Earnings call transcript Q1 2023

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Operator

Good day ladies and gentlemen, and thank you for standing by. Welcome to the First Quarter 2023 Asure Software Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Randal Rudniski. Sir, please begin.

Randal Rudniski

operator. you, Thank and first everyone, for us joining Good XXXX thank earnings Asure's quarter call. for afternoon, you

Following the website close The of investor where markets, we released find also is Relations at the on you Investor can earnings our available the our SEC's and presentation. website investor.asuresoftware.com, release financial results.

with items. reference these During to the exclude earnings investors will measures, reconciliation A and we of non-GAAP a certain timing description call along measures release. can our most we believe non-GAAP which items and GAAP impact financial comparable our today, be to to useful of of be in found the measures

call involve cause our and indicate SEC forward-looking Today's factors to such, some refer risks. you that statements, and We that on may, could to we such to current forward-looking materially review expectations. the also results believes with will encourage our use filings statements expects, for as future from events to information differ and words actual additional contain as

Finally, a I'd be replay our everyone for is call the available made it this via recorded, website. that and available Relations being section will on Investor of like link to remind

call I CEO. like now that, turn to to and With Goepel, Pat Chairman Pat? the would over

Patrick Goepel

then outlook for Asure John financial our for turn Thank with CFO, will And detailed XXXX begin highlights the and you, an business our Software's today's call more to Pence update everyone Randal, I'll XXXX. and earnings review welcome, strategy. results to and presentation quarter over first call. I a on of our

with time We to will answer session then questions. conclude the your

quarter XXXX. the business the strong to results, we in the from in through demonstrated built is our As XXXX carried of first momentum

a to year's million $XX improvement by last was XX% exceeded all which Net year. from $XXX,XXX income the quarter, rising of revenues million the organic. was Our $X.X prior of quarter, for relative

gross the profit $XX was a higher first million prior more EBITDA scale growing than margin significance in XXXX our the is It in all from million to that from showing margin notable climbed our to for EBITDA of delivered versus $X.X quarter for Adjusted margin of And non-GAAP also of XX% a doubled XX% $X.X year's than quarter. $XX our million adjusted and investments. XX%. of million we

We take the very investments efforts in our streamline to made as those and product believe consolidate are so reflects these client also advantage across and results opportunities, new reception a enhancements business. marketplace. strong processes, such of of we our product can It Asure the that business the we the to

by notable to upgrade the bookings, made client programs our to of in quarter enhancements The sales are working strength demand. are sales our our which reception prior attracting new the is to strong relative we've solutions The that grew XXX% to year. solutions and our in

we and the sales the bookings point year. to want quarter the reported growth rate we is above growth in out comparable last over also I XX% this achieved in new period

business margin which strong quarter. and by from entirely driven were the several organic revenue Our first parts the of was performance, in contribution

compliance. HR is first The

strongly Our market. HR in are compliance the resonating solutions

selling doubled state drive and compliant navigate can midsize remain attract than as increasingly prior relative helping revenues to to in our regulations the quarter, the manner. In more effective and complex solutions and to local businesses a activity These our clients. continue cross small ensure compliance federal, scalable businesses jurisdictions year solutions new and and very

solutions. our is Asure marketplace Next,

our enable quarter. their clients course revenue broaden and scope us XXXX meaningfully automation of the contributed value marketplace in will so the that belief and to Asure in We performance our Asure of new to marketplace employees. our the offer solutions we our on data can lost to

vast in new sources explore, to us and test domain the leverages our of of data allows revenue. marketplace Asure create amount and

of our in XX% could it believe the XX% future. was upwards overall to continue revenues We represent to of

continuing expect and in the to are have further We types also announcements offer XXXX. number and we integrations expand of to

contributor in driver also The performance were this the revenues strong Interest the in to a yield revenue area. has curve quarter. rise an important in

real we're this office result higher a upside These achieving story is us consolidating our to have bank section. success will our in and is his that talk John systems the revenues. and However, enabled efforts more the back balances investable accounts. drive of about And in

of want Lastly, the from retention processing ERTC. contribution I highlight credits, employee to revenues to or tax the

quarter relative this result the flow automation high processing adjusted on within improved converted a into tax to from in we and very into a EBITDA efficiencies have penetration basis. margin increased of revenue of capabilities our to We XX% our systems, each enhanced leveraged Notably, revenues efficient high year's consolidation, program differentiated quarter. dollar our the through tap direct is segments. This prior of our via incremental

Now, in I progress the journey. our will initiatives have in we achieving turn on to underway and XXXX, the milestones our

on Let's our and new focus value revenue to performances and drive development. Behind more bundled our with expanding offerings development. force development, innovative we're with and team sales marketing streams. these effective lead is our initiatives begin sales supporting sales products in XXXX diversify driving Sales by and

cross-sell has particularly where which we in drive with compliance to and future strong success HR resonating been is revenues. the clients. We're utilizing compliance, solutions also the ERTC expect other bundling value Our of reoccurring to solutions,

and ways. has We enhancements have platforms. and Asure positive treasury marketplace introduction tax to the in significant that potential to business product the our initiatives believe transform and Asure our focused Our of on the marketplace

consumer expect business-to-consumer Asure also supports part include in of a future. the be applications and the range access. applications. and can to preparation, business-to-business Marketplace verification, marketplace Business The income applications tax of those We're solutions, wage and retirement wide developing earn

work Asure consumers to work with government with to Equifax mortgage car data marketplace uses. end and help numbers loans, provide where Equifax's supports solution we their other applications, benefits

area. separates real customers wage also and and partnership market in to differentiates Earn competitive employees a forward allow increasingly earn employees. This and common believe their this earn our be offer employers an this announced year, ZayZoon will moving time. our work access. benefit ZayZoon about very We excited or labor with we employees their in the provides access we're to wage access employers Earlier flexibility to allows opportunity wage pay to in with

initiative enhancements tax key in double-digit our portal our enhancements the deliver processing. reflecting strategic platform this been have integrations Another capitalize a on anticipate facilitate a in our business single to XXXX, We're revenue tax we've the on market. and engine, to consolidating technology unique new improving to to we position is to working including Overall, area the ERTC tax made. strong of we growth introducing

efficiency to foundation create of flexible and create reduce to a to longer and organization a more the goals term leaner costs. Let's enterprise our support are to to technology now initiatives. The turn efficiency a growth plan

annual In anticipate savings. terms of $X million approximately plan cost in savings, our

to capital The from of the development, already to efficiency efforts to the year to and enhance and and duplication consolidation implement give robotics We track automation standardization reduce and accelerate human these processes end plan operations reduce and us product of data of goal. costs. are XXXX of greater on improve begun we increased to achieve the initiatives. and also use in to expect flexibility management by reductions have Cost this platforms

quality accelerate product costs are increased retention. with enable us improve revenue and to development, service and initiatives to these Beyond to delivery to margins enhance expected

expectations, now on initiatives The a is revised our are our the acceleration our our activity higher Based current and positive sales efficiency year. guidance. start financial performance we XXXX of and gains enterprise introducing to from

and We are for now EBITDA million to $XXX XX%. of to million of guiding revenues $XXX an XX% adjusted

of EBITDA $XXX million Our of margin adjusted previous and an $XXX guidance to was XX% million for XX%. revenues to

Our XXXX does reflects not and guidance organic acquisitions. our performance include

is to of guidance $XX revenues XXXX, to second which organic million, growth. XX% We're the higher of of XXXX quarter also of than $XX is introducing be approximately which quarter million second all expected

to we're second the guiding EBITDA, $X.X quarter. million to adjusted $X.X million For in

margins. for can will a adjusted we see, you and from As expect guidance, our year be revenues strong EBITDA XXXX

investments excited will momentum about believe sales believe successes the solutions, beyond. to and and and continue year beyond. We're and But expanding be our radar. continue our our will in our of performance we XXXX portfolio drive performance sales XXXX Macroeconomic business growth targeted ahead initiatives, on to highly the complexities in drive and

Now, more John? I discuss to would our detail. like financial to hand off John to results in

John Pence

Thanks, Pat.

this discussed are adjusted on at several today given a or the mentioned of basis. figures call, Randall As of financial non-GAAP beginning

non-GAAP themselves at Investor are Reconciliations a find these the in recent of our on also made today. Relations will You website to earnings the investor GAAP reconciliations included most of posted release description our investor.asuresoftware.com. earlier in that available was presentation section

in Revenues revenues Now, Recurring to all the the first XX% quarter prior first more XX% on by was year million $X.X while to tripled organic. rising quarter, $XX relative million. year, prior relative to million, which revenues $XX.X of reached rose to nonrecurring than to results.

as ERTC as with similar in introduced in well drivers bundled quarter; differentiated offerings. third of was revenue business, recurring contributions being with the revenue balances contribution of HR average for $XXX exceeding was broad and the which improvement our based their with made growth revenues quarter Increased was up of a million has notable Asure which Our fourth client interest seen success the and our from marketplace, from as compliance solution quarter revenues, XXXX. XXXX

retention generating tax uplift, revenue. see of professional earned you our processing that from impact nice on a revenues credits experienced also and we Finally, services can

$X.X show this do our efficiencies. income million. quarter results is that strong well important expect prior seasonally We over normal scaling loss season a in a also revenue to $X.X as operational improvement business XXXX ACA reflects of in of mind recurring It's achievement year's was our our keep the are This fluctuations. quarter's $X for our improved as W-X is the first in Net million, revenues to year-end recognized period. as and million the notable

quarter non-GAAP by growth X prior XX% the and the revenue standardization to gross high XX% the compared $X.X XX%. year rose first margin consolidation reflects efforts. And the with prior our strong $X.X improvement a XX EBITDA year's for and percentage impact rose million, to $X.X quarter prior million to prior year, year. of margin while the the relative our of mix million quarter of This our was our by relative from margins rose million. $X.X in in in XX.X% Adjusted to gains, adjusted to $X.X point million. margins reached EBITDA points percentage EBITDA quarter Gross

offset expansion the gains investments and continued success. are of growing drive streams, with margin than development revenue the the sales and benefits growth. we was as scale making our activities from and our These as marketing expansion more efficiency to driven technology high initiatives by well progress revenue Margin of our

to continue the longer there's the margin upside We believe business scales. over substantial term as

equivalents ended We $XX.X with cash and million. quarter of cash the

senior which acquisitions. from notes the with also had our We million is $XX.X million $XX.X of remainder of comprised drawn seller up of facility, credit debt, under made

of backdrop continued the terms XXXX, uncertainty dynamic year in guidance second our of and full our a guidance economic the market. a Now and offered is labor for quarter with

are to range $XXX raising revenue full to million our 'XX range guidance of and adjusted a EBITDA XX%. to year XX% We of $XXX to million a margin

quarter also introducing million. to and of are of adjusted guidance for the second revenues $XX $X.X $XX million We million $X.X to EBITDA million

strong revenue trends with our multiple inform quarter outlook These first of we for in second encouraging the on are Our in categories performance in half and the the was XXXX. momentum develop results building XXXX.

success ERTC and momentum believe offerings, business filing our We bundling and customers. solutions. automated HR capabilities tax and midsized We small processing resonating expect are multi and positive with our our compliance continued tiered HR with

to be in also driver is important expected XXXX. marketplace Asure an

dedicated technology solution. growing momentum have Further live projects anticipated our our effort a from of to strong business. quarters. expect the in result list our data are partners of enhance to This the leverage and are coming the go to we in and is the We

have full quarter a take income, efforts to our us contributor best in Regarding our rates. interest with consolidated float enjoying advantage to yet revenue enabled We will XXXX. be as believe are performance float of we revenue rising strong our

and product development operating efficiencies our revenue We focus as we and centralization initiatives streams our also high advance to and generating savings. on are continuing margin development, sales

if in targets to of opportunity for terms acquisitions, will value the evaluating and arises will continue to prudent execute our be is while In create right nothing imminent, shareholders. we

for Pat to back call remarks. the turn closing will I that, With

Patrick Goepel

to in first of the by following the with are areas. John. with performance XXXX conclude pleased in our Thanks, saying like I'd very we notable quarter successes

driven over our we our are result out quarter, across First, to enhance grew bookings first products growth work of a that products. team. in new XXX% have revenues on XX% the successes of sales lot quarters we efforts focused organically by the in of hard and had our sales several year-over-year multiple The sales by building

enhancements management We're will human continuing force help systems. capital sustainable product and cross made to technology tax with foundation opportunities. a create our enhancing selling and suite in invest increased and strides of in to treasury for our bolster and These offerings we growth, sales provide our

We efficiencies pursuing initiatives. consolidation our by also standardization cost and and improved structure

As enabled the of expansion on savings non-GAAP deliver complete. gross quarter are a million is us annual reaching and deliver result, once margins implementation margins to margin EBITDA track one adjusted we $X annually to with reaching These efforts XX%. XX%

For we organic growth margin XXXX outlook, anticipate revenue based current strong and EBITDA gains. delivering on our double-digit adjusted

momentum guidance tax Our positive reflecting and anticipate with prior upgrades our revised in bundling higher we our at revenue solutions, the made HR our have leveraging our success solutions. compliance

We believe us deliver streams. and for revenue to changer technology game our as marketplace enables Asure margin also data is a leverage new to it Asure high

and continue balances. to are also to investable due revenues Interest in anticipated rise increase rates the to

guiding scale and and ultimately to us sustainable continue free cash to XXXX we continued income net grow expansion, expect and flow. to the As beyond, positive through margin consolidation drive we efficiencies in

performance very investor We're on results many conclusion, for you attending next and forward come and second and we delivering quarter. our eager one direction. consistent stakeholders. are or quarter excited of In the our in we're our the the about years future speaking again with remain of We at quarters business look to for to the conferences focused

operator with for the that, I'll the call So turn question-and-answer Operator? to session. back the

Operator

[Operator the line & from Company. Reilly from question Our line Joshua first comment of Needham Mr. comes your is Reilly, open. Instructions] or

Joshua Reilly

state ERTC, in my with execution fun we the just Hey, other us how items review, just batches on to and how once or can see some guess guys, ERTC Can rest of is you in and thanks steady we here exactly? through there's they the questions. It's then should you here, see is working be Pro the Did think help on that the model. the that? about job bringing you taking how as coming after these for you other year the going maybe I Great layering to are a revenue? quarter. services layering customers that at into the amount bring large

Patrick Goepel

address questions There's them. to of lot a there. try I'll Josh,

be all at different it we've the what this think that's credit we've into of that extra kind taken for And same had balance modeled the We of QX in the at they’re levels there'll As some, factors ERTC. and of of year, we've into a at point. not but year not the the ton not QX, balance least probably are flavors.

some we these where contracting relationships. We then we're with have minimum where some have just the directly And do we have customer.

bit all So it's a little of all different flavors.

Joshua Reilly

like margins, then the follow-up healthy of guidance income implies is for EBITDA marketplace Got interest specifically revenue just this guidance EBITDA see how versus margin it. year in accretive margin the on assumptions the the here. And here. out uplift It us the of in parse uplift much quarter to from pretty higher you other sources help nice is model. the ERTC model entering and great which Can

John Pence

give perspective. Pat I'll your take shot So you can and mean, I a

what revenues think that we've add model, QX as both top we to and tried efficient pretty we is line, model. demonstrate a these QX to think I in the incremental got terms we've the operating of

HR of margin. the marketplace, So a compliance -- concept, high high a dollar dollar float margin? pretty high don't FIFO it's high know. that margin, like pretty I right? which the contributes kind incremental ERTC of to to mean, I to margin. combination margin, is it's it's at

revenue a that one So are high really lot increase to and doing [multiple I wouldn't of follow attribute streams Pat, through what speakers]. margins. all guidance the adding in we're stream is different personally. the specific revenue

Patrick Goepel

agree with Yes, Josh, would John. and I

couple X.X at professional in look appropriately if quarter, last That if be year. some is run QX operational are we've create so is years rest what And do have about think think itself to you and the that W-Xs to had we million. services, ERTC. improvements we compared the million year the made in rate, think assume we would guiding going believe we of pay last appropriate the We're The ERTC, starting one-time X.X the first with you obviously of revenues, the over $X approximately and margin -- visibility and guide in where there. high the gross two we usually year. rest upside it's were we're now raise some in that we on I based to a row. right to quarter pleased appropriate it's think is have or about guidance the But margin quarters guide that's think we and we volume able off. the if you if now,

Joshua Reilly

it. Got Fun strong Thanks, to results. guys. the see

Patrick Goepel

Thanks, Josh.

John Pence

Thanks, Josh.

Patrick Goepel

it. Appreciate

Operator

Thank you.

the of Bergin, or question now line Mr. open. next your Cowen Our is Company. comes line Bergin and Bryan from from comment

Bryan Bergin

Hey, the off wanted the guess to guys, demand good on a just I start high-level for at taking afternoon. Thanks question. environment.

carried last here. would X versus just any volatility months So momentum all given ago, spoke. the value you strong perspective U.S But say at clearly banking let's changes on we since

changed, So that's any can then through April? behavior and on nuances anything in client you comment

Patrick Goepel

Yes, we positive been it. volume I small really in business think I the haven't marketplace. seen mean, has

in, But I we the creating obviously, seen think stuff. behavior, right far trepidation haven't buying and just of regional it now. just banks that there's some as as

Our clients looking but look enough still when employees. would find for they're can't three, five, still they looking they're for for Maybe employees.

I is deal we what or seen in, if be to three great business, is banks trepidation the it growing But haven't I down questions as that business, come change far of or regional their running have. going think will think more eight lately. is they those two the behavior and horizon, as are a the more their

John Pence

potentially The that are. reading same only is thing we the stuff you’re I add, would

thing results behavior, I Congress recession I Pat's do that's and yet. going seen again, think on just is to our But create debt think what it that's think a on kind of their manifest goes in talking they, with least what about at I other the ceiling, that's talk to do in think, I But point, when by in we background. everybody in people. we've the fact,

Bryan Bergin

And margin, going pivoting just talk maybe about year. progress to your initiatives investment progression, through the understood. okay, then margin to you're Okay, as can you so

the at and it's investments then timing of the through margin, mindful margin second of Just the move of should we be the looking mix look, you or revenue the balance considerations implied EBITDA whether XQ EBITDA year? at as key EBITDA any

Patrick Goepel

No, can as answer John well. I think --

some invest We just or tax think as we're products, float, we're I and sales compliance, growth far to a products that as and in we'll people. just in to date growth made at or marketplace continue in level, in macro and investments bundles investing we've to of think investing the services. driving more HR healthy addition and drivers, ERTC

that We continue only good but to So we margin. some down grow have we'll pretty we'll continue make think in investments playbook. also business. And not visibility the revenue, to

John Pence

to Yes, I that, I add in might people opportunistically been think and environments in to the of able We've able we've employment been also into the hadn't I earlier have would helped some some budgeted but we get hoped. say mean, year, just the the environment. for sales [indiscernible] environment them into than us. general, We

actually think that with So start we're some earlier. optimistic I to of contribute these hires they'll

I So point. Pat's say to back that's only the thing would

Bryan Bergin

Does that or as dev? that go mostly well, was for sale

Patrick Goepel

the good hires score. We have as some sales well,

Bryan Bergin

Okay, great. Thank you very much.

Patrick Goepel

you. Thank

Operator

you. Thank

comes comment next is open. or from sorry. Martin. of Our I'm Eric Lake Street Capital the your Markets. Martinuzzi line question Martinuzzi, Mr. line Eric from

Eric Martinuzzi

outlook. on well as the congrats quarter my and Yes, the

year, $X there that the is coming savings are regarding of maybe Just Is related of the cost annualized consultants? cuts of the -- this from? integrated savings elimination million curious people end on and Where's back there that of This are some coming about the structure. here? systems all the by

John Pence

on operation not as starting that We've it's the a exactly. the see couple of the been -- side. standardized working nationalized. it's last switch It's some business get benefits to of side to on system for those on not combination. this of the Yes, Yes, and been as a just trying well white years, event. more it's all both We're the

been put of that we're that again to continue that the it think and starting we've And dollars realize forth. into I start putting going terms create putting So momentum forward force us. putting to those some forward going it we're into that for in the of are work to again, momentum sales and product for efforts hopefully back us

Patrick Goepel

thought your Eric, we less while I in system calories question into is internally. were will example bank give treasury ties and from maybe what able a but a think it to to go accounts I to And put -- world, limited we XX. an do some and XXX than

able also check in as were build were we able changes paying perspective, to feeds a to that. of What systems an were reconciliation XXX to bank tune is the a we the grand. save do from part that of automated we process those make So automated, or more costs

to able as able build the by So some easier isolate take to automate and we're making of those of we're process. and functionality less with it do that the manual out do accounts process potential some more ton to look people when really well a then with have regional at able that some into were and to And we as some of effort. not issues, reconciliation ran you feature right banks away, then

stated, to savings that's one and projects seven within that only then, savings, So but we've sales have able resources. comp, redeploy development pretty some as John to them not will and been into about some get big example

Eric Martinuzzi

Understand. Thanks my for taking question.

Patrick Goepel

Eric. Thanks,

Operator

Thank you.

comes or open. Craig-Hallum comment Rhee line question Capital Group. Rhee, Jeff the Van is of next from from Mr. Van your Our line

Jeff Van Rhee

Great. for the question, Thanks. taking me. for Thanks A Congrats. number guys.

can them the Pat, you've I new them? track you've side, it product of pace you had relates customer changes measure lot is to done and the Have obviously, the I've to on in seen. specifically innovation lot capture highest win a as of the degree capabilities, a seen probably rates you First, think

Patrick Goepel

a up a that area was almost think sources in pace at We Marketing you of invested marketing you is every ago. our probably are XX% strong. in XX%. a pipeline a go lead bit, over volume year the business, lead seen process very it's Of new tools, marketing. sales change, definitely a is software quite of have around up When

getting continuing the more that We're results to [indiscernible] area. in to due at So kind pipeline. drive of

they're are in up lead going with ERTC, win and compliance. increasingly either when HR Our going we rates up a bundle

We win and the perhaps owner as able functional to higher to leader. have a business rates capture opposed

we've and system, reasons the are UI gaining then more those of modern modern able rates And a a to as So been why we're to of kind kind continuing win. win drive we that we have speak. of this results and But in also we'll and a the think number those items we're continuing year throughout early next. early we all get journey breakthrough

So it's a journey, but and it's a all series of pleased of we're at. aspects where small really differences it, on really,

Jeff Van Rhee

I sense. And What counts. cross-sell, recently? about processed on Makes seeing seats how does What X, ID or -- X and seen have of a larger upsell, basis? the year-over-year obviously, compare months mean, numbers ago? up, growth kind you weekly presumably you're being that deal a good kind it of the monthly tax

Patrick Goepel

this But would payroll, W-Xs -- year. I for last to did revenue we're mean, for five say year, I means revenue that we than that W-Xs. did getting I X.X They're not in. effect doubled. we compliance that payroll line is proxy more just produce people and our it's we clearly in mean, right, close in HR more good W-X million

that low at And gone up only HR using payroll, relatively has also we're rate. penetration using and not are still companies so compliance the but dramatically

component allows more that the about more and on to services. It's it's use a on them good us, for cross-sell So or then companies the the about platform products platform more people really and and marketplace.

Jeff Van Rhee

Okay.

headcount then sense if now the sales you're there of and goals your don't I giving quick even maybe come know interesting. would And with want what Just then apps by respect to of mentioned broader be, me but for two marketplace. to ones a be might thinking to hand, tip be you Pat, that you just some consumer year-end. last other would

Patrick Goepel

would give will headcount, a in Yes, We'll to all, think the we're I in the I here be the XX, low quarter, rest sales XXX think XX will hundreds first you a at in and proxy be of the second third but over March the kind fourth I assume of year. of with quarter.

cetera, as ZayZoon the we of far earn the is roll where access. wage apps et one As consumer think which I relationship, out areas

get do it. a an want Obviously, our the if of they employees have paid do that on have that. to button. a click cycle they to with year rent, deal payment That's with And to XXx an now of access, they to can opportunity a example off

you'll see employee But probably the more a half that employer rollout the and addresses portal think that's really formal the of second I of that. year.

raise the in earnings to -- I'll But So we're that that future calls. of of where one ticket a kind going. that's

Jeff Van Rhee

Real enough. nice work. Fair Thanks.

Patrick Goepel

it. Thank you. Appreciate

Operator

Thank you.

Securities. line Northland Our your or question comment of from the Greg comes is with next Gibas Gibas, Capital Mr. line open.

Greg Gibas

top Great, thank a marketplace maybe the this the what contribute quarter. on and to line the expect afternoon, you. Wondering year Pat John. to Good Congrats do you the as of percentage total?

Patrick Goepel

Northland is universe [ph]. Northland you, and firm. a covering Yes, Greg, to great We first of us coverage appreciate welcome all,

announced I you. thank ZayZoon. Harbor with of What say and here marketplace, press a the would So releases in we couple Compliance

think of happen. the just rollout ZayZoon to I starting is

A revenue as you'll in marketplace as back in half and areas, think the ZayZoon year. see interface it's well like more adoption. consumer company specific, is rollout I technical of the the a some of

time. some takes it So

meaningful be be revenue to it XXXX. think in I it'll more will but continue in 'XX,

you strong. I pace think in take you'll see once marketplace to We see area. some of throughout of does that It while But have But nice meaningful more the do, really idea off. revenue. the come some the you announcements two opportunities. is at them a set XXXX, to about quarter and a

that. model, that. quarterly you'll about and on over excited and revenue time, see activity And we'll updates we're we'll provide some So then telegraph the and you'll see more

Greg Gibas

year the a I you've Okay, much operating Great wanted efficiencies to the growth follow-up margins. improvement on see talking scale the that increased about? maybe good. to of versus sounds revenue how of result of up. improving increased for going Wondering, kind from expectations the been is

John Pence

think again it's, to comment again. -- Yes, address this I try

a it's combination, think I right.

So adding a fall the are margin through. have high revenues that solid we very, pretty incremental very are and

adding a simultaneously, the out streams So top redeploying line taking cost have revenue those sales that structure and and through. of into it's healthy fall then I But pretty R&D the think to areas.

think both combination I it's those. of So of a

Patrick Goepel

the and the I and but change client investments. with fixed and I business this we've through about getting with fall whether add one one and some of same platform clients, high change, work. the a talked before, programming is, that gotten Yes, the thing the it's And, tax costs amount through. it's We would a you think tax pleased a incremental rhythm you have like XXX,XXX the example, or fall through into costs, kind we're high of of feel fixed have we've we're for

as benefits every on becomes do John able And and than work this, piece favorable for products. said, little scale well And us scale, that to mix layer as been we we the the margin scale been we've we bit where get the in as previous, track. believe if has of at we're a cheaper higher of right,

and excited So be and opportunity could margin just to the really us. where go, able for we rewarding started about getting it's we're very raise to again,

Greg Gibas

saw I revenue the last just to the quarter. last I Helpful. lower was Nice that recurring one XX% growth a me bit to see you it. up guess notice growth. year-over-year. relating than Got for the XX% little

what Just that a wondering maybe if sense give driver you can of was?

Patrick Goepel

was don't anything I as mean, have don't retention super been I been quarter-over-quarter, there bookings to Yes, have strong, little notable. bit was sales strong, very add. know, I a think

anomaly and with think in stood that concerned we a happy think was anything about. compare, the were don't growth the little results maybe there but for there us, I out that was the with we I happy were

Greg Gibas

Thanks. guys. Okay, fair enough. it, Appreciate

Patrick Goepel

Yes. Thanks, Welcome. Greg.

Operator

Baldry, from you. question Thank line Our the comes Instructions] open. Rich from line Baldry or Mr. ROTH is of comment [Operator your MKM. next

Richard Baldry

sales you the bookings. new growth in about Can Thanks. talk the maybe

said Is keep Thanks. about or how growing was helping an geographies in or partner capacity do compare it it of to to XXX% about pretty with, sales feel gauge maybe then you enterprise year-over-year. get of on concentrator you broad can of that Is And up. a that's bookings side? you in sales verticals, pretty you keep your think have tough on new a trying that I area you? the Sort you're that where that tag maybe feel And top or ability was one the how maybe How was to things in based? you broad that. stressed? area. that tenure saw talk you that Or much understaffed for

Patrick Goepel

thoughtful Rich. thanks, Thanks for the Yes, question.

continue pleased a we're in really are from from off. sales think, numbers. what to to programs sales going numbers I But all, I'm starting most the to our game, marketing is of the invest pay perspective from First with

successful, they're is And December cadence growing. made turnover the would really pipelines then we low, good, our I people really Our 'XX, achieving. say of been has what are investment our since

off the going Awards second came our half Summit just about of to potentially to that in year. year, talk Summit people they're meeting, Awards starting reach and are We early next the next

this reps performance. have able So winning, that the And covering really swath know space, years and get bundling improvement people from years excited, say as led they're productivity exponential have of I the And you marketing, to an they're winning, good a two really understand you and sales results. are drive Really they space, activity and leadership. good you're because to would visibility. excellent you broad been once it's three,

They gravitating territories opportunities have the They competitors. Eyal our seeing next and They're are rhythm They're our than their Marketing they most bigger where people of than and results. the really way, Mike can by management most people. got the recruiting going, competitors, win. good President and combination Chief have excited. nice people The And Officer; Goldstein, really level Revenue a is their bigger Lead. of the of seeing bundling They've Vannoy, success. are

engaged. think they're getting strong, success. and are the we're getting I They're Pipelines good people be good us keeping getting So to bundles; tools good leadership. having our series with They're successful. of

want want to don't results, for that continue to foreseeable they're them we excellent mess with, and to happy. We drive future. So we see the

Richard Baldry

Thanks. feel pipeline, some And there's you that of been efficiencies the sort internal from last And when maybe expectations maybe, into softening other look like side? the M&A then are you do your to improving. contrast of

thought what acquire to sort because can accretive, might Thanks. hurdle that does quicker, more you lower you the faster so make of you than could have previously. So it

Patrick Goepel

Yes.

think operational really of organic place. think in and a our the that efficiencies down growth doubt I the little getting well revenue heads engine So We've is on first expectations. bit softening all, of no growing a there's as of I as there been

here turn our half have There's to expectations engaged been bit. growing imminent we've our because do will been I really to second 'XX some eliminating business focused do at of growing just a revenue. acquisitions. We to I our conversations, look we've think look the nothing and changed and distractions on in 'XX and we as think out pop and

all made, due as those are can the changes of acquisitions, that confident the get of short far And in we potential we some order, we any of then that's operational integration efficiencies. and really the really to system very a integrated some as

digest is And when our right. time ready business people to are the so

we I now. to the targets, as a are will time as starting half do But is second think think come as the right, really when bit. far be are strike, starting definitely us expectations XXXX going to come conversation right that to to in a but is market future and opposed we to

Richard Baldry

another great quarter, Pat. on Congrats Thanks.

Patrick Goepel

Appreciate thank it. Rich, you. Hey,

Operator

Thank you.

comment the next Colicchio Our Colicchio, Mr. Vincent line your of question from open. is or comes Research. Barrington from line

Vincent Colicchio

congrats on Pat, Yes, quarter. the

couple a growth most between clients? for the existing Curious and breakdown were about mine bookings me, the asked. new Just of

Patrick Goepel

XX to pretty to we're existing good it existing we XX% ticks Maybe XX new and pleased clients, on mix. bit I Yes, the XX% but overall, are a think clients, with about little up business.

Vincent Colicchio

of thought you happy you programs. in times best. I And color you're which the are more with of couple maybe marketing programs mentioned give working a terms had can us that

Patrick Goepel

implemented which successful. has which we a ago, [ph], is while dollar an very of been loss sales ZoomInfo, No, kind Yes. auto tool

the in Mike, tools that. Vannoy's out does in just not compliant job compliance a Mike thought of a Simmons be it's to area means good with nice Mary really spelling the job team and place HR HR. the in does are leadership But really it So what

some campaigns. have good we So

talk to going cadence messaging And a the we market. are good meet how have really we day and We every place. marketing on sales and the cadence. and scripts the about and to just We in put that

whole from Service we finally, out of then And the Cloud have systems the perspective, across a organization. Salesforce rolled

So is chat system, on cloud, common system, service a sales everybody phone force. common common common

are then the the executing place individual are in in big way. leaders and a tools the and So contributors

focus success. the been and there so then has breeds And success

people have and the have And make opportunity when to success money. a of And you plan comp we've can lot with you the gone on build it, to attainment. quarterly

very with they a year. the X of quarters see So aligns have ability really in sight they where of short it blow it of line to the out. And period time

I back has but Goldstein and nice a and it rainmaker, what call program So has put our this then goes -- Eyal done to really together job.

Vincent Colicchio

is one And about you earlier to question the me. year? for for said balance of expectation the response what I ERTC. the last your an missed growth What earlier in

John Pence

specifically. have of in the We balance but we were, a bit the of out we to balance year, for or don't of what growth year this it have quarter. a lot. not of relative we on of of the guidance ton for Obviously, at end the ERTC the growing in having exceeded put fourth played little quarter Obviously, the played but QX when this for a it in terms QX, our expectations our we've off quarter

Vincent Colicchio

Okay. Thank you.

Patrick Goepel

it. Vince, you. Appreciate thank

Operator

no I'd conference showing closing remarks. turn at questions any queue back to I'm to in time. you. this like the Thank over for the management additional

Patrick Goepel

of you're third-party appreciate analysts, investor, whether client employee. current you I today, the all joining on call

this the happening is here. on that a journey long been time. We're has for momentum Asure about really excited

all right doing the are We things.

get that And are best hard Asure to the and believe for long of all come. for because it, they're have rewarded We -- done that still Software the are people journey way are the stage work. the but starting I to

forward or the that every second the quarter and we call. are and earnings in you So I of to at quarter appreciate we at in seeing one you, each look one of conferences the second

have day. So thanks, Take great a care. and

John Pence

you. Thank

Operator

you Ladies concludes This conference. participating for thank and in program. today's the gentlemen,

may Everyone have disconnect. You day. now wonderful a

Asure Software (ASUR) 8 May 232023 Q1 Earnings call transcript