ASUR - Earnings call transcript Q4 2020

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Operator

Good afternoon and welcome to Asure's Fourth Quarter and Full Year 2020 Earnings Conference Call.

Joining us for today's call are Asure's Chairman and CEO, Pat Goepel; CFO, John Pence; and Vice President of HR, Cheryl Trbula. After the speakers’ remarks, there will be a question-and-answer session. I would now like to turn the call over to Cheryl for introductory remarks. Please go ahead.

Cheryl Trbula

operator. you, Thank and fourth everyone for us joining Good and thank full Asure's quarter call. year for afternoon, you XXXX earnings market our released closed, the financial After results. we Investor the earnings also can investor website The available the at on are and where materials find our Relations presentation. you website investor.asuresoftware.com, SEC's and IR teleconference website. This internet also and archived broadcast being be is available the over will on our

as impact Today's contain we We refer expectations. of will reconciliation believe our today, their items. risk. along actual During we statements factors reference and our can earnings non-GAAP encourage measure from exclude measures, you items investors also will our differ to found cause comparable could most and current the be to call on of description with in results which certain additional useful release. information A involve to to for these such materially timing the review that to SEC call financial GAAP some events forward-looking and filings be that to non-GAAP of measures a future our with

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

Pat Goepel

our our fourth Thank you, year and to earnings like quarter everybody I'd call. Cheryl. welcome to XXXX full

on metrics we'll reviewing and or the it an to will a Asure who and I other take for financial an questions. results call appreciate client, quarter then our today's analyst little some then me he'll a John before interested back turn fourth update and start on an your third-party. bit key our strategy interest then highlights investor, update will business employee, review over will whether you're with Pence,

sales positive quarter's all Small with the losses role half as choppy more paying where to focus business new more despite exceeded reps for non-GAAP focus customer contributing than solutions. of sequentially. EBITDA and the We performed and in most results. representatives multiple we've to multiple adopt Our well major new is the third played additions broader fourth added Compared business on than The were XXX% quarter up of of adoption a non-GAAP quarter bookings in really EPS second that small revenue a the high-caliber with XX% sales continue increased off solutions. also consecutive year-over-year of increased XXXX economy. second

reseller We XX%. bookings business momentum and also to metrics our improve will levels to that total levels. as return gradually continue national employment continue add conditions pre-COVID partners that our year-over-year We and was will economic with growth believe

growth positive in to organic result, As generate hope a we XXXX.

growth growth, Our goal XX% is strategic EBITDA. organic acquisitions accretive generated through and XX% XX%

As partners year-over-year December have returned of COVID we life our March, do solutions. purchased through approximately of impact. On family. resulting then to paused impact in reseller can opportunistic have pressure X,XXX line the into pandemic in the putting any a our on up primarily headwind, expect client and unfavorable our direct related the rolling a and XX,XXX monthly X% We of platform for churn a pending, resulting sustained but and comparison. acquisitions solutions employees our in on lower down top-line XXX our about in that our still resell for where customers with and don't COVID-XX referrals Drilling be sales to a white-label in Asure to basis the customers. same-store last our level continues is strategy provide reseller join in partners based in partners acquisitions The white-label small This marketplace. the our late is December, we Northeast

X% in per pays pays fourth -over-year call level in It about This national third about the in presented quarter to or XXXX. sales, of QX remained per X% normal unemployment increase XX% same has because down a at and down control year-over-year. the XXXX. we year- control headwind, improved roughly same-store rates which what in was tracks typically quarter Our it times

clients since losing, been than increased this normalize However, into we've adding as sales translate more same-store we're time will revenue. over

changing on surviving, many as were still adjusting bookings on sales their pressured instead new even Lastly, business they're focused so. accordingly, willing if businesses to a of are basis payroll small providers, models do dollar

solutions broad that However, the boot. pleased of increasing of number multiple to the clients adoption new and with we're booked is

investments sales fruit. also is bearing Our reps in

the As a XXXX have sales we XX. now and we reps began XX as reminder, transition with year

As most challenging environment. Still as very Asure an referral in than committed experienced are XX,XXX of and small relationships. grow XX,XXX these to business, small helping business direct a bringing strong indirect essential more clients new remains hires

center, example, resource help for COVID-XX webinars of Our continue small to thousands businesses.

react clients. product our mobilized to impact and quickly Our on stimulus operations its to and in December teams

environment, very fourth legislative is changing busy also to teams. addition time our a the for year the of In quarter operation

payroll As Throw annual processing and the of had COVID of we've on local the W-Xs, clients unprecedented clients the years. in more activity last the of busy they tax closely than state during form tax agencies. during and the work laws, this commitment and our filings this of to year year XXXX year-end times. these time with for employees' changes very level federal, We're proud perhaps and our XX – next extremely in

thrive continue over. this unprecedented our businesses will when economic survive the small they due technology with provide we headwinds, clients While to COVID, experienced service at support have it's to and to and need

Before detail, member learned a former results with heart heavy take mention to more a I discuss moment handing about in that Lathrop. financial that to John like passing recent Charlie we is and our of off friend would the to to Board

our Our are and with John? family. thoughts prayers Charlie's

John Pence

Pat. Thanks,

in release behind section GAAP also As excluding revenue, our to presentations, as as metrics of exited a was earnings business pure-play also XXXX. Relations posted in the earlier that from recent presentation Workspace investor prior the Investor and software Consistent asuresoftware.com. explain the the us Workspace XXXX that of at year our good reconciliation businesses the as our the business, HCM and non-GAAP non-GAAP. in website number clients We presents part in used HCM made most as provider, to available of this call, included will believe financial Cheryl mentioned today a non-core business, following the is find with today this a to table December performance. customer it separation figures revisit of our are – the well non-strategic time results we XXXX of beginning a at a you And discussed

and require with reporting, executing of to believe goal to items our GAAP Our non-GAAP reconciling simplify clarity to message. add to ultimately will making our goal easier our to deliver that this to fewer We is strategy come. follow. the of progress More

comparison pre-COVID comparisons as expected results because Our the of of down with post-COVID be would results. year-over-year, are

quarter from to in these significant last $XXX,XXX the was measure fourth in While primarily The from was fourth in in the over business from approximately our the increased substantially results. performance of average spike declines in held to quarter. in and comparisons revenue indicator improved the a represent million uncertainties. current and future approximately in funds million was revenue change three QX business infections balance increasing in quarter, our XX% behalf have despite a near-term continues our third quarter $XX the approximately on for QX. Interest think the to more total COVID of due $XX.X Recurring to increase $XXX,XXX we resulting million, which QX, fourth with of quarters, X% appropriate the on quarter. third line quarter-over-quarter that of in up client clients, are approximately $XXX sequential million to the funds Revenue $XXX

GAAP We as on profit our or non-GAAP metric. performance expansion $X.X metrics. a profitability margin. achieve the were I'll was million, X% to in XX% to quarter you gross and of non-GAAP discuss gross profit whether X% up sequentially QX depending representing between able a EBITDA Next fourth X% sequential use

in of shares million received debt, proceeds received balance as to We the from little we COVID. cloud before secondary we gross of operating stock in common XXXX, and At comprised all $X As third the is December. and I approximately end at million detail up from approximately the $XX.X result three $XX.X which is million at the primarily to were of of Cash quarter loan from December acquisitions. with end, sheet. discuss the expenses million stock. term emerge increase deducting to the successfully sale more million begin notes very expenses offering $XX of equivalents cash of Shifting common seller mindful PPP later, balance loan public the The had of made will $XX.X our our million of and a quarter. continue of of operating underwriting we gears discounts of from be of $XX.X XX, up million

loan applied a forgiveness earnings from receive with Form of the statement and would with a decision we second to have XXXX. today's the filed Business S-X S-X release, quarter the sometime Administration We of in Small Form PPP registration SEC. the expect Concurrent and

with structures. acquisition immediate universal any the these While have utilize and consummate to stockholders the benefit raise shelf us no flexibility we registration various once plans transaction, and the particular for quickly company acquisitions statements shelf will to effective our opportunistically or to strategic under purchase the giving capital

optimistic, accept our reinstated our benefit be result the color this or get and the little the are pressures on to and to We we return we how To new prudent not vaccine point, COVID, a we by future statements securities specific as more COVID running the offers surrounding when positive and their As although are At in guidance. on that implemented and given forward prior we prospects. a not describing XXXX expect with be of revenue reductions reminder, tailwind providing uncertainty effectiveness. we salary buy back want this we placed we business a we registration reinstate all what half improving will to We hope provided January are normalcy Xst XXXX. this like, in levels of generate this growth that of rollout sell company. securities look of to economy, the to have will And normalcy our these told benefits to year. cannot the are still time, effective cautiously and and to rates potential normal do a there pay previously team effective second entire the across year,

First, this operating Investor for help environment; highlight to around but they I I team also same sacrifices second, guidance, business. the Relations we our in included the located giving how applying by again, investor how are prudence its presentation we impact resulting are our have only we forward XX. want the to sense of made employment, it's that and section. a Asure revenue to and investors To want our running slide to COVID was And impacted the thank difficult through not website provide on on in

W-X Finally, quarters. for the is The reminder each year strong about third not profitability the seasonal quarter ACA this fees annual seasonality, fourth our in and are and and revenue first recognized quarter. does exist as as and in boost a of second calendar seasonally

Now Pat. I'd back like to turn to it over

Pat Goepel

Thanks, of in discipline and to job. done and Pence, Asure. John has great impact real John. team brought and highlight I John he's he accounting resolute work have level a And has his had want a on the a

So John has you some to that want piggyback John. thank things I on also stated.

transition we business but four four and four every that want take our we clients perspective, decisions not to very finally, business based try a all, seriously. of, I the employees shareholder And communities serve. we do decision. and those care employees and really From by reason -- we to unprecedented are in trust in we through constituents. and us them. the view is the that we're on These as client year, about these and constituents are talk We away we of something as as our their for why bit our the know to only normalize. and we the normalcy. are get then, the Shareholders have talk we make families, one a it we if they're strategy. right serve environment think The going First look think decisions, a didn't in of was to a first to well-positioned but metrics but mind. with operations when I macro think want the be said investor, times. the second, from And to an it's XXXX, constituents our COVID, But very all, going about return when about started And we're little I year. client I we make those

services completed sold a transition agreement. December. we recall, for you the If million business space $XXX We in in June had

normalized. were the the half really year, So, of second we

about that had key of what focus also our talking will we organic now a Todd expertise. we including of and successful investing fortunate. and the match human us on of have XXXX now John, the and grow and us team we Waletzki, hallmark of Board kind deal grow real run Tax the has members in be our to of with Yasmine Rodriguez of success businesses, to we an deep business, in only. Having human the there a we domain the now doubled employees We as management to the capital COVID, play of We that And capital infrastructure was the job which CompuPay in in brought with growth. addition on the And in feel had sales have Asure, we're as or executives come of discontinued have that on They've Staff that help was S-X, management Board some our have division Directors roles. outstanding is where We S-X Board quarter place done capital and so deep President expertise Chief We're domain, we been former of has members to management really VP Yasmine John able now type human good could a well. businesses putting very sales put outcomes. good capital these BenefitMall. We're ambition. a the who building allow to and midst structure always to Senior team in Todd have Compliance, a very in focus is COVID. of fourth out

a Operator? acquisition a our open do Appointing he's basis, -- strengthening Our questions. management open an we in a feel was product GE. not of the And focused a and for here And acquisition with question delivering. Northeast. the we up all those back constituents places; the Brian strategy and grow positioned for when finally, and if. join like open on feel with other We're the the the well really they're industry we're family. back at of on of market we we we markets XX the profitable. where nation we're me are when. systems and Vannoy, join Asure resellers for they And relationships banks, positioned guidance, a affinity a the through veteran, technology; I right the success. years, up up CPAs, we well that's And recent example formerly and our right path. And It's with our and to we did unique and team back team opening brokers, strategy can Wehrle we on penetrate resellers; when have grow I've question results solution. in developed of share already the Mike have roll-up have go-forward then do that technology the capital It's help sources, the and can we'll bringing up. Ceridian for can human worked reseller; that, absolutely can of been I With and they it

Operator

Thank question of Ryan Needham. you. the MacDonald comes first [Operator Instructions] from line from Your

line is Your open.

Ryan MacDonald

seen to back you goal of for not growth a my organic questions. to for taking us sense thanks returning just seeing one as sort the that, are in going of specific give in Obviously, out a think you payroll other filings? specifically I playing I sort we're few through you. we have you obviously XXXX. tax but And how yet, from positive Pat, first you of Can form with any Thanks. impact see on Hi, guidance QX We've fewer vendors a well. of phenomenon year? recently that as seasonality, progress guess,

Pat Goepel

Yes, start and we're couple we we Ryan, since organic doing One, control that is big a can And thing can and think more of than think the losing. I we start what I sell customers we're on keep July. growth -- things.

as And that return going that to quickly, then I've happen in is going to as throughout So slowly? quarter. to it to well our it going and year COVID normal or macro the in XXXX, normal says, return we'll secondly performance bodes I XXXX. forecasts second seen is forecast far to think seen in happen that increasing as I've reopening, we're

I think really for only to normal. the between, truth sales you I unemployment to starts news or good that us. is but probably somewhere national return will in tell That's same-store

I as with programs a doing should do we same some for the as the and those businesses, well that stimulus become the medium-sized economy been hit think COVID. provider, small, headwinds of small token business back we've snaps By tailwinds. when they're and hard

control, on starting So focused can losing. we're and we which we're what is more

was was point growth sorry. There on I'm second that something and Ryan. The question, organic else, there

Ryan MacDonald

QX look a was that stronger form an impact churn a seen that's there filing. heavier the the of we in number file in phenomenon of verticals bit for We've less As into have XXXX typically maybe in bit that of quarter the seasonality a on QX. W-Xs tax had that given forms that's a might you hiring since

Pat Goepel

because we're the returns processing we're But I for companies. more first should Yes, you Ryan, year. I there had from there's I what less is tell did on company -- was throughout was what I a I filing that more focused would I apologize. think, question. no would question we employees, there's tax last for your employment you tell But that. level than because have perspective, year, example, less

But question no are our companies quarter we because XX% the sales. year. partially the companies, than employment offset last did but employment improved our levels It something think that's like less same-store in we there's down. for more are Second I processing by year, through was somewhat

Ryan MacDonald

then my back Excellent. Obviously, I'll the question this last is and reps good around there. made progress queue sales some hired productivity. And additional hop in you've and year

of in customers to into and with plans Just seeing productivity since know you've hiring since reps you're XXXX. feeling for you curious just improving that Thanks. mid-XXXX. mentioned churning been in more particularly maybe XXXX how terms love what than new those you've about going been incremental new adding I you're

Pat Goepel

Yes, Ryan.

good I the sales think think, a off new I to first of got reps start. all,

get I I had election relationships. to a then and think some would to yes, tell right are would. wave sell second muted and time on third face-to-face they a productivity as the force been hopefully we fourth again to with have advantage starting bit in we're would sales wouldn't the quarter. performance you up, double the they're probably able I could that COVID, perspective, double say we the where year they sales quarter the stimulus sell had could vaccines, this. open say I What now say the I signs early What we're at we -- and digitally, experienced because down strong enough there. they whole of too a we reps right a We've of if to would But say, in the I asked me COVID a to and but take it's would starting see the good from getting

areas, be. And second The and wave sales was as at with were XX, the okay. even and fourth it, hoping going far XX I in forward, reservation where New West then that Coast as some of we now. York, reps probably delays COVID was somewhat specifically call or muted we're the think to we're quarter muting only potentially

end we year believe we I'd reps, us see basis. on around I average sales and ongoing the to you'll an see will XX because XX. over continue think to like somewhere success

Ryan MacDonald

you. Thank Excellent.

Pat Goepel

Ryan, your thanks appreciate for I your coverage. Yes, questions.

Operator

question your comes Thank the from Cowen. Wood from Derrick line you. of next And

Your line is open.

Nick Altmann

Altmann maybe can is partners starters, from Great. actually for bookings bookings questions. just the just channel parse a out And question. of you direct for the taking you Maybe of our the channel mix the up the versus direct? guys in versus just late. has focus just Thanks. This of channel talk side bigger on Can on bit Derrick. equation sales? following been versus terms about Yes. I bookings Thanks Nick know of mix for there little kind a as last

Pat Goepel

would selling but on is Yes. going We're go I our really business what and too you through the to on granular focus small this, tell channel. has been not

the pleased going sales. over and the direct the bankers, say What with. in the were So is I base brokers, really CPAs XXX%, to would we addition up client

sales As outstanding far of as the XXXX reseller first all we had model, of in an resellers. XXXX and

I of being when sales behind a we're said of in that be. those What we've from function to you're want say we as probably XXXX. in getting But where and viewed Some payroll perspective, new -- providing another a we're and you're live of COVID. we would small sure switch it's for them a do HR needs before provider. care of all essential other take you businesses, business of to to of their services book take make going to you care

to changes So say probably nurturing, the see that retention we tax sales business around impacted our them customers right time But has return to this most example really more do I would you'll I I say unfolds and see would reseller benefited I spent the of reacting XXXX part think clients law from a care COVID. to is perspective, heavily as channel bookings continue new you'll some of sales of helping our But perspective stabilized, now getting the indirect take time. during of tough their from grow. by the for and think it. we those the from normal,

Nick Altmann

And Got some that you prepared makes remarks. guys guys had customers then mentioned that quarter. mentioned Yes, also Okay. back who in it. you churned I And guess sense. last winning your

driver you think could winning growth curious this I of those meaningful customers be that had just do churned? back some guys that just into So previously guess year, how I'm the next looking

Pat Goepel

Yes.

out through that between of and businesses their that business difference for back. provider gone take instead to The means there's some are opening, they've gone pause. coming either going to all normalcy. a restaurant of another good. of paused churn business XX% that we're they've that with Churn now First paused. till payroll they're have potentially in-house a to Maybe that talking And ones about or

We I little be companies think think extra as bit we'll Maybe did most churn. the a probably X% coming But paused. back a companies have the call that key get We a that dealt benefit think now XX% What is XX. that's were the with have opening. restaurant they real from here I count. them environment of normal The in we they'll six XX% down metric have COVID I employee open may normalizes. won't maybe have day. people, a an

we're normal we four did anxious are and is comfortable company to that hiring, work, they're what normal There's X. we'll to to return we'll XX. the few that workers what six see who give feel that So either see kind barber, you to at XXXX. they when return XX, we'll go time feel of they have the to start those we do employee When normal. clients or does to safe now they of guidance the and feel do And barbers I you hopefully, vaccinated do has go the focus think metrics give on to when as to used in

Nick Altmann

Got it. Thank you.

Pat Goepel

And tell Eric? I say, camaraderie, Thank hi. you. your

Operator

Thank you.

Lake your on, comes Street. Eric of line question the Martinuzzi Moving from next from

is line open. Your

Eric Martinuzzi

you why again got out that QX there Yes. control think XX dark the here versus pays the and good indications wave the minus And QX. of in close minus here explanation I'm at I of about or time that to QX. recovery a relief that I recovery February week January talked wanted that do into as frame wondering, and to the X we a in in sort a November, color that stalled us. of stand -- days in But dive you was December X, Pat, laid to minus impacted We second the you any just really in March the bit. you second XXXX, per have then as QX? at gave QX

Pat Goepel

it, think Yes. What tell Eric, big I if I too about point talking want about stimulus of would put now. think, a you is, stimulus a on time you I we're fine completing finally don't right to it.

But I think that's what over time the you. have help. that or is XX will March reality

reopening hire about a getting and couple some if weeks think Because company, three, we that you in of later. in when a you sometimes in but of as whether politically kind cycle these a -- or and I'm in kind also it, there's pay benefit delay think neutral people of mandates you with -- If maybe this do of two that. a lag lag about like payroll they week see two, paperwork a a delay every weeks four stuff comment,

I So mass improvement. but we're a really didn't see hopeful, think

couple a things. of think I

right vaccines First to probably of now. a early. little all, stimulus is The coming starting mainstream, are get but bit we're

wouldn't improvement in crazy modeling I So yet. go lot of a quite

if we're I hopeful stance and we great. best beat we're optimistic. think the that is But still cautiously

Eric Martinuzzi

to as -- something of that to -- generate call, is Okay. about the talked hoping safe Is see that And the is organic we I've could kind got this but my growth, soon growth. model or maybe after own model obviously a there that -- stick for with I'll that a be you sense it working QX? just with of QX that for bulk as

Pat Goepel

John, here. he's know in jump say, would I'll let good work here a done I of you too because John what lot

personally it's as thing and they reopens in what when for small bit and biggest they if the the three, it's right that control here is we're focused big businesses think sense a the improvement. happen. What as sales us I and a know on I you starting -- hire we're you. I To say think is J the I you have little third big us, same-store we losing or then it four-week But more add. commit payroll just a V hiring. second the for a a anything to quarter can't same-store or lend or don't quarter system over per just two, guidance the the and know difference such what these lagging, gets sales And would to being pays itself we will normalizes far pay of driver is things me, big quarter. pay and biggest control to do or a U of there's we're -- improvement. time than Do you before or would I will if lag. a thing usually opening a customers the model shock think America first compares John, have probably second that good sure

John Pence

new the help of relatively trends sure. Eric, the kind company myself educate Yes, key I'm decisions. kind to obviously, been of trying and drivers I've macro still to the on to and make

you will at to And so look last are I I I business, think what said. at two But employees, So I there But it lot smaller that less mean tell probably those Pat that, serving are I sound employed I But are less going customers. when we're when were more the on. that than customers that things can typical. than are customers we're it, very there stories do the year. just we -- adding really a at there's look fact Maybe okay? similar in

mean? bad So what that news. does Good news

really we're hurt the than base Small shrink our same power. customer probably got or to this. think large more employers, COVID to weather able multinationals by businesses disproportionately had survive. I had large They

it predict that back are news, back really comments about. surviving. it's what again, bad and customers comments, is to hard does of like even stronger does Pat's to tailwinds. So we and get when news But about look some when come it comes just earlier we'll And normalcy, good our by when then see hopefully, to our

lower think why a employee But counts cautious. customers. we've level, those from macro I we're again, more with having that's So offset

portends So for well the again, future. that

we headed. turnaround the helps. we're to So when stimulus that's that where But... my But perspective see predicting on start hopefully again,

Eric Martinuzzi

reps the the by the kind regarding a that should end byproduct goal kind from of top or here line Pat's we that of of expect then XX And to XXXX, be of Okay. to recovering, straight-lined December? is

John Pence

I think not can a set determined. think, people. again, of right the either. I we find it's we It's a function have when don't

to hire have this people can't We on or this we state by the get metric.

certain them we'll them go we to And market we're we And the have quantity. for can't It's than We're we when on the in all it's we'll at and that go So quicker. really right get when it a then for slower. prescriptive find more time. not have we quality if date. looking the people, if people find

Eric Martinuzzi

questions. Understand. my taking Thanks for

John Pence

Thank you.

Pat Goepel

you. Thank

Operator

line you. next from Baldry ROTH from question of your Thank Richard the And comes Capital.

is line Your open.

Richard Baldry

very in or curious level to stable in I'm acquisitions. terms broad discussions viewed as Has evaluate have some there of willingness post-COVID sort even a a the pretty any about heavy industry what been been any high traditionally expectations change saw a would I think people the pretty their of world? Thanks. discussions volatility. with in of from sort

what that wondering some the I'm that sort with and your how that So resellers pace to -- that beyond. you acquisition and of whether of impacted a in work XXXX companies as increase just chance has

Pat Goepel

I a the appreciate don't would I was hit, COVID third would know lot the I all No, Yes. a of activity quarter. as Rich. And lot think I and the system. we And as was I question, the COVID saw say, second there was conviction. quarter But I of say a think third second to in what shock

So some the were there people be question would in -- denial.

were to I I bank uncle, lend people find gosh, a to got oh, need got a funding there's favorite to but bank, me. my that's Some I willing or find maybe saying, a not

a And lot at activity, there okay, I recess, I'm is boy, think are kindergartners now, want I do world. -- want here's to how of what going I again, now and a go a to post-COVID in was I to or sure I their I normal, this arms lot do. to my around, people did lot operate look a new shock through would as running almost start what like we a at of And is, getting you tell purpose. there think, are but around of So not

do will will think we opportunity the have and you have I the some So had have and to very conversations. meaningful have opportunity

areas We that are desirable We're of aggressive a country. the for do. are to want the us business half national building the sequencing anticipate for what We there's time We're in a across going we I too being building And building a business. us selective infrastructure some scale. now forward. spent year. about wouldn't here. first There's out

of the I question -- it say in bit. we'll the by come expectations have to it's And a But token a us and and resellers have that doing same think opportunistic. I the conclusion been sequencing be more for think I would and come right.

at to think filing thoughtful beneficial we you think and there'll of the but setting structure really a what coming on. I good an through then we're opportunities, we we we're going place. from they're kind up in appetite ambition, sequencing to they're feel about multiple putting if have company. some have want structure make And years. to a bats. We're deliver our doing perspective, opportunity our it COVID, And out sure shareholders think be capital We of have we're our predictable, that huge is that to and some matches to but a

Richard Baldry

-- the sales the changed -- a second again generated. side you what sort funnel which of you at at leads first We've think reasons top has in up the that headcount, it's heads XXXX -- confident talked XXXX? versus out? feel come about talk one web whether the And qualitative marketing adding lot. you as lot maybe that Can you of or How see half of traffic the that has is whether rolls half a more that's the that do XXXX about

Pat Goepel

Yes.

point was conspiracy? stimulus, that COVID? in were -- Am it shut It that COVID there COVID? was pipe a with in and a but like Is some whatever permanently, talked right, sales we business? mean down. There of et it quarter all, right? is, I where I the third shutting does depending What First -- had small got on vaccine. and that business your is down view. about lot started there is the low cetera? people quarter. what of second to really to the the token you all They questions, it So improve half for no was second, same says was Is wait scrambling, by of Was it then flu? first even a And XXXX it

of bit acceleration a more definitely the little gone it's So digital.

So the digital leads et cetera.

call, If type of on have salespeople whether whether in that good relationships do e-mail those advisers you have brokers, it's it's over gold good relationships whether are and that's to environment, trusted Zoom whether have relationships this like because why business. a and the focus with it's people digital, CPAs banks still it's phone, we

other honestly at providers is growing. lot some I steadily pipeline to would of areas Now focus probably say higher of the the a willingness change on and quite when tougher. there's time is is What kind to a level areas

think of a probably and bit. with was wave I second the probably muted the little fourth the it lack stimulus quarter

to working think is pipeline have economy, stimulus talk of we and digital businesses, cetera. see opening thing we et I you'll watch Now the to the the key through the here a small webinars where Where increase. money applications about getting

Our webinar been higher. traffic has never

real positive starting to I've our data of development is that The has for ability from that's advisers US business commerce seen been a refer Chamber place. So high. trusted in some business get around new formation to us. the

starting person businesses the was that of building get wave that a into So close or to business reopening did not going a second they're either a a there.

whether to prospect attentiveness. It And you to adviser digital. it but to then a trusted down comes how sell it's comes differently, It do down comes compliance. the to So how or to down get relationships. down this you it comes

national pretty have serve now we States the invest that adapt. all of their people best a of we'll to United and So of quality business with tenor America. I've footprint as we're in a relationships we of cycle I good in think people we've and think and our been part we continue XX a the can some happy very hired of always that a

Richard Baldry

Great. Thanks.

Operator

you. Thank

Your next Craig-Hallum. from from line Van of comes the question Jeff Rhee

Your line open. is

Jeff Van Rhee

model for maybe taking start. to Great. couple Thanks of questions. my A questions

through us Given but what of we're kind the terms behavior give at numbers sequential guide, maybe a know March least help this chunk point, in I at won't good the the you see you that the of kind think that acquisition uplift in then from ACA those revenue? W-Xs XXXX? QX, the what's along for of And you'll trailing And what's the from lines, thing? revenue you expected can

John Pence

Okay.

we reflects giving business of that throughout from first Obviously, sequential but deviation expect to going the TheStreet $X nature quarter. that kind think of year. probably not approximately think accurately heavier contribution into I guidance, has yes, and be kind weighted the already the little quarter-to-quarter. the acquisition kind we're probably of million I modeled TheStreet, bit of I it's think

if So helpful. that's

Jeff Van Rhee

the TheStreet, So be to clear acquisition new news. is just

million So QX. brings -- but this acquisition you the the for think heavy in year, $X

what adjusted you're to TheStreet that acquisition? is that prior So correctly saying? Just was clear to be

John Pence

Yeah.

I think right. that's

off. guidance, I think it's giving not We're fair. weren't specific directionally but you

Jeff Van Rhee

maybe particular, of of finer expenses about go little out non-GAAP. you you put cost operating we could know from then on just GAAP And point you for you non-GAAP from what thinking sequentially took think off -- How a be I or whether pick GAAP it a about or QX? the don't do standpoint, Okay. in obviously OpEx costs baseline some should

John Pence

company. is Yeah of think it's pay in rank I the held really from company to because some tough and I the actually my back going appropriately, benefits and as XX% prepared all standpoint the the remarks, trend of some file, of the it to in not mentioned

put we place So back in regular on January X pay.

stay bit reinstatement have some be to flat. the impact is the because we little will going probably negative are rates. though a of employee the count So pay going even that heavy relatively transitions to But of

Jeff Van Rhee

Okay.

John Pence

transitions and the you look back of you in of transition at should of terms So There some some quarter of reduction. to go first last the second of quarter year. I see kind think from the

So see transition. you'll opposite kind kind in the in terms year of the of, coming effect, of this

Jeff Van Rhee

maybe Okay. Helpful. And then one question then. higher-level

just to As maybe the Maybe additional about the talk just attach attendance. you bit time it payroll. rates out and were sounded cross-sell, things of and calling the like relates the improved better particularly solutions of it a beyond cross-selling HR

seeing it attaching? you When that are you what's attach? doing are what to ARPU? the And Specifically,

John Pence

Yes.

of to base of the the installed little still, that. back color of that a say nascent in And kind on you give of, quick the sales that new would into I general, having of, But in I perspective tell color. multiple from me I'll are give you I'll you, the more it. that kind kind with product side going give mine sold give of bundles business. let most and real stage Let a I'll think, the Pat being Pat, cross-sell more we're time

Pat Goepel

No.

right. think I John's exactly

is working where strategy a President, cross-sell. programmic, kind have of, on Our Goldstein Eyal really we

easy use So bundle, of, automated and to that, technology kind bundle it appropriately. make

make XXXX difference with opposed first we've as with you'll metrics here at what sales would -- a us this we're and on of in to new think the want sure we to bundling we all a around want bundle. the adopt sell we to some What we small But they line cross-sell make have really set say quarter simplified businesses, time. see with made and a kind I in the sure of as call. one I

time employee think highlight HR what automating do basically is a which Tier think, X, going is at Tier come. web around around consulting et HR So us the efforts you're HR kind X, of Tier of to X the attendance it's delivery you'll some cloud, tool and more handbook see see essentials I then whether think with And our Asure I our cetera. to I

can aspirationally I and chew highlight you'll through. think have we'll more the one, a approach. the less quarter but of kind about programmic cross-sell or bundling that will on you one first is And So talk some call. by that this of base metrics in But

John Pence

need thing you're to think I about I'll EPS asking think, point and models probably you in as that, of terms on. one December, adjust since picked And just you denominator make up obviously raise calculations But Jeff the with equity modeling a well. have other I the in

Jeff Van Rhee

it. Got

Okay. Thank you.

John Pence

Jeff. Thanks,

Operator

Thank you.

comes line of Vincent Barrington Research. Your the from next Colicchio from question

line Your open. is

Vincent Colicchio

were mine asked Yes. Most of Pat.

experienced year with job last expanding the some Just nice force you did a people. sales

benefited the from You situation. Paycom

what your more these getting Is difficult types curious like? people? does any Just pipeline it of to find look

Pat Goepel

success actually think I success. breeds

management domain we deep expertise. a or of lot a think I Capital Human now Management with team have HCM

it have when strengthening other you et management And and good people. the you attracts results people it We're have team that done people good good have have cetera. We before.

quarter then chance have you this get far you as some marketplace get leaving the we'll and a when up you that's the you competing competition have getting they company So exciting legacy. and able while with opportunity. their out brokers successful we're And we a reps. build own is don't the kind where can second and then once-in-a-lifetime some money sand bet I and to as with like I in in be good really and can What acquisition of sales bankers tell to have is pretty the like word's would that in make think a pretty them where CPAs evolving footprints a partner and build a CompuPay

year. attract the you're can really come So do we And second we a the we call this big of salespeople. on we did and right attracting we salesperson can We think But, think bang what you're us. confident if not this good you're successful through that in have quarter. that see But, approach people. might pretty the we're

John Pence

really And this anecdotally, up picking not good around their again from perspective, just salespeople my waiting are for bonuses.

those first their months, lull so, up a settling bit prior the as a little year couple of they're And people of performance. on getting in there's

top of get lull little the of the go would bit after. going So, we're a expect But way in first to that's paid out, to performers I these once then, start months. couple

Vincent Colicchio

you. Thank Okay.

Pat Goepel

Thanks, We Vince. appreciate.

Operator

closing like turn would I'm CEO, time. you. any showing questions back to conference now remarks. this further Mr. Presenters, no for Pat Goepel Thank to our I the at

Pat Goepel

time really call had usual. we I than appreciate And a today. No, Yes. your longer

thank I were And COVID want returning stuff year-end the and and normal. a everyone. to Just with was year. there everybody in and XXXX lot year tough is economy began. of and interested then, talk obviously a about to the stimulus to

get a - appreciate and make to seriously, improve for was it great We day, each some The your continue you through we've and we foundation treat investment us. improvements. year to We'll really it year. us. every for better think some in and It made a was continue XXXX. We'll improvements. continue I we'll to

So, you till very we meet much. again thank

Operator

Thank joining. this for all gentlemen, Thank conference call. concludes you. today's Ladies and you

You may now all disconnect.

Asure Software (ASUR) 12 Mar 212020 Q4 Earnings call transcript