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Asure
🇺🇸 NASDAQ:ASUR
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Sep 30, 2023

Asure Q3 2023 Earnings Report

Asure's Q3 2023 earnings were announced, revealing a 34% increase in revenue compared to the previous year.

Key Takeaways

Asure reported a strong third quarter with a 34% increase in revenue year-over-year, driven by growth in recurring revenue and improved gross margins. The company also announced several strategic initiatives and partnerships to further enhance its HCM solutions and expand its market reach.

Revenue reached $29.3 million, a 34% increase from the prior-year third quarter.

Recurring revenue grew to $23.8 million, up 19% from the prior-year third quarter.

Net loss improved to $2.2 million, a $2.3 million improvement from the prior-year third quarter.

Adjusted EBITDA increased to $6.2 million, up $4.4 million from the prior-year third quarter.

Total Revenue
$29.3M
Previous year: $21.9M
+33.9%
EPS
$0.19
Previous year: -$0.01
-2000.0%
Gross Profit
$21.3M
Previous year: $13.6M
+55.9%
Cash and Equivalents
$32.8M
Previous year: $10.9M
+201.2%
Free Cash Flow
$2.71M
Previous year: -$2.41M
-212.8%
Total Assets
$394M
Previous year: $391M
+0.9%

Asure

Asure

Asure Revenue by Segment

Forward Guidance

Asure expects continued growth in Q4 2023 and provides preliminary guidance for 2024, projecting revenue between $125M-$129M and adjusted EBITDA margins between 20% to 21%.

Positive Outlook

  • Fourth quarter 2023 revenues are expected to be in the range of $25 million to $27 million.
  • Midpoint of Q4 revenue guidance represents approximately 19% growth year-over-year.
  • 2024 revenues are projected to be in the range of $125 million to $129 million.
  • Adjusted EBITDA margins for 2024 are expected to be between 20% and 21%.
  • Company will continue to evaluate potential acquisition targets in 2024.

Challenges Ahead

  • There is a high level of economic uncertainty in 2023 which may continue into 2024 due to recent inflationary trends and the potential for a recession of unknown severity.
  • The Internal Revenue Service’s recent measures against fraudulent employee retention tax credit claims may affect performance.
  • Guidance assumes that no further actions will be taken by the Internal Revenue Service or other governmental authorities with respect to ERC claims in 2024 other than the moratorium on processing of ERC claims.
  • The moratorium on processing of ERC claims is currently expected to expire on December 31, 2023.
  • Actual results could differ from the guidance due to known and unknown risks and uncertainties.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Asure