Contradictions in the Latest Earnings Call: Lathem Integration, Revenue Growth, and Sales Strategies Under Scrutiny

Revenue Growth and Strategic Acquisitions:
- Asure Software reported revenues of $30.1 million for the second quarter of 2025, an increase of 7% versus the prior year.
- The growth was driven by the strong performance of the payroll tax management product, improving attach rates of human capital management products, and the acquisition of Lathem Time Corporation.

Impact of Acquired Companies and Integration:
- The acquisition of Lathem Time Corporation, a pioneer in mechanical time clocks, is expected to contribute additional high-margin revenue.
- The integration of Lathem's products and services is anticipated to accelerate Asure's payroll sales and improve attach rates, driving organic growth.

Challenges and Outlook for Payroll Tax Management:
- Asure's Payroll Tax Management product has experienced strong momentum, with clients ordering thousands of cards, contributing to Asure's RPO backlog.
- Challenges include phased installations and the timing of enterprise implementations, which have led to some slippage but no losses in the pipeline.

ERTC-related Headwinds and Renewals:
- The decline in bookings for the second quarter was primarily due to large enterprise deals booked in the second quarter of 2024, causing a 53% year-over-year decrease.
- The company anticipates that the impact of ERTC-related sales headwinds will lessen as that cohort of clients rolls off, with current monthly sales numbers showing positive trends.