Asure Software(US:ASUR)2024-05-02 20:01Revenue Performance - For the three months ended March 31, 2024, total revenue was $31,652, a decrease of $1,412, or 4%, compared to $33,064 for the same period in 2023[94]. - Recurring revenue for the same period was $30,273, an increase of $2,317, or 8%, from $27,956 in the prior year, primarily driven by increased HR compliance revenue and interest earned on client-held funds[99]. - Professional services, hardware, and other revenue decreased by $3,729, or 73%, to $1,379, primarily due to a decline in non-recurring Employee Retention Tax Credits (ERTC) revenue[100]. - Recurring revenue represented over 95% of total revenue for the three months ended March 31, 2024, compared to 84% for the same period in 2023[93]. Profitability and Expenses - Gross profit margin for the three months ended March 31, 2024, was 71%, down from 74% in the same period of 2023[92]. - Total operating expenses as a percentage of revenue increased to 73% for the three months ended March 31, 2024, compared to 68% in the prior year[92]. - Consolidated gross profit for Q1 2024 was $22,607, a decrease of $1,793, or 7%, from $24,400 in Q1 2023, with gross margin declining to 71% from 74%[102]. - Sales and marketing expenses increased by $567, or 8%, to $7,767 in Q1 2024, representing 25% of revenue compared to 22% in Q1 2023[103]. - General and administrative expenses rose by $107, or 1%, to $10,063 in Q1 2024, accounting for 32% of revenue, up from 30% in Q1 2023[105]. - Research and development expenses decreased by $210, or 11%, to $1,769 in Q1 2024, maintaining 6% of revenue[106]. - Amortization expense increased by $147, or 4%, to $3,449 in Q1 2024, with amortization as a percentage of revenue rising to 11% from 10%[110]. Financial Position - The company incurred a net loss of $308, or $0.01 per share, in Q1 2024, compared to a net income of $339, or $0.02 per share, in Q1 2023[114]. - Working capital decreased by $1,840 to $24,040 as of March 31, 2024, including $3,547 of short-term deferred revenue[114]. - Net cash used in operating activities was $3,947 in Q1 2024, compared to net cash provided of $4,588 in Q1 2023[115]. Strategic Initiatives - The company acquired assets from a payroll processing and benefits brokerage servicer for $6,000 on February 22, 2024, and from another reseller partner for $3,000 on April 30, 2024[90][91]. - The company continues to focus on expanding its client base, particularly in less densely populated U.S. metropolitan areas[89]. - The company anticipates that revenue will continue to exhibit seasonal patterns related to ACA form filings, with higher revenues typically in the first and fourth quarters[97]. - The company is investing in research and development to enhance its HCM solutions and reduce administrative burdens for employers[89]. - The company plans to enhance products using RPA and AI, aiming for broader market opportunities and improved integration across solutions[107]. Interest and Financing - Interest income for Q1 2024 was $336, down from $349 in Q1 2023, while interest expense significantly decreased to $180 from $2,293[111].