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- **Revenue Surge**: Q3 2025 revenue of $36.3 million (+24% YoY) driven by organic growth and cross-selling across all product lines. 
- **Game-Changer Launch**: Asure Central client interface rolled out to direct clients, poised to accelerate multi-product sales and attach rates. 
- **2026 Outlook**: Guidance for $158-162 million revenue (+7% YoY) and 23-25% EBITDA margin, with long-term target of $180-200 million at 30%+ margin. 
- **Lathem Synergy**: $4.7 million Q3 contribution from Lathem, with potential for $10-15 million annual recurring revenue as payroll bundling ramps. 
- **AI-Driven Growth**: Luna AI assistant and event-based compliance tools expected to enhance client retention and ARPU in 2026.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $36.3 million, a 24% year-over-year increase, driven by organic growth and cross-selling across all product lines (payroll, benefits, recruiting, time and attendance, payroll tax management). 
- **Asure Central Launch**: Launched a new client interface, Asure Central, to streamline workflows and enhance cross-selling opportunities. The rollout began with direct clients in late Q3 and will expand to indirect clients soon. 
- **Organic Growth Momentum**: Sequential organic growth improved to 7% (excluding HRC ERTC-related churn), up from 5% in Q2. Management expects continued acceleration in Q4 and beyond. 
- **Lathem Time Integration**: The acquisition contributed $4.7 million in Q3 revenue (40% hardware, 60% recurring), with plans to bundle Lathem's time and attendance solutions with Asure's payroll offering. 

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - GAAP net loss: $5.4 million (vs. $3.9 million prior year). 
  - Adjusted EBITDA: $8.1 million (49% YoY increase), with a margin of 22% (up 300 basis points). 
  - Float revenue declined due to interest rate cuts, but client fund balances are expected to partially offset future rate reductions. 
- **Guidance**: 
  - Q4 2025: Revenue $38-40 million, adjusted EBITDA $10-12 million. 
  - FY 2026: Revenue $158-162 million (7% YoY growth), adjusted EBITDA margin 23-25%. 
  - Long-term target: $180-200 million revenue with 30%+ EBITDA margin. 
- **Balance Sheet**: $21.5 million cash, $70.4 million debt as of Q3 end. 

**【Q&A Highlights】**
- **2026 Growth Drivers**: CEO Pat Goepel emphasized organic growth (7%+ YoY) and cross-selling as key drivers, with Asure Central expected to accelerate attach rates for multi-product sales. 
- **Lathem Synergies**: CFO John Pence noted Lathem's 15,000 standalone clients as a pipeline for payroll cross-sell, with potential for $10-15 million annual contribution. 
- **AI Integration**: CEO highlighted AI-driven workflow tools (e.g., event-based compliance alerts) to enhance client retention and ARPU. 
- **Float Revenue Impact**: CFO modeled two 25-bp interest rate cuts in 2026, but client fund growth may mitigate margin pressure. 
- **Sales Cycle Trends**: CEO reported no material slowdown in small/medium business sales cycles, with pipeline strength supporting 2026 guidance.

Asure Software, Inc. (ASUR) Q3 2025 Earnings Call Transcript

- **Revenue Beat & Guidance Update**: Q2 revenue $30.1M (+7% YoY), raising FY2025 guidance to $138-142M with 22-24% EBITDA margins.
- **Strategic Acquisition**: Lathem acquisition ($39.5M) adds 14,000 clients, driving cross-sell opportunities in payroll, HR, and 401(k).
- **Attach Rate Growth**: 400bps YoY increase to 29% clients using 2+ products, signaling scalable growth.
- **HR Compliance Recovery**: Q2 was low point for ERTC-related drag; expect improvement in H2 with 400bps monthly net retention.
- **Profitability Milestone**: Targeting 30%+ EBITDA margins at $180-200M revenue, with potential GAAP profitability in Q4 2025.

**【CEO Summary Section】**
- Q2 2025 revenue: $30.1 million (7% YoY growth), excluding ERTC, growth was 10%.
- Acquired Lathem Time Corporation for $39.5 million, targeting 14,000 new clients and cross-selling opportunities.
- Attach rates increased 400 basis points YoY, with 29% of clients using 2+ products.
- Updated FY2025 guidance: $138-142 million revenue (up from $134-138M) and adjusted EBITDA margins 22-24%.
- Highlighted Payroll Tax Management momentum and AsurePay adoption (11,000 cards issued).

**【CFO Financial Commentary】**
- GAAP net loss: $6.1 million; adjusted EBITDA: $5.2 million (17% margin vs. 15% YoY).
- Recurring revenue: $28.6 million (95% of total), with organic growth 5% excluding HR Compliance drag.
- Gross margin: 66% (flat YoY), non-GAAP gross margin 73% (stable).
- Cash: $66 million; debt: $67.4 million post-Lathem acquisition.
- Q3 2025 guidance: $35-37 million revenue, $7-9 million adjusted EBITDA.

**【Q&A Key Highlights】**
- **Lathem Synergies**: Integration expected by Q4 2025; 2026+ revenue upside from cross-selling payroll, HR, and 401(k).
- **HR Compliance Headwinds**: 400bps YoY drag, but monthly net retention improving; Q2 was low point, with recovery in H2.
- **Organic Growth**: 1% organic growth in Q2, but 5% excluding HR Compliance; targeting 30%+ EBITDA margins at $180-200M revenue.
- **AsurePay Progress**: 1,000 activated cards, focusing on earned wage access integration with time clocks.
- **Pipeline Strength**: Record MQLs in July, driven by legislative changes and improved sales execution.

Asure Software, Inc. (ASUR) Q2 2025 Earnings Call Transcript

- **Q1 Revenue Growth**: $34.9 million (+10% YoY), driven by Payroll Tax Management and new product launches like AsurePay (70%+ monthly active users).
- **Financial Health**: Adjusted EBITDA of $7.3 million (21% margin), with stable cost structure and Q2 guidance of $30-32 million revenue.
- **Strategic Momentum**: 339% YoY increase in contracted backlog ($82 million), double-digit attach rate improvements, and $60 million credit facility for M&A.
- **Future Outlook**: Full-year 2025 guidance of $134-138 million revenue and 23-24% EBITDA margins, with H2 growth acceleration expected from tax deals and product rollouts.

**【CEO Summary Section】**
 Asure Software reported Q1 2025 revenue of $34.9 million, a 10% year-over-year increase, driven by strong performance in Payroll Tax Management and contributions from Payroll, Benefits, and Marketplace products. The company highlighted the launch of new Canadian tax compliance capabilities for global enterprises and a 70%+ monthly active user rate for AsurePay, its financial benefits platform. Management reiterated full-year 2025 revenue guidance of $134-138 million and adjusted EBITDA margins of 23-24%, excluding potential acquisitions. Attach rates for multi-product clients improved by double digits, with a contracted backlog of $82 million (up 339% YoY). The company also announced a $60 million credit facility to support inorganic growth.

**【CFO Financial Commentary】**
 - Q1 GAAP net loss was $2.4 million, with adjusted EBITDA of $7.3 million (21% margin). Recurring revenue represented 95% of total, up 10% YoY. Float revenue declined due to interest rate cuts, but average balances offset the impact. CFO John Pence emphasized stable cost structure and expectations for accelerated growth in the second half of 2025. Q2 guidance includes $30-32 million revenue and $5-6 million adjusted EBITDA.

**【Q&A Highlights】**
 - **Sales Team Effectiveness**: Dedicated sales teams for products like Broker Record and 401(k) are driving cross-selling, with one client increasing spend from $4,000 to $120,000 through product adoption. Attach rates are improving by 2-3% annually.
 - **HR Compliance Recovery**: The ERTC-related decline in HR compliance bookings is expected to reverse in H2 2025, with pipeline activity returning to pre-ERTC levels.
 - **M&A Strategy**: The company plans to accelerate acquisitions in 2025, leveraging the new credit facility to target resellers and product expansion. The pipeline includes opportunities in payroll, tax compliance, and benefits.
 - **Canadian Tax Product**: Early demand from existing clients with North American footprints, with a modern, user-friendly interface designed for global enterprises.
 - **Macroeconomic Resilience**: 95%+ recurring revenue and a diversified U.S. client base mitigate tariff and interest rate risks.


Asure Software (ASUR)-1 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth & Recurring Focus**: 2024 total revenue $119.8M, with recurring revenue at 96% of total (vs. 84% in 2023). 2025 guidance of $134-138M reflects mid-teens growth.
- **Innovation Driving Expansion**: AsurePay launched with 500 clients; 401(k) bookings accelerate post-ERTC pivot. Multi-year audit firm partnership expands reach.
- **Margin & Scale Ambition**: Target 30%+ EBITDA margin at $200M+ revenue. Q4 2024 adjusted EBITDA $6.2M (20% margin), up from $2.8M in 2023.
- **M&A & Capital Strategy**: Exploring $20-60M credit facility to accelerate customer acquisition; 14 deals in 18 months demonstrate efficient integration.

**【CEO Summary Section】**
- Total revenue for 2024 reached $119.8 million, with recurring revenue accounting for 96% of total revenue (up from 84% in 2023). 
- New bookings grew 86% year-over-year, driven by Payroll Tax Management and cross-selling of new products like AsurePay and 401(k) solutions.
- 2025 revenue guidance set at $134-138 million, with EBITDA margin targets of 23-24%. 
- Launched AsurePay, a mobile-first payment solution, with 500 clients already on the platform.
- Signed a multi-year partnership with a top audit firm to resell Payroll and Tax Management solutions.

**【CFO Financial Commentary】**
- Q4 2024 revenue: $30.8 million (+17% YoY), with recurring revenue (excluding ERTC) up 22%.
- Full-year non-GAAP gross margin: 74% (down from 76% in 2023), with long-term margin improvement expected.
- Adjusted EBITDA for Q4: $6.2 million (vs. $2.8 million in Q4 2023), margin of 20%.
- 2025 Q1 guidance: Revenue $33-35 million, adjusted EBITDA $6-7 million.
- Exploring a $20-60 million credit facility to accelerate customer acquisition.

**【Q&A Key Highlights】**
- **Enterprise Payroll Tax Momentum**: Major deals with Oracle, SAP, Workday, and Kroger highlight strong pipeline. Attach rates for new products (e.g., 401(k)) are a key focus for 2025.
- **M&A Strategy**: 14 customer acquisitions in 18 months; credit facility could enable faster scaling. 2025 guidance excludes M&A contributions.
- **Profitability Outlook**: Mid-teens revenue growth with margin expansion driven by scale (targeting 30%+ EBITDA at $200 million+ revenue).
- **AsurePay Rollout**: Early adopters show interest in replacing traditional payroll cards; on-demand pay feature to launch in Q2.
- **Risk Management**: Conservative modeling for interest rate impacts on tax filing float; focus on cross-selling to mitigate ERTC headwinds.

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