Summary of Asure Software Fireside Chat on AI Company Overview - **Company**: Asure Software (NasdaqCM: ASUR) - **Event**: Fireside chat discussing the impact of AI on enterprise software - **Date**: March 11, 2026 Key Points Industry and Company Insights - **AI's Impact on Enterprise Software**: AI is reshaping enterprise software economics, similar to past technological shifts from mainframes to PCs and from DOS to Windows [5][6] - **Disruption Risks**: Industries such as consulting and labor services are at higher risk of disruption due to AI's ability to analyze large datasets and provide probabilistic outcomes [6] - **Execution Infrastructure**: Asure's execution infrastructure is designed to handle regulated transactions, providing a competitive advantage in the market [9][10] Core Arguments and Perspectives - **AI and Business Models**: AI affects business models differently; for Asure, the impact is expected to be positive due to its execution platform [14][15] - **Revenue Model**: Asure's revenue model is based on transaction volume, which aligns well with AI enhancements, allowing for a competitive edge [10][11] - **Operating Leverage**: AI is expected to enhance operating leverage, allowing Asure to grow revenue faster than costs, particularly in payroll and compliance [11][56] Structural Advantages - **Regulatory Compliance**: Asure is a registered IRS bulk filer, which provides a legal trust relationship with regulators, differentiating it from other software providers [17][19] - **Data Security and Compliance**: The company maintains strict compliance with federal laws, ensuring that payroll records are traceable and defensible [18][19] - **AI Integration**: Asure's AI agent, Luna, is embedded within its infrastructure, allowing for real-time actions and compliance without external dependencies [21][22] Market Position and Future Outlook - **Market Expansion**: Asure's market is expected to expand as AI adoption increases, with the potential for significant revenue growth through enhanced service offerings [70][71] - **Cost Reduction**: AI is driving reductions in cost to serve across various functions, including support operations and compliance [78] - **Monetization Strategy**: Asure plans to monetize its AI capabilities by offering additional services and products to clients, enhancing customer engagement and retention [82][83] Additional Insights - **AI as a Competitive Differentiator**: The integration of AI into Asure's platform is seen as a key factor in maintaining a competitive edge, with AI capabilities justifying premium pricing [56][57] - **Client Engagement**: The company emphasizes the importance of proactive compliance alerts and AI-driven insights to enhance client relationships and reduce churn [56][57] Conclusion Asure Software is positioned to leverage AI to enhance its execution infrastructure, drive operational efficiencies, and expand its market presence. The integration of AI is expected to provide significant competitive advantages, particularly in regulated environments such as payroll and tax filing. The company's focus on compliance, data security, and customer engagement will be critical as it navigates the evolving landscape of enterprise software.

Core Insights - Asure Software reported a strong financial performance for fiscal year 2025, with total revenue increasing by 17% year-over-year to $140.5 million, and fourth-quarter revenue rising by 28% to $39.3 million [3][7]. - The company is experiencing accelerating organic growth and expanding profitability metrics, driven by improvements in its client portal and AI initiatives [4][6]. - Management provided an optimistic outlook for 2026, projecting revenue between $159 million and $162 million, with adjusted EBITDA margins of 23% to 25% [20][21]. Financial Performance - Fourth-quarter total revenue was reported at $39.3 million, an increase of 28% from the prior year [2]. - Recurring revenue for the fourth quarter rose by 18% to $33.7 million, while full-year recurring revenue grew by 11% to $127.3 million [2]. - Full-year adjusted EBITDA increased by 42% to $32.0 million, with an adjusted EBITDA margin rising to 23% from 19% [18]. Growth and Demand - New bookings increased by 35%, and the contracted backlog reached approximately $100 million, up 18% since Q3 2025 [5][16]. - The company aims to grow its sales team from around 118 to 150 representatives, targeting a medium-term revenue goal of $180 million to $200 million [5][21]. - Organic growth improved to 10% in the fourth quarter, up from 4% in the third quarter, with full-year organic growth at 5% [3]. AI and Product Development - The launch of the Asure Central portal has seen over two-thirds of clients upgrade, enhancing workflow and marketing capabilities [8]. - The AI agent "Luna" has generated over 80,000 messages in 90 days, significantly reducing support load and contributing to a new administrative services outsourcing model [6][12]. - Management views AI as an accelerator for efficiency rather than a disruption risk, emphasizing the resilience of their client base to automation [10]. Profitability and Outlook - The company reported a fourth-quarter net income of $0.8 million, compared to a net loss of $3.2 million in the prior year [17]. - For 2026, management expects double-digit growth and GAAP profitability, with a focus on increased investment in sales and marketing [21]. - The gross margin for the full year was 68%, slightly down from 69%, attributed to a mix of lower-margin non-recurring sales [19].

Financial Data and Key Metrics Changes - Full-year revenues for 2025 were $140.5 million, an increase of 17% compared to the prior year [4] - Fourth quarter total revenues were $39.3 million, increasing by 28% year-over-year, while recurring revenue grew by 18% to $33.7 million [14] - Organic growth in Q4 was 10%, up from 4% in Q3, and for the full year, it was 5% [5][15] - Gross profit for Q4 was $27.2 million, compared to $21 million in the prior year, with gross margins for the full year at 68% [16] - Net income for Q4 was $0.8 million, compared to a net loss of $3.2 million in the prior year, while the net loss for the full year was $13.1 million [17] - Adjusted EBITDA for Q4 increased 82% to $11.4 million, with an adjusted EBITDA margin of 29% [17] Business Line Data and Key Metrics Changes - Professional services and hardware revenue for Q4 was $5.6 million, compared to $2.3 million in the prior year [15] - The number of clients buying multiple products in the payroll business grew by 10% in Q4 over the prior year [5] Market Data and Key Metrics Changes - The company navigates local tax rules and compliance requirements, moving approximately $20 billion annually [8] - The company expects to convert approximately 41% of its contracted backlog of approximately $100 million in the next 12 months [13] Company Strategy and Development Direction - The company plans to increase investment in sales and marketing efforts, targeting 150 sales reps in 2026 [21] - The launch of AsureWorks, an administrative services outsourcing model, aims to deepen client relationships and expand revenue [11] - The company is focusing on AI to enhance operational efficiency and improve client product experience [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth and GAAP profitability in 2026, driven by technology investments and improved sales productivity [20][22] - The company anticipates continued positive momentum in business, with guidance for Q1 2026 revenues between $41 million and $43 million [19] Other Important Information - The company has a healthy contracted backlog, which was up 18% since Q3 2025 [13] - The integration of acquired point solutions and investments in AI are expected to impact growth positively [21] Q&A Session Summary Question: Revenue guidance for 2026 - The company raised the low end of its 2026 revenue guidance by $1 million due to an acquisition [24][26] Question: Attach rates and growth targets - Management indicated a focus on increasing attach rates but did not provide specific targets for 2026 [28][29] Question: Non-recurring revenue and future expectations - The company expects recurring revenue to be in the low 90s percentage for 2026, with a transition to a hardware-as-a-service model [36] Question: Acquisition opportunities and valuations - Management is opportunistic regarding acquisitions and believes valuations in the private market may have adjusted [40] Question: Internal cost savings from AI - Management sees significant potential for cost savings through AI, particularly in customer service and operational efficiencies [42][46] Question: Sales cycles and pipeline levels - The company reported a strong pipeline, with expectations for significant growth in the coming months [81]

Financial Data and Key Metrics Changes - Full-year revenues for 2025 were $140.5 million, an increase of 17% compared to the prior year [4][14] - Fourth quarter total revenues were $39.3 million, increasing by 28% year-over-year, while recurring revenue grew by 18% to $33.7 million [14] - Organic growth in Q4 was 10%, up from 4% in Q3, and for the full year, it was 5% [5][15] - Gross profit for Q4 was $27.2 million, compared to $21 million in the prior year, with gross margins for the full year at 68% [16] - Net income for Q4 was $0.8 million, compared to a net loss of $3.2 million in the prior year, while the net loss for the full year was $13.1 million [17] Business Line Data and Key Metrics Changes - Professional services and hardware revenue for Q4 was $5.6 million, up from $2.3 million in the prior year, and for the full year, it was $13.3 million compared to $5.3 million [15] - The number of clients buying multiple products in the payroll business grew by 10% in Q4 over the prior year [5] Market Data and Key Metrics Changes - The company expects to convert approximately 41% of its contracted backlog of approximately $100 million in the next 12 months, which was up 18% since Q3 [13] - The company is navigating local tax rules and compliance requirements, moving approximately $20 billion annually [8] Company Strategy and Development Direction - The company is focusing on expanding its share of wallet through new offerings like AsureWorks, which provides administrative services outsourcing [11][12] - The integration of AI into its systems is expected to enhance operational efficiency and improve customer experience [9][10] - The company aims to reach $180 million-$200 million in revenues with adjusted EBITDA margins of 30%+ in the medium term [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's growth trajectory, citing strong results and the impact of technology investments [21] - The company anticipates continued positive momentum in 2026, with guidance for revenues between $159 million and $162 million [20] - Management highlighted the importance of AI in enhancing precision and efficiency, viewing it as a tool rather than a replacement for oversight [8][9] Other Important Information - The company plans to increase its sales force to 150 reps in 2026 to drive growth [21] - The company is actively engaging in investor outreach and has scheduled several conferences and roadshows [3][4] Q&A Session Summary Question: Did the company increase the low end of its 2026 revenue guidance? - Yes, the company increased it by $1 million [24] Question: What caused the increased confidence in guidance? - The closure of an acquisition contributed to the increased confidence [26] Question: What is the target for attach rates in 2026? - The company does not have a specific target but aims to increase the number of products sold per client [28][30] Question: How will the non-recurring revenue trend post-Lathem acquisition? - The company expects recurring revenue to be in the low 90s percentage range next year [37] Question: What is the perception of private market valuations for acquisitions? - The company will be opportunistic regarding acquisitions and believes valuations may rise as the market adjusts [40][41] Question: What is the expected organic growth rate for 2026? - The company expects double-digit organic growth for the full year [74] Question: What are the current sales rep counts and future plans? - The company currently has about 118 sales reps and plans to increase to 150 [52] Question: What is the expected free cash flow for 2026? - The expected unlevered free cash flow is in the mid-teens range [64] Question: What are the plans for continued adoption of Asure Central? - The company aims for most direct clients to adopt Asure Central by the first half of the year [78]

Financial Data and Key Metrics Changes - Full-year revenues for 2025 were $140.5 million, an increase of 17% compared to the prior year [5][15] - Fourth quarter total revenues were $39.3 million, increasing by 28% year-over-year, while recurring revenue grew by 18% to $33.7 million [15] - Organic growth in Q4 was 10%, up from 4% in Q3, and for the full year, it was 5% [5][16] - Net income for Q4 was $0.8 million, compared to a net loss of $3.2 million in the prior year [18] - Adjusted EBITDA for Q4 increased 82% to $11.4 million, with an adjusted EBITDA margin of 29% [18] Business Line Data and Key Metrics Changes - Professional services and hardware revenue for Q4 was $5.6 million, up from $2.3 million in the prior year [16] - The number of clients buying multiple products in the payroll business grew by 10% in Q4 compared to the previous year [5] Market Data and Key Metrics Changes - The company expects to convert approximately 41% of its contracted backlog of about $100 million in the next 12 months, which has grown by 18% since Q3 2025 [13] - The revenue model is based on total employee count and payroll runs, rather than a typical SaaS seat-based model [8] Company Strategy and Development Direction - The launch of Asure Central is seen as a pivotal moment, with over two-thirds of clients upgrading to the new portal [5] - The introduction of AsureWorks aims to provide administrative services outsourcing, expanding share of wallet and deepening client relationships [12] - The company plans to increase investment in sales and marketing, targeting 150 sales reps in 2026 [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth and GAAP profitability in 2026, driven by technology investments and improved sales productivity [20][22] - The company anticipates two more rate cuts in 2026, which may impact revenue but expects client fund balances to offset some of these cuts [16] Other Important Information - The company ended 2025 with cash and cash equivalents of $25.2 million and debt of $67.6 million [19] - The integration of acquired point solutions and investments in AI are expected to positively impact growth trajectory [22] Q&A Session Summary Question: Revenue guidance for 2026 - The company raised the low end of its 2026 revenue guidance by $1 million due to increased confidence from a recent acquisition [25][27] Question: Attach rates and growth targets - Management indicated a focus on increasing attach rates but did not provide specific targets for 2026 [28][30] Question: Non-recurring revenue and future expectations - The company expects recurring revenue to be in the low 90s percentage range for 2026, with a transition to a hardware-as-a-service model [36][38] Question: Acquisition strategy and market valuations - Management remains opportunistic regarding acquisitions, noting that private market valuations may have adjusted [40][41] Question: Sales cycles and pipeline levels - The sales pipeline is reported to be 120% of last year's levels, with expectations for further growth [84]

Payroll & HR Solutions Investor Presentation February 2026 : ASUR 1 Safe Harbor Statement (Under the Private Securities Litigation Reform Act of 1995) Forward-Looking Statements This presentation contains certain statements made by management that may constitute "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and o ...

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $36.3 million, a 24% increase compared to Q3 2024 [5][9] - Recurring revenues grew 11% year-over-year to $31.8 million, while professional services and hardware revenue increased to $4.4 million from $0.7 million in the prior year [9][10] - Gross profit for Q3 was $23.1 million, with gross margins at 64%, down from 67% in the prior year [11] - The net loss for Q3 was $5.4 million, compared to a net loss of $3.9 million in the previous year [12] - Adjusted EBITDA increased 49% to $8.1 million, with an adjusted EBITDA margin of 22% [12][14] Business Line Data and Key Metrics Changes - Organic growth improved sequentially to approximately 4% in Q3 from 1% in Q2, with a 7% organic growth rate excluding HRC/ERTC-related churn [10][11] - Bookings for Q3 declined by 41% year-over-year due to large enterprise deals booked in Q3 2024, but were up 21% when excluding those deals [8] Market Data and Key Metrics Changes - The company noted a slight decline in float revenue due to federal funds rate reductions, but anticipated that increasing client fund balances would help offset this [11] - The Federal Reserve cut rates by a quarter point, with expectations for another cut later in the year [11] Company Strategy and Development Direction - The company is focused on integrating acquisitions and enhancing technology, with the recent launch of Asure Central aimed at improving client experience and cross-selling opportunities [6][16] - The company aims for a medium-term revenue target of $180 million to $200 million, with adjusted EBITDA margins exceeding 30% [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving GAAP profitability in Q4 2025 and for the full year 2026, citing strong demand for human capital management products [15][16] - The company anticipates continued organic growth and margin improvement, with a revenue guidance for 2026 between $158 million and $162 million [13][14] Other Important Information - The company plans to participate in several investor conferences in November and December to enhance investor outreach [3][4] - The integration of Latham Time is on schedule, with expectations for significant revenue synergies [39][40] Q&A Session Summary Question: Can you elaborate on the 2026 outlook regarding organic growth? - Management indicated that the balance sheet is strong and they are not modeling extraordinary enhanced organic growth for 2026, focusing instead on existing acquisitions [19][20] Question: What are the drivers behind the improved organic growth? - Management highlighted that attach rates are a key driver, with a 7% sequential increase in cross-sell results [25][50] Question: How is the integration of Latham Time progressing? - The integration is on schedule, with expectations for significant revenue synergies as they bundle offerings [39][40] Question: What is the expected impact of Asure Central on costs and competitive positioning? - Management noted that Asure Central is expected to reduce legacy support costs and enhance competitive positioning through improved client experience [46][66]

Payroll & HR Solutions Investor Presentation October 2025 : ASUR 1 Safe Harbor Statement (Under the Private Securities Litigation Reform Act of 1995) Forward-Looking Statements This presentation contains certain statements made by management that may constitute "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP and ot ...