Q3 2025 Asure Software Inc Earnings Call Transcript
Key Points
- Asure Software Inc (ASUR) reported strong third-quarter revenues of $36.3 million, marking a 24% increase compared to the prior year.
- The company experienced a 7% organic growth in the third quarter, excluding HRC ERTC-related churn, indicating a positive trend in its core business.
- The recent acquisition of Lathem Time is performing well, contributing significantly to revenue growth and offering cross-selling opportunities.
- Asure Software Inc (ASUR) launched a new client interface, Asure Central, aimed at enhancing client experience and accelerating cross-selling efforts.
- Adjusted EBITDA for the third quarter increased by 49% to $8.1 million, with an adjusted EBITDA margin of 22%, reflecting improved operational efficiency.
- Bookings for the third quarter declined by 41% compared to the previous year, primarily due to large enterprise deals booked in the third quarter of 2024.
- Gross margins decreased to 64% from 67% in the prior year, with non-GAAP gross margins also declining due to a revenue mix shift towards lower-margin sales.
- The company reported a net loss of $5.4 million for the third quarter, an increase from the $3.9 million net loss in the prior year.
- Float revenue was down slightly due to previous federal funds rate reductions, and further interest rate cuts are anticipated, potentially impacting future revenue.
- The integration of Lathem Time is ongoing, with potential changes to its business model, which may affect revenue predictability in the short term.
Good afternoon, and welcome to Asure's third-quarter 2025 earnings conference call. Joining us today's call are Chairman and CEO, Pat Goepel; Chief Financial Officer, John Pence; and Vice President of Investor Relations, Patrick McKillop. Following their prepared remarks, there will be a question-and-answer session for the analysts and the investors.
I would now like to turn the call over to Patrick McKillop for introductory remarks. Please go ahead, sir.
Thank you, operator. Good afternoon, everyone, and thank you for joining us for Asure's third quarter 2025 earnings results call. Following the close of the markets, we released our financial results. The earnings release is available on the SEC's website and our Investor Relations website at investor.asuresoftware.com, where you can also find the investor presentation.
During our call today, we will reference non-GAAP financial measures, which we believe to be useful to investors and exclude the impact of certain items. A
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