Asure Reports Q4 2023 and FY 2023 Financial Results Highlighting Revenue Growth Excluding ERTC
AUSTIN, TX / ACCESSWIRE / March 8, 2024 / Asure Software, Inc. (NASDAQ:ASUR) ("Asure" or "the Company"), a provider of cloud-based Human Capital Management (HCM) software solutions and services, released its fourth quarter 2023 and full-year 2023 financial results on February 26, 2024.
For the full year 2023, Asure reported total revenues of $119.1 million, which were up 24% y/y or 19% y/y when excluding ERTC. Recurring revenue was $99.7 million, which is y/y growth of 16% or 19% when excluding ERTC. The overall net loss of $9.2 million was a noticeable $5.3 million improvement compared to FY 2022's net loss of $14.5 million. EBITDA jumped 63% y/y to $14.3 million and adjusted EBITDA surged 97% y/y to $23.3 million.
During the fourth quarter, Asure reported total revenue of $26.3 million, which represented 15% y/y growth (excluding ERTC) or -10% y/y with ERTC. Recurring revenue came in at $25 million, which was up 15% y/y when excluding ERTC or up 4% y/y with ERTC included. The HCM service provider reported a net loss of $3.6 million, compared to a net loss of $1.1 million during the same period last year. EBITDA was reported at $1.1 million, compared to $5 million during Q4 last year. Adjusted EBITDA came in at $2.8 million compared to $6 million during Q4 2022.
Asure Chairman & CEO Pat Goepel: "We are excited to build on the success we had during 2023 in multiple areas of our business. During 2024 we plan to continue this momentum and our focus will be on advancing our technology with leading partnerships and strategic sales initiatives such as the 401k bundled offering with payroll, which was launched in the fall of 2023 and thus far has produced positive results, to help drive new client additions. We continue to advance our technology with partnerships as evidenced by the recent invitation to join the SAP PartnerEdge Open Ecosystem. The partnership with SAP will allow Asure to enhance its payroll tax engine by integrating with the SAP systems and streamlining payroll tax processes for its existing SAP clients. Our focus on areas of differentiation, such as HR Compliance, our best-in-class tax platform, and our Asure Marketplace™, is anticipated to account for an increasing share of our revenue moving forward into 2024 and is expected to generate high-margin revenue streams during 2024."
Management also took the opportunity to issue Q1 2024 and FY 2024 guidance for revenue and adjusted EBITDA:
Guidance Range | Q1-2024 | FY-2024 | ||||||
Revenue | $ | 30.0 M - 32.0 M | $ | 125.0 M -129.0 M | ||||
Adjusted EBITDA(1) | $ | 6.0 M -7.0 M | 20% - 21% | |||||
These forecast operates under the assumption that the ERTC program will continue to be paused for the foreseeable future and thus are not included in the guidance.
Mr. Goepel continued: "We expect that the growth of our business will continue during 2024 and our expectation is for performance on a combination of organic and inorganic basis. We have signed agreements to purchase approximately $7 million dollars of annual recurring revenue so far and the pipeline is strong. We plan to continue to invest in research and development of products that we believe will benefit our small business clients and enable them to leverage our expertise more effectively. Our enterprise clients have access to new tools which will aid them in moving money and navigating the ever-changing and increasingly complex tax law environment. We will continue to provide innovative HCM solutions that help small businesses thrive, HCM providers grow their base, and large enterprises streamline tax compliance."
For more information about the company's services, latest news, and ongoing initiatives, visit https://www.asuresoftware.com and https://spotlightgrowth.com/moving-past-ertc-asure-nasdaq-asur-reports-meaningful-growth-in-q4-and-fy-2023/
About Asure Software
Asure Software (NASDAQ:ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.
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SOURCE: Asure Software
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