Asure Software (ASUR) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached $119.8 million, with recurring revenue up 15% year-over-year and now 96% of total revenue, up from 84% in 2023.

• Fourth quarter 2024 revenue was $30.8 million, up 17% year-over-year; recurring revenue for Q4 was $28.5 million, up 14%.

• Product portfolio expanded with new offerings including AsurePay, 401(k), recruiting, benefit brokerage solutions, and Luna, an AI agent for payroll and HR.

• Signed major multi-year agreements with large enterprises and a leading audit/tax firm to resell payroll solutions in January 2025.

• Contracted backlog increased approximately 300% year-over-year to $79 million, positioning the company well for 2025.

Financial highlights

• 2024 total revenue was $119.8 million, up modestly year-over-year; excluding ERTC, revenue grew 17%.

• Adjusted EBITDA for 2024 was $22.5 million (19% margin), slightly down from $23.3 million (20% margin) in 2023; Q4 adjusted EBITDA was $6.2 million, up 121% year-over-year.

• Net loss for 2024 was $11.8 million, compared to $9.2 million in 2023.

• Cash and cash equivalents at year-end 2024 were $21.4 million; debt was $12.7 million; total equity was $197.3 million.

• Bookings grew 86% year-over-year; net retention for the last twelve months was 93%.

Outlook and guidance

• FY 2025 revenue guidance is $134–$138 million, representing 23–24% growth year-over-year.

• Adjusted EBITDA margin expected between 23%-24% for 2025.

• Q1 2025 revenue expected at $33–$35 million; adjusted EBITDA $6–$7 million.

• Guidance excludes contributions from future acquisitions.

• Management expects continued organic and inorganic growth, supported by investments in technology and operations.