Asure Software's Q1 2025 Earnings Call: Navigating Contradictions in ERTC Impact, M&A Strategy, and Revenue Growth
Earnings DecryptWednesday, May 7, 2025 2:38 am ET

Employee Retention Tax Credit (ERTC) Impact and Revenue Growth Expectations, Acquisition Strategy and Pipeline, Macroeconomic Impact and Economic Uncertainty, ERTC Impact and Revenue Growth Expectations, and Focus on Cross-Selling and Product Attach Rates are the key contradictions discussed in Asure Software's latest 2025Q1 earnings call.
Revenue Growth and Product Performance:
- reported first quarter revenues of $34.9 million, an increase of 10% versus the prior year.
- The growth was driven by strong performance from the Payroll Tax Management product and contributions from Payroll, Benefits, and Market Place offerings.
Investments and Strategic Acquisitions:
- Asure Software made two acquisitions in the first quarter and has plans to ramp up its acquisition in the second half of the year due to the new credit facility.
- This strategic approach aims to expand its client base and enhance profitability by cross-selling opportunities.
Product Innovation and Market Expansion:
- AsurePay was launched to the client base and showed positive trends with 70% of active card users using it over three times per month.
- The company is also expanding its solution set, including a new capability for large Canadian companies, which offers seamless integration with major platforms like , Oracle, and SAP.
Cost Management and Financial Performance:
- Gross profit increased by 9% to $24.6 million compared to the prior year, with gross margins remaining consistent at 71%.
- Asure is focused on maintaining a flat cost structure going forward, despite some incremental costs incurred in preparation for the year ahead.
ASUR Total Revenue YoY, Total Revenue
Revenue Growth and Product Performance:
- reported first quarter revenues of $34.9 million, an increase of 10% versus the prior year.
- The growth was driven by strong performance from the Payroll Tax Management product and contributions from Payroll, Benefits, and Market Place offerings.
Investments and Strategic Acquisitions:
- Asure Software made two acquisitions in the first quarter and has plans to ramp up its acquisition in the second half of the year due to the new credit facility.
- This strategic approach aims to expand its client base and enhance profitability by cross-selling opportunities.
Product Innovation and Market Expansion:
- AsurePay was launched to the client base and showed positive trends with 70% of active card users using it over three times per month.
- The company is also expanding its solution set, including a new capability for large Canadian companies, which offers seamless integration with major platforms like , Oracle, and SAP.
Cost Management and Financial Performance:
- Gross profit increased by 9% to $24.6 million compared to the prior year, with gross margins remaining consistent at 71%.
- Asure is focused on maintaining a flat cost structure going forward, despite some incremental costs incurred in preparation for the year ahead.

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