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Dec 31, 2019

Asure Q4 2019 Earnings Report

Reported record results for the fourth quarter and full year 2019.

Key Takeaways

Asure reported a 1.4% increase in revenue for the fourth quarter of 2019 compared to the fourth quarter of 2018. GAAP earnings per share was $2.66, compared with $0.11 in the fourth quarter of 2018.

Asure is now a pure-play HCM SaaS vendor after selling its Workspace Management division.

Net cash position improved $110.0 Million sequentially to $2.1 Million due primarily to sale proceeds and amended debt facility.

Fourth-quarter HCM bookings increased 62% year-over-year.

Announced a $5 Million stock repurchase program.

Total Revenue
$21.6M
Previous year: $24.4M
-11.5%
EPS
-$0.1
Previous year: $0.15
-166.7%
HCM Bookings Growth
62%
Gross Profit
$8.18M
Previous year: $14.8M
-44.9%
Cash and Equivalents
$28.8M
Previous year: $15.4M
+86.6%
Free Cash Flow
-$4.23M
Previous year: -$1.46M
+189.4%
Total Assets
$335M
Previous year: $361M
-7.2%

Asure

Asure

Forward Guidance

Asure reiterates the following guidance for HCM only for 2020: GAAP Revenue (HCM only) $72.0 million to $74.0 million and Non-GAAP HCM EBITDA $11.0 million to $12.0 million

Positive Outlook

  • GAAP Revenue (HCM only) $72.0 million to $74.0 million
  • Non-GAAP HCM EBITDA $11.0 million to $12.0 million
  • Interest expense $1.0 million to $2.0 million
  • Amortization $12.0 million to $13.0 million
  • Non-GAAP effective tax rate 0%

Challenges Ahead

  • Depreciation $0.5 million to $1.5 million
  • Stock compensation expense $1.0 million to $2.0 million
  • Acquisition costs and other one-time expenses $2.0 million to $3.0 million
  • Basic average shares outstanding 15.3 million to 16.5 million
  • Non-GAAP diluted shares outstanding 16.0 million to 17.0 million