Core Insights - Asure Software, Inc. is scheduled to attend the 37th Annual Roth Conference from March 16-18, 2025, in Dana Point, CA [1] - The management team will hold one-on-one meetings with institutional investors during the conference [2] - CEO Pat Goepel will participate in a fireside chat with Roth analyst Richard Baldry on March 17, 2025, at 2:00 PM PT [2] Company Overview - Asure Software provides cloud-based Human Capital Management (HCM) software solutions aimed at streamlining HCM processes for organizations of all sizes [3] - The suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management [3] - The company utilizes AI technology in its HR compliance services to enhance scalability and efficiency while focusing on client interactions [3]

Financial Data and Key Metrics Changes - Total revenue for 2024 increased modestly to $119.8 million, with a 17% increase excluding ERTC revenues [10][23] - Recurring revenues grew by 15% year-over-year, now representing 96% of total revenues compared to 84% in 2023 [11][40] - Fourth quarter total revenues were $30.8 million, a 17% increase year-over-year, while recurring revenue rose by 14% [23] - Gross profit margin for the fourth quarter remained stable at 68%, while full-year gross margins decreased to 69% from 72% [26] Business Line Data and Key Metrics Changes - Payroll tax management product significantly contributed to revenue growth, alongside recent acquisitions [12][24] - Revenue growth was also noted in payroll, time and attendance, and benefits groups, with strong performance from the new insurance offerings [25] - The 401(k) product saw an 86% increase in new bookings compared to the previous year, with a strong contracted backlog growing 17% since the last quarter [18][40] Market Data and Key Metrics Changes - The company anticipates continued growth in the payroll tax management business, with a robust pipeline of enterprise deals [48][78] - The demand environment remains stable, with ongoing hiring trends despite economic volatility [73][76] Company Strategy and Development Direction - The company is focused on replacing one-time ERTC revenues with higher-value recurring revenues through organic growth and acquisitions [11][19] - A multiyear agreement was signed with a leading firm to resell payroll and payroll tax management solutions, enhancing market reach [20] - The introduction of innovative products like AssurePay and the AI agent Luna aims to improve client experience and operational efficiency [16][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about entering 2025, highlighting strong momentum and a focus on cross-selling and enhancing attach rates [39][40] - The company is preparing for potential economic headwinds but remains confident in its growth trajectory and client acquisition strategy [76][81] Other Important Information - The company is in early discussions for a credit facility between $20 million to $60 million to support customer acquisition and potential M&A activities [30][62] - Adjusted EBITDA for the fourth quarter increased to $6.2 million, with a margin of 20%, while full-year adjusted EBITDA was $22.5 million [28] Q&A Session Summary Question: Progress on enterprise payroll tax opportunities and sales team productivity - Management reported good progress in enterprise tax sales and noted that the sales team is now fully productive post-ERTC transition [44][50] Question: Importance of closing the credit facility for M&A - The credit facility is crucial for funding customer acquisitions, with most sellers requiring upfront cash payments [56][59] Question: Demand environment and client hiring trends - Management indicated that hiring continues, with a divide between salary levels affecting layoffs, but overall job availability remains strong [72][74] Question: Outlook for Q1 revenue and seasonal business components - Q1 revenue is expected to be flat compared to the previous year, with a conservative approach to professional services [85][90] Question: Details on the SurePay introduction and 401(k) momentum - SurePay is currently being tested with 500 clients, and the 401(k) product is gaining traction as the sales team becomes more specialized [100][110]

Financial Performance & Growth - Total revenues for 2024 reached $119.8 million, with a 17% increase excluding one-time ERTC revenue compared to 2023 [10] - Recurring revenues grew by 15% compared to 2023, now representing 96% of total revenues, up from 84% the previous year [10] - Bookings grew 86% in 2024 [12] - Revenue guidance for FY2025 is projected to be between $134 million and $138 million [12] - Adjusted EBITDA margin guidance for FY2025 is estimated at 23%-24% [12] Client & Employee Metrics - The company serves over 100,000 clients [12] - The company serves over 2 million employees [12] - The company has money movement of $10 billion+ [12] - Net client retention is at 93% LTM (Last Twelve Months) [12] Market Opportunity & Strategy - The U S HCM TAM (Total Addressable Market) is growing at a 7.6% CAGR (Compound Annual Growth Rate) through 2025, reaching $90 billion+ [27] - Approximately 50% of the U S HCM market consists of businesses with fewer than 1000 employees [27] - The company aims for ~20% revenue growth through a long-term growth model [76]

Financial Data and Key Metrics Changes - Total revenue for 2024 increased modestly to $119.8 million, with a 17% increase excluding ERTC revenues [10][11] - Recurring revenues grew by 15% year-over-year, now representing 96% of total revenues compared to 84% in 2023 [11][40] - Fourth quarter total revenues were $30.8 million, a 17% increase year-over-year, while recurring revenue rose by 14% [23][24] - Gross profit margin for the fourth quarter remained stable at 68%, while full-year gross margins decreased to 69% from 72% [26][27] - Net loss for the fourth quarter was $3.2 million, an improvement from $3.6 million in the prior year [27] Business Line Data and Key Metrics Changes - Payroll tax management product significantly contributed to revenue growth, alongside recent acquisitions [12][24] - Revenue growth was also noted in payroll, time and attendance, and benefits groups, with strong future potential in insurance offerings [25] - The 401(k) product saw an 86% increase in new bookings compared to the previous year, with a strong contracted backlog growing 17% since the last quarter [18][19] Market Data and Key Metrics Changes - The company anticipates a mid-teens growth rate for 2025, with revenue guidance set between $134 million and $138 million [19][34] - The contracted backlog reached $79 million, up from approximately $20 million at year-end 2023, with about a third expected to be recognized in 2025 [31] Company Strategy and Development Direction - The company is focused on enhancing client experience by integrating all solutions into a common user interface and launching innovative products like Luna, an AI agent for payroll and HR [16][38] - A multiyear agreement was signed with a leading firm in audit, tax, consulting, and advisory services to resell payroll and payroll tax management solutions [20] - The company aims to achieve 30% plus adjusted EBITDA margins as revenues approach $200 million, indicating a focus on scaling operations and improving profitability [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the hiring environment, noting a divide in layoffs between salary brackets and a continued demand for labor [73][74] - The company is optimistic about the growth of its tax business and the overall demand for its solutions, despite some challenges in HR compliance [81][82] - Management highlighted the importance of cross-selling and increasing attach rates to drive future revenue growth [39][122] Other Important Information - The company is in early discussions for a credit facility between $20 million to $60 million to support customer acquisition and potential M&A activities [30][62] - The company has made significant investments in expanding its product portfolio, which is expected to drive new client additions and enhance cross-selling opportunities [36][130] Q&A Session Summary Question: Progress on enterprise payroll tax opportunities and sales team productivity - Management reported good progress in enterprise tax sales and noted that the sales team is now fully productive post-ERTC transition [44][50] Question: Importance of closing the credit facility for M&A - The credit facility is crucial for funding upfront cash payments for customer acquisitions, which is a key part of the company's growth strategy [56][59] Question: Demand environment amid economic volatility - Management indicated that hiring continues on Main Street, with a cautious outlook in certain industries but overall positive employment trends [72][74] Question: Outlook for Q1 revenue breakdown - Management expects Q1 revenues to be flat compared to the previous year, with a conservative stance on professional services [85][90] Question: Details on SurePay rollout and 401(k) momentum - The SurePay product is in testing with 500 clients, and the 401(k) offering is gaining momentum as the sales team becomes more specialized [100][110] Question: New bookings growth drivers - The increase in new bookings is attributed to unit growth and the introduction of broader offerings, with a focus on improving ARPU through cross-selling [114][116]

Company Performance - Asure Software Inc reported quarterly earnings of $0.15 per share, missing the Zacks Consensus Estimate of $0.16 per share, but showing an increase from $0.07 per share a year ago, resulting in an earnings surprise of -6.25% [1] - The company posted revenues of $30.79 million for the quarter ended December 2024, which was 0.30% below the Zacks Consensus Estimate, compared to $26.26 million in the same quarter last year [2] - Over the last four quarters, Asure Software has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Outlook - Asure Software shares have increased approximately 5.6% since the beginning of the year, contrasting with a -0.7% decline in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.27 on revenues of $35.35 million, and for the current fiscal year, it is $0.88 on revenues of $134.81 million [7] - The estimate revisions trend for Asure Software is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Delivery Services industry, to which Asure Software belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for the year ended December 31, 2024, was $119,792,000, a slight increase of 0.6% compared to $119,082,000 in 2023[230]. - Recurring revenue increased to $114,471,000 in 2024, up 14.7% from $99,734,000 in 2023[230]. - Net loss for 2024 was $11,773,000, compared to a net loss of $9,214,000 in 2023, representing a 27.7% increase in losses[230]. - Total current assets decreased to $237,277,000 in 2024 from $267,220,000 in 2023, a decline of 11.2%[229]. - Cash and cash equivalents at the end of 2024 were $21,425,000, down from $30,317,000 in 2023, a decrease of 29.4%[229]. - Total liabilities decreased to $239,323,000 in 2024 from $252,213,000 in 2023, a reduction of 5.1%[229]. - Total stockholders' equity increased to $197,315,000 in 2024 from $191,655,000 in 2023, an increase of 2.8%[229]. - Operating expenses rose to $92,844,000 in 2024, up from $88,536,000 in 2023, an increase of 4.1%[230]. - Cash flows from operating activities provided $9,388,000 in 2024, a decrease from $18,900,000 in 2023[234]. - Total cash, cash equivalents, restricted cash, and restricted cash equivalents decreased from $177,622 million in 2023 to $145,712 million in 2024, a decline of approximately 18%[236]. - Cash paid for income taxes significantly reduced from $432 million in 2023 to $18 million in 2024, a decrease of about 96%[236]. - Basic loss per share for the year ended December 31, 2024, was $(0.45), compared to $(0.42) in 2023[344]. Acquisitions and Investments - Asure Software plans to continue acquiring businesses from Reseller Partners, which may pose integration challenges and affect financial results[16]. - The company acquired substantially all assets of an applicant tracking technology company for a total purchase price of $15,162, which included $7,900 in cash, a $3,000 promissory note, and shares valued at $4,262[280]. - The purchase consideration allocated $2,700 to customer relationships and $3,200 to developed technology, with the remaining $8,713 allocated to goodwill[281]. - The company completed eleven customer relationship asset acquisitions in 2024 for a total purchase price of $14,049, including $5,842 in cash paid during the year[284]. - The company completed two customer relationship asset acquisitions post-December 31, 2024, for a total purchase price of $7,801,000[347]. - The company issued 1,025,000 shares for acquisitions in 2024, contributing to an increase in additional paid-in capital to $504,849,000[231]. Revenue Recognition and Deferred Revenue - Revenue from maintenance/support is recognized ratably over the non-cancellable term of the support agreement, typically one to three years[268]. - Revenue from professional services is recognized on a proportional performance basis as the service is provided[267]. - The company recognizes contract liabilities, or deferred revenue, for amounts invoiced to customers in excess of recognized revenue, primarily ranging from one to five years[273]. - Revenue recognized from deferred revenue was $6,626 for 2024, down from $7,488 in 2023[309]. - Approximately $79,095 of revenue is expected to be recognized from remaining performance obligations, with 32% expected to be recognized over the next 12 months[310]. - The company finalized various multi-year arrangements, increasing deferred revenue balances as of December 31, 2024, compared to 2023[311]. Market and Operational Risks - Asure Software reported a material weakness in internal control over financial reporting, which may lead to future misstatements in financial statements[16]. - The company has a history of losses and cannot guarantee future profitability[16]. - The expiration of Employee Retention Tax Credits regulations is expected to adversely impact revenues in 2024 and 2025[18]. - The company is exposed to various market risks, including interest rate and foreign exchange risks, and has not used derivative instruments to mitigate these risks[19]. - Significant costs are incurred due to operating as a public company, which may affect financial condition and management focus[18]. - Client funds held in trust are subject to market and liquidity risks, which could materially affect financial results[18]. - The company relies on third-party data centers and computing infrastructure, and any disruptions could adversely impact operations[16]. - Asure Software's ability to maintain competitive advantage may be impaired if proprietary rights are not adequately protected[18]. - The markets in which Asure operates are highly competitive, and failure to compete effectively could adversely affect operating results[18]. Legal and Regulatory Environment - There were no material legal proceedings against the company as of December 31, 2024, indicating a stable legal environment for operations[245]. - The company filed a universal shelf registration statement for up to $150,000 in securities, effective April 19, 2024[317]. Tax and Deferred Tax Assets - The provision for income taxes attributable to continuing operations for 2024 was $933,000, significantly higher than $109,000 in 2023[335]. - Deferred tax assets totaled $26,467,000 in 2024, up from $23,420,000 in 2023, while total deferred tax liabilities increased to $10,582,000 from $9,039,000[336]. - The valuation allowance against net deferred tax assets increased by $2,388,000 during the year ended December 31, 2024[338]. Research and Development - Asure Software, Inc. continues to invest in research and development to expand its Human Capital Management (HCM) solutions, addressing HR complexity and enhancing employee productivity[240]. - The company operates a single reportable segment primarily deriving revenue from payroll services in the United States[243]. - Asure HCM suite includes seven product lines, enhancing efficiencies and providing value-added solutions to employers and employees[240]. - The company has adopted new accounting standards for segment reporting, effective for fiscal years beginning after December 15, 2023, which will enhance reportable disclosures[247].

Revenue Performance - Full Year 2024 revenues reached $119.8 million, with recurring revenues growing 15% year-over-year[1] - Recurring revenues accounted for 96% of total revenues, up from 84% in the prior year[6] - Fourth Quarter 2024 revenue was $30.8 million, a 17% increase year-over-year, and 22% growth when excluding ERTC revenue[5] - Total revenue for the twelve months ended December 31, 2024, was $119,792,000, a slight increase from $119,082,000 in 2023, with recurring revenue rising to $114,471,000 from $99,734,000[38] - Revenue for Q4-24 was $30,792,000, an increase of 5.1% from Q3-24's $29,304,000[47] - Revenue guidance for Q1 2025 is projected between $33.0 million and $35.0 million, and for FY 2025 between $134.0 million and $138.0 million[9] Profitability and Loss - Net loss for Full Year 2024 was $11.8 million, compared to a net loss of $9.2 million in the prior year[5] - Adjusted EBITDA for Full Year 2024 was $22.5 million, down from $23.3 million in the prior year[5] - The company reported a gross profit of $82.1 million for Full Year 2024, down from $85.5 million in the prior year[5] - The net loss for the twelve months ended December 31, 2024, was $11,773,000, compared to a net loss of $9,214,000 in 2023, indicating a worsening financial performance[38] - GAAP net loss for Q4-24 was $(3,204,000), an improvement from $(3,901,000) in Q3-24[47] - Adjusted EBITDA for Q4-24 was $6,229,000, with an adjusted EBITDA margin of 20.2%[47] Cash Flow and Financial Position - Cash and cash equivalents decreased to $21,425,000 as of December 31, 2024, down from $30,317,000 in 2023[36] - Net cash provided by operating activities decreased to $9,388 thousand in 2024 from $18,900 thousand in 2023, a decline of about 50.3%[41] - Total cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of 2024 was $145,712 thousand, down from $177,622 thousand in 2023, reflecting a decrease of approximately 17.9%[43] - The cash balance at the beginning of the period was $177,622 thousand, which decreased to $145,712 thousand by the end of the period, indicating a net decrease of $31,910 thousand[41] - The company experienced a net change in client fund obligations of $(26,342) thousand in 2024, compared to a net increase of $13,931 thousand in 2023, reflecting a significant shift in client fund management[41] Expenses and Liabilities - Operating expenses for the twelve months ended December 31, 2024, totaled $92,844,000, up from $88,536,000 in 2023, driven by increased costs in general and administrative expenses[38] - Research and development expenses for Q4-24 totaled $2,103,000, up from $1,973,000 in Q3-24[47] - Sales and marketing expenses for Q4-24 were $6,945,000, compared to $6,680,000 in Q3-24[47] - General and administrative expenses for Q4-24 amounted to $9,940,000, a decrease from $10,378,000 in Q3-24[47] - Total current liabilities decreased to $223,636,000 in 2024 from $241,340,000 in 2023, indicating improved short-term financial health[36] Strategic Initiatives - The company signed a multi-year agreement in January 2025 to resell Payroll and Payroll Tax Management solutions[5] - Introduction of Luna, an advanced AI agent for payroll and HR management, was announced[5] - Management emphasized a solid foundation for growth in 2025, focusing on both organic and inorganic expansion[7] - The company plans to continue focusing on enhancing its Software-as-a-Service model and addressing regulatory challenges in the upcoming fiscal year[34] Asset Management - The company's total assets decreased to $436,638,000 as of December 31, 2024, from $443,868,000 in 2023[36] - The company's goodwill increased to $94,724,000 in 2024 from $86,011,000 in 2023, suggesting potential acquisitions or increased valuation of existing assets[36] - Acquisition of intangible assets in 2024 amounted to $5,338 thousand, a substantial increase from $357 thousand in 2023[43]

Core Insights - Asure Software, Inc. reported full year 2024 revenues of $119.8 million, with recurring revenues growing 15% year-over-year, now representing 96% of total revenues, up from 84% in the prior year [1][6][7]. Financial Highlights - Fourth quarter 2024 revenue reached $30.8 million, a 17% increase year-over-year, and 22% growth when excluding one-time ERTC revenue [6][7]. - For the full year 2024, total revenue increased slightly, with adjusted revenue growth of 17% year-over-year when excluding ERTC [6][7]. - Recurring revenue for the full year was $114.5 million, up 15% from the prior year [7]. - The company reported a net loss of $11.8 million for the full year, compared to a net loss of $9.2 million in the previous year [7]. Recent Business Developments - In January 2025, Asure signed a multi-year agreement with a leading audit and consulting firm to resell its Payroll and Payroll Tax Management solutions [7]. - The introduction of Luna, an advanced AI agent for payroll and HR management, was announced, aimed at enhancing client interactions and operational efficiency [7]. - Jay Whitehead joined Asure as Senior Vice President to lead the AsurePay™ Platinum VIP Banking card and Marketplace businesses, expected to drive innovation [7]. Management Commentary - The management expressed satisfaction with the strong results for 2024, highlighting the growth in recurring revenue and the expansion of contracted revenue backlog as indicators of future growth [6][8]. - The company plans for both organic and inorganic expansion in 2025, supported by significant investments in technology and product development [8]. Guidance for 2025 - Asure provided revenue guidance for Q1 2025 in the range of $33.0 million to $35.0 million and for the full year 2025 in the range of $134.0 million to $138.0 million [10]. - Adjusted EBITDA guidance for Q1 2025 is projected between $6.0 million and $7.0 million, with a margin of 23% to 24% [10].

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total passenger traffic of 5.6 million in February 2024, reflecting a year-over-year decrease of 2.6% compared to February 2023 [1][3] Passenger Traffic Summary - Passenger traffic in Puerto Rico increased by 8.6%, driven by a 19.2% rise in international traffic and a 7.5% increase in domestic traffic [2][4] - Colombia experienced a 3.3% increase in passenger traffic, with international traffic up by 11.3% and domestic traffic rising by 1.1% [2][4] - In Mexico, total passenger traffic decreased by 7.5%, with international traffic down by 10.6% and domestic traffic declining by 2.9% [2][4] Year-to-Date Performance - Year-to-date figures for February 2025 show a total traffic of 12,053,858, which is a slight decrease of 0.3% compared to the previous year [4] - Domestic traffic year-to-date increased by 2.8%, while international traffic saw a decline of 4.5% [4] Detailed Traffic Breakdown - In Mexico, February 2025 domestic traffic was 1,375,440, down 2.9% from the previous year, while international traffic was 1,952,825, down 10.6% [4][5] - San Juan, Puerto Rico, reported domestic traffic of 956,531, an increase of 7.5%, and international traffic of 112,385, up 19.2% [5] - Colombia's domestic traffic reached 946,659, a 1.1% increase, while international traffic was 283,772, reflecting an 11.3% rise [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 the Caribbean [6] - The company is also a 60% joint venture partner in Aerostar Airport Holdings, which operates Luis Muñoz Marín International Airport in San Juan, Puerto Rico [6]

Core Insights - Grupo Aeroportuario del Sureste (ASUR) reported a total revenue increase of 31.2% year-over-year, reaching Ps.9,020.6 million for the fourth quarter of 2024 [3][5] - Passenger traffic overall declined by 0.3% year-over-year, with significant variations across regions: Mexico saw an 8.0% decrease, while Puerto Rico and Colombia experienced increases of 9.6% and 14.1%, respectively [5][3] - The company’s EBITDA rose by 22.5% year-over-year to Ps.5,111.3 million, with an adjusted EBITDA margin improvement to 69.7% from 67.7% in the previous year [5][3] Financial Highlights - Total Revenue: Increased from Ps.6,876.9 million in Q4 2023 to Ps.9,020.6 million in Q4 2024, a growth of 31.2% [3] - Net Income: Rose by 37.2% year-over-year to Ps.3,589.7 million [3][5] - Earnings per Share: Increased from 8.4570 pesos to 11.3819 pesos, reflecting a 34.6% growth [3][5] - Cash Position: Ended the year with Ps.20,083.4 million, a 44.8% increase [5] Operational Highlights - Passenger Traffic: - Mexico: Decreased by 8.0%, with international traffic down 7.5% and domestic traffic down 8.6% [5] - Puerto Rico: Increased by 9.6%, driven by a 28.9% rise in international traffic and a 7.3% rise in domestic traffic [5] - Colombia: Increased by 14.1%, with international traffic up 20.4% and domestic traffic up 12.5% [5] - Commercial Revenues per Passenger: Increased by 9.4% year-over-year to Ps.130.2 [5] Capital Expenditure and Debt - Capex: Increased significantly by 257.9% year-over-year to Ps.2,532.7 million [3] - Net Debt: Increased from Ps.(1,648.1 million) to Ps.(6,724.0 million), reflecting a 308.0% change [3]