NASDAQ$ASUR

Asure Software Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Asure's revenue increased by 12% year-over-year, with two-thirds attributed to organic growth. The company reported a GAAP net income of $5.3 million, which included a $10.5 million gain from ERTC credit.

Asure Software, Inc. reported third-quarter results with a 12% increase in revenue compared to the prior year. The company acquired two payroll businesses and introduced a new integrated payroll and HR solutions platform. They also reported a GAAP net income of $5.3 million, including a $10.5 million gain from the Employee Retention Tax Credit (ERTC).

  • Revenue of $17.98 million, up 12% from the prior year’s quarter, and up 5% sequentially
  • Total bookings were up 43% year over year, and flat sequentially
  • GAAP net income of $5.3 million including a $10.5 million gain related to the Company’s ERTC credit
  • Non-GAAP EBITDA of $1.2 million, or 7% margin

Headline financials

Total Revenue

$17.5M

Previous: $16M+9.0%
EPS (adj)

-$0.01

Previous: -$0.03+66.7%
EBITDA Margin

55.0%

No prior period
Capital Expenditures

-$100K

Previous: -$859K+88.4%
Free Cash Flow

$5.23M

Previous: -$5.62M+193.1%
Net Income

$5.33M

Previous: -$4.76M+212.0%
Operating Income

-$4.07M

Previous: -$4.68M+12.9%
Gross Profit

$10.9M

Previous: $9.07M+19.8%
Cash & Equivalents

$11.5M

Previous: $12.9M-11.1%
Total Assets

$392M

Previous: $373M+5.2%
Stock-Based Comp

$784K

Previous: $707K+10.9%

Revenue & EPS history

Asure · Revenue · Quarterly

$17.5M

Q3 2021+9%vs Q3 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Asure · $18M total across 2 segments · Q3 2021

  • Recurring Revenue
    $16.4M+7.3%
  • Professional Services, Hardware & Other
    $1.61M+118.3%

Forward guidance

The company provided revenue guidance for the fourth quarter of 2021 and fiscal year 2022.

Tailwinds

  • Fourth Quarter 2021 Revenue: $20.5 million—$21.0 million
  • Fourth Quarter 2021 Non-GAAP EBITDA: $1.5 million—$1.7 million
  • Fourth Quarter 2021 Non-GAAP EPS: $(0.05)—$(0.03)
  • Fiscal Year 2022 Revenue: $85.0 million—$90.0 million
  • Fiscal Year 2022 Non-GAAP EBITDA Margin percentages and Non-GAAP EPS to be in line with historical percentages and seasonal trends

Headwinds

  • Continuing challenging environment to predict future economic results given the ebbs and flows of employment trends
  • Continuing challenging environment to predict future economic results given the ebbs and flows of COVID
  • Continuing challenging environment to predict future economic results given the ebbs and flows of other economic challenges of today
  • Non-GAAP EPS Guidance for Q4 2021 is negative
  • There is risk associated with possible fluctuations in the Company’s financial and operating results

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-0.9%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-1.9%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+21.8%

Q4 2022

Best reaction

-35.6%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.0%-6.0%-0.2%
Q4 2025+17.8%+21.0%+1.9%
Q3 2025+4.1%+1.5%-1.5%
Q1 2025+2.3%-1.5%-1.2%
Q4 2024+12.9%-4.4%-6.7%
Q3 2024-11.8%-9.0%+1.5%
Q2 2024-12.6%-19.3%-16.6%
Q1 2024-5.6%-2.3%+1.5%
Q4 2023-9.3%-3.7%-20.6%
Q3 2023-19.7%-16.1%-7.6%
Q2 2023+12.8%+2.6%-9.6%
Q1 2023+6.6%-3.3%-6.4%
Q4 2022+21.8%+30.5%+33.4%
Q3 2022-0.2%+1.4%+25.7%
Q2 2022+2.9%+8.3%+5.0%
Q1 2022-0.8%-0.8%-1.7%
Q4 2021-4.2%-5.1%-17.4%
Q3 2021-0.2%-9.1%-8.9%
Q2 2021-1.2%+0.9%-8.5%
Q1 2021-1.6%-2.4%+5.1%
Q4 2020-3.2%-8.8%-7.6%
Q3 2020-0.6%+1.9%+6.2%
Q2 2020-7.4%-4.8%-4.5%
Q1 2020+3.4%+9.9%+10.1%
Q4 2019+9.8%-1.2%+0.5%
Q3 2019-5.2%-5.7%-8.7%
Q2 2019-24.3%-19.8%-16.1%
Q1 2019+7.6%-0.9%-6.9%
Q4 2018+1.5%+5.8%+4.4%
Q3 2018-35.6%-45.0%-45.8%
Q2 2018+8.2%-4.2%-2.2%
Q1 2018+17.1%+9.8%+10.8%
Q4 2017-13.3%-18.9%-20.0%
Q3 2017+12.2%+19.3%+19.5%
Q2 2017+1.2%+1.5%-16.4%
Q1 2017+11.0%+11.1%+11.4%
Q4 2016-13.3%-12.8%-11.1%
Q3 2016+4.0%+19.6%+23.9%
Q2 2016+0.6%-5.1%+11.5%
Q1 2016-1.4%
Q4 2015-0.7%
Q3 2015-9.3%
Q2 2015+2.7%
Q1 2015-3.1%
Q4 2014-7.9%
Q3 2014+0.0%
Q2 2014+2.2%
Q1 2014+5.4%
Q4 2013+3.9%
Q3 2013+10.8%
Q2 2013-5.6%
Q1 2013+0.0%
Q4 2012-6.1%
Q3 2012-24.2%
Q2 2012+6.5%
Q1 2012-10.0%
Q4 2011-7.9%
Q3 2011-2.1%
Q2 2010+3.7%
Q2 2011+3.7%
Q1 2011-2.9%
Q4 2010-2.9%
Q3 2010-3.5%
Q1 2010+6.6%

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