Asure Software(ASUR) - 2024 Q2 - Quarterly Report

Revenue Performance - For the six months ended June 30, 2024, recurring revenue was $57,324, an increase of$ 6,408, or 13%, compared to $50,916 for the same period in 2023[98]. - Recurring revenue for the three months ended June 30, 2024, was$ 27,051, an increase of $4,091, or 18%, from$ 22,960 for the same period in 2023[98]. - Total revenue for the six months ended June 30, 2024, was $59,696, a decrease of$ 3,788, or 6%, from $63,484 for the same period in 2023[94]. - Recurring revenue represented over 96% of total revenue for the six months ended June 30, 2024, compared to 80% for the same period in 2023[93]. - The company expects revenue to increase as it introduces new applications and expands its client base[93]. Profitability and Expenses - Gross profit margin for the six months ended June 30, 2024, was 69%, down from 73% in the same period of 2023[92]. - Total operating expenses for the six months ended June 30, 2024, represented 77% of total revenue, compared to 72% in the same period of 2023[92]. - Consolidated gross profit for the three months ended June 30, 2024, was$ 18,868, a decrease of $3,150, or 14%, from$ 22,018 for the same period in 2023, with gross profit as a percentage of revenue dropping to 67% from 72%[103]. - Sales and marketing expenses for the three months ended June 30, 2024, were $6,924, a decrease of$ 1,591, or 19%, from $8,515 for the same period in 2023, with expenses as a percentage of revenue decreasing to 25% from 28%[105]. - Research and development expenses for the three months ended June 30, 2024, were$ 1,962, an increase of $637, or 48%, from$ 1,325 for the same period in 2023, with R&D expenses as a percentage of revenue increasing to 7% from 4%[110]. - Amortization expense for the three months ended June 30, 2024, was $4,046, an increase of$ 752, or 23%, from $3,294 for the same period in 2023, with amortization as a percentage of revenue rising to 14% from 11%[112]. Net Loss and Working Capital - The company incurred a net loss of$ 4,360, or $0.17 per share, during the three months ended June 30, 2024, compared to a loss of$ 3,765, or $0.18 per share, during the same period in 2023, with loss as a percentage of total revenue increasing to 16% from 12%[117]. - Working capital decreased to$ 23,663 at June 30, 2024, down by $2,217 from$ 25,880 at December 31, 2023[118]. Cash Flow and Liquidity - Net cash used in operating activities for the six months ended June 30, 2024, was $1,719, primarily driven by changes in operating assets and liabilities[119]. - Net cash used in investing activities for the six months ended June 30, 2024, was$ 7,359, primarily due to purchases of available-for-sale securities and software capitalization costs[120]. - As of June 30, 2024, the company's principal sources of liquidity included approximately $20,736 of cash and cash equivalents[122]. - The company believes it has sufficient liquidity to support business operations for at least the next twelve months[123]. - Future business demands may lead to cash utilization at levels greater than recently experienced or expected[123]. - The company may need to raise additional capital in the future to grow existing software operations and seek strategic acquisitions[123]. Acquisitions - The company acquired assets of an applicant tracking technology company for$ 15,250, including $8,000 in cash and 525 shares of common stock valued at$ 4,250[90]. - The company acquired assets of a payroll processing and benefits brokerage servicer for $6,000, including$ 500 in cash and 450 shares of common stock valued at $4,500[91]. Market Risks - There have been no material changes to the company's exposure from market risks as disclosed in the 2023 Annual Report[126].