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Asure Software (ASUR) Q4 Earnings Beat Estimates, Revenues Up
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Asure Software (ASUR - Free Report) reported adjusted earnings of 2 cents per share in fourth-quarter 2021, beating the Zacks Consensus Estimate of a loss of 4 cents per share. The company had reported adjusted earnings of $0.00 per share in the year-ago quarter.
Revenues of $21.1 million increased 28.5% year over year and beat the Zacks Consensus Estimate by 0.74%. The top-line performance was mainly driven by the acquisitions of two payroll businesses in September 2021, as well as 5% organic growth.
Asure Software Inc Price, Consensus and EPS Surprise
In terms of revenues, the fourth quarter was Asure’s highest revenue quarter since the company repositioned itself as a pure-play HCM provider.
Recurring revenues (92% of revenues) increased 18.4% year over year to $19.4 million. Revenues from professional services, hardware and other (8.2% of revenues) rose 7.2% year over year to $1.72 million.
During the quarter, total bookings were up 7% year over year.
Gross profit on a non-GAAP basis rose 31.5% year over year to $14.3 million. Gross margin expanded by 150 basis points (bps) to 67.9% from 66.4% in the year-ago quarter.
Balance Sheet
Total cash and cash equivalents as of Dec 31, 2021, were $13.43 million compared with $11.51 million as of Sep 30, 2021.
Guidance
Asure Software’s current guidance is based on the performance of the HCM business.
For the first quarter of 2022, the company expects revenues between $23.25 million and $23.75 million. Adjusted EBITDA is expected in the range of $3.3-$3.5 million. The non-GAAP earnings per share (EPS) for first-quarter fiscal 2022 are expected in the band of $0.04-$0.06.
For fiscal 2022, the company expects revenues between $85 million and $90 million. Adjusted EBITDA is expected to be in line with historical percentages and seasonal trends.
Zacks Rank & Stocks to Consider
Asure Software currently has a Zacks Rank #3 (Hold).
Advanced Micro Devices’ shares is up 23.6% in the past year compared with the Zacks Electronics - Semiconductors industry’s return of 7.2% and the Computer and Technology sector’s fall of 4.9%.
Axcelis Technologies’ shares is up 39% in the past year compared with the Zacks Electronics - Manufacturing Machinery industry’s decline of 4% and the Computer and Technology sector’s fall of 4.9%.
Apple shares have returned 19.9% in the past year compared with the Zacks Computer - Mini computers industry’s rise of 23.8% and the Computer and Technology sector’s fall of 4.9% in the past year.
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Asure Software (ASUR) Q4 Earnings Beat Estimates, Revenues Up
Asure Software (ASUR - Free Report) reported adjusted earnings of 2 cents per share in fourth-quarter 2021, beating the Zacks Consensus Estimate of a loss of 4 cents per share. The company had reported adjusted earnings of $0.00 per share in the year-ago quarter.
Revenues of $21.1 million increased 28.5% year over year and beat the Zacks Consensus Estimate by 0.74%. The top-line performance was mainly driven by the acquisitions of two payroll businesses in September 2021, as well as 5% organic growth.
Asure Software Inc Price, Consensus and EPS Surprise
Asure Software Inc price-consensus-eps-surprise-chart | Asure Software Inc Quote
Quarterly Details
In terms of revenues, the fourth quarter was Asure’s highest revenue quarter since the company repositioned itself as a pure-play HCM provider.
Recurring revenues (92% of revenues) increased 18.4% year over year to $19.4 million. Revenues from professional services, hardware and other (8.2% of revenues) rose 7.2% year over year to $1.72 million.
During the quarter, total bookings were up 7% year over year.
Gross profit on a non-GAAP basis rose 31.5% year over year to $14.3 million. Gross margin expanded by 150 basis points (bps) to 67.9% from 66.4% in the year-ago quarter.
Balance Sheet
Total cash and cash equivalents as of Dec 31, 2021, were $13.43 million compared with $11.51 million as of Sep 30, 2021.
Guidance
Asure Software’s current guidance is based on the performance of the HCM business.
For the first quarter of 2022, the company expects revenues between $23.25 million and $23.75 million. Adjusted EBITDA is expected in the range of $3.3-$3.5 million. The non-GAAP earnings per share (EPS) for first-quarter fiscal 2022 are expected in the band of $0.04-$0.06.
For fiscal 2022, the company expects revenues between $85 million and $90 million. Adjusted EBITDA is expected to be in line with historical percentages and seasonal trends.
Zacks Rank & Stocks to Consider
Asure Software currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Computer and Technology sector are Advanced Micro Devices (AMD - Free Report) , carrying a Zacks Rank #1 (Strong Buy), Axcelis Technologies (ACLS - Free Report) and Apple (AAPL - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Micro Devices’ shares is up 23.6% in the past year compared with the Zacks Electronics - Semiconductors industry’s return of 7.2% and the Computer and Technology sector’s fall of 4.9%.
Axcelis Technologies’ shares is up 39% in the past year compared with the Zacks Electronics - Manufacturing Machinery industry’s decline of 4% and the Computer and Technology sector’s fall of 4.9%.
Apple shares have returned 19.9% in the past year compared with the Zacks Computer - Mini computers industry’s rise of 23.8% and the Computer and Technology sector’s fall of 4.9% in the past year.