ASUR - Earnings call transcript Q1 2018

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Operator

Good morning, and welcome to Asure Software’s First Quarter 2018 Earnings Conference Call.

Joining us today for today's call are Asure's CEO, Pat Goepel; CFO, Kelyn Brannon; and Director of HR, Cheryl Trbula. At this time all participants are in a listen-only mode. Later we will conduct the question-and-answer session and instructions will follow at that time. [Operator Instructions] And as a reminder, the conference is With that, I would like to turn the call over to Cheryl, who will provide the necessary cautions regarding the forward-looking statements made by management during the call. proceed. Please

Cheryl Trbula

and Amanda, afternoon, good you, everyone. Thank

information. start, of the we call company's affect include the other business a uncertainties I call of any outlook management would some that might forward-looking and estimates not that mention These to projections, will of historical statements statements the outcome. this include discussion like during Before This made the number be and may their are and forward-looking guidance. that could made to of are that risks or all subject particular statements on this by

to the Exchange cause expected to differ file urged with are important, These relating results. You on contained actual results and Securities are consider could Commission. to business the they from company's the reports materially risk factors our in factors risk and

of I will our a Finally, and available Investor recorded, that like CEO, replay everyone now over With via Pat? like for Pat section turn remind website would will the the link to to this be call call that, I to our be in at would available Goepel. www.asuresoftware.com. made it Relations

Pat Goepel

Thank call. and Cheryl, sure XXXX Quarter Asure quarter Software’s your performance. and earnings financial client, everyone like you're I a first a welcome solid you, healthy continued third-party. to start for interest the an whether support new to expansion, analyst and appreciate employee, client front the a and We valued would one or investor, terrific strong pace marked and year highlighted logo by acquisition on

in over highlights Total a you the give financial the the first grew revenue just me quarter Let XX% for prior year. key quarter. few

strong really a business allowing XXX% offerings they of strong were over cloud promising. new XX% represents revenues. in year-over-year. ago and bookings one and very XXX% up now for has cloud from the quarter Cloud were activity market our quarter visibility revenue for resonating been revenue our Clearly, revenue are and future in reoccurring mix, grew year Importantly

As experiencing, annual business note momentum, Asure to EBITDA chosen a been raising strong our guidance due result this revenue XXXX. raise has in at to We've pleased guidance we're investments to planned I’m for of IT infrastructure the time. that not

closed our not also margin our from immediate up Sachs, These to capital the the key Goldman number within partners, call it's product, line have enhanced expansion we've costumers’ our clearly we if completed recently Wells goal total to with And increasing acquisitions of What our million last active now our the year prospects increased bringing acquisitions parallel, earnings of terrific this of in million and to registration shelf both We to future acquisitions million our prepare credit for and $XXX we of pipeline was when. we cross-sell since It's $XXX and also growth three $XX expanded and sight. prior $XXX X. our is Fargo a very scale, us enabling works. acquisition our facility In reaching available million. opportunities shelf. opportunities

disclosed plans previously, equity. current we have As issue we to no

for looking allow progress as to maximum initiatives However, on prudent we felt flexibility our that growth ahead. was we

new secured we verticals wins with customers. expansion quarter, a wide the continuing and During range to of industry several across

others. the Borough and Basingstoke, in marketplace Council, Douglas among logos HCM included New Deane Fruit

recent XXX% among OccupEye the We seeing in opportunities also up also KPMG, Genpact, extended our with like and our over important and Procter relationships was with space year-over-year. area Apple, others. with cross-sells as we're Backlog acquisition. Notably, some existing PwC clients very well up-sells work Gamble, large

in capital their product of for like has the third Asure to very years. the was I'm personally that by award commitment the award or category last I award management the excellence the in five pleased industry a leading engineering received in this is time thank of Stevie winner to program. business team This as year this note Finally, human a named new to Asure Bronze best service solution. our

information, For a like turn financial to our more Kelyn CFO detailed to over I'd the Brannon. Kelyn? conversation

Kelyn Brannon

afternoon and everyone. Pat you, good Thank

heard strong and the customer start a the first from year to with customer our acquisitions and along several marked logos strategic the Pat new you up-sell cross-sell to quarter expansion base. with growing As

As usual a I non-GAAP are I all them financial will non-revenue figures discuss as measure. state unless today GAAP

a that press always, in also release. find as to you will from to results everyone a today's like revenue otherwise to referred recognition new a I XXX. accounting we GAAP As would non-GAAP adopted reconciliation standard remind ASC

XX, that are on $XXX,XXX presented means is standard XXX significant no to which for QX under results XXXX There our a basis. to for adjusted. revenue new of are under in modified expense in an During after retrospective reduction between impact beginning expenses, extended commission ten XXXX sales to XXXX. not resulted January amounts recognition the commission five before while periods or years period revenue January the prior quarter reporting This on first of XXXX first recognition

XX% growing of financial Now, me our primary of this contributor cloud first XX, million ended The for revenue, last let XXXX. than results year. quarter the first $XX.X the more from for an to recurring increased revenue million $XX.X quarter Total impressive March review increase doubled which XXX%. in year-over-year was QX

revenue and of in in year. million, grew revenue XX% sequentially up last of QX almost QX from XX% cloud fact total In represented $X

we've benefits total ability As of from and we've transparent, W-X revenue, we of XX% revenue a sum one-time in To million support first pleased recurring as from XX% maintenance from revenue, recurring which isn’t and represented of our in Pat to result includes contributor up revenue was first contributing can processing. one-time be QX year. of QX last benefited during these more QX. the which on seasonality QX to quarter ACA in revenue the steer Hardware and P&L our recurring normalized a normalized to visible That purchasing item line year. fluctuate a from the business total towards hardware said, Company. material on experienced revenue cloud based up business, of cloud The the a revenue XX% year. total with $XXX,XXX, under quarter disclose typical last revenue, been In mentioned, last represents from focused of a quarter-to-quarter QX X% it a over the XX% revenue little down $X patterns.

to We decline on-premise see in than of demonstrates on-premise cloud are as revenue. offerings. XXXX revenue QX total it customers pleased our software remaining X% to our any represented less success In migrating

last result, in year support the a As for Maintenance on million from and on-premise revenue our revenue QX up of combined with Professional and quarter. services was $XXX,XXX of with the maintenance revenue QX ago support up revenue X% year. $XXX,XXX, over P&L. $X.X we've

cloud which services based factors. a drives enabling flows function real reminder, and growth a ebbs to our to variety offerings an services a value As as revenue accelerator is of on We our and the shareholders. view that

total Next, quarter of I'll XX.X% $X.X of quarter XXXX million discuss of the our first $XX.X profitability metric. gross a million profit was the the improvement or GAAP XXXX. over $X.X revenue, for first in million

You'll QX note revenue was due shift gross our impacted in the to mix. in margin that

gross revenue resellers As you margins of margin a recall, represented beginning which resulted the we overall carry of These acquired in portion quarter, three larger and resellers in reduction. typically the mix our at the gross lower the year.

profit adds disclosing As non-GAAP you'll amortization to press are gross and today’s back we also see which in profit. comp GAAP stock-based release, gross

of QX and quarter EBITDA in last XX.X% items of million was onetime as step XX% up of increase million the versus of $X.X first including from $X.X a QX For cost the of excluding million, acquisition quarter in Non-GAAP revenue, non-GAAP EBTIDA, – an totaled $X.X full XXX% of for year. percent XXXX. –

as As kick you a you QX benefits result off as and the year. know trends employer typically taxes down of

QX or recent to addition acquisitions impacted XXXX six achieve take In so synergies. typically planned by was our which months

million $X.XX quarter per income share. totaled non-GAAP $X.X of For or the our first net XXXX

are that the adding I'd Asure expenses amortization. beginning stock items, excluding non-GAAP amortization we other expense, previously of two to and back non-cash disclosed acquired net in like goodwill XXXX effect compensation. income and based the and onetime also tax onetime note

So in rate We release. share. XXXX today's our zero these costs is would tax non-GAAP or When is methodology EPS, per for have on press this modeled a effective been non-GAAP that our and EPS Based more analysts frequency. our removing in these previously can Gap] [Audio what approximately $X.XX vary percent. feel prior size QX

have shown ahead measures loss we both be this income in methodology. and non-GAAP new we going disclosing table that net this will note and You'll EPS under

of $XX.X equivalents an new at implement are up as deferred contracted the but balance we revenue, to million, a XX Backlog March our system, increase first define ERP cash deferred the make able revenue XXX% off $XX.X Unbilled were and provide in million more quarter $XX.X in revenue DSOs down quarter-end, and XX, on debt. year-over-year. quarter. million, was the million, $XXX represents of which we year-over-year. QX sheet and unbilled As sheet million deferred in XXXX up $XX unbilled that our to as to was Shifting disclosures. sum XX% we to we days At XX had year-over-year. refinements balance is begin balance days from year-ago cash gears of which into in Deferred and XXX% business detailed sheet. revenue

consummate employees During We QX, added to XXX. in in $XX cash to we acquisitions. total bringing three XX headcount million approximately QX invested our

speak is Pat of Before outstanding leader as I us of has our who continue Young on want the past congratulate for Ernst and a call Asure Entrepreneur lead nominated Pat, I exciting him time that the to team when impacted for for will I entire Award. directory an the the I the this Asure years nine say turn being dramatically the finalist back can to over company. to during & Year

over turn I'll Now Pat. the to call Pat?

Pat Goepel

Goepel tuck-in like And Young we it strategy as of Software detail But deals & glad Pat gears our completed. nomination company view the three Asure I strategic acquisitions a and view success. and provide recognizing I'm I'd don't recently like and Kelyn. shift to some organization and I about it our Thanks talk is as Ernst nomination,

of Let Wells Capital me acquisition Management the Evolution Fargo first Human portfolio. talk business Payroll client about Services'

Fargo’s payroll of Wells payroll will result transfer As platform from services Asure to business a Wells use customers our Software. who platform, acquisition, this Fargo

clients, addition provide the be the are we able to with these them to new tools successful. of With

Asure as to labor the our provide full and of new Software product, these Services. opportunity clients workspace will experience for and management, time consulting such a Solutions HR Asure suite benefits

worldwide Human offer enhance to a OccupEye will is allows reach. HR HR the expands human analyze and services recruiting, combined UK. able Austin with operations, professional development workplace HR The Management second the resources, HR generates and that We're outsourced acquisition services our is innovations the providing employee-focused a will hardware training, employee consulting. which tactical sensor-based benefits employee consulting payroll, such create firm as space. HR solution strategic that And people OccupEye's streamline allows positioned be productivity which our now services, integrated completed Austin is management Consulting technology under expand and professional and and and Internet its a quality acquired proprietary the based efficiencies, historically existing develop adding technology we more of really, David our some Services high we and with to finally organizations Capital cost OccupEye, and Laurie provides great business. savings the and was us really own workplace. to and done which across analytics. in complementary job be a third software while Things offering then world solutions the creates sensor software, Asure in to that new with acquisition, Austin engagement,

overall Capital clients, combination all the effort While and a is the technology Management of to operating their Human six they'll space experience. business utilization underway. well standpoint, our need improve integration acquisitions employee solution From

and we been services, and they've that keep suite sales sell whole since doing XX success. now teams the marketing Our fully integrated, they of having are January

on and quarter allow the year. from hosting platform implement independent; the new these is Kelyn’s quarter based with be to this ERP client beginning internally bookings combined support team a prior cloud platform were for our to operating much initial businesses system finance three, on than early all to consolidated track completed Our by higher a phases entities first were so group when to one

revenue we've strong know increasing our updated now the raised guidance seeing close last I'll We to last annual the of annual first since the ago after guidance the market I'm twice on Asure a earnings our call. in we're Solutions, guidance. month our Now to we're reception turn about for guidance. quarter. pleased our Based

million. full $XX of revenue year an non-GAAP rate This be expect and with M&A EBITDA $XX assumes million million $XX to effective between $XX XXXX achieve For million to to remains X%. in we healthy. activity tax guidance

guidance. these in in you We know, we're have pipeline looking are several this today's And as more year. potential deals at the that included not completing transactions

strategy EBITDA momentum the non-GAAP short-term in cross-selling mid-term we've has felt XX% sight. take of achieve margin when. million to velocity growth XX% of What goal revenue line accelerated us large our confidence Asure’s in in we never acquisition opportunity compete our and that that we opportunities surpassing lot if, additional a management initiatives this and continue market upon have of growth. The organic goal to a it's model. within to with Our our continued allows our for to was I have a growing is now propel XXXX and confident Asure a share I've It’s financial sharply it built in of $XXX team. in not at. in previously leverage

and never As through sold a reminder, a I've I bought tenure a as CEO share. shares my

the heads of as into lot quarter sleeves, do. one of good the down results, up work We're to execution While posted rolling head still our rest year. we have a we

up, confident be more Conference that is deliver. closing, really May to team double hosting management last this Client through expecting than from feel In Our XX I May year We're hired, excited XX our CX year. Annual on and attendance at to we’ll Orlando. we're prepped

time technologies we'll for with take our that, space, And of quality in questions. advantage of this and Management with partners prospects. be showcasing will to and new Capital Internet We your opportunity clients, open we're and our Operator? Human Things spend

Operator

our Thank of of And you. & question Derrick [Operator from Instructions] the Company. line Cowen Wood first comes

Your open. is line

Nick Altmann

questions. Nick Yes. Hey taking is this for for on guys, Derrick. Altmann our Thanks

that? still imply focus of acquisitions bit going on of guys the the are ago, increase bit an couple there about a we little the bigger? should months sort how shelf of the service that then to And get be or of that Given bureaus a thinking for a little thinking does the in M&A outside year? are heavy rest Is you

Pat Goepel

Yes, thanks for the Nick. question,

we’ve a strategy really laid out We’re – around acquisitions.

we gives flexibility shelf in us the environment maximum think I that have.

more own partner so model. I to Our in around we the look mean will. had Austin technology a like in I then priority down those we like to if We’ve that. would opportunistic we wider, get scale. or acquiring is and the examples of We acquisition, the And integration in we we I scale are have we drive acquisitions. where today. continue And decide occupy. strategy the acquisitions road have reseller acquisitions we HR capability would first, be we’ll success to the have at think

to forecast. As you difficult know acquisitions are

don’t have but we guidance, acquisition them in we remain So our hungry.

Nick Altmann

expansion then That’s provide to Got opportunity notice on versus it, that okay. helpful. you a And aggressive then for just does the occupy significant United how as may to Europe can focus guys you acquisition, Europe. sense us And want in you a States. give

Pat Goepel

Yes. Occupy is Europe. in

as about What in continue well. terrific office our excited sales reach London a States have also to technology reach is in that expand global United And in be service we’ll that delivery European in area. We delivered in the now thinks today. will we’re I

And talent, joint drain the a talent, hottest fast the companies our brain in leading you Google’s talent. for human companies of Things the a the what in because run And cap Facebook’s Apple’s value. in they’re strategy enterprise the have a brain at and real winning for they’re they market home, war tech Internet to is compete tech want provide the is where several can to they at the in if clients. for example, there’s is detect provide can from the for companies the they tech have them Financial the think talent. companies the services a work example have what We the to drain. want world, will companies they And war do Internet the going areas about firms war and environment collaborate. people had business trends services school. with And the And of Things, for of financial of work and work realizing for can they hoteling, capital one

and it is seeing for bigger own the that air collaboration in process. an And allows is everybody technology of the because ties the in feel, can space. Things also Internet conditioning And space, and in you’re maybe and we management, worldwide just feel. more for in for looking bigger it’s but less upgraded but heating what rollouts feel end-to-end So space now look and invest people of not deals, the a

So between a that rationale reselling product was the our we’re acquisition, today. already

So we’re very with the familiar rollout.

We these arena. the on will in companies multinational in grow certainly workspace but grow U.S. in we’re the going to Europe, large

Nick Altmann

Got great. I it, new in That’s that year. growth organic is the just still quick one it. roughly may, And the one imply guidance then got XX% does more if

Pat Goepel

we’re think XX% doing. kind what I to – the maybe but difficult space. we’re that more, XX% acquisitions It’s bit in of of Yes, little we’re a amount

get to more going fair. I but as We’re that’s common think get to ERP system, a clarity we

Nick Altmann

it. Got Thanks guys.

Pat Goepel

Nick. you, Thank

Operator

And our is next the Berg from Scott you. Thank question of line of Needham.

open. Your is line

Scott Berg

and congrats Hi, – a Kelyn I here. two quarter. quick guess have questions Pat good on I

size First that now run the successes recent these owners or that $XXX rate, million make make these your it does your actually driven of of does the business space. or And you’re easier? approaching sell conversations acquisitions companies in willing your more acquisition the all to Pat,

Pat Goepel

for thanks Scott, Yes, question. the

do makes we’ve relationships that want been we’ve with have a of that say question know the a we really execute. fortunate People that going that think with easier. halo it acquisition be do. what winter make next can word we’re there’s easier, to kind to fact. long-term we I done to or of experience great will And And and mouth the the associated acquisitions there’s no people

it. execute; to people do bigger so conversations. have your then easier more And we’re that, see having And in confidence ability company we a as

So bode for I those us. well all think

Scott Berg

items of the XX% Kelyn, quarter. that to know, months? than or and license. in move had XX% don’t the the was mentioned my things other. you any of some subscription if that [ph] you’re processing Revenue some seeing the one-time more services the that outside maybe material you might acquisitions do then was over in like pipeline or And looks you of that mix maybe made I recently the Great. the think What mix next XX remaining XX the question shift one for second obviously

Kelyn Brannon

of when I XX%. would see kind of – to and get you XX% expect that north

up increasing big kind go we You that or But little up. kind I growing slower gets see of to grow. see did lot that at to rapidly expect a that’s start we’re you of we where XX% and time. number, it’s kind continue as thrilled before. to But of But as expect going are to today that over

Scott Berg

taking Great. questions. I That’s all my Thanks for have.

Pat Goepel

Thanks, Scott.

Operator

you. Thank

next line Hynes Our from of is Canaccord. David question the of

open. Your line is

David Hynes

Hey, thanks just guys. a Nice question. here. set ask to of want Pat, numbers level high

to There’s for learned six now, the capacity obviously more will I a process hot. that feel more terms here firm’s team about strategy. learned a carry guess go you digestion the take of kind today, into the you the team, What have So running to acquisitions your like with engine integrate? about right ability M&A have bis-dev forward in on bit. you’ve of the anything the takeaways

Pat Goepel

that first Eyal well. Joe now been I’m very hiring can been he that execute. us, great we six us leader. XX DJ. really is good with level Karbowski’s us she’s I as have they’re six as of Kelyn very Goldstein’s months. is really strong years, Thanks, happy And us a team with well. have he’s Really, two with strong feel people the about to leader pleased with very What all, been months,

and is the provide degree own is I as one today we’re well the And acquisition run of client that either acquiring we we difficulty makes our a solution strategy, people business the this out selection that important technology. we far thing best help As the acquisition the build our of as going can selection after best we’re in really that lot companies and easier, think operations. or us

they kind historically. done what do for us today tremendous and they’ve insight We have what into of

So I year. have capacity feel we more this do

our how scale. shortage the have no far And go that’s of to going be about or hungry continue we organization six I fast we’ll tell not to and to every things think wider can we’re to to four know But if go, in I three will you, I’ll continue acquisition don’t execute. approach, get we’ll we going we’re listen to why do. I do months. we I believe acquisitions But

David Hynes

then one Kelyn And maybe for the Yes, on numbers. perfect.

trough explained look does Just in Kind resellers gross model shift bring six before you obviously it could as as out how higher. revenue lower it goes of think to next gross as that progress on margins, QX the Should the to into of of quarters? we mix you eight the the go fold. we margins, kind

Kelyn Brannon

my see that’s Having we going I of is acquire the I so look that and a If resellers gross and also. mix say larger become was out would they think our see But there. to – to – GAAP XX’s, if gross technology more that margin margin start said to piece shifting acquisitions in some might XX% barring to bit with that there very our you right, I we’re also going low scaling XX%.

So you XX% if think use gross kind guidance. But which it’s HCM transparent as shift veritable cloud I’ll be And should now it mix be. you expect. versus would as XX%. that sure of that really has as happen to that of right high give I margins very would But that versus to of kind hardware make it I’m won’t

to would XX% I So time. between this at XX% say

David Hynes

That’s perfect.

Okay. Thanks guys.

Pat Goepel

Thanks, DJ.

Operator

of Capital. is Thank the line our from question Baldry Roth you. And Rich of next

open. is line Your

Rich Baldry

growing Thanks. seats headcount, their an of Can about the sales and team there? sort your people you’ve in organic their on the the you plans the pipelines? Thanks. you tenure rep How give us team update and internally got that feel

Pat Goepel

team of productivity or we really XXXX, stride and In can selling Eyal we would whole see we years our two a typically think been great new And mix. mix maximum a years we’ve done instead And were it’s of want under right part team. together upgrades us, the a now have at to and you five. to two and XX% winning years of sales whole to have getting ago of work I’d The accelerated January into morale People solution skills here people winner hey, calling team. salespeople we productivity simply Asure, they’re us hey, talent couldn’t the bringing through it’s management in be marketplace. organization started The XX% better. that we’re people, has led of They’re so. we say together, years, tremendous good. new we the a that’s I keeps XX job a over today want is Thanks, saying, touch couple three a the sales been XXXX. noticed ago. and Rich. We’ve Goldstein than existing by got put bringing want of I when we now The don’t lot talent. the attract But three lot the or to over it’s a want be of capabilities set product of it’s it’s five a years people that it’s boy now really acquisitions. are And lot right I a sell nice feeling. leadership, to a and but and where the

So I it’ll for beyond. and bode XXXX well think

Rich Baldry

acquisitions be talk going is? about year, having are you six EBITDA those we’ve in to Can incremental guidance, holding with seen organization? started accretive the still how where it where And already but the the maybe go this investments can

Pat Goepel

in onboard area in things Karbowski dive in other that and product every deep a Joe done Kelyn Rich. group. we've with Yes, One

only rest to is secondly, we're to strong. think going go because system cloud-based year. a infrastructure, especially, then integration, we We legacy our in big invest invest from not system our and of our IT ERP the pipeline as to And has continue and ERP money, going upside, it to that huge so product – spend in in some consolidated we're for the calories

not time, So But and the guidance. our we're going to upgrade announce guidance that's why earnings is notice our we upgrading. very – at this earnings strong revenue

Rich Baldry

to your your beyond let’s the that have be customer prospects – does companies in of do your the also and more CX could potential pipeline? that showing there, up Thanks. And reseller, acquisition coming curious, also up, attend add some just

Pat Goepel

last of really an that year Thanks, CX reseller more up. engagement. opportunity, in whether excited a this we at at I the May time, or since a last it's perspective than that prospects. about think indoor for comes from new the and of We with prospects year, We're cross-sell double people I CX. should both well Because we’re in similar meetings effect were certainly, be that and there we've know acquisition the signing really there are done and we client halo will from is this guess, the year. from the next effect. along point CX of just in And Rich. rest for one-on-one CX And that book that which my halo and people the in we teams management the generated a solid, enhanced year, at were remember acquisitions, had I point had sales a time, or what with from either or that CX perspective, And current it’s lot time, excited bode

Rich Baldry

on Congrats quarter. the Thanks.

Pat Goepel

Thanks, Rich.

Operator

Thank you.

the Our Latimore of next question is line from Mike Northland from Capital.

is line open. Your

Unidentified Analyst

you Mike quarter? for much in Latimore. Thanks taking is this Could for workspace much the Hi, – how of tell [indiscernible] the us call. how was my

Pat Goepel

a have that. out don't We of break clean

historically revenue that a by or we our break it about think break business But so. third type. it's I it of we out up don't by

Unidentified Analyst

Okay, yes. for are That’s renewal cloud helpful, thanks. What your customers? rates

Pat Goepel

booking It's Our their about in growth I'll meaning typically are you do XX% will. are organic in sales, rooms. a about walkup hiring we in more have a or people retention same-store revenue growing renewal if X% rates model and

so. increase a about have price or X% We

walkup sell as about then a sell X% about new is XXX% or logo, of crocs have We base about or component customer, up component X% and ultimately an so XXX%. a the value

Unidentified Analyst

for you. Thank Okay, great. me. That’s all

Operator

the from Lake is question next Our of Street. Eric line of Martinuzzi

Your line is open.

Eric Martinuzzi

least specific right are where Thanks. wondered now is were I estimates versus didn't second of $X.X comment adjusted quarter, the for acquisition but – you on the EBITDA. million if consensus could I quarter if guidance at get given you and the really just second the million revenue $XX.X of

meet could those make that wanted QX? just think captures you acquisitions, you but are I or sure I exceed to numbers that those for that the comfortable

Pat Goepel

I I numbers the think cetera. don't et we some we're give a acquisitions don't three goodwill, think of revenues mean understanding off, million business. $X or one those with those through we're businesses time going acquisitions going of think and April but Eric, intangible, we’re growing through -- a quarter I in guidance seasonality, still were on healthy I million kind so miles some specific there and in with is especially

Some hit pseudo you quarter cetera. and start the the limits employee of et third sudo second, your

to tend margins improve time. the typically So over

we numbers. So I don't but think specific away those give miles don't we're a million

Eric Martinuzzi

And of number? I since acquisitions, has keep as statements go for have I've for the the are to been spend quarter, are -- cash some Okay. numbers have on up but I the financial finished taken incremental the and been cash and where debt forma March on we able forma transactions a XX, we pro confess the as you pro took back to in to forma for those end. the place that three far debt cash a pro quarter Do both

Kelyn Brannon

for? to want bit hand you're have that in I and I more looking color a make I'm sure little understanding that what to might don't on correctly

Eric Martinuzzi

for balance QX. that QX looking in forma a those the deals quarter in April… three Well. those you for sheet. three pro and deals just kind I'm done are end of saying that in those captured of did for you've Kind I'm

Kelyn Brannon

in place, use we Wells that towards tell Sachs the we put can our Goldman quarter. utilize we January We own into acquisitions for end cash. the did and that that amended QX some you with with the cash agreement of of that the three -- then we I And acquisitions

Pat Goepel

loan. with of delayed to on Wells new And – Goldman is Fargo the then part as our facility know you debit and

basically, facility to we $XX acquisition agreements, of the if it's our reseller So available us. fairway we million down have have

million We revolver. $X a also have

have we So needs. plenty of

our hand certainly – think I in not cash cash. is on the we're looking for

So we but don't fine that we're middle of number in a give specific the on cash. quarter,

Eric Martinuzzi

quarter questions. outlook for That's good a good and taking my thanks a

Pat Goepel

Thank, Eric.

Operator

Brandon [Operator of is you. next Instructions] Our Osten line from Thank Venator. the question of

Your line is open.

Brandon Osten

to week. forward Hey, guys. Good quarter looking next

for a But little can going lines of more it to organic is growth guidance, terms modeling, in get million revenue a to million just components in which Just you be to looking, guide plus. like of the feel to cloud you and own some be, growth sense number $XX that going Do revenue I'm in of order revenue there of like there I you that a isn't XX%? has to internal to the your get $XX think lot say the get think What your you give growing? a revenue me organic there. is do to ballpark?

Pat Goepel

Well, think isn't in professional growing first think, XX%, I because on-premise than of higher I services general fast. as it’s declining all

bit more, cloud so by takes nature So time. it's reoccurring little is it bit little although, a and longer a obviously

We are acquiring.

bigger a with So we we guidance. base, but have feel comfortable our really

Brandon Osten

the And combined on can the What's of me revenue acquisitions those made you X? April just aggregate that annualized? reminded you businesses,

Pat Goepel

– of We didn't you I so if the But just be would number. $XX look break year think those kind a around if rest out of you specifically. or kind million for somewhere the good

Brandon Osten

Okay.

the For the three rest last the – quarters? of for

Pat Goepel

Correct.

Brandon Osten

what a me break you out thing, historically can is out but I’m to revenue figure if understanding you there my non-GAAP me but guess costs one-time of chunk, remind can a the better model. order what – expenses, of of and last big non-GAAP pretty for give just here Okay. in just consist out that and me exactly, acquisition pulling I in number And the a is sort

Kelyn Brannon

press GAAP that table the go into release the non-GAAP to the at So you back and is look if reconciliation. you

QX, costs, a was You'll legal had things as are professional There services see bit acquisition a there that of restructure one-time that include we is expenses severance there another little of that. which in and around like kind in out, relate taxes along direct taxes, I adjustment just And to basically acquisitions. the And acquisition that an are you'll see based pulled now those then recruitment on then and acquisitions related. that relocation with non-cash. around some

the you it in called making as size If these we want vary on and can quarterly a technical term, basis, it's it tax make credit acquisitions.

And and effective out quarter, then better talking to out at interest it. in of kind a interest that around moving we're depreciation. is way really pull which what about rate, any our we – one one-time credit So it expense look tax is X%,

walked through all table. that it So

– tried very transparent actually I expanded be to and table what's out. much in it's about what's we've So the more think and

Brandon Osten

asking why Yes, that table, I’m question. the you expanding that’s

will you good and guys. Okay, Very thanks a see quarter, week. I next lot

Pat Goepel

to look forward you. seeing Thank Yes. support. for We your much you so

Operator

back Thank you. turn questions. Mr. closing to conference over Pat for time, are And like to remarks. there this I'd Goepel, at the no further CEO

Pat Goepel

Well, am. I I as excited hope you're

to of working very business, call quarter. we'll And to we're off events the next the that hearing is the we're XXXX be seeing you the Quarter Thanks look First some about start. forward you client conference your on. great for We're progress in to the think we're today. excited pleased really working time from a and second activity And run we for on you. making conference and our in healthy

Operator

Ladies This program. and for thank participation gentlemen, conference. does today's the you conclude in your

a You may great day. now Everyone have disconnect.

Asure Software (ASUR) 9 May 182018 Q1 Earnings call transcript