Asure Software (ASUR) 17th Annual Midwest IDEAS Conference summary

Business overview and growth strategy

• Provides payroll and HR solutions to over 100,000 clients, serving more than 2 million employees across all 50 states.

• Revenue guidance for 2026 is $159–$163 million with adjusted EBITDA margins of 24–25%.

• 91% of revenues are recurring, with a client retention rate of 98% and average client tenure of 8–10 years.

• Growth driven by acquisitions of point solutions since 2020, including payroll tax management, HR brokerage, recruiting tech, and time/attendance products.

• Management and board own about 9% of shares, aligning interests with shareholders.

Revenue composition and go-to-market approach

• Core SMB payroll clients account for 64% of revenues; enterprise tax offering is 18%; indirect HCM platform is a smaller portion.

• Hardware sales and non-strategic businesses contribute 10% of revenues.

• Direct sales force of 120+ reps, aiming to grow to 150, supports organic growth and cross-selling.

• Enhanced organic growth comes from acquiring reseller books of business, with about 20 resellers acquired in the past 24 months.

• Strategic inorganic growth targets new products or technologies to broaden the portfolio.

Platform integration and product expansion

• All recent acquisitions have been integrated into a unified platform, AsureCentral, with single sign-on and multi-factor authentication.

• Launched AsureWorks in January 2026, a managed services offering providing HR functions at a lower cost than hiring in-house.

• Product portfolio expanded from time tracking and payroll to a broader suite, increasing per employee per month (PEPM) billing from $15 in 2020 to over $100 in 2026.

• Focus on increasing attach rates, with a 6% rise in clients using two or more products in Q2 2026.

• Shift in sales mix: now 53% new clients and 47% existing clients, reflecting successful cross-selling.