Core Insights - Asure Software reported a GAAP net loss per share of $(0.22) for Q2 2025, missing the positive earnings estimate of $0.14 per share, despite improvements in underlying recurring revenue and adjusted EBITDA [1][2] - The company raised its full-year revenue guidance due to growth in key product lines and the acquisition of Lathem Time, indicating solid progress in strategic initiatives [1][14] Financial Performance - Q2 2025 revenue was $30.1 million, below the estimate of $31.03 million, with a year-over-year increase of 7% [2][5] - Adjusted EBITDA rose to $5.2 million from $4.1 million in Q2 2024, reflecting a 26.8% increase [2][5] - Recurring revenue reached $28.6 million, accounting for 95% of total revenue, and increased by 6% year-over-year [6][2] Business Overview - Asure Software provides cloud-based human capital management (HCM) and payroll solutions primarily to small and mid-sized businesses in the U.S. [3] - The company focuses on payroll processing, compliance, and related software services, distributed through direct sales and partnerships [3] Strategic Focus - Recent strategies emphasize innovation through product development and automation, including the use of robotic process automation (RPA) and artificial intelligence (AI) [4] - The company aims to grow recurring software subscription revenues and improve product adoption rates among existing customers [4] Recent Developments - The acquisition of Lathem Time, a time and attendance tracking solutions provider, is expected to enhance Asure's scale and recurring revenue base, although its impact will be seen in future quarters [7][14] - The Payroll Tax Management product line was a significant growth driver, supported by increased attach rates and cross-selling efforts [6][10] Outlook - Management increased the full-year 2025 revenue guidance to $138.0–$142.0 million, up from $134.0–$138.0 million, with Q3 2025 revenue projected at $35.0–$37.0 million [14] - Adjusted EBITDA for Q3 2025 is expected to improve to $7.0–$9.0 million, targeting an adjusted EBITDA margin of 22–24% for fiscal 2025 [14]

Financial Performance & Growth - Asure's Q2 2025 total revenue increased by 7% year-over-year to $30.1 million; excluding ERTC, revenue increased by 10%[13] - FY2025 revenue guidance is between $138 million and $142 million[15, 22] - Asure anticipates an adjusted EBITDA margin of 22%-24% for FY2025[17, 30] - The company has 93% net retention rate[15] Strategic Acquisitions & Business Model - Asure completed the acquisition of Lathem Time Corporation on July 1, 2025, adding scale to the time and attendance business and high-margin recurring revenue[13] - Asure serves over 100,000 clients and facilitates over $10 billion in money movement[15, 17] - The company's revenue model is shifting, with adjusted EBITDA approaching ~30% and operating income approaching ~20% as revenue scales[24] Market Opportunity & Strategy - The US HCM total addressable market (TAM) is projected to reach $90 billion, growing at a CAGR of 7.6% through 2025[38] - Asure's go-to-market strategy includes traditional organic growth, enhanced organic growth through resellers, and strategic inorganic growth via M&A[31, 33] - Approximately 60% of new clients come from trusted advisors like brokers, banks, and CPAs[51]

Core Insights - Asure Software, Inc. reported a 7% increase in total revenues for Q2 2025, reaching $30.1 million, with recurring revenues growing by 6% year-over-year [1][6][9] - The company completed the acquisition of Lathem Time Corporation for $39.5 million, which is expected to enhance its time and attendance solutions and drive cross-selling opportunities [5][7] Financial Highlights - Q2 2025 total revenue was $30.1 million, up 7% from the prior year, and 10% excluding the impact of Employee Retention Tax Credits (ERTC) [6][9] - Recurring revenue for Q2 2025 was $28.6 million, compared to $27.1 million in Q2 2024 [9] - The net loss for Q2 2025 was $6.1 million, compared to a net loss of $4.4 million in Q2 2024 [9] - Adjusted EBITDA for Q2 2025 was $5.2 million, up from $4.1 million in the prior year [9] Business Developments - The acquisition of Lathem Time Corporation is anticipated to add high-margin recurring revenue and enhance Asure's existing time and attendance business [5][7] - Management expressed confidence in the company's growth trajectory, driven by strong performance in Payroll Tax Management and improved attach rates of HCM products [6][7] Guidance - The company provided guidance for Q3 2025 revenue in the range of $35.0 million to $37.0 million and increased the full-year 2025 revenue range to $138.0 million to $142.0 million [10][11]

Payroll & HR Solutions Investor Presentation May 2025 : ASUR 1 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 other operating and non-operating results. The words "believe," "may," "will," "estimate," "projects," "anticipate, ...