NASDAQ$ASUR

Asure Software Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Asure's Q3 2022 financial performance reflected strategic investments and strong client demand.

Asure Software reported a 22% year-over-year increase in revenue, driven by strategic investments and strong client demand. The company raised its fourth quarter revenue guidance and introduced preliminary 2023 financial guidance.

  • Revenue increased by 22% year-over-year, reaching $21.9 million.
  • Net loss was $4.5 million, compared to net income of $5.3 million in the prior year, which included a $10.5 million tax credit.
  • Total bookings increased by 91% year-over-year.
  • Fourth quarter revenue guidance was raised, projecting year-over-year growth of 11% to 14%.

Headline financials

Total Revenue

$20.8M

Previous: $17.5M+19.1%
EPS (adj)

-$0.01

Previous: -$0.01+0.0%
Adjusted EBITDA Margin

9.6%

No prior period
Capital Expenditures

-$2.19M

Previous: -$100K-2088.0%
Free Cash Flow

-$6.72M

Previous: $5.23M-228.6%
Net Income

-$4.53M

Previous: $5.33M-185.1%
Operating Income

-$3.71M

Previous: -$4.07M+9.0%
Gross Profit

$13.6M

Previous: $10.9M+25.6%
Cash & Equivalents

$10.9M

Previous: $11.5M-5.4%
Total Assets

$391M

Previous: $392M-0.2%
Stock-Based Comp

$797K

Previous: $784K+1.7%

Revenue & EPS history

Asure · Revenue · Quarterly

$20.8M

Q3 2022+19.1%vs Q3 2021
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Asure · $21.9M total across 2 segments · Q3 2022

  • Recurring Revenue
    $20M+21.9%
  • Professional Services, Hardware & Other
    $1.94M+21.0%

Forward guidance

The company provided revenue guidance for Q4 2022 of $23.5M - 24.0M. The company provided adjusted EBITDA guidance for Q4 2022 of $3.0M - 3.5M. The company provided Non-GAAP EPS guidance for Q4 2022 of $(0.01) - 0.01. The company provided revenue guidance for 2023 of $98.0M - 102.0M. The company provided adjusted EBITDA margin guidance for 2023 of 14% - 16%.

Tailwinds

  • Strong momentum with HR Compliance
  • Strong momentum with tax processing solutions
  • Contribution from revenue streams stemming from new uses of our installed user’s data in the Integration Marketplace
  • Higher investment revenues due to rising interest rates
  • Larger investible balances

Headwinds

  • High level of economic uncertainty in 2023 due to recent inflationary trends
  • Potential for a recession of unknown severity
  • Net loss of $4.5 million, a margin of (21)%, compared to net income of $5.3 million in the prior period
  • Decline of 185% relative to the prior year, as last year’s results included a $10.5 million gain related to ERTC credits
  • EBITDA declined to $1.3 million relative to the prior year’s $9.9 million for the same reason

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 2022

Historical avgQ3 2022

-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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