The following is a summary of the Asure Software, Inc. (ASUR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Asure's Q1 2024 revenues decreased by 4% to $31.7 million compared to the previous year, but excluding ERTC, revenues were up 10% year-over-year.
A net loss of $300,000 was reported for the first quarter, in comparison to a net income of $300,000 last year.
Gross margins dropped to 71% from 74% in the previous year.
EBITDA for the first quarter was $4.4 million, indicating a decrease from the prior year's $6.8 million.
Business Progress:
Revenue growth for 2024 is expected to be driven mainly by Asure's core payroll business, Asure Marketplace, Payroll Tax Management, and the 401(k) offering, along with potential acquisitions.
Sales are projected to increase due to anticipated demand for HR compliance solutions in the U.S. small business sector, product expansion, tech advancements, and reinforced digital marketing initiatives.
Asure Software is expecting to hit a 25% growth rate in 2024 and reported 68% growth in payroll sales in Q1 2024. New business revenue contributes to approximately 70% of total bookings.
As part of business growth initiatives, the company plans to expand its team size, accelerate its core business, invest in technology, launch a treasury management solution with JP Morgan, and reduce operation time in the 401K sector.
More details: Asure Software IR
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