Asure Software (ASUR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $29.3M, nearly flat year-over-year, as recurring revenue grew 20% to $28.6M, now 98% of total revenue, up from 81% last year.

• Sales bookings increased 141% year-over-year, and backlog grew over 35% sequentially and over 250% year-over-year, positioning for double-digit organic growth in 2025.

• Net loss for Q3 2024 was $3.9M, compared to $2.2M in Q3 2023; adjusted EBITDA was $5.4M, down from $6.2M.

• New product launches, including AsurePay and expanded 401(k), workers' compensation, and healthcare solutions, are expected to drive future growth.

• Twelve acquisitions over the past four quarters added $15M in recurring revenue, with an average purchase price multiple of 2.6x recurring revenue.

Financial highlights

• Q3 recurring revenue was 98% of total, up from 81% last year; Q3 2024 recurring revenue was $28.6M, up 20% year-over-year.

• Net loss for Q3 was $3.9M, compared to $2.2M in Q3 2023.

• Gross margin declined to 67% from 73% year-over-year; non-GAAP gross margin fell to 73% from 76%.

• Adjusted EBITDA for Q3 was $5.4M (19% margin), down from $6.2M (21% margin) last year.

• Cash and equivalents at quarter-end were $11.2M; debt was $7.5M.

Outlook and guidance

• 2024 revenue guidance updated to $119M–$121M, with adjusted EBITDA margin of 18–19%.

• Q4 2024 revenue expected at $30M–$32M; adjusted EBITDA $6M–$7M.

• Initial 2025 revenue guidance is $134M–$138M, with adjusted EBITDA margin of 23–24%.

• 2025 guidance assumes one acquisition closing in Q4 2024; no further acquisitions included.

• Organic revenue growth for 2025 expected at 12–13% per quarter.