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Mar 31, 2024

Asure Q1 2024 Earnings Report

Asure's financial performance in Q1 2024 was characterized by a revenue decrease but growth in recurring revenue, alongside strategic investments in technology and client acquisition.

Key Takeaways

Asure reported Q1 2024 revenues of $31.7 million, a 4% decrease year-over-year, but saw a 10% increase in revenue excluding ERTC. Recurring revenue grew by 8% to $30.3 million. The company experienced a net loss of $0.3 million, and adjusted EBITDA was $6.8 million. Management reiterated the 2024 revenue guidance of $125.0 million - $129.0 million.

Revenue decreased by 4% year-over-year to $31.7 million, but excluding ERTC revenue, it increased by 10%.

Recurring revenue grew by 8% year-over-year to $30.3 million.

Net loss was $0.3 million, compared to a net income of $0.3 million in the prior year.

Adjusted EBITDA was $6.8 million, versus $8.2 million from prior year.

Total Revenue
$31.7M
Previous year: $33.1M
-4.3%
EPS
$0.22
Previous year: $0.25
-12.0%
Gross Profit
$22.6M
Previous year: $24.4M
-7.3%
Cash and Equivalents
$23.2M
Previous year: $21.4M
+8.1%
Free Cash Flow
-$6.62M
Previous year: $3.86M
-271.5%
Total Assets
$469M
Previous year: $439M
+6.9%

Asure

Asure

Asure Revenue by Segment

Forward Guidance

The company is providing the following guidance for the second quarter 2024 and full year 2024 based on the Company’s year-to-date results and recent business trends. This guidance excludes any potential revenues from the employee retention tax credit (ERTC) program for which the IRS placed a pause on processing claims in September 2023, and we continue to monitor for updates regarding the program closely.

Positive Outlook

  • Second Quarter 2024 Revenue: $28.0M – 29.0M
  • Full Year 2024 Revenue: $125.0M - $129.0M
  • Second Quarter 2024 Adjusted EBITDA: $4.0M - $5.0M
  • Full Year 2024 Adjusted EBITDA: 20% - 21%

Revenue & Expenses

Visualization of income flow from segment revenue to net income