Asure Software(ASUR)2025-05-01 20:05Revenue and Profit - Revenue for the three months ended March 31, 2025, was $34,854, an increase of $3,202, or 10%, from $31,652 for the same period in 2024[90] - Recurring revenue for the three months ended March 31, 2025, was $33,187, an increase of $2,914, or 10%, from $30,273 for the same period in 2024[94] - Gross profit for the three months ended March 31, 2025, was $24,608, an increase of $2,001, or 9%, from $22,607 for the same period in 2024, with a consistent gross margin of 71%[97] - Recurring revenue consistently represented over 95% of total revenue for the three months ended March 31, 2025, and 2024[89] Expenses - Sales and marketing expenses for the three months ended March 31, 2025, were $8,386, an increase of $619, or 8%, from $7,767 for the same period in 2024, with a decrease in sales and marketing expenses as a percentage of revenue to 24%[100] - General and administrative expenses for the three months ended March 31, 2025, were $11,900, an increase of $1,837, or 18%, from $10,063 for the same period in 2024, with an increase in expenses as a percentage of revenue to 34%[103] - Total operating expenses as a percentage of revenue increased to 76% for the three months ended March 31, 2025, from 73% for the same period in 2024[88] - R&D expenses for Q1 2025 were $2,029 million, a 15% increase from $1,769 million in Q1 2024, maintaining 6% of revenue[105] - Amortization expense for Q1 2025 was $4,308 million, a 25% increase from $3,449 million in Q1 2024, rising to 12% of revenue[106] Net Loss and Cash Flow - Net loss for Q1 2025 was $2,398 million, or $0.09 per share, compared to a loss of $308 million, or $0.01 per share, in Q1 2024, representing 7% of total revenue[110] - Net cash provided by operating activities was $1,996 million for Q1 2025, driven by non-cash adjustments of approximately $8,277 million[114] - Net cash used in investing activities was $12,630 million for Q1 2025, primarily due to purchases of available-for-sale securities and intangible assets[115] - Net cash provided by financing activities was $63,925 million for Q1 2025, mainly from a net increase in client fund obligations[116] Working Capital and Liquidity - Working capital decreased to $9,000 million as of March 31, 2025, down from $13,641 million at December 31, 2024[113] - As of March 31, 2025, the company had $14,076 million in cash and cash equivalents, with additional liquidity sources from a Loan Agreement allowing up to $60,000 million[124] - The company expects to maintain sufficient liquidity for operations over the next twelve months but may need to raise additional capital for growth and acquisitions[125] Client Base and Investments - The company serves over 100,000 clients across the United States, with approximately 20% being direct clients[87] - The company continues to invest in research and development to expand its solutions and explore acquisition opportunities for additional products or technologies[96] Other Revenue - Professional services, hardware, and other revenue increased by $288, or 21%, for the three months ended March 31, 2025, primarily due to an increase in professional services[95] Interest Income and Expense - Interest income decreased to $171 million in Q1 2025 from $336 million in Q1 2024, while interest expense increased to $451 million from $180 million[107]