Asure Reports Q2 2023 Financial Results Showing a 50% Y/Y Increase in Revenue, Raises 2023 Guidance
AUSTIN, TX / ACCESSWIRE / August 8, 2023 / Asure Software, Inc. (NASDAQ:ASUR) ("Asure" or "the Company"), a provider of cloud-based Human Capital Management (HCM) software solutions and services, recently released its second quarter 2023 financial results. The HCM provider saw revenue come in at $30.4 million, which represents a year-over-year (y/y) growth rate of 50% compared to Q2 2022. Recurring revenues jumped 21% y/y to $23 million, Adjusted EBITDA results saw a $5.5 million improvement y/y to reach $6.1 million and gross profits climbed 80% y/y to $22 million.
"We delivered a historic performance for our Company in the second quarter with 50% organic growth in revenues and robust gains in operating margins, both of which are the primary result of technology enhancements and targeted sales efforts in our small business HCM and Enterprise Tax businesses," said Asure Chairman and CEO Pat Goepel. "We are building on our strong momentum by advancing our technology through leading partnerships and integrating artificial intelligence to enhance our solutions. Technological evolution and regulatory change present tremendous opportunities for small businesses to grow and improve their operations, and Asure is committed to capturing these benefits for them."
Here are the highlights of the Q2 2023 financial results:
Revenue of $30.4 million, up 50% from prior-year second quarter
Recurring revenue of $23.0 million, up 21% from prior-year second quarter
Net loss of $3.8 million, a $2.1 million improvement from the prior-year second quarter
EBITDA of $3.3 million, up $3.4 million from prior-year second quarter
Adjusted EBITDA of $6.1 million, up $5.5 million from the prior-year second quarter
Gross profit of $22.0 million, up 80% from prior-year second quarter
Non-GAAP gross profit of $23.4 million (margin of 77%) versus $13.4 million and 66% in prior-year second quarter
Mr. Goepel continued: "Our continued investments in product development are enabling our small business customers to better leverage our expertise while our enterprise clients access new tools to move money and manage increasingly complex tax laws more effectively. With further adoption of these capabilities, we are driving success in our HR compliance and Asure Marketplace™ offerings. In May, we released a new HR Benchmark Survey and Report that lays out best practices for small businesses, which we believe provides a clear roadmap for growth that our customers can leverage as they look to expand their operations. Going forward, we will continue to provide innovative HCM solutions that help small businesses thrive, HCM providers grow their base, and large enterprises streamline tax compliance."
On a first-half basis, Asure reported revenue of $63.5 million through the first six months of 2023, up 42% from the same period last year. Recurring revenue for the first half of 2023 grew 21% y/y to $50.9 million and EBITDA saw a $7.7 million improvement from the first six months of 2022 to reach $10.2 million.
After the strong financial results, management also announced an updated guidance outlook for 2023, which now estimates full-year 2023 revenue to come in a range between $118 million and $120 million and an adjusted EBITDA range of 19% to 20%. For Q3 2023, management estimates revenue between $26 million and $27 million on an adjusted EBITDA range between $3.5 million and $4.5 million.
In other news, Asure announced it has formed a strategic alliance with Vestwell, a digital recordkeeping specialist for 401(k) plans. Through this partnership, they will unveil the Asure 401(k) plan, aiming to revolutionize retirement savings. Designed for small and medium-sized businesses, this new solution offers a powerful tool to manage employee retirement funds efficiently and affordably. Both CEOs, Pat Goepel of Asure and Aaron Schumm of Vestwell expressed their enthusiasm about this collaboration, emphasizing their shared commitment to adding value for their clients and streamlining the complexities of retirement planning.
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 disclosures 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, 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 5 of the company's initial Q2 2023 financial results press release. For more information on Asure's complete Q2 financial results, footnotes, and forward looking statement disclosure, please visit: https://investor.asuresoftware.com/news-releases/news-release-details/asure-announces-second-quarter-2023-results
For more information about the company's services, latest news, and ongoing initiatives, visit https://www.asuresoftware.com and https://spotlightgrowth.com/asure-softwares-nasdaq-asur-q2-2023-financial-results-indicate-robust-growth-in-hcm-market-solidifies-strategic-partnership-with-vestwell/
About Asure Software
Asure Software (NASDAQ: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.
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Contact:
Asure Software
Randal.rudniski@asuresoftware.com
Spotlight Growth
SOURCE: Asure Software
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