Asure Software(US:ASUR)2025-10-30 20:03Revenue Performance - Asure's revenue for the three months ended September 30, 2025, was $36,252, an increase of $6,948, or 24%, from $29,304 for the same period in 2024[106] - For the nine months ended September 30, 2025, total revenue was $101,230, an increase of $12,230, or 14%, from $89,000 for the same period in 2024[106] - Recurring revenue for the three months ended September 30, 2025, was $31,841, an increase of $3,215, or 11%, from $28,626 for the same period in 2024, primarily due to growth in time and attendance solutions[110] - Recurring revenue for the nine months ended September 30, 2025, was $93,624, an increase of $7,674, or 9%, from $85,950 for the same period in 2024, mainly due to tax management and time and attendance solutions[111] - Professional services, hardware, and other revenue for the three months ended September 30, 2025, was $4,411, an increase of $3,733, or 551%, from $678 for the same period in 2024, driven by hardware sales related to time and attendance solutions[113] - Professional services, hardware, and other revenue for the nine months ended September 30, 2025, was $7,606 million, an increase of $4,556 million, or 149%, from $3,050 million for the same period in 2024[114] Profitability and Expenses - Asure's gross profit margin for the nine months ended September 30, 2025, was 67%, down from 69% in the same period of 2024[104] - Consolidated gross profit for the three months ended September 30, 2025, was $23,142 million, an increase of $3,438 million, or 17%, from $19,704 million for the same period in 2024[116] - Total operating expenses as a percentage of revenue decreased to 77% for the nine months ended September 30, 2025, compared to 78% for the same period in 2024[104] - Sales and marketing expenses for the three months ended September 30, 2025, were $9,043 million, an increase of $2,363 million, or 35%, from $6,680 million for the same period in 2024[120] - General and administrative expenses for the three months ended September 30, 2025, were $11,655 million, an increase of $1,277 million, or 12%, from $10,378 million for the same period in 2024[124] - R&D expenses for the three months ended September 30, 2025, were $1,174 million, a decrease of $799 million, or 40%, from $1,973 million for the same period in 2024[127] - The net loss for the nine months ended September 30, 2025, was 14% of total revenue, compared to a net loss of 10% for the same period in 2024[104] - The company incurred a net loss of $5,362 million, or $0.19 per share, during the three months ended September 30, 2025, compared to a loss of $3,901 million, or $0.15 per share, during the same period in 2024[136] Cash Flow and Liquidity - Net cash provided by operating activities for the nine months ended September 30, 2025, was $10,924 million, primarily driven by non-cash adjustments to net loss of approximately $29,526 million[140] - Net cash used in investing activities for the nine months ended September 30, 2025, was $78,170 million, primarily due to cash paid in business combinations or asset acquisitions of $52,467 million[141] - As of September 30, 2025, the company had working capital of $14,838 million, an increase of $1,197 million from $13,641 million at December 31, 2024[139] - As of September 30, 2025, the company has $21,520 in cash and cash equivalents generated from operations, expected to be the principal source of liquidity for the next twelve months[148] - The company believes it has sufficient liquidity to support business operations for at least the next twelve months, but may need to raise additional capital for growth and acquisitions[149] Acquisitions and Business Development - Asure completed the acquisition of Lathem Time 2025 LLC on July 1, 2025, enhancing its time and attendance offerings and expanding its customer base[101] - The company executed two customer relationship asset acquisitions during the three months ended September 30, 2025, with a total purchase price of $11,227[102] Financial Compliance and Risk - The company is in compliance with all covenants under the Loan Agreement, including a Total Leverage Ratio no greater than 5.50 to 1.00 and a minimum liquidity threshold of $10,000[147] - There have been no material changes to critical accounting estimates since the Annual Report for the year ended December 31, 2024[150] - The company has not experienced any material changes in market risk exposure since the 2024 Annual Report[152] - The company has access to an "at the market offering" program allowing the issuance of up to $25,000 of newly issued shares of common stock, with $25,000 available for issuance as of September 30, 2025[148]