Asure Software Reports Record Fourth Quarter Revenue and Full Year 2017 Financial Results; Raises Guidance for 2018
March 15, 2018 at 08:45 AM EDT
AUSTIN, Texas, March 15, 2018 (GLOBE NEWSWIRE) -- Asure Software, Inc. (NASDAQ:ASUR), a leading provider of Human Capital Management (HCM) and workplace management software, reported results for the fourth quarter and fiscal year ended December 31, 2017.
Fourth Quarter and Fiscal 2017 Key Financial Highlights
Fourth Quarter 2017 Financial Results
Fiscal 2017 Financial Results
Fiscal Year 2017 Operational Highlights
Fiscal 2018 Financial Guidance
Asure management is raising its financial guidance for fiscal 2018 ending December 31, 2018:
For fiscal 2018, Asure expects to achieve between $79.0 million and $82.0 million in revenue, with Non-GAAP EBITDA, excluding one-time items, of between $18.0 million and $20.0 million.
Asure reaffirmed its previously communicated objective to reach double-digit organic revenue growth along with multiple “tuck-in” acquisitions of resellers of its channel products.
“2017 was a year of significant progress for Asure,” said company CEO Pat Goepel. “From a financial standpoint, we achieved several records, including for revenue, gross profit, cloud revenue and non-GAAP EBITDA. Our success was driven by continued strong execution and growth across the entire business, but particularly in cloud revenue, as we added new customers onto our platform as well as transitioned existing customers to the cloud. In fact, revenue from our cloud services more than doubled in the fourth quarter and was up more than 90% for the year, a direct result of the emphasis we’re placing on this important and growing area of our business. In addition, our cloud bookings were up 228% in the fourth quarter and 162% for the full year, reflecting the effectiveness of the strategy we implemented during 2017 that emphasizes that our entire sales team sells our full suite of products, from time & labor and workspace management to human capital management.”
Asure CFO Kelyn Brannon added: “Our continued execution of our cloud strategy produced strong gross margins and recurring revenue both in Q4 and the full year, along with solid EBITDA and non-GAAP profitability as well. The 53% improvement in our non-GAAP EBITDA for 2017 would have been even stronger, and in line with our guidance, but our results were hampered by higher commission expenses, which were actually due to our strong cloud bookings, investments we made to solidify our infrastructure for larger acquisitions in 2018, as well as one larger customer who decided to purchase our solutions in a phased quarterly plan rather than entirely in one quarter. Altogether, these factors totaled approximately $1.2 million in the fourth quarter. Additionally, while our EPS numbers were in line with our guidance, we did receive a $0.04 tax benefit in the fourth quarter of 2017 from the 2017 tax reform legislation. As we look ahead, our strong cash position as well as these investments in infrastructure have contributed to an improvement in the operating leverage of our business model.”
Goepel continued: “Additionally, beyond our solid organic growth numbers, we’ve also continued to showcase our prowess in finding highly accretive and synergistic acquisition opportunities. In January we finalized deals on three different service bureaus in our payroll processing business, all of which are already fully integrated and providing Asure with opportunities for significant customer, product and financial synergies, which is directly in line with our overall growth strategy. These bureaus also expand Asure's footprint across the U.S., giving us greater coverage nationwide. Our acquisition of TelePayroll, in particular, gives us a much stronger foothold in the West Coast. Meanwhile Savers Administrative represented our entry into the Carolinas, and Pay Systems of America further bolstered our position in the Southeast.
“Between our financial and operational successes in 2017 and our continuing accretive acquisitions, Asure entered the new year with solid momentum. We remain focused on the key initiatives that have and will continue to drive us forward: accelerating the velocity of our cross-selling opportunities and scaling our business further. Our execution on this roadmap will lead us to continued success in 2018. In fact, by year end, we plan to have generated $79.0 million to $82.0 million in revenue and $18.0 million to $20.0 million in non-GAAP EBITDA. Our company has the right growth strategy, significant financial and operational momentum, and industry-leading solutions that will power us to scale our business even further, both in the near-term and over the longer run as well.”
Conference Call Details
Asure management will host a conference call today (Thursday, March 15, 2018) at 11:00 a.m. Eastern time (10:00 a.m. Central time) to discuss these financial results and outlook. Asure CEO Pat Goepel and CFO Kelyn Brannon will host the presentation, followed by a question and answer period.
U.S. dial-in: 877-853-5636
Please call the conference telephone number ten minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
The conference call will be broadcasted live and available for replay via the investor section of the company's website.
About Asure Software
Asure Software, Inc. (NASDAQ:ASUR), headquartered in Austin, Texas, offers intuitive and innovative solutions designed to help organizations of all sizes and complexities build companies of the future. Our cloud platforms enable more than 100,000 clients direct and indirect, worldwide to better manage their people and space in a mobile, digital, multi-generational, and global workplace. Asure Software's offerings include a fully-integrated HCM platform, flexible benefits and compliance administration, HR consulting, and time and labor management as well as a full suite of workspace management solutions for conference room scheduling, desk sharing programs, and real estate optimization. For more information, please visit www.asuresoftware.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding Asure's business and financial performance which are not historical facts are "forward-looking statements" that involve various risks and uncertainties, including those described in our filings and reports with the Securities and Exchange Commission. Such risks and uncertainties could cause actual results to differ materially from those contained in the forward-looking statements. In particular, there is no assurance that Asure will achieve any particular level of revenues or income, consummate any additional acquisitions or successfully integrate any future acquired businesses. All forward-looking statements in this press release are based on information available to Asure as of the date hereof and Asure assumes no obligation to publicly update any forward-looking statement to reflect events or circumstances occurring after the date of this press release.
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*Non-GAAP Financial Measures
EBITDA is calculated by adding income taxes, interest expense, depreciation and amortization and stock compensation expense to net earnings. EBITDA is not defined under GAAP and should not be considered in isolation or as a substitute for net earnings and other consolidated earnings data prepared in accordance with GAAP or as a measure of Asure’s profitability.
Non-GAAP Net Income (Loss) Excluding One-Time Expenses is calculated by combining the company’s GAAP Net Income (Loss), or earnings per share, with expenses that management believes are one time in nature and are not expected to recur on a dollar or per share basis. These one-time expenses primarily relate to legal and professional services with respect to our acquisition and financing activities and costs associated with severance, recruitment and relocation of employees, as well as purchase accounting adjustments.
Non-GAAP Net Income (Loss) is calculated by combining the company’s GAAP Net Income (Loss), or earnings per share, with the one-time expenses that are excluded in the company’s Non-GAAP Net Income (Loss) Excluding One-Time Expenses, and also excluding the impact of the following: amortization expense on acquisition-related intangible assets and stock-based compensation expense. We have revised our non-GAAP Net Income (Loss) to include acquisition-related amortization, as we believe this will more accurately reflect how we analyze our operations and provide information needed by investors to gain additional insight into our financial results. These expenses have been included in the non-GAAP Net Income (Loss) for all periods presented.
Reconciliation of GAAP Net Income (Loss) to EBITDA Excluding One-time Expenses:
Reconciliation of GAAP Net Income (Loss) to Net Income (Loss) Before Interest, Taxes, Depreciation,
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss) Excluding One-time Expenses
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Income (Loss)