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Sep 30, 2022
Asure Q3 2022 Earnings Report
Asure's Q3 2022 financial performance reflected strategic investments and strong client demand.
Key Takeaways
Asure Software reported a 22% year-over-year increase in revenue, driven by strategic investments and strong client demand. The company raised its fourth quarter revenue guidance and introduced preliminary 2023 financial guidance.
Revenue increased by 22% year-over-year, reaching $21.9 million.
Net loss was $4.5 million, compared to net income of $5.3 million in the prior year, which included a $10.5 million tax credit.
Total bookings increased by 91% year-over-year.
Fourth quarter revenue guidance was raised, projecting year-over-year growth of 11% to 14%.
Asure
Asure
Asure Revenue by Segment
Revenue by Segment
Recurring Revenue
CapyFin.comProfessional Services, Hardware & Other Revenue
CapyFin.com Forward Guidance
The company provided revenue guidance for Q4 2022 of $23.5M - 24.0M. The company provided adjusted EBITDA guidance for Q4 2022 of $3.0M - 3.5M. The company provided Non-GAAP EPS guidance for Q4 2022 of $(0.01) - 0.01. The company provided revenue guidance for 2023 of $98.0M - 102.0M. The company provided adjusted EBITDA margin guidance for 2023 of 14% - 16%.
Positive Outlook
- Strong momentum with HR Compliance
- Strong momentum with tax processing solutions
- Contribution from revenue streams stemming from new uses of our installed user’s data in the Integration Marketplace
- Higher investment revenues due to rising interest rates
- Larger investible balances
Challenges Ahead
- High level of economic uncertainty in 2023 due to recent inflationary trends
- Potential for a recession of unknown severity
- Net loss of $4.5 million, a margin of (21)%, compared to net income of $5.3 million in the prior period
- Decline of 185% relative to the prior year, as last year’s results included a $10.5 million gain related to ERTC credits
- EBITDA declined to $1.3 million relative to the prior year’s $9.9 million for the same reason
Revenue & Expenses
Visualization of income flow from segment revenue to net income