Asure Software Inc ((ASUR)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Asure Software Inc. recently held its earnings call, reflecting a generally positive sentiment with strong revenue growth and successful acquisition integration. Despite these achievements, the company acknowledged challenges such as a decline in bookings and increased net losses. Nevertheless, Asure remains optimistic about its future growth and profitability.
Strong Revenue Growth
The third quarter of 2025 saw Asure Software Inc. achieve revenues of $36.3 million, marking a 24% increase compared to the same period last year. Recurring revenues also experienced an 11% growth, reaching $31.8 million, underscoring the company’s robust financial performance.
Successful Acquisition Integration
The acquisition of Lathem Time has been a significant contributor to Asure’s revenue growth. This strategic move has not only bolstered the company’s financials but also opened up new cross-selling opportunities, enhancing its market position.
New Client Interface Launch
Asure Central, the company’s new client interface, was launched to improve client experience. This platform is expected to accelerate cross-selling efforts and streamline workflow, potentially driving further growth.
Increased Adjusted EBITDA
Asure reported a 49% increase in adjusted EBITDA for the third quarter, reaching $8.1 million. The adjusted EBITDA margin improved by 300 basis points from the previous year, now standing at 22%, highlighting efficient operational management.
Positive Future Outlook
Looking ahead, Asure anticipates fourth-quarter revenues between $38 million and $40 million, with full-year 2025 revenues projected between $139 million and $141 million. The company expects continued growth into 2026, with revenues forecasted between $158 million and $162 million, positioning itself for potential GAAP profitability.
Decline in Bookings
Despite the positive revenue trends, Asure experienced a 41% decline in third-quarter bookings compared to the previous year. This decrease was attributed to the absence of large enterprise deals that were booked in the third quarter of 2024.
Net Loss Increase
The company reported a net loss of $5.4 million for the third quarter, an increase from the $3.9 million net loss recorded in the previous year. This highlights ongoing challenges in achieving profitability.
Gross Margin Decrease
Asure’s overall gross margins decreased to 64% from 67% the previous year, with non-GAAP gross margins also declining to 70% from 73%. This indicates pressure on the company’s cost structure.
Forward-Looking Guidance
Asure Software Inc. provided significant guidance for the upcoming periods. The company projects fourth-quarter revenues to be between $38 million and $40 million, with adjusted EBITDA ranging from $10 million to $12 million. For the full year 2025, revenues are expected between $139 million and $141 million, with adjusted EBITDA margins of 22% to 23%. Looking further ahead to 2026, Asure forecasts revenues between $158 million and $162 million, with adjusted EBITDA margins of 23% to 25%, indicating a strong growth trajectory.
In conclusion, Asure Software Inc.’s earnings call highlighted a positive sentiment driven by strong revenue growth and successful acquisition integration. Despite challenges such as declining bookings and increased net losses, the company remains optimistic about its future prospects, with promising guidance for continued growth and potential profitability.