Asure Software(US:ASUR)2023-05-07 16:00Revenue Growth - For the three months ended March 31, 2023, total revenue was $33,064, an increase of $8,731, or 36%, compared to $24,333 for the same period in 2022[92]. - Recurring revenue for the three months ended March 31, 2023 was $27,956, an increase of $4,952, or 22%, from $23,004 for the same period in 2022[97]. - Recurring revenue represented over 84% of total revenue for the three months ended March 31, 2023, compared to 94% for the same period in 2022[91]. Profitability - Gross profit for the three months ended March 31, 2023 was $24,400, an increase of $8,936, or 58%, from $15,464 for the same period in 2022, with a gross margin of 74% compared to 64% in 2022[99]. - Net income for Q1 2023 was $339, or $0.02 per share, compared to a loss of $3,017, or $0.15 per share, in Q1 2022, with income as a percentage of total revenues at 1% versus a loss of 12%[110]. Operating Expenses - Total operating expenses as a percentage of revenue decreased to 68% for the three months ended March 31, 2023, down from 72% in the same period in 2022[90]. - Selling and marketing expenses for Q1 2023 were $7,200, an increase of $2,303 or 47% from $4,897 in Q1 2022, representing 22% of revenue compared to 20% in the prior year[101]. - General and administrative expenses for Q1 2023 were $9,956, an increase of $2,471 or 33% from $7,485 in Q1 2022, accounting for 30% of revenue, down from 31%[102]. - Research and development expenses for Q1 2023 were $1,979, an increase of $158 or 9% from $1,821 in Q1 2022, representing 6% of revenue, down from 7%[103]. - Interest expense, net for Q1 2023 was $1,944, compared to $820 in Q1 2022, representing 6% of revenue versus 3%[107]. - Amortization expense for Q1 2023 was $3,302, a decrease of $130 or 4% from $3,432 in Q1 2022, accounting for 10% of revenue, down from 14%[106]. Cash Flow and Working Capital - Cash and cash equivalents as of March 31, 2023, were $21,438, up from $17,010 at December 31, 2022[110]. - Working capital increased to $14,191 as of March 31, 2023, up by $6,098 from $8,093 at December 31, 2022[110]. - Net cash provided by operating activities for Q1 2023 was $4,588, driven by non-cash adjustments of approximately $7,787, compared to $2,530 in Q1 2022[111]. - Net cash used in investing activities for Q1 2023 was $6,647, primarily due to purchases of available-for-sale securities[112]. Business Development - The company acquired certain assets of a reseller partner for a total purchase price of $2,350, which included $1,939 in cash and a promissory note of $411[87]. - Asure's solutions serve over 100,000 SMBs across the United States, with approximately 15,000 direct clients and 85,000 indirect clients through Reseller Partners[86]. - The company continues to invest in research and development to expand its solutions and enhance operational efficiencies[86]. - The company is actively exploring opportunities to acquire additional products or technologies to complement its current software and services[98]. Other Revenue Sources - Professional services, hardware, and other revenues increased by $3,779, or 284%, for the three months ended March 31, 2023, primarily due to growth in non-recurring Employee Retention Tax Credit (ERTC) revenue[97].