Asure Software Announces Strong First Quarter 2018 Results; Raises Revenue Guidance for Full Year

- May 10th, 2018

Asure Software Inc (NASDAQ:ASUR), a leading provider of Human Capital Management and workplace management software reported results for the first quarter ended March 31, 2018. The company said that its first quarter total revenue was up 80 percent year-over-year to $19.3 million. The company’s cloud bookings were up 225 percent year over year. As quoted … Continued

Asure Software Inc (NASDAQ:ASUR), a leading provider of Human Capital Management and workplace management software reported results for the first quarter ended March 31, 2018.

The company said that its first quarter total revenue was up 80 percent year-over-year to $19.3 million. The company’s cloud bookings were up 225 percent year over year.

As quoted in the press release:

  • First Quarter Cloud Revenue of $16.4 Million, up 110% Year-Over-Year

  • Deferred Revenue of $13.2 Million, up 33% Year-Over-Year

  • Unbilled Deferred Revenue of $14.1 Million, up 422% Year-Over-Year

  • Backlog of $27.3 Million, up 167% Year-Over-Year

“The first quarter was a strong start to the year,” said Pat Goepel, CEO. “From a financial standpoint, we achieved strong results, including revenue, cloud bookings, cloud revenue, and non-GAAP EBITDA. Total revenue in the quarter grew 80% over the prior year. First quarter’s performance was driven by continued strong execution and growth across the entire business, but particularly in our cloud business, which grew 110% from the year-ago quarter. In addition, cloud bookings for first quarter were up 225% year-over-year. Clearly, our cloud offerings are resonating in the market and new business activity has been promising. As a result of the momentum we are seeing in the marketplace we are raising our annual guidance for 2018.”

CFO Kelyn Brannon noted, “Our cloud strategy continues to experience strong momentum. For the first time, quarterly cloud revenue mix grew beyond the 80% threshold to reach 85% of total revenue in the first quarter. GAAP gross margin declined to 71.2% from 77.3% in the year-ago quarter as a result of revenue mix. As you recall, Asure acquired three resellers at the beginning of the year. These resellers typically carry lower gross margins, and represented a larger portion of our revenue mix in the first quarter, which resulted in the overall gross margin reduction. We ended the quarter with $25.8 million in cash.”

Fiscal 2018 Financial Guidance
Asure management increased revenue guidance for fiscal 2018 ending December 31, 2018 and maintained non-GAAP EBITDA guidance. Note that guidance for both revenue and non-GAAP EBITDA were previously increased on April 9, 2018.

New Range Prior Range
Revenue $90.0 million to $93.0 million $89.0 million to $92.0 million
Non-GAAP EBITDA* $20.0 million to $23.0 million $20.0 million to $23.0 million

Additional 2018 Guidance:

Interest expense

$9.0 million to $9.5 million

Depreciation

$1.7 million to $2.3 million

Amortization

$7.7 million to $8.5 million

Stock compensation expense

$0.7 million to $0.8 million

Acquisition costs and other one-time expenses

$2.3 million to $3.3 million

Non-GAAP Effective Tax Rate

0.0%

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