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• Total Revenue for 2024: $119.8 million, with a 17% increase excluding ERTC revenues.

• Recurring Revenue Growth for 2024: 15% increase, making up 96% of total revenues compared to 84% in 2023.

• Fourth Quarter Revenue: $30.8 million, a 17% increase from the prior year.

• Fourth Quarter Recurring Revenue Growth: 14% increase, with a 22% increase excluding ERTC revenues.

• Gross Margin for Fourth Quarter: 68%, unchanged from the prior year.

• Full-Year Gross Margin: Decreased to 69% from 72% in the prior year.

• Non-GAAP Gross Margin for Fourth Quarter: 73%, up from 72% in the prior year.

• Net Loss for Fourth Quarter: $3.2 million, compared to $3.6 million in the prior year.

• Net Loss for Full Year: $11.8 million, compared to $9.2 million in the prior year.

• EBITDA for Fourth Quarter: $3.4 million, up from $1.1 million in the prior year.

• Adjusted EBITDA for Fourth Quarter: $6.2 million, with a margin of 20% compared to 11% in the prior year.

• Cash and Cash Equivalents: $21.4 million at year-end.

• Debt: $12.7 million at year-end.

• 2025 Revenue Guidance: $134 million to $138 million, with EBITDA margins of 23% to 24%.

• First Quarter 2025 Revenue Guidance: $33 million to $35 million.

• First Quarter 2025 Adjusted EBITDA Guidance: $6 million to $7 million.

• Warning! GuruFocus has detected 3 Warning Signs with ASUR.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Asure Software Inc (NASDAQ:ASUR) reported a 17% increase in total revenue for 2024, excluding ERTC revenues.

• Recurring revenues grew by 15% in 2024, making up 96% of total revenues compared to 84% in 2023.

• The company successfully launched AsurePay, an innovative alternative to online banking, expected to enhance employer retention and attract new employees.

• Asure Software Inc (NASDAQ:ASUR) signed a multiyear agreement with a leading audit, tax, consulting, and advisory firm to resell its payroll and payroll tax management solutions.

• The company's sales efforts resulted in an 86% increase in new bookings compared to the previous year, with a strong contracted backlog growth of 17% since the third quarter earnings report.

Negative Points

• The net loss for the full year was $11.8 million, an increase from a $9.2 million loss in the prior year.

• Full-year gross margins decreased to 69% from 72% in the prior year period.

• The company faced challenges in its HR Compliance group related to ERTC upsell activity in 2023.

• Despite rate reductions, float revenue remained stable, indicating potential pressure on future revenue streams.

• An anticipated acquisition during the fourth quarter did not materialize, although it was replaced by two additional acquisitions in the first quarter.