Core Viewpoint - Asure Software will announce its financial results for the third quarter of 2025 on October 30, 2025, and will hold a conference call to discuss these results [1][2]. Company Information - Asure Software, Inc. is a leading provider of cloud-based Human Capital Management (HCM) software solutions, assisting organizations in streamlining their HCM processes [4]. - The company's HCM solutions include HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management [4]. - Asure incorporates AI technology in its HR compliance services to enhance scalability and efficiency while prioritizing client interactions [4]. Conference Call Details - The conference call will take place on October 30, 2025, at 4:30 p.m. Eastern time, hosted by Chairman and CEO Pat Goepel and CFO John Pence [2]. - Participants can join the call by dialing 877-407-9219 for U.S. calls or 201-689-8852 for international calls, with a confirmation code of 13756367 [2]. - The call will also be available via webcast on the investor relations section of Asure Software's website, with a replay option [3].

Core Insights - Passenger traffic for Grupo Aeroportuario del Sureste (ASUR) in September 2025 reached 4.8 million, a decrease of 1.4% compared to September 2024 [1][4] - Year-over-year passenger traffic increased by 3.2% in Colombia and 1.6% in Puerto Rico, while it decreased by 4.5% in Mexico [2][4] Passenger Traffic Summary - **Mexico**: - Total passenger traffic decreased from 2,728,720 in September 2024 to 2,605,717 in September 2025, a decline of 4.5% [4] - Domestic traffic decreased by 3.1% and international traffic decreased by 6.5% [4][5] - **Puerto Rico**: - Total passenger traffic increased from 773,296 in September 2024 to 785,846 in September 2025, an increase of 1.6% [4] - International traffic saw a significant increase of 16.1%, while domestic traffic decreased by 0.5% [2][4] - **Colombia**: - Total passenger traffic increased from 1,352,202 in September 2024 to 1,395,261 in September 2025, a rise of 3.2% [4] - International traffic increased by 10.0%, while domestic traffic rose by 1.4% [2][4] Year-to-Date Performance - **Mexico**: Year-to-date passenger traffic decreased by 2.7% from 31,314,960 in 2024 to 30,481,397 in 2025 [4] - **Puerto Rico**: Year-to-date traffic increased by 4.9% from 10,047,837 in 2024 to 10,543,332 in 2025 [4] - **Colombia**: Year-to-date traffic increased by 3.4% from 12,218,181 in 2024 to 12,635,396 in 2025 [4] Company Overview - Grupo Aeroportuario del Sureste (ASUR) operates 16 airports across the Americas, including major airports in Mexico and Colombia, and is a key player in the airport management sector [8]

Industry Overview - The Zacks Internet - Delivery Services industry includes companies providing services through Internet-based platforms, such as food delivery, online travel booking, and web hosting [2] - The industry is characterized by growth-stage companies investing heavily in R&D and sales & marketing, which may hinder short-term profitability [2] Growth Drivers - Increased smartphone usage and improved Internet access are driving growth in the delivery services sector, with 4G and emerging 5G technology enhancing user experiences [3] - Shifting consumer preferences towards convenience and online services are expected to benefit the industry, particularly in food ordering and travel booking [4] - Technological advancements, such as smart routing algorithms and real-time GPS tracking, are improving delivery efficiency and customer experience [5] Challenges - Persistent macroeconomic uncertainties, inflation, and high interest rates pose significant challenges to the industry [1] - Higher upfront costs associated with market expansion may negatively impact profitability, especially as competition intensifies from major tech companies like Amazon and Alphabet [7] - The potential fallout from tariff wars could indirectly affect revenue growth and margins due to reduced spending from small businesses and startups [6] Industry Performance - The Zacks Internet - Delivery Services industry has underperformed compared to the S&P 500 and the broader Computer and Technology sector over the past year, gaining only 0.2% [11] - The industry currently holds a Zacks Industry Rank of 103, placing it in the top 42% of approximately 250 Zacks industries, indicating solid near-term prospects [9][10] Valuation Metrics - The industry is trading at a forward 12-month price-to-sales (P/S) ratio of 1.64X, significantly lower than the S&P 500's 5.44X and the sector's 7.1X [14] Company Highlights - **GoDaddy (GDDY)**: Focused on cloud-based technology products, benefiting from strong momentum in its Applications & Commerce business, with a Zacks Consensus Estimate for 2025 earnings revised upward by 2.2% to $6.05 per share [17][18][19] - **Vipshop Holdings (VIPS)**: An online discount retailer in China, improving its financial performance through enhanced product offerings and a focus on high-margin apparel businesses, with a current-year earnings estimate revised upward by $0.05 to $2.44 per share [23][24] - **QuinStreet (QNST)**: A provider of online marketing services, positioned to benefit from the shift to online business models, with a fiscal 2026 earnings estimate remaining unchanged at $1.05 per share [27][28] - **Asure Software (ASUR)**: A cloud computing firm focusing on human capital management solutions, with a 2025 earnings estimate revised upward by $0.02 to $0.79 per share [31][32]

Core Insights - Passenger traffic for Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) in August 2025 reached 6.0 million, a 0.6% increase compared to August 2024 [1][4] - Year-over-year passenger traffic increased by 4.6% in Puerto Rico and 2.7% in Colombia, while it decreased by 1.6% in Mexico [2][4] Passenger Traffic Summary - **Mexico**: - Total passenger traffic decreased from 3,350,590 in August 2024 to 3,296,073 in August 2025, a decline of 1.6% - Domestic traffic fell by 2.6% and international traffic decreased by 0.4% [4][5] - **Puerto Rico**: - Total passenger traffic increased from 1,134,323 in August 2024 to 1,186,630 in August 2025, a rise of 4.6% - Domestic traffic rose by 3.3% and international traffic surged by 13.7% [4][5] - **Colombia**: - Total passenger traffic increased from 1,502,187 in August 2024 to 1,543,290 in August 2025, a growth of 2.7% - International traffic increased by 12.8%, while domestic traffic saw a slight decrease of 0.2% [4][5] Year-to-Date Performance - **Mexico**: Year-to-date passenger traffic decreased by 2.5% from 28,586,240 in 2024 to 27,875,680 in 2025 [4][5] - **Puerto Rico**: Year-to-date traffic increased by 5.2% from 9,274,541 in 2024 to 9,757,486 in 2025 [4][5] - **Colombia**: Year-to-date traffic increased by 3.4% from 10,865,979 in 2024 to 11,240,135 in 2025 [4][5] Company Overview - ASUR operates 16 airports across the Americas, including nine in southeast Mexico and six in northern Colombia, with a significant presence in San Juan, Puerto Rico [6]

Company Participation in Financial Conferences - Asure Software, Inc. is scheduled to participate in the Lake Street Best Ideas Growth Conference on September 11, 2025, in New York, NY, with in-person 1x1 meetings [1] - The company will also attend the Barrington Research Fall Investment Conference on September 16, 2025, which will be conducted virtually with 1x1 meetings [1] Company Overview - Asure Software, Inc. provides cloud-based Human Capital Management (HCM) software solutions aimed at streamlining HCM processes for organizations of all sizes [2] - The suite of HCM solutions offered by Asure includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management [2] - The company's approach to HR compliance services leverages AI technology to enhance scalability and efficiency while focusing on client interactions [2]

Passenger Traffic Overview - Passenger traffic in July 2025 reached 6.5 million, a 1.5% increase compared to July 2024 [1] - Year-on-year traffic increased by 3.5% in Colombia and 2.0% in Mexico, while Puerto Rico saw a decrease of 1.9% [2][4] Traffic Breakdown by Region Mexico - Total passenger traffic in Mexico for July 2025 was 3,617,941, up 2.0% from July 2024 [4] - Domestic traffic increased slightly by 0.4% to 1,796,925, while international traffic rose by 3.7% to 1,821,016 [5] - Year-to-date figures show a decline in total traffic by 2.6% to 24,579,607 [4] Puerto Rico - San Juan Airport reported a total of 1,381,674 passengers in July 2025, a decrease of 1.9% from the previous year [7] - Domestic traffic fell by 3.5% to 1,176,500, while international traffic increased by 8.0% to 205,174 [7] Colombia - Colombia's total passenger traffic for July 2025 was 1,511,049, reflecting a 3.5% increase [8] - Domestic traffic rose by 1.2% to 1,131,678, and international traffic surged by 10.7% to 379,371 [8] Year-to-Date Performance - Year-to-date total traffic across all regions showed a slight increase of 0.3% to 42,847,308 [4] - Domestic traffic year-to-date decreased by 0.5% to 26,224,235, while international traffic saw a decline of 1.6% to 16,623,073 [4] Company Profile - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) operates 16 airports in the Americas, including major airports in Mexico and Colombia [9] - ASUR is listed on both the Mexican Bolsa and the NYSE, with a focus on maintaining and developing airport infrastructure [9]

Core Insights - Asure Software reported a GAAP net loss per share of $(0.22) for Q2 2025, missing the positive earnings estimate of $0.14 per share, despite improvements in underlying recurring revenue and adjusted EBITDA [1][2] - The company raised its full-year revenue guidance due to growth in key product lines and the acquisition of Lathem Time, indicating solid progress in strategic initiatives [1][14] Financial Performance - Q2 2025 revenue was $30.1 million, below the estimate of $31.03 million, with a year-over-year increase of 7% [2][5] - Adjusted EBITDA rose to $5.2 million from $4.1 million in Q2 2024, reflecting a 26.8% increase [2][5] - Recurring revenue reached $28.6 million, accounting for 95% of total revenue, and increased by 6% year-over-year [6][2] Business Overview - Asure Software provides cloud-based human capital management (HCM) and payroll solutions primarily to small and mid-sized businesses in the U.S. [3] - The company focuses on payroll processing, compliance, and related software services, distributed through direct sales and partnerships [3] Strategic Focus - Recent strategies emphasize innovation through product development and automation, including the use of robotic process automation (RPA) and artificial intelligence (AI) [4] - The company aims to grow recurring software subscription revenues and improve product adoption rates among existing customers [4] Recent Developments - The acquisition of Lathem Time, a time and attendance tracking solutions provider, is expected to enhance Asure's scale and recurring revenue base, although its impact will be seen in future quarters [7][14] - The Payroll Tax Management product line was a significant growth driver, supported by increased attach rates and cross-selling efforts [6][10] Outlook - Management increased the full-year 2025 revenue guidance to $138.0–$142.0 million, up from $134.0–$138.0 million, with Q3 2025 revenue projected at $35.0–$37.0 million [14] - Adjusted EBITDA for Q3 2025 is expected to improve to $7.0–$9.0 million, targeting an adjusted EBITDA margin of 22–24% for fiscal 2025 [14]

分组1 - Asure Software Inc (ASUR) reported quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.15 per share, representing an earnings surprise of -40.00% [1] - The company posted revenues of $30.12 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.49%, compared to year-ago revenues of $28.04 million [2] - Over the last four quarters, Asure Software has surpassed consensus EPS estimates just once and topped consensus revenue estimates only once [2] 分组2 - The current consensus EPS estimate for the coming quarter is $0.26 on revenues of $33.85 million, and for the current fiscal year, it is $0.90 on revenues of $135.27 million [7] - The Zacks Industry Rank for Internet - Delivery Services is currently in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Asure Software's stock performance [5][6]

Financial Data and Key Metrics Changes - The company's second quarter revenues were $30.1 million, an increase of 7% year-over-year, and a 10% increase when excluding ERTC revenue [5][11][13] - Recurring revenues grew 6% year-over-year to $28.6 million, representing 95% of total revenue [13] - Gross profit increased to $19.9 million, with gross margins at 66% compared to 67% in the prior year [18] - Net loss for the quarter was $6.1 million, compared to a net loss of $4.4 million in the prior year [19] - Adjusted EBITDA increased to $5.2 million, with an adjusted EBITDA margin of 17% [19] Business Line Data and Key Metrics Changes - Payroll tax management product continued strong performance, contributing to revenue growth [5][10] - Attach rates for human capital management products improved by 400 basis points year-over-year [10][17] - Bookings for the second quarter declined by 53% year-over-year, but increased by 15% when excluding large enterprise deals from the previous year [11] Market Data and Key Metrics Changes - The company has a contracted revenue backlog of $82 million, up 68% year-over-year, indicating strong future revenue potential [11][25] - The acquisition of Latham Time Corporation is expected to enhance market presence and drive additional high-margin revenue [6][20] Company Strategy and Development Direction - The acquisition of Latham Time Corporation aims to enhance the company's workforce management capabilities and drive payroll sales [6][10] - The company is focused on integrating acquired point solutions to improve client experience and increase attach rates [10][24] - The long-term goal is to achieve adjusted EBITDA margins of over 30% at revenue levels of $180 million to $200 million [24][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of 2025, expecting a reduction in HR compliance-related headwinds [22][49] - The company is budgeting for increased capital spending to integrate acquired solutions and enhance service offerings [23][24] - Management anticipates continued growth in the high teens range for the full year of 2025 [25] Other Important Information - The company is increasing its full-year 2025 revenue guidance to a range of $138 million to $142 million, including the impact of the Latham acquisition [11][21] - The company is modeling for higher interest expenses due to the new debt from the acquisition [20] Q&A Session Summary Question: Update on payroll tax management revenue and large deals - Management confirmed progress in the tax business and noted that some large deals have experienced phased installations but no losses in backlog [27][29][30] Question: Growth rate of Latham's business and revenue expectations - Latham's business has grown at about 10%, and the acquisition is expected to contribute approximately $7 million in revenue for the second half of the year [33][35] Question: Penetration of time and attendance solutions within existing customer base - Management indicated that Latham's client base presents significant cross-sell opportunities, with expectations to increase attach rates [40][41][43] Question: Core payroll unit growth and organic revenue expectations - Management indicated that core payroll units are likely growing closer to 5% when excluding headwinds from HR compliance [47][49] Question: Cost synergies and integration timeline for Latham - Management expects to realize cost synergies over the next 18 months, with Latham contributing positively to adjusted EBITDA [81][84] Question: Future acquisition appetite post-Latham acquisition - Management remains open to further acquisitions but will focus on integrating Latham in the near term [89][90]

Financial Performance & Growth - Asure's Q2 2025 total revenue increased by 7% year-over-year to $30.1 million; excluding ERTC, revenue increased by 10%[13] - FY2025 revenue guidance is between $138 million and $142 million[15, 22] - Asure anticipates an adjusted EBITDA margin of 22%-24% for FY2025[17, 30] - The company has 93% net retention rate[15] Strategic Acquisitions & Business Model - Asure completed the acquisition of Lathem Time Corporation on July 1, 2025, adding scale to the time and attendance business and high-margin recurring revenue[13] - Asure serves over 100,000 clients and facilitates over $10 billion in money movement[15, 17] - The company's revenue model is shifting, with adjusted EBITDA approaching ~30% and operating income approaching ~20% as revenue scales[24] Market Opportunity & Strategy - The US HCM total addressable market (TAM) is projected to reach $90 billion, growing at a CAGR of 7.6% through 2025[38] - Asure's go-to-market strategy includes traditional organic growth, enhanced organic growth through resellers, and strategic inorganic growth via M&A[31, 33] - Approximately 60% of new clients come from trusted advisors like brokers, banks, and CPAs[51]