Asure Software(US:ASUR)2022-08-07 16:00Financial Performance - Total revenue for Q2 2022 was $20,300 million, a 18.5% increase from $17,168 million in Q2 2021[13] - Gross profit for Q2 2022 reached $12,261 million, compared to $9,945 million in Q2 2021, reflecting a 23.4% increase[13] - The net loss for Q2 2022 was $5,860 million, compared to a net income of $3,764 million in Q2 2021[13] - For the six months ended June 30, 2022, the company reported a net loss of $8,877,000 compared to a net income of $2,166,000 for the same period in 2021, indicating a significant decline in profitability[25] - For the three months ended June 30, 2022, the net loss was $5,860, compared to a net income of $3,764 for the same period in 2021, representing a significant decline[80] Expenses - Operating expenses totaled $18,109 million in Q2 2022, up from $14,314 million in Q2 2021, representing a 26.5% increase[13] - Research and development expenses for Q2 2022 were $1,472 million, compared to $1,343 million in Q2 2021, marking an increase of 9.6%[13] - Selling and marketing expenses for the three months ended June 30, 2022 were $4,589, an increase of $967, or 27%, as a percentage of revenue increased to 23% from 21% in the same period of 2021[111] - General and administrative expenses for the three months ended June 30, 2022 were $8,696, an increase of $1,875, or 27%, with expenses as a percentage of revenue increasing to 60% from 58% in the same period of 2021[114] - Amortization expense for the three months ended June 30, 2022 was $3,352, an increase of $824, or 33%, with amortization as a percentage of revenue increasing to 17% from 15% in the same period of 2021[119] Cash and Liquidity - Cash and cash equivalents as of June 30, 2022, were $14,594 million, an increase from $13,427 million at December 31, 2021[11] - Net cash provided by operating activities for the six months ended June 30, 2022 was $7,481, driven by non-cash adjustments to net loss of approximately $12,013[127] - Net cash used in investing activities for the six months ended June 30, 2022 was $21,570, primarily due to acquisitions and purchases of available-for-sale securities[128] - The company believes it has sufficient liquidity to support operations for at least the next twelve months, but may need to raise additional capital for growth and acquisitions[130] Assets and Liabilities - Total assets decreased to $394,603 million as of June 30, 2022, down from $433,245 million at December 31, 2021[11] - Total liabilities were $245,063 million as of June 30, 2022, compared to $275,005 million at December 31, 2021[11] - Total outstanding debt as of June 30, 2022, was $38,880, slightly up from $38,402 at December 31, 2021, an increase of 1.2%[58] - Working capital decreased to $14,451 as of June 30, 2022, down by $2,555 from $17,006 at December 31, 2021[126] Client Funds and Acquisitions - The company held $184,661 million in funds for clients as of June 30, 2022, down from $217,376 million at December 31, 2021[11] - The company made an acquisition of intangible assets costing $2,039,000 during the six months ended June 30, 2022, as part of its growth strategy[25] - The company acquired certain assets of a payroll business for a total purchase price of $24,150, which included $15,000 in cash, 523 shares valued at $4,800, and a promissory note of $4,350[42] - The company continues to explore opportunities to acquire additional products or technologies to complement its current software and services[108] Revenue Recognition and Future Expectations - Recurring revenue for the six months ended June 30, 2022 was $42,018, an increase of $6,704, or 19%, from $35,314 for the same period in 2021[103] - Revenue recognized from deferred revenue was $3,205 for the six months ended June 30, 2022, down from $3,848 for the same period in 2021, a decrease of 16.7%[67] - Approximately $26,340 of revenue is expected to be recognized from remaining performance obligations, with 73% expected to be recognized over the next 12 months[68] - The company anticipates that revenues will continue to exhibit a seasonal pattern related to ACA form filings, with increased revenues expected during the fourth quarter[105] Shareholder Information - The company reported a basic and diluted loss per share of $0.29 for Q2 2022, compared to earnings of $0.20 per share in Q2 2021[13] - Share-based compensation expenses increased to $1,544,000 in 2022 from $1,340,000 in 2021, indicating a focus on employee incentives[25] - The number of shares available for issuance under the 2018 Incentive Award Plan is 1,535 as of June 30, 2022[76] - The company has 2,312 options and RSUs granted and outstanding pursuant to the 2018 Plan as of June 30, 2022[76]