings
12.71
-15.94
-55.64%
ONTF
ON24
4.68
-1.98
-29.73%
EXFY
Expensify
2.89
1.25
76.22%
Asure Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 0.41% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and bookings growth, the successful launch of new products, and positive future guidance. However, challenges in ERTC revenue decline, net losses, and margin impacts due to investments were also noted. Despite these challenges, the overall growth and strategic advancements indicate a positive outlook.Highlights
Strong Revenue Growth
Total revenue for 2024 increased modestly to $119.8 million. Excluding ERTC revenues, total revenues were up 17%. Recurring revenues grew by 15% and made up 96% of total revenues in 2024, up from 84% in 2023.
Successful Expansion and Product Launches
Launched AssurePay, an innovative alternative to online banking, and integrated multiple new products such as employee recruiting technology, benefit brokerage capabilities, and a 401(k) offering.
Significant Increase in Bookings
Sales efforts in 2024 resulted in an 86% increase in new bookings compared to the prior year.
New Multiyear Agreement
Signed a multiyear agreement with an industry leader in audit, tax, consulting, and advisory services to resell payroll and payroll tax management solutions.
Positive Guidance for 2025
Reiterated 2025 revenue guidance of $134 to $138 million, with EBITDA margins of between 23% and 24%.
Lowlights
Decline in ERTC Revenue
ERTC revenue declined by $16.5 million, impacting overall revenue growth.
Net Loss for the Year
Reported a net loss of $11.8 million for the full year, compared to a $9.2 million loss in the prior year.
Challenges in HR Compliance
Faced challenges in the HR compliance group related to ERTC upsell activity from 2023, expected to continue into the first half of 2025.
Investment Impact on Margins
Investments in business expansion and technology impacted margins, with full-year gross margins decreasing from 72% to 69%.
Company Guidance
During the call, Asure Software, Inc. provided detailed guidance for 2025, emphasizing a projected revenue range of $134 to $138 million, representing mid-teens growth. The company aims for EBITDA margins between 23% and 24%, excluding potential future acquisitions. In 2024, Asure achieved a total revenue of $119.8 million, with recurring revenues rising 15% to constitute 96% of total revenues, compared to 84% in 2023. The company also reported an 86% increase in new bookings year-over-year and a 17% growth in contracted backlog since the previous quarter. Asure plans to continue focusing on expanding its client base and enhancing cross-selling opportunities, leveraging its recent product additions and acquisitions to drive profitability and scale. The guidance for 2025 includes expected revenue growth from expanded product offerings and customer acquisition activities, with a strong focus on cross-selling success.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.