Asure Software(ASUR) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenues for Q1 2025 were $34.9 million, representing a 10% increase year over year[1][6] - Recurring revenues reached $33.2 million, up from $30.3 million in the prior year first quarter[6] - The net loss for Q1 2025 was $2.4 million, compared to a net loss of $0.3 million in the prior year[6] - Adjusted EBITDA for Q1 2025 was $7.3 million, an increase from $6.8 million in the prior year[6] - Gross profit for Q1 2025 was $24.6 million, up from $22.6 million in the prior year[6] - Total revenue for Q1 2025 was $34.854 million, a 10.9% increase from $31.652 million in Q1 2024[35] - Recurring revenue reached $33.187 million, up 9.5% from $30.273 million year-over-year[35] - Gross profit for the quarter was $24.608 million, compared to $22.607 million in the same period last year, reflecting a gross margin improvement[35] - Net loss for Q1 2025 was $2.398 million, significantly higher than the net loss of $0.308 million in Q1 2024[35] - Revenue for Q1-25 reached $34,854,000, an increase of 13.4% compared to Q4-24's $30,792,000[45] - Gross profit for Q1-25 was $24,608,000, resulting in a gross margin of 70.6%, up from 68.0% in Q4-24[45] - Non-GAAP gross profit for Q1-25 was $26,267,000, with a non-GAAP gross margin of 75.4%, compared to 73.2% in Q4-24[45] - GAAP net loss for Q1-25 was $2,398,000, an improvement from a net loss of $3,204,000 in Q4-24[45] - Adjusted EBITDA for Q1-25 was $7,316,000, reflecting an adjusted EBITDA margin of 21.0%[45] - The EBITDA margin for Q1-25 was 11.9%, an increase from 11.2% in Q4-24[45] Cash Flow and Assets - Cash and cash equivalents decreased to $14.076 million from $21.425 million at the end of Q4 2024[33] - Total assets increased to $498.941 million, up from $436.638 million at the end of Q4 2024[33] - Total liabilities rose to $301.278 million, compared to $239.323 million at the end of Q4 2024[33] - The company reported a net cash provided by operating activities of $1.996 million, a recovery from a cash outflow of $3.947 million in Q1 2024[37] - Cash flows from financing activities were significantly positive at $63.925 million, compared to $21.062 million in Q1 2024[37] Revenue Guidance and Backlog - Guidance for Q2 2025 revenue is projected between $30.0 million and $32.0 million, and for FY 2025 between $134.0 million and $138.0 million[7][8] - The contracted revenue backlog is at an all-time high, with over 95% of revenues being recurring[5] Expenses and Investments - Sales and marketing expenses for Q1-25 totaled $8,386,000, up from $6,945,000 in Q4-24[45] - Research and development expenses for Q1-25 were $2,029,000, slightly down from $2,103,000 in Q4-24[45] - The company reported a significant increase in acquisition and transaction costs, totaling $779,000 in Q1-25 compared to $665,000 in Q4-24[45] New Initiatives - The company launched a new Payroll Tax Management solution aimed at large Canadian companies and global enterprises[6] Share Information - The weighted average basic and diluted shares outstanding increased to 26.961 million from 25.334 million year-over-year[35] Seasonal Trends - The company noted that first quarters are seasonally strong due to the recognition of recurring year-end W2/ACA revenue[45]