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Asure Announces Fourth Quarter and Full Year 2022 Results

Asure Software, Inc
Asure Software, Inc

Reports Record Fourth Quarter Revenues of $29.3 Million, Up 39% from Prior Year

Reports Record Full Year Revenues of $95.8 Million, Up 26% from Prior Year

Raises 2023 Financial Targets and Guidance

AUSTIN, Texas, Feb. 27, 2023 (GLOBE NEWSWIRE) --  Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (HCM) software solutions, reported results for the fourth quarter and full year ended December 31, 2022.

Fourth Quarter 2022 Financial Highlights

  • Revenue of $29.3 million, up 39% from prior-year’s quarter

  • Recurring revenue of $24.1 million, up 25% from prior-year’s quarter

  • Net loss of $1.1 million, a $3.2 million improvement from prior-year’s quarter

  • EBITDA of $5.0 million, up $3.5 million from prior-year’s quarter

  • Adjusted EBITDA of $6.0 million, up $3.7 million from prior-year’s quarter

Full Year 2022 Financial Highlights

  • Revenue of $95.8 million, up 26% year-over-year

  • Recurring revenue of $86.2 million, up 21% year-over-year

  • Net loss of $14.5 million, a $17.7 million decline from prior year, compared to full year 2021 net income of $3.2 million which included $18.8 million in extraordinary gains, without which prior year net loss would have been $15.7 million

  • EBITDA of $8.8 million, down $13.5 million from prior year, compared to full year 2021 EBITDA of $22.3 million which includes $18.8 million in extraordinary gains, without which prior year EBITDA would have been $3.4 million

  • Adjusted EBITDA of $11.8 million, up $4.2 million from prior year

Recent Business Highlights

  • Announced integration with ZayZoon, allowing our customers the ability to offer their employees earned wage access. In today’s labor market, “work today, get paid today” is becoming increasingly popular and this integration empowers our customers to offer their candidates the means to build and retain their workforce.

  • Announced integrations with H&R Block and TurboTax®, allowing employees to electronically access their W-2s directly from Asure in each respective tax preparation software. This integration eliminates the need for employees to manually enter their tax information, saving them time and reducing the potential for errors. The convenience represents another value-added employee benefit, which are becoming increasingly important in today's competitive job market.

Management Commentary

“Our record-breaking fourth quarter and full year results show that our solutions are resonating strongly with customers across multiple segments” said Asure Chairman and CEO Pat Goepel. “This past year has been marked with significant achievements both financially and operationally. The launch of our Asure Marketplace has helped us reach new highs in terms of revenue generation while our consolidation and standardization efforts have reined in costs, resulting in a fourth quarter gross margin of 72%, a nearly 10% yearly improvement. Our partnerships in the industry have also continued to grow, opening the door for longer-term recurring revenue opportunities.

“From the product side, the enhancements we have made to our software and services have been well-received by the market and are producing the results we expected. Moving forward, our focus remains on growing the Company’s customer base, suite of services, and continuing our dual concentration on organic growth and profitability. While we acknowledge the prospect of broader macroeconomic volatility and recessionary concerns, we do so on the back of recent strong performances within a similar environment. We look forward to setting new benchmarks for revenue and adjusted EBITDA in 2023 and remain well positioned to execute against our long-term strategic growth initiatives.”

Asure Increases 2023 Guidance Ranges; Introduces First Quarter 2023 Guidance

The Company is providing the following guidance for the first quarter and full year 2023 based on fourth quarter and full year 2022 results. Our guidance is offered with the knowledge that there is a high level of economic uncertainty in 2023 due to recent inflationary trends and the potential for a recession of unknown severity.

Updated Guidance for 2023

Guidance Range

 

FY-2023

 

Q1-2023

Revenue

$

105.0M - 107.0M

$

29.0M - 30.0M

Adjusted EBITDA

 

15% - 17%

$

6.0M - 6.5M

Previous Guidance for 2023

Guidance Range

 

FY-2023

Revenue

$

98.0M - 102.0M

Adjusted EBITDA

 

14% - 16%

Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures are to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

Management believes that supplementing GAAP disclosure with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

Management’s projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2023 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 4 of this press release.

Conference Call Details

Asure management will host a conference call Monday, February 27, 2023 at 3:30 pm Central (at 4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website. To listen to the earnings call by phone, participants must pre-register with information available on the Company’s website.

About Asure Software, Inc.

Asure (Nasdaq: ASUR) is a leading provider of Human Capital Management (“HCM”) software solutions. We help small and mid-sized companies grow by assisting them in building better teams with skills to stay compliant with ever-changing federal, state, and local tax jurisdictions and labor laws, and better allocate cash so they can spend their financial capital on growing their business rather than back-office overhead expenses. Asure’s Human Capital Management suite, named Asure HCM, includes cloud-based Payroll, Tax Services, and Time & Attendance software and Asure Marketplace as well as human resources (“HR”) services ranging from HR projects to completely outsourcing payroll and HR staff. We also offer these products and services through our network of reseller partners. Visit us at asuresoftware.com.

Non-GAAP and Adjusted Financial Measures

This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin, non-GAAP net income (loss) and non-GAAP net income (loss) per share. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

This press release includes revisions to prior periods to conform with current period presentations. Discretionary one-time expenses have been removed from the Adjusted EBITDA reconciliation, attributing to recent Company forecasting. Certain one-time expenses, including, but not limited to, third-party placement fees and extraordinary employee recognitions, have been omitted from current and prior period presentations due to their anticipated recurrence.

Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Non-GAAP net income (loss) per share differs from net income (loss) per share in that it excludes items such as amortization, share-based compensation, and one-time expenses, and may use basic or diluted share counts in its computation, as applicable.

All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

Income Taxes. The Company excludes income taxes, both at the federal and state levels.

One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

Use of Forward-Looking Statements

This press release contains forward-looking statements about our financial results, which may include expected or projected U.S GAAP and non-U.S. GAAP financial and other operating and non-operating results, including, by way of example, revenue, net income, diluted earnings per share, operating cash flow growth, operating margin improvement, deferred revenue growth, expected revenue run rate, bookings, expected tax rates, stock-based compensation expenses, amortization of purchased intangibles, amortization of debt discount and shares outstanding and the provision of 2023 financial guidance. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the Company’s results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include—but are not limited to—risks associated with possible fluctuations in the Company’s financial and operating results; the Company’s rate of growth and anticipated revenue run rate, including impact of the current environment; the spread of major pandemics or epidemics; interruptions to supply chains and extended shut down of businesses; political unrest, including the current issues between Russia and Ukraine; reductions in employment and an increase in business failures, specifically among its clients; the Company’s ability to convert deferred revenue and unbilled deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; errors, interruptions or delays in the Company’s services or the Company’s Web hosting; breaches of the Company’s security measures; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; the financial and other impact of any previous and future acquisitions; the nature of the Company’s business model; the Company’s ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the Company’s services; successful customer deployment and utilization of the Company’s existing and future services; changes in the Company’s sales cycle; competition; various financial aspects of the Company’s subscription model; unexpected increases in attrition or decreases in new business; the Company’s ability to realize benefits from strategic partnerships and strategic investments; the emerging markets in which the Company operates; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; changes in the Company’s customer base; technological developments; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; unanticipated changes in the Company’s effective tax rate; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs, including the employee retention tax credits; factors affecting the Company’s term loan; fluctuations in the number of Company shares outstanding and the price of such shares; interest rates; collection of receivables; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the potential negative impact of indirect tax exposure; the risks and expenses associated with the Company’s real estate and office facilities space; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements and other financial reporting standards. Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission on February 27, 2023.​

The forward-looking statements, including the financial guidance and 2023 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based.

© 2023 Asure Software, Inc. All rights reserved.

ASURE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

 

December 31,
2022

 

December 31,
2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

17,010

 

 

$

13,427

 

Accounts receivable, net

 

12,123

 

 

 

5,308

 

Inventory

 

251

 

 

 

246

 

Prepaid expenses and other current assets

 

10,304

 

 

 

13,475

 

Total current assets before funds held for clients

 

39,688

 

 

 

32,456

 

Funds held for clients

 

203,588

 

 

 

217,376

 

Total current assets

 

243,276

 

 

 

249,832

 

Property and equipment, net

 

11,439

 

 

 

8,945

 

Goodwill

 

86,011

 

 

 

86,011

 

Intangible assets, net

 

66,594

 

 

 

78,573

 

Operating lease assets, net

 

7,065

 

 

 

5,748

 

Other assets, net

 

5,523

 

 

 

4,136

 

Total assets

$

419,908

 

 

$

433,245

 

LIABILITIES AND STOCKHOLDERSEQUITY

 

 

 

Current liabilities:

 

 

 

Current portion of notes payable

$

4,106

 

 

$

1,907

 

Accounts payable

 

2,194

 

 

 

565

 

Accrued compensation and benefits

 

5,791

 

 

 

3,568

 

Operating lease liabilities, current

 

1,860

 

 

 

1,551

 

Other accrued liabilities

 

3,728

 

 

 

2,436

 

Contingent purchase consideration

 

2,955

 

 

 

1,905

 

Deferred revenue

 

8,461

 

 

 

3,750

 

Total current liabilities before client fund obligations

 

29,095

 

 

 

15,682

 

Client fund obligations

 

206,088

 

 

 

217,144

 

Total current liabilities

 

235,183

 

 

 

232,826

 

Long-term liabilities:

 

 

 

Deferred revenue

 

788

 

 

 

36

 

Deferred tax liability

 

1,503

 

 

 

1,595

 

Notes payable, net of current portion

 

30,795

 

 

 

33,120

 

Operating lease liabilities, noncurrent

 

6,459

 

 

 

4,746

 

Contingent purchase consideration

 

 

 

 

2,424

 

Other liabilities

 

114

 

 

 

258

 

Total long-term liabilities

 

39,659

 

 

 

42,179

 

Total liabilities

 

274,842

 

 

 

275,005

 

Commitments

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

206

 

 

 

204

 

Treasury stock at cost

 

(5,017

)

 

 

(5,017

)

Additional paid-in capital

 

433,586

 

 

 

429,912

 

Accumulated deficit

 

(281,226

)

 

 

(266,760

)

Accumulated other comprehensive income

 

(2,483

)

 

 

(99

)

Total stockholders’ equity

 

145,066

 

 

 

158,240

 

Total liabilities and stockholders’ equity

$

419,908

 

 

$

433,245

 

ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(in thousands, except per share amounts)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

Recurring

$

24,146

 

 

$

19,390

 

 

$

86,222

 

 

$

71,078

 

Professional services, hardware and other

 

5,146

 

 

 

1,723

 

 

 

9,606

 

 

 

4,986

 

Total revenue

 

29,292

 

 

 

21,113

 

 

 

95,828

 

 

 

76,064

 

Cost of Sales

 

8,153

 

 

 

7,854

 

 

 

33,318

 

 

 

29,500

 

Gross profit

 

21,139

 

 

 

13,259

 

 

 

62,510

 

 

 

46,564

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

6,022

 

 

 

4,318

 

 

 

20,260

 

 

 

15,448

 

General and administrative

 

9,720

 

 

 

7,396

 

 

 

33,924

 

 

 

27,720

 

Research and development

 

1,627

 

 

 

1,438

 

 

 

6,147

 

 

 

5,410

 

Amortization of intangible assets

 

3,352

 

 

 

3,358

 

 

 

13,486

 

 

 

10,948

 

Total operating expenses

 

20,721

 

 

 

16,510

 

 

 

73,817

 

 

 

59,526

 

Income (Loss) from operations

 

418

 

 

 

(3,251

)

 

 

(11,307

)

 

 

(12,962

)

Interest expense, net

 

(1,429

)

 

 

(1,061

)

 

 

(4,438

)

 

 

(2,038

)

Gain on extinguishment of debt

 

 

 

 

 

 

 

 

 

 

8,312

 

Employee retention tax credit

 

 

 

 

 

 

 

 

 

 

10,533

 

Other (expense) income, net

 

(139

)

 

 

150

 

 

 

1,391

 

 

 

150

 

(Loss) Income from operations before income taxes

 

(1,150

)

 

 

(4,162

)

 

 

(14,354

)

 

 

3,995

 

Income tax (benefit) expense

 

(94

)

 

 

139

 

 

 

112

 

 

 

802

 

Net (loss) income

 

(1,056

)

 

 

(4,301

)

 

 

(14,466

)

 

 

3,193

 

Other comprehensive gain (loss):

 

 

 

 

 

 

 

Unrealized gain (loss) on marketable securities

 

418

 

 

 

(416

)

 

 

(2,384

)

 

 

(703

)

Comprehensive (loss) income

$

(638

)

 

$

(4,717

)

 

$

(16,850

)

 

$

2,490

 

 

 

 

 

 

 

 

 

Basic and diluted (loss) earnings per share

 

 

 

 

 

 

 

Basic

$

(0.05

)

 

$

(0.22

)

 

$

(0.72

)

 

$

0.17

 

Diluted

$

(0.05

)

 

$

(0.22

)

 

$

(0.72

)

 

$

0.16

 

 

 

 

 

 

 

 

 

Weighted average basic and diluted shares

 

 

 

 

 

 

 

Basic

 

20,379

 

 

 

19,989

 

 

 

20,117

 

 

 

19,313

 

Diluted

 

20,379

 

 

 

19,989

 

 

 

20,117

 

 

 

19,509

 

ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(14,466

)

 

$

3,193

 

Adjustments to reconcile (loss) income to net cash provided by (used in) operations:

 

 

 

Depreciation and amortization

 

18,708

 

 

 

16,246

 

Amortization of operating lease assets

 

1,702

 

 

 

1,574

 

Amortization of debt financing costs and discount

 

718

 

 

 

309

 

Net amortization of premiums and accretion of discounts on available-for-sale securities

 

280

 

 

 

194

 

Provision for doubtful accounts

 

803

 

 

 

1

 

(Recovery of) provision for deferred income taxes

 

(92

)

 

 

707

 

Gain on extinguishment of debt

 

 

 

 

(8,312

)

Net realized gains on sales of available-for-sale securities

 

(1,221

)

 

 

(542

)

Share-based compensation

 

3,179

 

 

 

2,990

 

Loss (gain) on disposals of fixed assets

 

25

 

 

 

(32

)

Change in fair value of contingent purchase consideration

 

(1,245

)

 

 

(160

)

Goodwill and intangible asset adjustment

 

18

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(7,618

)

 

 

(1,293

)

Inventory

 

(14

)

 

 

142

 

Prepaid expenses and other assets

 

2,993

 

 

 

(11,083

)

Operating lease right-of-use assets

 

(3,020

)

 

 

(1,371

)

Accounts payable

 

1,611

 

 

 

(725

)

Accrued expenses and other long-term obligations

 

3,828

 

 

 

629

 

Operating lease liabilities

 

2,023

 

 

 

(348

)

Deferred revenue

 

5,462

 

 

 

(741

)

Net cash provided by operating activities

 

13,674

 

 

 

1,378

 

Cash flows from investing activities:

 

 

 

Acquisition of intangible asset

 

(2,289

)

 

 

(25,526

)

Purchases of property and equipment

 

(2,318

)

 

 

(133

)

Software capitalization costs

 

(4,228

)

 

 

(4,141

)

Purchases of available-for-sale securities

 

(37,232

)

 

 

(29,051

)

Proceeds from sales and maturities of available-for-sale securities

 

10,068

 

 

 

21,881

 

Net cash used in investing activities

 

(35,999

)

 

 

(36,970

)

Cash flows from financing activities:

 

 

 

Proceeds from notes payable

 

 

 

 

29,425

 

Payments of notes payable

 

(1,688

)

 

 

(14,657

)

Payments of contingent purchase consideration

 

(130

)

 

 

(1,784

)

Debt financing fees

 

 

 

 

(878

)

Net proceeds from issuance of common stock

 

497

 

 

 

678

 

Net change in client fund obligations

 

(11,055

)

 

 

(103,434

)

Net cash used in financing activities

 

(12,376

)

 

 

(90,650

)

Net decrease in cash and cash equivalents

 

(34,701

)

 

 

(126,242

)

Cash and cash equivalents at beginning of period

 

198,743

 

 

 

324,985

 

Cash and cash equivalents at end of period

$

164,042

 

 

$

198,743

 

ASURE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
(in thousands)

 

Year Ended December 31,

 

 

2022

 

 

2021

 

Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets

Cash and cash equivalents

$

17,010

 

$

13,427

Restricted cash and restricted cash equivalents included in funds held for clients

 

147,032

 

 

185,316

Total cash, cash equivalents, restricted cash, and restricted cash equivalents

$

164,042

 

$

198,743

 

 

 

 

Supplemental information:

 

 

 

Cash paid for interest

$

3,397

 

$

1,413

Cash paid for income taxes

$

233

 

$

366

Net assets added from acquisitions

$

 

$

763

 

 

 

 

Non-cash investing and financing activities:

 

 

 

Contingent purchase consideration issued for acquisition

$

 

$

2,574

Notes payable issued for acquisitions

$

411

 

$

4,386

Stock issuance for acquisitions

$

 

$

6,428

ASURE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
(unaudited)

(in thousands)

Q4-22

Q3-22

Q2-22

Q1-22

Q4-21

Q3-21

Q2-21

Q1-21

Revenue

$

29,292

 

$

21,903

 

$

20,300

 

$

24,333

 

$

21,113

 

$

17,981

 

$

17,168

 

$

19,802

 

 

 

 

 

 

 

 

 

 

Gross Profit to non-GAAP Gross Profit

Gross Profit

$

21,139

 

$

13,647

 

$

12,261

 

$

15,464

 

$

13,259

 

$

10,868

 

$

9,945

 

$

12,492

 

Gross Margin

 

72.2

%

 

62.3

%

 

60.4

%

 

63.6

%

 

62.8

%

 

60.4

%

 

57.9

%

 

63.1

%

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

34

 

 

38

 

 

35

 

 

36

 

 

46

 

 

45

 

 

38

 

 

23

 

Depreciation

 

871

 

 

860

 

 

815

 

 

857

 

 

685

 

 

710

 

 

973

 

 

762

 

Amortization - intangibles

 

298

 

 

296

 

 

296

 

 

296

 

 

354

 

 

379

 

 

379

 

 

379

 

One-time expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

3

 

 

38

 

 

 

 

1

 

 

 

 

2

 

 

9

 

 

5

 

Non-GAAP Gross Profit

$

22,345

 

$

14,879

 

$

13,407

 

$

16,654

 

$

14,344

 

$

12,004

 

$

11,344

 

$

13,661

 

Non-GAAP Gross Margin

 

76.3

%

 

67.9

%

 

66.0

%

 

68.4

%

 

67.9

%

 

66.8

%

 

66.1

%

 

69.0

%

 

 

 

 

 

 

 

 

 

Sales and Marketing Expense to non-GAAP Sales and Marketing Expense

Sales and Marketing Expense

$

6,022

 

$

4,752

 

$

4,589

 

$

4,897

 

$

4,318

 

$

3,897

 

$

3,622

 

$

3,611

 

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

93

 

 

90

 

 

64

 

 

64

 

 

268

 

 

220

 

 

221

 

 

140

 

One-time expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

 

 

 

 

14

 

 

 

 

 

 

 

 

16

 

 

24

 

Non-GAAP Sales and Marketing Expense

$

5,929

 

$

4,662

 

$

4,511

 

$

4,833

 

$

4,050

 

$

3,677

 

$

3,385

 

$

3,447

 

 

 

 

 

 

 

 

 

 

General and Administrative Expense to non-GAAP General and Administrative Expense

General and Administrative Expense

$

9,720

 

$

8,023

 

$

8,696

 

$

7,485

 

$

7,396

 

$

7,005

 

$

6,821

 

$

6,498

 

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

641

 

 

590

 

 

615

 

 

575

 

 

468

 

 

484

 

 

451

 

 

430

 

Depreciation

 

168

 

 

149

 

 

154

 

 

170

 

 

161

 

 

159

 

 

159

 

 

190

 

One-time expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

34

 

 

15

 

 

283

 

 

59

 

 

93

 

 

369

 

 

320

 

 

161

 

Acquisition and transaction costs

 

 

 

 

 

638

 

 

 

 

34

 

 

151

 

 

7

 

 

14

 

Other non-recurring expenses

 

 

 

 

 

58

 

 

49

 

 

63

 

 

75

 

 

 

 

 

Non-GAAP General and Administrative Expense

$

8,877

 

$

7,269

 

$

6,948

 

$

6,632

 

$

6,577

 

$

5,767

 

$

5,884

 

$

5,703

 

 

 

 

 

 

 

 

 

 

Research and Development Expense to non-GAAP Research and Development Expense

Research and Development Expense

$

1,627

 

$

1,230

 

$

1,472

 

$

1,821

 

$

1,438

 

$

1,505

 

$

1,343

 

$

1,124

 

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

70

 

 

80

 

 

100

 

 

54

 

 

39

 

 

35

 

 

50

 

 

33

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

3

 

 

4

 

 

4

 

One-time expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

25

 

 

3

 

 

 

 

 

 

 

 

 

 

6

 

 

 

Non-GAAP Research and Development Expense

$

1,532

 

$

1,147

 

$

1,372

 

$

1,767

 

$

1,399

 

$

1,467

 

$

1,283

 

$

1,087

 

ASURE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
(unaudited)

(in thousands)

Q4-22

Q3-22

Q2-22

Q1-22

Q4-21

Q3-21

Q2-21

Q1-21

Revenue

$

29,292

 

$

21,903

 

$

20,300

 

$

24,333

 

$

21,113

 

$

17,981

 

$

17,168

 

$

19,802

 

 

 

 

 

 

 

 

 

 

GAAP Net (Loss) Income to Adjusted EBITDA

GAAP Net (Loss) Income

$

(1,056

)

$

(4,533

)

$

(5,860

)

$

(3,017

)

$

(4,301

)

$

5,328

 

$

3,764

 

$

(1,598

)

 

 

 

 

 

 

 

 

 

Interest expense, net

 

1,429

 

 

1,122

 

 

1,068

 

 

816

 

 

1,061

 

 

530

 

 

223

 

 

224

 

Income taxes

 

(94

)

 

102

 

 

74

 

 

30

 

 

139

 

 

260

 

 

298

 

 

105

 

Depreciation

 

1,039

 

 

1,009

 

 

969

 

 

1,027

 

 

846

 

 

872

 

 

1,136

 

 

956

 

Amortization - intangibles

 

3,648

 

 

3,646

 

 

3,649

 

 

3,729

 

 

3,711

 

 

2,912

 

 

2,907

 

 

2,907

 

EBITDA

$

4,966

 

$

1,346

 

$

(100

)

$

2,585

 

$

1,456

 

$

9,902

 

$

8,328

 

$

2,594

 

EBITDA Margin

 

17.0

%

 

6.1

%

(0.5)%

 

10.6

%

 

6.9

%

 

55.1

%

 

48.5

%

 

13.1

%

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

838

 

 

798

 

 

814

 

 

729

 

 

821

 

 

784

 

 

760

 

 

626

 

One Time Expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

62

 

 

56

 

 

297

 

 

60

 

 

93

 

 

371

 

 

351

 

 

190

 

Acquisition and transaction costs

 

 

 

 

 

638

 

 

 

 

34

 

 

151

 

 

7

 

 

14

 

Other non-recurring expenses

 

 

 

 

 

58

 

 

49

 

 

63

 

 

75

 

 

 

 

 

Other (income) expense, net

 

139

 

 

(399

)

 

(1,130

)

 

 

 

(150

)

 

(10,191

)

 

(8,654

)

 

 

Adjusted EBITDA

$

6,005

 

$

1,801

 

$

577

 

$

3,423

 

$

2,317

 

$

1,092

 

$

792

 

$

3,424

 

Adjusted EBITDA Margin

 

20.5

%

 

8.2

%

 

2.8

%

 

14.1

%

 

11.0

%

 

6.1

%

 

4.6

%

 

17.3

%

ASURE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
(unaudited)

(in thousands)

Q4-22

Q3-22

Q2-22

Q1-22

Q4-21

Q3-21

Q2-21

Q1-21

GAAP Net (Loss) Income to Non-GAAP Net (Loss) Income

GAAP Net (Loss) Income

$

(1,056

)

$

(4,533

)

$

(5,860

)

$

(3,017

)

$

(4,301

)

$

5,328

 

$

3,764

 

$

(1,598

)

Share Count

 

20,379

 

 

20,219

 

 

20,105

 

 

20,041

 

 

19,974

 

 

19,182

 

 

19,040

 

 

19,007

 

EPS

$

(0.05

)

$

(0.22

)

$

(0.29

)

$

(0.15

)

$

(0.22

)

$

0.28

 

$

0.20

 

$

(0.08

)

 

 

 

 

 

 

 

 

 

Share-based Compensation

 

838

 

 

798

 

 

814

 

 

729

 

 

821

 

 

784

 

 

760

 

 

626

 

Amortization - intangibles

 

3,648

 

 

3,646

 

 

3,649

 

 

3,729

 

 

3,711

 

 

2,912

 

 

2,907

 

 

2,907

 

One Time Expenses

 

 

 

 

 

 

 

 

Settlements, penalties & interest

 

62

 

 

56

 

 

297

 

 

60

 

 

93

 

 

371

 

 

351

 

 

190

 

Acquisition and transaction costs

 

 

 

 

 

638

 

 

 

 

34

 

 

151

 

 

7

 

 

14

 

Other non-recurring expenses

 

 

 

 

 

58

 

 

49

 

 

63

 

 

75

 

 

 

 

 

Other (income) expense, net

 

139

 

 

(399

)

 

(1,130

)

 

 

 

(150

)

 

(10,191

)

 

(8,654

)

 

 

Non-GAAP Net (Loss) Income

$

3,631

 

$

(432

)

$

(1,534

)

$

1,550

 

$

271

 

$

(570

)

$

(865

)

$

2,139

 

Share Count

 

21,134

 

 

20,219

 

 

20,105

 

 

20,201

 

 

20,133

 

 

19,182

 

 

19,040

 

 

19,200

 

Non-GAAP EPS

$

0.17

 

$

(0.02

)

$

(0.08

)

$

0.08

 

$

0.01

 

$

(0.03

)

$

(0.05

)

$

0.11

 


Investor Relations Contact

Randal Rudniski

Vice President, Financial Planning & Analysis and Investor Relations

512-859-3562

randal.rudniski@asuresoftware.com



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