Asure Software Reports Mixed Q3 Results, Recurring Revenue Growth Amidst Decreased Profitability

Asure Software, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance in revenue and profitability compared to the previous fiscal period. Total revenue for the three months ended September 30, 2024, was $29,304,000, slightly down from $29,334,000 in the same period of 2023. However, recurring revenue showed a significant increase, rising to $28,626,000, up 20% from $23,833,000 year-over-year. For the nine months ended September 30, 2024, total revenue decreased by 4% to $89,000,000 from $92,818,000 in 2023, while recurring revenue increased by 15% to $85,950,000.

The company's gross profit for the third quarter was $19,704,000, a decline of 7% from $21,280,000 in the prior year, resulting in a gross profit margin decrease from 73% to 67%. Operating expenses increased to $23,326,000 from $21,027,000, leading to a loss from operations of $(3,622,000) compared to a profit of $253,000 in Q3 2023. The net loss for the third quarter was $(3,901,000), or $(0.15) per share, compared to a net loss of $(2,206,000) or $(0.10) per share in the same quarter of 2023. For the nine-month period, the net loss widened to $(8,569,000) from $(5,632,000) in 2023.

Asure's total assets decreased to $428,109,000 as of September 30, 2024, from $443,868,000 at the end of 2023. Total liabilities also fell to $228,956,000 from $252,213,000, while total stockholders' equity increased to $199,153,000 from $191,655,000. Cash and cash equivalents saw a significant decline, totaling $11,248,000 compared to $30,317,000 at the end of 2023.

Strategically, Asure made several acquisitions during the reporting period, including the purchase of an applicant tracking technology company for $15,162,000 in July 2024, financed through cash, common stock, and a promissory note. The company also acquired assets from resellers in Ohio, New Jersey, and Alabama, totaling approximately $17,391,000. These acquisitions are expected to enhance Asure's product offerings and market reach.

The company continues to focus on expanding its cloud-based Human Capital Management (HCM) solutions, targeting small to medium-sized businesses, and is launching new products like AsurePay™, an online banking solution. Despite the challenges in profitability, Asure remains committed to investing in growth and innovation.