Earnings call transcript Q2 2023

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Operator

Good afternoon. And welcome to Asure Second Quarter 2023 Earnings Conference Call. Call.

Joining us for today's call are Chairman and CEO, Pat Goepel; Chief Financial Officer, John Pence; and Head of Investor Relations, Randal Rudniski.

Following their prepared remarks, management will hold a question-and-answer session for analysts and investors.

to remarks. call like Rudniski to now introductory for would turn over the Randal I ahead. go Please

Randal Rudniski

Thanks, operator earnings afternoon, for and good Asure's joining you second us for quarter XXXX call. everyone. And thank

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

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

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

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

Pat Goepel

I for remainder the John our quarter joined Asure the business to welcome, earnings XXXX call. Pence. will call the everyone outlook update a our on and And for by Randal. XXXX. second provide quarter CFO, of the John and Thanks, I'm Software's

be we'll available questions. remarks, our to your answer Following

strong in across solid As continued you second reported business. strength with from the from momentum the execution quarter coming results, our see the can

proposition grow we that delivering business solutions Powering we on performance have adjusted relative by to of to first generated supported this reoccurring million target with will in adjusted value the our starts market organic our real we is continue that XXXX, also and top Our the reliable addresses in prompt a growth unique reached a all XX%, the sure solutions. built for teams half we to significant the Through make million value EBITDA customer revenues. and non-reoccurring and service. difference in imactful of revenue leverage is focus This as proposition identifying which of involves our was strong growing of second second more the for year operating revenues with which the revenues This of $X.X XX% is our produced growth engaging to our performance with prior believe continued make ERTC of and margin approach clients. by drove adjusted XX%. EBITDA our XXXX, we sales have up message also mobilizing increase quarter was line It in technologies. a quarter all XX% a in understood our that well showing than efficient clients providing powerful $X.X on EBITDA, and needs

quarter upon produced XX% achieved increase the new for bookings, quarter an efforts also last which growth of the year. second the in sales in sales Our second we builds rate XX%

quality force sales hires We expansion are the making. been new very and pleased of with continue we to invest in the

the in XXXX. marketing, We leads In and efforts are second digital of increased supporting driving marketing prior with our is source level bookings the our quarter, relative year. productivity higher to by sales sales XXX% which

client solutions a payroll, focus the on enhancements our experience needs. that been been focus on delivering client have to activities specific marketing In challenges has and selling address by excellent by elevating Our making underpinned and produce relative to focus, in the in increasingly processes combined second new standardizing client marketing prior with quarter increase produced efficiencies. revenues and effective the an to payroll platform our This XX% year. efforts, client our

and We than the to growing is our regulatory had in marketplace duly with year manner the HR to doubled that solutions. increasingly complex compliance of have solutions This automated with notable in challenges our employees efficient for a quarter and scalable without environment also costs clients. relative poses our new compliance in also we has our solutions revenues more HR prior successes underlying an midst in us increase have opportunities an met businesses. for for efficiency that provide as

contributed will the represent has revenues meaningful second last to XX% XX% half marketplace, to of and was believe in overtime. performance, continue of to Asure our year, we launched which segment this our

a will We for are the moment. will business new will XXXX, to that more in growth a of wide later targeted in that say company. have integrations introduce through address our we which and support needs next of on and solutions XXXX developing level I'll meaningfully range

non-reoccurring Processing success, have back contribution upside for we the revenues client to contributor with our an helpful is accounts to successes. success our to and support in our developing a yield opportunity office an identifying the also higher with credit, rise our investable particularly of make that and consolidating have curve systems been with to and bank revenue ERTC drove activity contributor real revenues compliance. of quarter a This growth revenues. tax Interest the were in along Furthermore, positive retention balances in solutions example also important HR bundling and the the employee effectively quarter. impactful solutions

our to In to in market future. solutions anticipate and to addition, in development opportunities continuing product are we technology invest proactively for and new create clients

the Web most quarter in to our Amazon part designed initiative to Application this second advanced which an innovation Services, important can spur of ensure is cloud platform during we Modernization deliver the and This industry. commitment. to Lab, strategic announced the we is secured help development platform with partnership accelerate Our

intelligence to Our drive future artificial activity, employing speed cloud development collaboration with AWS and advancing optimization efficiency. our will while efforts

core and introduction our in leverage have to in clients’ on Our capabilities solutions impact us expect dynamic address our we our business support XXXX enable technology the investments to initiatives new business These will line of a performance. that needs to XXXX top environment. meaningful later new pressing further will

significant aims plans X.X. highlight and and credits Secure that revenue other set to matching Safe the XXX(k) One updated participation provide plans Act available original year's it the some dramatically opportunity increase X.X contributions. for Version last to rules setup, Harbor, employee The and expanding retirement Act of the I'd is Secure tax plan with passing employers credits do small so. administration generating to the of come in has to vast tax businesses Secure opportunity like to for from Act easier made up

offer now government to retirement X.X, federal savings employees with a is the number the offer are mandating Many retirement move small of the While plans well. as funding business small small but their the incentivizing traditionally businesses the such Secure now growing and businesses mandate resources programs they have had to retirement Act forward. have not states to

base of a large solutions opportunity new there clients substantial our and businesses, our with to is unique that provide small Given these business requirements. address

offerings. recently use Act legislation Vestwell us ERTC to created record this power state solutions processing, keeping Secure create advanced very mandates X.X to Asure's an with the area. Just to and address announced help opportunity compelling technology We us emerging enable for new with partnership XXX(k) to the as

developed for Act are from clients. our excited those tax a great with X.X. And with deliver the Secure of already credit solution them ERTC, take positioned tax to same We to work scalable incentives we've help are clients uniquely because and capabilities we advantage available

success. our with solutions our clients efforts report best States. focused in across also In for X,XXX are business lays address practices of success quarter. out a positioning small more challenges. report themselves businesses HR in human for business United pressing that challenges second a we providing released resources on It based the light, the Our This the on for Benchmark growth most survey enhanced HR and to address than identifies businesses roadmap that and

of that retention exposing with critical Our satisfaction for employee is benchmark the fuel identifies where help satisfy report also across ways identifies human misunderstood. areas maximizing success. in areas lifecycle are or employee and success, challenging organizational compliance It regulations eight to resources

For businesses copy Best Web drivers organization linking and available to small class on practices solutions HR more is asuresoftware.com. of employees clearly report Small Business businesses, our class the site of in success. than our A help. best nothing important has there in is have Asure at to the Benchmark

our In unique market. facilitate to a addition position solutions, single strategic we on the technology the ERT marketplace platform. tax built improving and momentum to with HR introducing and our in on we to integrations. working tax capitalize engine, new To portal to tax a consolidating We're our compliance are enhancements

and unique and area tax our clients but We about will calls, us. drive growth development the have pleased ability the for asset to activity value more to we're about for say future and its very in in valuable our

closing, my the comments XXXX and and that financial introducing are our In our XXXX. higher current guidance. hope performance on I for opportunities of you we're sense expectations, give ahead revised Asure a XXXX Based in

of margin now of to $XXX adjusted a and revenues full for range year XX%. $XXX million are We to guiding EBITDA million XX%

margin guidance $XXX to quarter XXXX. also was million, to $XX than adjusted of to revenues of XX% XX%. of Our higher introducing quarter $XX previous We're the which revenues for million approximately third of is XX% guidance million and million XXXX an of EBITDA $XXX third

would in mean the to third For EBITDA expected adjusted than adjusted relative to EBITDA, midpoint quarter, we're which double prior million to guiding the million more at year. $X.X the $X.X

EBITDA be the We margins revenue guidance rule revenues range of are drive year very portfolio our the XX% about adjusted long in solutions XX% of for expect implies clients adjusted Asure XXXX exceeding our XX% value margins. EBITDA excited for approximately for We're year. term. to growth strong and organic we revenue the to of midpoint growth and and the a will XX for developing also The

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

John Pence

Thanks, Pat.

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

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

prior onto of second million. year was XX% relative organic. revenues quarter Revenues XX% $XX.X prior results. relative the reached the which $XX second Now year, to million rising quarter, to all in rose to Recurring by

other the quarter. marketplace average on in the Asure grew recorded declined the period. periods. an of ERTC saw recurring million and $X.X exceeding Relative the comparable strength $XXX category both on and our of first hardware increased HR quarter, million revenues the in solutions, revenues ERTC an services in revenues compliance client and with [balances] to of strength increase current the in interest professional Non-recurring activity. quarter processing revenues revenues were Second the

annual year revenue recurring is WX that the the in as and recognized seasonality normal first end ACA of quarter. However, attributable to business our is

with the the is percentage non-GAAP points rose for quarter notable to was the for progress XX incremental each the of rose continued each loss year’s second the Gross XX% dollar revenue reached $X.X revenue and by $X.X prior dollar $X.X driven non-GAAP a of Margin sales activities. to prior impact rose by $X.X quarter gains improvement benefits XX% period, to year almost growth adjusted than margin EBITDA million, while This our quarter our margin to margin our the $X.X reflects by allowed our $X.X from which points of and It our our making sale fall of by margins. of was quarter, prior growth loss prior and in our scale X%, the XX% offset XX quarter. in the for and In Net XX%. from second standardization revenue adjusted and continued over efficiency growing EBITDA a while million cost revenues growth our quarter, into margins mix expansion we our into $X.X initiatives efforts. million, relative year more the are consolidation X% EBITDA gross These with year-over-year of the prior half a over rose to the only improvement in expansion relative non-GAAP investments that the margins growth. high rose marketing million XXX% EBITDA. of streams, gross Adjusted we percentage million was compared operating in little of leverage in million quarter period. a high by million. converted through

ended to the upside the $XX.X term continue margin with and of there's cash over the longer cash scales. believe million. We as We equivalents business quarter

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

the million, for ‘XX mentioned, $XX full third third the million. for year raising revenue terms to $XXX XXXX, and in are to $XXX guidance quarter the Pat million of $XX guidance million revenues quarter as Now our of range of full our year to including we

XX%, annual year of would quarter full implies midpoint yield guidance XX%. Our guidance third of revenue growth our revenue while growth of the

expect in results the are We quarter will Asure the XXXX. HR high revenue half the drive to of [float] in third margin to our continue first revenues be organic inline performance with recurring and broadly performance. marketplace compliance, expected

has Our non-recurring revenue the ERTC success our been performance processing substantially activity. year-to-date driven with by

While of a XX% expected be there $X.X $X.X We've revenue is Adjusted gains to which our EBITDA EBITDA modest from will adjusted by of this a range in also stream margins for our by consolidation introduced XX% and driven no its EBITDA continued XXXX of and reflects given efficiency quarter third to is this to transactional guidance be sign slowdown offset performance, in significant marketing revenue adjusted expectation performance guidance million area, investment sales nature. to efficiency activity. and be in partially programs, million. for strong continuing the

stakeholders. prudent the of right opportunity will terms we we and currently our continue targets to second be to create execute quarter while product conclusion, the in imminent, strength of pleased performance In and and development, in our arises nothing the will sales. momentum value on acquisitions, our are if technology evaluating is with have built the we for In

foundation guidance. sustainable, driving continuing growth profitable confidence in Our for the the are value and build forward-looking to creation We year-to-date performance we for gives future. that think us our

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

Pat Goepel

core a We organic. new that achieved a feedback the our investing them. make quarter, was meaningful John. clients. the for growth, we difference XX% for We see this from that to reception view gratifying growth Thanks, milestone supports products enabling second which focus their revenue very and businesses, our is in The them can to to by our create all achieving our by achieved will solutions It in positive of clients. on technologies value

contribution and very We for a game is Asure more a encouraged which date are come. Asure. Its made Earlier I the lots results meaningful results to have previewed are by of to we changer our to performance the there marketplace, think early overall will and ways while example of knowledge significant, impactful we our X.X. believe they activity with solutions systems just retirement our under our initiatives Act here to leverage are the Secure can one our solutions And create many clients. we be the for

strengths We areas are in such also as leveraging our compliance. HR

challenges anticipate the who will facing seek address increasing as healthy increasingly businesses today's navigate business solutions for internal supplement solutions of help capabilities We external Our main their can street HR them be demand to experts with HR. to real complexity America. continue

and focus our our with us is supports to technology leading and at that our of also consolidation the facing are Supporting efficiencies example Investments efforts compelling clients solutions. are client in an priority efforts structure cross our a our tackle solutions these efforts our The to market all Asure. partnership support high our and enable These of to on our cost efforts. is AWS via solutions. issues initiatives business sell critical improve maximize sales delivering

continue to implementation complete. We annually of annual to on-track savings $X once deliver be its million is

sales new achieved revenue of of Our performance portfolio and adjusted the reflects upwardly solutions and we're we're very with continued the the conclusion, and performance. EBITDA positive we about momentum our business direction strong excited expanding headed. revised guidance the In

our our look results are value again speaking for with you and We stakeholders. quarter. consistent, We creating on forward on delivering clients focused for next to positive

Operator? operator with for Q&A. the to the back our I'll send So that, call

Operator

Cowen. Bergin with TD from [Operator comes Instructions] the first line of Our Bryan question

Bryan Bergin

I off wanted question with demand to here. the start

comments, measurable new any we offerings. got change imply Obviously scaling three as but client pieces you've in a that moving to over witnessed seems just strength the last demand of the any So know lot months? lot you're of a booking continuation, here a you've healthy

curious to really just seen any what by are So in the client any that's environment and size out? I'm change worth nearly current demanding if clients calling change you've

Patrick Goepel

think think see always But have early high, I we et solution cetera. really feel not you been solid, our bookings changes. set. demand's week about week, July the any been in I -- level's interest, a quarter about the is do been vacation leads really been mean, if good Xth demand have flowing, We

Bryan Bergin

My follow up then to margin expansion.

kind So non-recurring, that here second can of I you of get year ERTC gross to higher like contributors, that as how a pressures need you about the over like Can you Just the talk support you're grow into And we second outlook? mindful understanding sunsets? strength. give quarter half margin you've some takes us sustainable things revenue feeling as margin be do about puts potential margin and here? next believe, had in

John Pence

of of Let me get there's can bit general of in arbitrage first the would in there's cost mean, and to some it, quarter that go in down relatively Bryan, his perspective those of shipping. line standardization like becoming fixed fixed. let say tell to is off kind positions. on you sold it's component I on, think I a is one, then I'll offshoring going just the generally some based goods I that. variable first Pat the little mean terms again, in what and I the of general But more

incremental to the way but So business, I from doing revenues, margin. we kind where about see that's of high perspective my to cost think that relatively is it. think that's the you once And fixed there's add

of back year. think that's way I the would about So the it the in half

talk over about of think kind about then sold forward way we the however, -- goods issues. of being kind revenues, going the can relatively think I year consistent, year guiding of are cost you So and about

Pat Goepel

nice budgeting excellent structure. where that. an automated where our team job a COGS done those has solutions roughly of results the flat. in And we've way really can John's job with think such a then I done we achieve cost Bryan, is

As probably and that as program next first share into we ‘XX guidance all XXXX. whole put on no it quarter we look we've a that and ‘XX, we'll in just time ends a But year. page done the item X and question the ERTC ERTC of turn quarter. program There's

proud the be we're through Secure think what will you Act XXXX. So early got several as speak. of headwinds and in day we're as some if will extension launching that done a about pretty working that we The products we've there But we're a with X.X business, great we've of. XXX(k) kind that

So a good tailwind be compliance we think be will a us. that'll be HR a tailwind. marketplace tailwind. good The will for

tax tax you is small business is organization I'm filing filing here what Our one we've productivity. is about capital whether a in and payroll HR, will if environment, in to what they've then their two. tailwind. outstanding proud the of concern general be access businesses achieved locked some sales the into And think number changing number is or And probably on compliance, this about expertise it's kind

So their back the what is do partner efficient. to and problems to solve have that's in automated important. really to really a really, end to we've set out be we that way for able And a to be such

our come question, be into tailwind next we might when tailwinds going -- ‘XX into So announce we but have more headwinds going no and X share to it, there guidance. ‘XX, quarter there's time of some

Operator

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

Eric Martinuzzi

the number for growth I'm expectation on put for on the the as into I the guidance at know I point you know If go ERTC had the I to backing I recurring characterized $X.X but QX, take to in that looking that I finer deeper QX. want I'm rev trying of you ballpark? that. if on QX modest, of a side layer rate and apply non-recurring, in -- wanted If I to to for just sort a that's and million kind I'm -- and

John Pence

the in in to the Yes, been couple I been had that's is non-recurring a to what of guidance. you consistently contemplating typical without of saying we've put incremental think the last kind what if back norm range think is -- that's where success, our try the quarters we've I that we've

we to the having so kind ERTC, weren't So we've implicit that's sales extraordinary as put tried the the if in in guidance. of non-recurring

Eric Martinuzzi

then feels core small the -- we've HCM, doing you're what there. And business the It seen wondering if trends But the improvement retention retention curious in seeing like better. you're in an know just just trends… if to is

John Pence

where we have My perspective, been. they're trending up from

So yes.

Pat Goepel

would consistent. and past over year just pretty been up Eric, I it's X% X%, say, we've the been

had think I we've good set, good upsell solution accountability, good capabilities. rollout, product good

at formation So good COVID, a a momentum improvement per if you X% we there. number where business as around X% feel feel small would year strong. we've we COVID is achieved business, as would far low one think looks to really about, since like I capital we and about say, good pretty the their and growth, But have or probably point probably I Small were access need. about are. say, continuation we

Operator

with Partners question LLC. comes Capital next of Roth line from Our Baldry the Richard

Richard Baldry

to is look pretty you seeing line’s more of If organization? qualitatively Obviously, that some expansion keep Can in as quarters, efficiencies go back grow any about in adding that And much versus to to to way XX% a it of line looks bit you talked like because about a up on continuing talk little could sell that numerically is couple after much commissions sort marketing argue that and or of resource sales you big their just scale to are you there throughs? you but successes. even and there expect then well faster the Is that. how how headcount, that investing of hurry.

Pat Goepel

we and to somewhere in organization forward, add you headcount tape XXX. the are about be I Just play around we think XXX, a we will general, our sales

continue So are we to headcount. grow going to

commission, leads up. a strong far inside And productivity that's up. as sales internal inside commission and and automate so efficiency, naturally been an We referral money some on a organization is is There expenditure. those so tools account have spent off far to spent then very we that on really well. also and dollars money leads sales, of have we As up, has paid costs going and organization. some marketing as, it's some field sales as very We more have are some

the will really of sales In are years, it's the over continue with And about our think organization. to invest operationally be sales. we on organization, the been to efficient in you John, color. it's to happy invest We pay last technology or more street general, if couple some feet the sales you starting and I grow automate, productivity if in then really in plan have know and to off. don't

John Pence

No, slide we We I that on almost was an XX our time looking head-for-head of view thinking were the presentation board was was kind horizon and about you but from to maybe were about the sales operations ago. a from and same shift week were not month at marketing. the Rich,

again, do. we've So it's trying where the P&L. what tip to we into can the that's take spend of really overall cost put that but landing it's to obviously, down And the it on been of going see out not of you spear the and composition if serve it

as, to So mentioned, again, again, that year. next then over try got on we to to that Pat again, intend as next have lead we a group year and And into well the the continue add to shift half going as commissions. and gen

Richard Baldry

last closer new versus this the lot pretty first are of -- you a revenues there. year of flat. you is products And do of color half first Just have that R&D you will launching, seeing trending still had are think changing also composition I'd Are you but a say, little more up start holding year overtime? that half to points the on that that to leverage new, some that,

John Pence

you I prior Yes, probably versus actually, capitalized how think, up, look were year. to much if it's has at been

how we which innovative of capitalizing it's maintenance is is in line how a spending down and seeing maintaining are which we it's versus general trending bit, delineated just you are pretty an because kind still little , think is investment steady, I that account we the it's So it. but maybe in what of the staying are for means new all terms more actually

hung at the investing healthier are in it's So just a I prior would balance probably not than say, rate on sheet. the getting showing it's we P&L, year, up up

Pat Goepel

our thing development have around John our money and and into But with nice a going a in other strong is and and effort case where they're new to year really I'd effort partnership along The five development, going put development adds and some we so the up line. partnership modernization add about Rich they've payroll agreement that, services our and calories is the of new tax is, investing it's products with thing us filing products, to spend capital and in which that up. the AWS,

Richard Baldry

fuel more as feeling with a couple maybe how partners be people activities, you've last what's quarters? partners there. the you pretty it obviously future? side, you're then for had the when for successes the maybe sort marketplace And recent look for there at you're the you And me, pieces, with happening of you're about two happy newer being Could that'll break into added having

Pat Goepel

couple I think a from the marketplace, things.

to have us ability do and is our high. all, to partners of partners with want First find business

feel really good So that. about

them those or partnerships. are it's I live, are multi-year What are of Equifax Intuit, think, that tell a the would I H&R nature. whether partnerships first Block in lot really or you, strong

with an Zoom sent we Vestwell. XXX(k) is the partnership Clearly, So vendor agreement underway. under

You'll more being partnerships see signed.

a have them different in. a it little layer bit where have a it. lot or And of around all year of six months a times then think might you lead be different I as of quarter, economics a them it

organization. together good So dev putting service they're feel technology the a opportunities. about and partnership good long biz the team what about I feel from really term,

in but of each know say You the that different partnership into suffice leg way kind to we a future's area. bright in

Operator

of Needham and Company. line Riley question Josh from with comes Our next the

Josh Reilly

solutions? bit, there. get or leading but along how the on this cross-selling And job pipeline have obviously QX how processing of us little And then discussed some through. year the ERTC these for for on can commentary share Asure the ERTC Nice or shaping include a with some up of getting can the could we on with there doesn't is the get deals. more much the ERTC are to We've deals about that, QX other rest details we -- guidance you deals proof been points any maybe

Pat Goepel

all, one of from HR attach have Probably ERTC with solutions, number bundled first is payroll have and think, I and compliance, rates. some we payroll. pretty compliance is good HR second

second So more ‘XX rest And and that's for we of but anticipate backlog will as year, to pace guidance at turn the When we fast bit next into not be look a about ERTC have strong. there. we'll little we'll been very, that revenue still the and very talked we maybe quarter. the quarter, color

sit what Secure now really our execute, and we have requiring access ability programs but we that multiple government on -- have owners now where connected on credits Act We they're X.X plans, excited or capital, them get small only as to to ability matching funds. we've XXX(k) compliant not. As tell the set of and data to and give up the matching business if you government about the also them then XXX(k)s not of states can the that far so I'm kind to to allow is

but to helping not get them we're program access the start to only compliant. money them be again, we're helping also there compliant So to be

engine of There's a process can our very that's behalf on credits small trend. tax other strong that businesses. tax So

there. connecting keep we'll So

a getting a have going. bit. just plan. in this early we setting a way the early, to We're up, multi-year ERTC this. innings second So expectations over-exceeded the quarter, growth strategy probably Clearly, multi-year we're But around we're

John Pence

we've We terms have don't the and going just efficient. very we're a of Because engine lot of that built, was sits languishes, nature the of too, right. ERTC mechanics. thing what and our of to I add one Well, in

ability in of So the process it once client. quick closing, behalf got to turns around our terms on we've it to the of pretty

is think things, once through one the advantage they quick. funnel, it that's pretty our of go they I get So the into

Joshua Reilly

the digital you And you're and that are driving doing you on been bit little that maybe guys? mentioned now. then more there what marketing What of proof that's for points differently on a exactly you there any doing

Pat Goepel

of things. Yes, a couple

allows it by us it of gives First before way, thought we repeatable linked and think SalesLoft, we we we and then business all, study our HR ‘XX the here, our an though year a to the us have a almost small a for with ZoomInfo, in messaging. have content announced us success marketing. our then of it And leadership. and gives that's that back Salesforce, survey that best-in-class HR even investment can content, here gives example when us that, study you practices, And offer

best-in-class it's So content now management.

some We on MQL also have keywords, or to based we're But marketing et people do marketing digital cetera. other engagement with driving Asure.

go other quarter us X, is review average in where times a X, two consuming they're we decisions to us program. around sales of X had customer The engaging content in cases day looking our then the and kind some with and with a making and

they're various were pieces the then when that's on an doors we the we're client old for And knocking site. out telephone leadership and engagement way. to try here of gets doing want. The you thought automated on the So we're them buy, you ready you're kind to there Web days or calls, or in there

quarter, it, we productivity So our compare. in we've you coming and drive in think continuing very the off quarter And strong about been more had that's XX% a efficient just to an when clients. new

So our be I more sales couldn't marketing efforts. with pleased

Joshua Reilly

headcount housekeeping XXX sales that me. just How question the I mentioned think Is has And it's maybe for year-to-date? XXX… trended then around you one last now.

Pat Goepel

maybe year, we or we're as Randal, we I were Josh, around speak. Beginning so. think XX somewhere XX

to up be anticipate sometime we So trended XX. we I in probably will closer XXX 'XX.

And number. just not are look to by hire. a we continuing, same are the chasing token, we So

are short get We be. if fall quality, a right to quality. little and we where chasing And in that that's we better area want

Operator

with line the Van from of Capital comes Jeff Rhee Craig-Hallum question next Our Group.

Jeff Van Rhee

few for mark And does over tax just ID it. questions, unique of TINs what acceleration then, platform? on my And questions. real here couple Thanks A growing the steady payroll on terms the the the are you appreciate numbers, or there maybe growth Pat, that in guys. quarters? quarter taking of nice past --

Pat Goepel

We will I year. once a growth. unique would publish is steady probably think, I identifiers, say What

very think I positive. retention been has

et we we are far very attach better talked is marketplace, new rates to as are But the publish I a we've say, a think, new would once cetera, more will I a would continue we steady growth. we'd with I TINs our do have AWS, it's cetera. growth. and getting tax, Obviously, than are customers sales, in we compliance. And then I As know positive HR losing, adding partnership product year, side. grow. say, et about But steady from perspective, which

Jeff Van Rhee

manual at that did. and little least And that to maybe -- the leverage, second, just expand surprised levered compliance, HR expand a it a on of degree I given leverage… second it component on the that say a I Maybe when the mean, operating

Pat Goepel

things say, of handbook. best handbook, think is, of is there ton about, automate is we think a manual let's the practices you When effort. a a within the one Jeff, misnomer that not I

it’s -- a So repeat. rinse in it is and of lot

some is attorney. insurance Some it's in we pretty in somebody and have cases, want professional are. where some et to way the you the long best that huddle businesses of use cetera kind HR it practices automated, And a or philosophy an then policy from they lose almost of small where it have a the legislation government employment of it's

what you even its to wage. at into for have to for there now minimum one county, do ago, you a it just state you hybrid, do if the it's about Well, of federal don't, was XX very have owner small years people? So or throwing business And complexity. up minimum and whether working and rules they federal to then wage in hands we of of is minimum And wage, places from coming city all the about if separate they had levels come they sometimes is think four hey, think situations. is There California government. help get are I it too saying, if looking they me. COVID, have level. is work, sticky people kinds separate And of is what out some home,

a model. lot able is leverage where to been have that automate we in So to there such of way a

we We top it bottom set the good and pricing where power have and pretty results line. pleased up are very way we a with

Jeff Van Rhee

about market. who changes you of seeing or any that last competitive have one, [pays] the more particular in a the of just down lot coming you Are group talked landscape, on One are seeing?

Pat Goepel

occasionally We companies we'll don't I those see the on see Gusto, basis. Paychex, see a but [pays], regular ADP and

Operator

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

Vincent Colicchio

breakdown the between existing Curious and about bookings growth clients? new

Pat Goepel

new, probably XX existing. new, historically with line -- on we were about about in we're XX strong XX/XX, pretty right We're

So logos. some had really we've growth new good in

especially the growth introduction very or mentioned of also I strong tax around it's We had products the marketplace additional whether some in of or and products services, HR compliance.

Vincent Colicchio

when to How plan? that? expect improvements on, expect the is the do you're product when revenue And your tax you do make complete to currently you working versus

John Pence

think this to don't up in we had built stage. ton I a

it see second probably fourth we ton but a quarter more I trying the year meaningful again, you'll -- that to think this I to start become mean, playing weren't But ‘XX. into foundation. build

we starts to it as next really in think talk year. kick I So about

Pat Goepel

bookings of because To install Vince, tax. lot I XX the or the nature, you'll business But strong in are see -- workday it's think whether a John's the times a some little than point, of payroll. attacks, a very of longer of employee bit books

you'll see in booking ‘XX, in meaningful way and marketing about So we're play a that the potential. real revenue in excited on but

Vincent Colicchio

traction? and you're improve you is when to I significantly was And expect improvements will the what then I to -- trying making the that be ask tax complete do current product, was trying to those to

John Pence

going these some have don't to up completed, to right, be enterprise it's investing of you're you're if especially market to ever accounts, I going in always it. think

think a there's So like thing's completed. it's not one going it day to is be big -- a bang, don't this not this I that

from -- my perspective. an just it's it's process So ongoing

Vincent Colicchio

something should happen And that or then so? lastly in six on acquisitions, see months we the next is this

John Pence

in accretive our it's cash clearly generation a look, of of perspective. I this But to of something the year hiatus, that it's on lot makes been think mean, very that one consistent since sense the we've terms model. focus think from business. pretty the mean, core a take on to a we I beginning were try part we of I so. going being

So we've back we under have of think going there's see and we'll it's I look and anything stuff imminent, some can perfected. if letter this we find nothing year something But point. we at this opportunistically think that But intent into don't after a ‘XX.

Operator

comes of next Securities. Gibas line the Our Greg question with from Northland

Greg Gibas

upside outlook how just much full whether your in think I for was solutions Wanted half, ERTC to expectations. the activity strength the back continues outlook implied trying kind into And that of what's a maybe sense, in relative sense in to of and just get get your year I guess professional services of the other because some to the provided a year?

John Pence

Yes.

year, were I'll that think I -- at we the I same the to would it I answer earlier, look -- couple the way. normal years we in we I at Hopefully back think few it's what questioned line way. over of it in back kind of when answer kind was I tried to last million that same think that our being of line. But a the dollars the historically it guidance half terms and in of been look item,

the how it implicit And that. it recurring predictable so again, the fact in guidance in in pipeline of we and just didn't through numbers huge for nature, is as non-recurring not turns as nature and But our of it's forecast that quickly the line just obviously. because item

Pat Goepel

think conviction. line, in XX% talked Greg, some on of products about ability the really the quarter keep and And going there's us ERTC what that the no have that was for we we reoccurring, reason give I would say, line. second reoccurring to we in

ERTC grow to the to kind continue is then would I tell we'll what So you the that. sell of processing credits. the And ability of

XXX(k) move credits that over we the there's tax [indiscernible], other ability go. Now time that cetera. things around And to into we have and et

half heading line the I both a and of quarter will the second quarter think ‘XX. the area fruit us back of into in first extensions see you'll good gives XX%, reoccurring being that that revenue year bear But business this pretty some in XXXX. optimism the up

Greg Gibas

you in out the growth know was versus kind of existing. growth Apologies you did break broke XX/XX you -- booking’s new And missed said out if bookings I But quarter? it. I

Pat Goepel

Have we before? out broken it

Greg Gibas

was -- growth… what bookings QX in it wondering No, nust

Pat Goepel

were on products We XX/XX, would kind we're XX/XX XX/XX, of on tell XX/XX. between I depending at. about and hovered depending we've you where

the more so rate to leadership some you up well to content last services Our survey, we've we go the asuresoftware.com, the which copy been strong. particularly our if the HR and strong rates in nine growth And six successful. new monetize is very had investment some of can has led that a that's the than been and of have digital logos and as and attach that's been But that you the of some the marketing as very, both past logo far very new of of the in But probably that's to into on new in been logos, logos to as years. that that growth, new able had, we thought is the we've -- marketing, get here that's and months been then products survey. offer, as that's

Greg Gibas

Thank it. got you. Okay,

Pat Goepel

thank you. questions? Operator, any Greg, more

Operator

further remarks. are over I'll it Pat, closing no back to questions. you, for turn There Therefore,

Pat Goepel

have Hey, we proud performance. return. see we in serve, pretty great. now, outstanding stock financial we serve, here, employees had Well, seven and The four we it's good that of and done strong the investors employees serve been they've -- momentum. a think to we clients big staff. years that I million clients gosh, really to that the year-over-year, a running And the of constituents have of almost behalf from XX There's hundred an job; piece on of and the always it's business; satisfy a want a a thousand really are we the

communities to we We not are to satisfied. serve. and the it's continue We that, want improve

are States have in in United being cities a community. Really long the where go. of way at. and to Feel want positive We fortune we have the we we of to across the of number good like help a always

and point. now. and appreciate time We a this great potential off forward next have Asure. not so jumping yet over seeing our And in reached you will time. do your interest Bye gives we to Look us

Operator

today's concludes conference. this And

participation. your your time. this Thank at for You you may lines disconnect

Asure Software (ASUR) 7 Aug 232023 Q2 Earnings call transcript