•
Sep 30, 2021

Asure Q3 2021 Earnings Report

Asure's revenue increased by 12% year-over-year, with two-thirds attributed to organic growth. The company reported a GAAP net income of $5.3 million, which included a $10.5 million gain from ERTC credit.

Key Takeaways

Asure Software, Inc. reported third-quarter results with a 12% increase in revenue compared to the prior year. The company acquired two payroll businesses and introduced a new integrated payroll and HR solutions platform. They also reported a GAAP net income of $5.3 million, including a $10.5 million gain from the Employee Retention Tax Credit (ERTC).

Revenue of $17.98 million, up 12% from the prior year’s quarter, and up 5% sequentially

Total bookings were up 43% year over year, and flat sequentially

GAAP net income of $5.3 million including a $10.5 million gain related to the Company’s ERTC credit

Non-GAAP EBITDA of $1.2 million, or 7% margin

Total Revenue
$18M
Previous year: $16M
+12.3%
EPS
-$0.01
Previous year: -$0.03
-66.7%
Gross Profit
$10.9M
Previous year: $9.1M
+19.4%
Cash and Equivalents
$11.5M
Previous year: $12.9M
-11.1%
Free Cash Flow
$740K
Previous year: $1.4M
-47.1%
Total Assets
$392M
Previous year: $373M
+5.2%

Asure

Asure

Asure Revenue by Segment

Forward Guidance

The company provided revenue guidance for the fourth quarter of 2021 and fiscal year 2022.

Positive Outlook

  • Fourth Quarter 2021 Revenue: $20.5 million—$21.0 million
  • Fourth Quarter 2021 Non-GAAP EBITDA: $1.5 million—$1.7 million
  • Fourth Quarter 2021 Non-GAAP EPS: $(0.05)—$(0.03)
  • Fiscal Year 2022 Revenue: $85.0 million—$90.0 million
  • Fiscal Year 2022 Non-GAAP EBITDA Margin percentages and Non-GAAP EPS to be in line with historical percentages and seasonal trends

Challenges Ahead

  • Continuing challenging environment to predict future economic results given the ebbs and flows of employment trends
  • Continuing challenging environment to predict future economic results given the ebbs and flows of COVID
  • Continuing challenging environment to predict future economic results given the ebbs and flows of other economic challenges of today
  • Non-GAAP EPS Guidance for Q4 2021 is negative
  • There is risk associated with possible fluctuations in the Company’s financial and operating results

Revenue & Expenses

Visualization of income flow from segment revenue to net income