Asure Software, Inc. (NASDAQ:ASUR) Q3 2023 Earnings Conference Call November 13, 2023 4:30 PM ET Company Participants Patrick McKillop - Vice President of Investor Relations Pat Goepel - Chairman and Chief Executive Officer John Pence - Chief Financial Officer Conference Call Participants Joshua Riley - Needham & Company Bryan Bergin - TD Cowen Richard Baldry - ROTH MKM Brad Reback - Stifel Nicolaus Jeff Van Rhee - Craig-Hallum Eric Martinuzzi - Lake Street Vincent Colicchio - Barrington Research Greg Gibas ...

Payroll & HR Solutions that help Businesses Grow Investor Presentation November 2023 Safe Harbor Statement (Under the Private Securities Litigation Reform Act of 1995) ForwardLooking Statements Thispresentationcontains certainstatements madebymanagement that mayconstitute“forward-looking”statementswithinthemeaning ofthesafeharbo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value ASUR The Nasdaq Capital Market Series A Junior Participating Preferred Share Purchase Rights N/A Emerging growth company ☐ FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended September 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of th ...

Asure Software, Inc. (NASDAQ:ASUR) Q2 2023 Results Conference Call August 7, 2023 4:30 PM ET Company Participants Pat Goepel - Chairman and Chief Executive Officer John Pence - Chief Financial Officer Randal Rudniski - Head of Investor Relations Conference Call Participants Bryan Bergin - TD Cowen Eric Martinuzzi - Lake Street Richard Baldry - Roth Capital Partners Josh Riley - Needham and Company Jeff Van Rhee - Craig-Hallum Capital Group Vincent Colicchio - Barrington Research Greg Gibas - Northland Secur ...

PART I. FINANCIAL INFORMATION This section presents the unaudited financial statements and management's analysis of financial condition [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements show total assets decreased to **$401.0 million** and net loss improved to **$3.4 million** [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$401.0 million** by June 2023, driven by reduced client funds, with equity slightly up Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total current assets** | $228,853 | $243,276 | | **Total assets** | $401,018 | $419,908 | | **Total current liabilities** | $215,270 | $235,183 | | **Total liabilities** | $254,204 | $274,842 | | **Total stockholders' equity** | $146,814 | $145,066 | [Condensed Consolidated Statements of Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Revenue increased **50%** in Q2 and **42%** for six months, with net loss significantly narrowing in both periods Financial Performance for the Three Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $30,420 | $20,300 | 50% | | Gross Profit | $22,018 | $12,261 | 80% | | (Loss) from operations | $(1,452) | $(5,848) | 75% | | Net Loss | $(3,765) | $(5,860) | 36% | | Diluted Loss Per Share | $(0.18) | $(0.29) | 38% | Financial Performance for the Six Months Ended June 30 (in thousands) | Metric | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | $63,484 | $44,633 | 42% | | Gross Profit | $46,418 | $27,725 | 67% | | Income from operations | $511 | $(8,019) | N/A | | Net Loss | $(3,426) | $(8,877) | 61% | | Diluted Loss Per Share | $(0.17) | $(0.44) | 61% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased to **$146.8 million** by June 2023, driven by stock issuances and compensation, despite a net loss - Key changes in stockholders' equity for the six months ended June 30, 2023 include a net loss of **$3.4 million**, share-based compensation of **$2.9 million**, and **$2.3 million** in proceeds from stock issuances[16](index=16&type=chunk)[77](index=77&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was **$6.1 million**, with significant cash used in investing and financing activities Net Cash Flow for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $6,096 | $7,481 | | Net cash used in investing activities | $(17,266) | $(21,570) | | Net cash used in financing activities | $(15,602) | $(32,524) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail HCM business, stable goodwill, and subsequent events like contingent consideration settlement and credit facility amendment - The company provides cloud-based Human Capital Management (HCM) software solutions for small and medium-sized businesses (SMBs), including payroll, tax, HR compliance, and time & attendance[26](index=26&type=chunk) - As of June 30, 2023, Goodwill remained unchanged at **$86.0 million**, and net intangible assets were **$60.6 million**[52](index=52&type=chunk)[54](index=54&type=chunk) - In July 2023, the company settled an outstanding contingent purchase consideration of **$2.3 million** by issuing **214,000 shares** of common stock[81](index=81&type=chunk) - On August 7, 2023, the company amended its Senior Credit Facility and settled the Final Payment Fee for **$1.7 million** in cash[82](index=82&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses **42%** revenue growth, improved gross margin, increased operating expenses, and sufficient liquidity for the next twelve months [Overview](index=21&type=section&id=Overview) Asure provides cloud-based HCM solutions to over **100,000 SMBs** across the U.S., targeting less densely populated metropolitan areas - The company's solutions serve more than **100,000 SMBs**, with about **15,000 direct clients** and **85,000 indirect clients** via Reseller Partners[88](index=88&type=chunk) - Asure targets less densely populated U.S. metropolitan cities where competitive presence is lower[27](index=27&type=chunk)[88](index=88&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Total revenue grew **42%** to **$63.5 million**, driven by recurring and professional services, improving gross margin to **73%** and narrowing net loss Revenue by Source - Six Months Ended June 30 (in thousands) | Revenue Type | 2023 | 2022 | Variance ($) | Variance (%) | | :--- | :--- | :--- | :--- | :--- | | Recurring | $50,916 | $42,018 | $8,898 | 21% | | Professional services, hardware and other | $12,568 | $2,615 | $9,953 | 381% | | **Total** | **$63,484** | **$44,633** | **$18,851** | **42%** | - The significant increase in professional services revenue was primarily due to growth in non-recurring ERTC revenues, which are expected to wind down as the program expires in 2025[100](index=100&type=chunk) - Gross margin for the six months ended June 30, 2023, increased to **73%** from **62%** in the prior year, attributed to higher revenue and operational efficiencies[103](index=103&type=chunk) - The company plans to continue enhancing its products by leveraging Robotic Process Automation (RPA) and artificial intelligence (AI)[109](index=109&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital was **$13.6 million** and cash **$21.6 million**, providing sufficient liquidity for twelve months, with potential need for future capital Liquidity Overview (in thousands) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $21,613 | $17,010 | | Working Capital | $13,583 | $8,093 | - Net cash provided by operating activities was **$6.1 million** for the first six months of 2023, compared to **$7.5 million** for the same period in 2022[117](index=117&type=chunk) - The company believes it has sufficient liquidity for at least the next twelve months but may need to raise additional capital for future growth or acquisitions[120](index=120&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk exposure have occurred since the 2022 Annual Report on Form 10-K - There have been no material changes to the company's market risk exposure since the 2022 Annual Report on Form 10-K[122](index=122&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2023, with no material changes in internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2023, the company's disclosure controls and procedures were effective[123](index=123&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[124](index=124&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company was not a party to any material legal proceedings as of June 30, 2023 - The company reports no material legal proceedings as of June 30, 2023[126](index=126&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights potential reputational harm and liability from flawed AI algorithms or biased data - A new risk factor was disclosed regarding the use of Artificial Intelligence (AI), noting that flawed algorithms or data could result in reputational harm or liability[127](index=127&type=chunk)[128](index=128&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In July 2023, **214,000 shares** were issued to settle a **$2.3 million** contingent purchase consideration from a 2020 acquisition - In July 2023, the company issued **214,000 shares** of common stock to extinguish a **$2,299,000** contingent purchase consideration from a 2020 acquisition[129](index=129&type=chunk) [Item 3. Defaults upon Senior Securities](index=29&type=section&id=Item%203.%20Defaults%20upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[129](index=129&type=chunk) [Item 4. Mine Safety Disclosures](index=29&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) No mine safety disclosures were reported - No mine safety disclosures were reported[129](index=129&type=chunk) [Item 5. Other Information](index=29&type=section&id=Item%205.%20Other%20Information) On August 7, 2023, the Senior Credit Facility was amended, and the **$1.7 million** Final Payment Fee was settled - On August 7, 2023, the company amended its Senior Credit Facility and settled the Final Payment Fee for **$1,677,000**[130](index=130&type=chunk) [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including loan agreement amendments and certifications - Filed exhibits include Amendment No. 2 to the Loan and Security Agreement, Sarbanes-Oxley certifications, and Inline XBRL documents[133](index=133&type=chunk)

Asure Software, Inc. (NASDAQ:ASUR) Q1 2023 Earnings Conference Call May 8, 2023 4:30 PM ET Company Participants Randal Rudniski - Head, IR Patrick Goepel - Chairman and CEO John Pence - CFO Conference Call Participants Joshua Reilly - Needham & Company Bryan Bergin - Cowen and Company Eric Martinuzzi - Lake Street Capital Markets Jeff Van Rhee - Craig-Hallum Capital Group Greg Gibas - Northland Capital Markets Richard Baldry - ROTH MKM Vincent Colicchio - Barrington Research Associates Operator Good day lad ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value ASUR The Nasdaq Capital Market Series A Junior Participating Preferred Share Purchase Rights N/A Emerging growth company ☐ FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Se ...

Asure Software, Inc. (NASDAQ:ASUR) Q4 2022 Earnings Conference Call February 27, 2023 4:30 PM ET Company Participants Randal Rudniski - Head, IR Patrick Goepel - Chairman and CEO John Pence - CFO Conference Call Participants Bryan Bergin - Cowen and Company Joshua Reilly - Needham & Company Richard Baldry - ROTH Capital Partners Eric Martinuzzi - Lake Street Capital Markets Jeff Van Rhee - Craig-Hallum Vincent Colicchio - Barrington Research Associates Operator Good afternoon, and welcome to Asure's First Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $0.01 par value ASUR The Nasdaq Capital Market Series A Junior Participating Preferred Share Purchase Rights N/A Emerging growth company ☐ FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the calendar year ended December 31, 2022 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Secur ...

Asure Software, Inc. (NASDAQ:ASUR) Q3 2022 Earnings Conference Call November 7, 2022 4:30 PM ET Company Participants Randal Rudniski - Head, IR Patrick Goepel - Chairman and CEO John Pence - CFO Conference Call Participants Bryan Bergin - Cowen and Company Joshua Reilly - Needham & Company Eric Martinuzzi - Lake Street Capital Markets Richard Baldry - ROTH Capital Partners Vincent Colicchio - Barrington Research Associates Operator Good afternoon, and welcome to Asure's Third Quarter 2022 Earnings Conferenc ...