Asure Software(ASUR)2025-03-06 21:01Revenue 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]