On March 6, 2025, Asure Software Inc (ASUR, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. Asure Software Inc, a provider of cloud-based Human Capital Management (HCM) solutions, reported a revenue of $30.8 million for Q4 2024, aligning with analyst estimates and marking a 17% increase year-over-year. The company's full-year revenue reached $119.8 million, slightly below the annual estimate of $119.81 million.
Company Overview
Asure Software Inc specializes in delivering cloud-based HCM solutions as Software-as-a-Service (SaaS), primarily targeting small and mid-sized businesses (SMBs) in the United States. Its comprehensive suite, AsureHCM, includes payroll, tax, HR, and time and attendance software, along with HR consulting services.
Performance and Challenges
Asure Software Inc's performance in 2024 was marked by a significant increase in recurring revenue, which grew by 15% year-over-year and now constitutes 96% of total revenue, up from 84% in the previous year. This shift underscores the company's strategic focus on stable, recurring income streams. However, the company faced challenges, including a net loss of $11.8 million for the year, compared to a $9.2 million loss in 2023. This increase in net loss highlights ongoing financial pressures despite revenue growth.
Financial Achievements
The company's gross profit for Q4 2024 was $20.9 million, up from $17.8 million in the prior-year quarter. The non-GAAP gross profit was $22.5 million, with a non-GAAP gross margin of 73%, slightly improving from 72% in the previous year. These metrics are crucial for software companies like Asure, as they reflect the efficiency and profitability of their core operations.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Revenue | $30.8M | $26.3M | $119.8M | $119.1M |
| Net Loss | $(3.2)M | $(3.6)M | $(11.8)M | $(9.2)M |
| EBITDA | $3.4M | $1.1M | $11.4M | $14.3M |
| Adjusted EBITDA | $6.2M | $2.8M | $22.5M | $23.3M |
Analysis and Outlook
Asure Software Inc's strategic initiatives, such as the introduction of Luna, an AI agent for payroll and HR management, and a major multi-year agreement with a leading audit and consulting firm, are expected to drive future growth. The company's focus on expanding its Payroll Tax Management product has already resulted in significant multi-year agreements, reinforcing its revenue streams.
“We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew 22% year-over-year, reaching $30.8 million—an impressive finish to the year,” said Asure Chairman and CEO Pat Goepel.
Looking ahead, Asure Software Inc has provided revenue guidance for Q1 2025 in the range of $33.0 million to $35.0 million and full-year 2025 revenue between $134.0 million and $138.0 million. The company's strategic focus on both organic and inorganic growth, supported by investments in technology and new product development, positions it well for sustained long-term growth.
Explore the complete 8-K earnings release (here) from Asure Software Inc for further details.
