ASUR - Earnings call 4 2023 | Asure Software, Inc.

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Operator

Good afternoon, and welcome to Asure's Fourth Quarter and Full Year 2023 Earnings Conference Call.

Joining us for today's call are Chairman and CEO, Pat Goepel; Chief Financial Officer, John Pence; and the VP of Investor Relations, Patrick McKillop. [Operator Instructions] I'll now turn the call over to Patrick McKillop for introductory remarks. Please go ahead, Patrick.

Patrick McKillop

Thank you, operator. thank Full joining Call. Year and Fourth for everyone, and Quarter XXXX afternoon, you us for Asure's Good Earnings Results

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

certain most and investors non-GAAP believe to we measures of events words our expects, believes, statements During comparable that to risks. and the along as encourage found their On XX reconciliation the a to XX we factors Dana forward-looking measures, review cause current forward-looking exclude to to differ materially over financial call with call hand description our today, such as future and expectations. I of we to which on some information GAAP items. the and impact you additional from will in I items with just wanted release. Today's we our these the non-GAAP of used filings earnings activities. refer that useful remind results for folks to contain the to and through in call such, Point, timing Annual the of will be to also Roth our A moment, may Conference will Investor will California. reference statements, involve Relations a Pat a be measures can attend moment actual XX, upcoming indicate take We could but to March in SEC

and like those spring as few non-deal important to a thank us shows investors. well. Investor to our that plan to in assist this very of to efforts connect later also do We all outreach is I'd with mature, road

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

Patrick Goepel

to Quarter our Call. I and year results am for our Asure outlook Earnings Pence, you, CFO, a and as fourth Thank and business Software's everyone, provide John Full Year full XXXX quarter we'll XXXX. by update XXXX and welcome, Fourth for this our joined well call on as Patrick, Results

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

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

versus ERTC, Our total up revenue XX%. up growth revenues excluding our XXXX in the year, were XX%, was prior

up RTC, grew Our revenues reoccurring were excluding the reoccurring year, revenues XX%. XX% prior our and versus

net was and versus the up $X.X $X.X a prior versus was improvement period. million, Our loss million the adjusted year, year XX% prior EBITDA

from Lastly, million for versus our in million operations was $XX.X cash $XX.X XXXX XXXX.

in drivers strong growing solutions tax in can float that become our larger our balances grow, We growth to well. management contributors much to very multiple continues time, believe over our compliance, XXXX. Marketplace showing business Asure overall contribute and as management our payroll it payroll with offering business revenues have as to We tax HR these growth can our lines

by to and as employer-based received they momentum to new leading was those thus we need support launching have and set initiative by has a technology plans reception time more offer setup initiative not small of the very these the sales XXX(k) increase launched for our strategic but in or traditionally legislation retirement around positive. small and particular the businesses. The short have advancing U.S. partnerships plans had businesses mandating Act employee This many plans, additions. retirement introduced build states has have up to ago plans. to X.X providing have Many We solution aims retirement Asure credits far such of drive client continue participation U.S. products government plans XX resources been the our XXX(k) on to XXX(k) solutions, to payroll our through with bundling and the more Secure the mandated and tax

enterprises invitation we today's We Payroll open accuracy enhanced partnerships partnership advance stay to SAP the existing ecosystem. compliance join in Payroll recent press continue Workday Capital with business by Human evidenced tax Global our to Management. integrating streamline into solution regulatory Asure integration the SAP helps as payroll release, will systems accelerates its Workday The and SAP The for we SAP changes. the HCM and to tax by of partner Edge the with into technology ecosystem. Management received tax ahead Workday large certification enhance allow payroll for with streamline This Asure clients. Also, mentioned engine certification Asure's its Tax processes, and payroll processes

to very new sales a productivity reiterating levels XX%. with been sales between business Our and prior of and new go drive increase sales trends, XX% of our year of the full experiencing. in that to XXXX quality with approximately the We're $XXX during in supporting resulted with million, EBITDA per margins of XXXX leads which higher we on $XXX our bookings XXXX. Based plans XXX in hires efforts during will year have we're expanded and million our marketing, to XXX, force sales revenue pleased made. current guidance digital our the efforts we're pleased and rep year, with about reps XX% We've versus with the productivity we're

As filing, this plan 'XX acquisitions any earn and potential but resume ERTC excludes to from does a it. our reminder, guidance include contributions

annual to signed of very agreements pipeline recurring the have million is We strong. revenue $X and approximately purchase

XXXX plus implies As we positive. which rate, guidance excluding look very is ERTC the XX% at business our growth from XXXX, a for

solid excluding growth be saw growth, XX% would of rates for rate double-digit few the of ERTC implied acceleration growth XXXX in witnessing the the our in years. past guidance we're years, in an previous our reviewing we Additionally,

to like quarter it as would in X financial hand as our Now well to off detail Pence to results John? more I John discuss our guidance.

John Pence

Pat. Thanks,

will the a financial discussed figures the find non-GAAP in description section posted at are to in several at the given recent included a GAAP on today. The call, of these basis, our reconciliations of As our release Relations or website Patrick made was the in also this mentioned available reconciliations adjusted investor beginning today investor.asuresoftware.com. themselves of Investor that presentation earnings earlier most are non-GAAP of

on revenues to decreasing quarter were $XX.X fourth Now results. to quarter XXXX Fourth XX% million, year. the total relative by and prior

Excluding ERTC total from year prior year. revenues Full roads XX% the XXXX, by were $XXX.X up grew XX% million. toll to

X% increased from margins XX% for to prior year-over-year, prior $XX.X prior excluding XX% lower by XX% the fourth and quarter the result were was year XX% grew $X.X quarter million by an loss to year. prior year. The from prior Excluding year the of the interest recurring XX% benefits driven total in revenue were in margins up and ERTC prior year from the streams, $X.X margins during revenues, the expansion for gross prior versus grew the Full XX% our the increased up Solutions, revenues were we're increased a margins the to year. Full year recurring year year. Recurring the in versus during on $X.X scale revenues, initiatives fourth exceeding the the ERTC margins the grew the high-margin gross revenues in $XX prior revenues the growth. prior Full quarter for to year. fourth of of versus loss with growing million. Gross XX% million, million XX% up balances year year. million fourth as the share by revenues, driven the for client RTC Margin of average quarter the million year. Net XX% continued loss full for fourth XX% Non-GAAP Non-GAAP revenues and fourth excluding in ERTC with during from efficiency marketplace decreased from for prior improvement was $X.X HR and the year. year revenues prior versus XX% $XXX from million to our full decline XX% progress quarter year year. $XX.X million, the Compliance full year for gross quarter strength to was the Net from decreased from and lower revenue. XXXX

full million from for the compared EBITDA quarter $X and adjusted XX% year year, the We the of XX% XX% full Adjusted in with year. to the million the was was continue fourth $XX.X is versus EBITDA quarter from year prior upside $X term down there in versus XX% XX% Adjusted business believe million, the margin the million decreased prior in to XX% the $XX.X quarter prior $X.X the $X.X scales. EBITDA EBITDA up up margin versus prior prior year. year. was Adjusted for year. prior million the fourth over year. for longer margin million the in the for the for EBITDA substantial as was EBITDA year full of in the was

$XX.X $XX.X We Our with and $X.X cash debt and million ended the was million. from equivalents of XXXX XXXX. $XX.X operations versus of we in million, year had for cash million cash

Now $XX to be is guidance $X quarter quarter we million. EBITDA the in anticipated the between in XXXX, million to million $X of terms first Adjusted first the are $XX revenues of guiding range for quarter the first million. of for and be to

million be to to at of EBITDA these to range We with XX% margins revenue $XXX of revenue between XXXX reiterating our $XXX the levels. in million, are guidance XX% adjusted

assume earlier, contribution As these exclude but revenues, Pat comments acquisitions. guidance of his mentioned figures any RTC in from resumption a

growth given to from uncertainty very forward. Also expected future HR XXXX, the stand-alone the RTC We saw we to The our growth as offering are product during compliance Asure strong about tax well. from our continue payroll are program. management of be the contributors going marketplace excluding good

has vendors. multiple as to a Our the shuttling well platform being apparel with as HCM goal as product management large tax service enterprises offered

While drive contributors inorganic growth we to the our to through expect above strong also methods. our growth, mentioned

the purchase we to have performance far of This and in the gives confidence in annual pleased We strength have strong. In pipeline us private on signed are development, revenue million so we and XXXX is sales. momentum conclusion, guidance. forward-looking agreements $X and the technology of with built our approximately recurring our

back, achieve XXXX can rate for look generating XXXX business to very revenues have see 'XX, XX% this from the you we and and this healthy core growth year, and to million we XXXX. at look for business, in approximately excluding look the rate. We year, in implies guidance assuming XXXX plus XX% to to XX% goals. our accelerating we we are is the guidance revenues RTC growth $XXX grew As in a And which then XXXX the we given

a sure, about and the to closing create generate the for forward leveraging Pat across and are sustainable I value. With to for remarks. and We business have implemented we initiatives that, year and back growth excited the call profitable shareholder it look XXXX growth being driving breakout will turn to

Patrick Goepel

John. you, Thank

of improvement pleased creating make few the remain continued core We them which technologies a we're to growth. years continued our total focus positive revenue our elated by for to last over to are valuable XX% XXXX, solutions client that committed achieving from and and will growth deliver our reflected We difference growth in base see business to products impressions on are enable their as is we continued solutions, being customers. The operations. our creating

business our to it's are tax XXX(k) things multiple drivers so demands marketplace, offering, of they business solutions on that compliance, our in, has owners and to their that the focus on we're face world important. HR owners new can operate increasingly in time most payroll to while multiple Our these complex business ease growth and management offering an

to XXX(k) pass with need sales implement the mandates Act gotten expect many thus funding states Secure positive to plan, in mandating in and small a which the businesses has bundling now, X.X reception future. recent XXX(k) initiative give more we The they far. Our are payroll

demand them experts to as seek external business increasingly who their to HR healthy of internal supplement day-to-day. with also help doing compliance navigate will be continue our We the for complexity increasing businesses anticipate can solutions capabilities their

solution has been payroll our Block with enterprise solution and ] Our being a with offered had and H&R as this human Asure well management great [ contributor potential clients large has partnerships Marketplace capital Equifax, management to Sazon, via strong tax vendors.

offering during announcement great business. about John good for And growth business. we payroll that tax Our accomplishments recent management XXXX. We our this as for remain with mentioned, Workday excited are SAP lies ahead product what for and partnership saw

to reflects the is XXXX for $X guidance agreements for so reoccurring signed will which approximately far continued and annual with purchase growth. a combination revenue Our and of of be strong. our expectations growth, pipeline million organic delivered inorganic We

cost we have and helps improving and structure. scale, margins flow Our the the continued improve to efficiency business. on businesses across the as which have focused improve cash

rate. As viewed rate, the business a John revenues to the growth at grow we implies a XX% core mentioned earlier, continue and guidance healthy when potential for ERTC our XXXX double-digit plus excluding

ERTC the our our business core on we you illustrate as pleased generate revenues able to program, that perform we're well, our the ERTC. have we future to plans to hope very discussion today While for that and from want been move helps to remind from we continues

expanded force remainder marketing the the of is XXXX, have feel enter the well as right During sales business future we and for we sized XXXX. we in as now invested success initiatives as

human large you to We providers will compliance. Thank management enterprises innovative human that and capital capital continue businesses to small remarks. listening help provide management base for our grow their tax thrive prepared streamlined solutions

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

Operator

Needham is [Operator Our & today coming from Instructions] Company. first Joshua question from Reilly

Joshua Reilly

make still applications these even any there cost associated an XX. I've end All been January getting we're a for the ERTC, Just I revenue moving but any items. technically wrap those the of from just you more the There's on couple starting been there? up paused? retroactive generated questions. before you've to on year off up couple technical job has wrapping ERT. proposed while know right. some with on to to Maybe date submitting a Have Nice of items. submitting team. legislation And maybe is that, been guys some just actually program applications on update

Patrick Goepel

Yes, of for we're question. ERTC, From a behalf on the clients. Josh, thanks processor our

ERTC sure they January program And and are in on behalf. or done So that let they has to costs we'll to April is we've there has is then Congress like process. the an customers when are following And the in paused. they'll dollars. it our the whether down our the a the at out their in some are but of what as program. scheduled. inform we guidance will in let time, to changes, been wants that revenue this But deserve -- kind if alike, it run investors really, going I'll product the XXth that of a the with we has IRS. What or their That in somebody on ERTC make in IRS as legislation out bill XX. environment somebody that guidance. the April year kept out we'll potentially We we'll a want behalf, refund, we've But our small XXXX sure file activity quite bit. legislation make There XXXX, forward. And volume or in the point of question if will but gone scheduled the rate claim for be the process taken run have to that's involved process we call, does retro some, well remains minor XXth, that And where

Joshua Reilly

And guidance. item. item switching maybe the or be item And first revenue? items follow-up flat to much assuming impacting quarter for Are it's revenue on you is year-over-year? then And what on X slightly it. X March the going quick That's you other first even assuming down guidance. job how on then just that Forms the year-over-year are a and just being Got March basis? W-X

Patrick Goepel

kind versus are is, revenue perspective. cetera, that forms. But we ACA year-over-year. we roughly revenue, of I slightly high textiling W-X have effects we up have Yes. There from turnover, has and ballpark W-X kind And of have Josh. et revenue. year-over-year. forms kind payroll that's of sometimes you also revenue of where year-end and when the flat sales Xs, then have But a in we think, if Same-store W-Xs, we the the is

Joshua Reilly

in was might then And the abruptly you us on quarter? end And in? March quarter assuming can around year any if are then how the any tax last H&R filing just April revenue remind seasonality when XX guidance H&R And you it. the Block when that date for March Got there in what also Block the revenue?

Patrick Goepel

revenue quarter. The sliding opposed figures, whether seasonality program as nice kind Yes. talking round, will the follows Block about of getting convenience of into The Marketplace because huge contributor minor more W-X use process. so and over as into us. probably up in little of returns heavy first and it's in on with We're bit area, of and all the well it is second the last that's not the for But W-X kind that's little just revenue, emphasis recent a a of of year. tax in But in all revenue. programs it's or $XXX,XXX quarter for as our personal a stream it's X the our Intuit be that Block, and of huge employees that H&R We've H&R year announced marketplace from not and taxes all, done. quarter first a kind some that's their revenue is to a

Operator

Your next Cowen. from coming Bergin from TD Bryan is question

Unknown Analyst

actually Brian Jared tonight. Levine It's on for

XQ in relative the to of prior noticed you have into the competitive change XQ demand and quarters? terms In even any far, or environment environment so

Patrick Goepel

change based you, tell the fourth a launching whether demand. about, that robust I of on haven't In first We're it's quarter, new great would we're marketplace. in XXX(k), quarter, the we I seen programs I talked a number pretty think demand.

in area commissions We have new as kind the of around benefits capability receiving well. of

of make I I'm demand off fired been for come up, So or environment has X say. kick strong. their us, I that here the drivers a should from are And pretty plans. month but different and our sales people confident pretty last think I number in weeks, pretty can they did

with as bundling in So TC I fired have shortage opportunities up. are well new pretty we year introduction, frankly, technology product bit and of we when the September had think as our no XX paused, but new a quite a people pivot of

for So positive. been it's pretty us,

Unknown Analyst

that And as environment competitive well? Okay. then

Patrick Goepel

again. question you Jared, you ask for if a sorry, cut out that could I'm second,

Unknown Analyst

Yes.

-- in environment the as of of was change question any the the part competitive well? second the So terms in

Patrick Goepel

filing. private small Paychex. company. transmission or a either on we to a as were have a trend more in we're a there's federal there see the seeing flight might cost in more, licenses, service whether and and clients which licensed see. government are are money environment. And ACH or providers movement money the is such a I to Those and see it's tax they is similar payroll smaller a banking and ADP we as we compliance payroll We end, be would to of licensed, say their We that where companies that vendors because they that did now is on regional compliance a doing see No. leaning expertise ourselves the state and a kind for CPA have or

So super positive no us. marketplace. I think people same that's that a But been the see for We change huge in last we saw the year.

Unknown Analyst

then terms And Great. FY what for of in my in revenue are in 'XX? float follow-up, 'XX FY what assuming revenue? And guide then you was the float that Okay.

John Pence

And That Yes, or actually year little that this of comes balances. it's pricing, of the going X When of businesses, thinking balances. And tax client flow our on of combination and that it's to X.X% might to we a revenue also we got fund all right? X done, about we past client forecast. Overall, factors, our a we then forego as year get X growth acquire midyear one about couple to in in it with fee $X decline X.X we're about key the on areas result core the it just under before. so of were of million terms we a compares talked point we've and business, is do that a the a growth things of providing. modeled talked in kind in things a dollars. or we're client growth we some see the when about of take We've about their the service roughly but fund a in we've So said of -- and acquisitions. these different some lot

the it's definitely business. our of of So part model terms in a that of side

So I consistent the trend. it's think I overall general, would say, with pretty in growth

we're growth growth next expect we've we that, the kind rate core from we the that about think that to that of initiatives -- you acquisition dollars guided between business. think in would for between directionally probably year. if I kind XX% float same those of So say

Operator

Next question Eric is Street from Lake coming Martinuzzi Capital. from

Eric Martinuzzi

acquisitions. wanted I Yes. focus to the on

Just QX, acquisitions? revenue for how much was from

Patrick Goepel

million. Yes, roughly $X.X

Eric Martinuzzi

the much All When contract. deals And million then ARR how to under And $X you are you of you about right. those expecting paying? close? talked are

Patrick Goepel

go So ahead.

John Pence

above year. it get this probably we'll get $X of Roughly, that I million. XX%

of April. of will of kind to in beginning some going Some hit March, of it's hit it beginning

of I So think million, million will come $X.X $X that in $X maybe year. million, this

I give of think that of a in think where next paying blended Pat of $X We I'll we've we're pretty for what In it. been let rate is for judicious, kind going terms you're million purchase. terms

Patrick Goepel

targets pipeline remind is we $X pipeline a March, of I subsequent well had area a million now And that couple did what reseller about have of Xx -- say Yes. would XX-K. acquisition the a I number million are $XX a ago. And -- we over community, that is in $XX would April of revenue, have our very $XXX as revenue as or of active. acquisition in starts a in of on closed We million actionable. roughly the right million perspective so the we days or of about a probably say, note little you, kind within from A then we

plan on pipeline get -- associated that the the that. of So real we're is the strong. we'll revenue with executing We're and kind confident

John Pence

down this transparent we've It's us it's prosecuting to of also on pay dry the think it's see, the happy the this. adjusted model. really get third to scale. the us, you give in Again, We important mean the as that really to margin, to the powder model. I and debt important start EBITDA part I really part do quarter to definitely were been of raise pretty equity

So that's get again, we'll to important the in that XXXX, an ERTC can for $XX say, we I margins. think executed, same if part of let's it replace, million deliver that, And if we have strategy.

Patrick Goepel

movement, acquire, We we we've well. the to, as add John layer as when that especially Yes, dollars. The on assets, only on money other Eric, -- the payroll the layer And million well I tax marketplace. thing instituted John's in is thing filing $X.X do resellers $X.X million. that clearly, that's we one not would the as

And traditionally, that also talked cost be those revenue we from So get perspective. part about we've to a of our reduction perspective, what we're seeing a economics benefits acquisition is that's from pleased model.

Eric Martinuzzi

And at Right. in get me going you true your days for million then acquired telling That's organic. somebody that a right -- in But there. of math I'm to X over just with QX just Is revenue of sure from XXXX, you're is I'm I trying to $X ago acquisitions. that's revs $XXX,XXX be want correct? to make the

Patrick Goepel

People triangulating if an the lot fourth Yes. reasons, ask perspective, but prior quarter. organic different have to for you're from didn't acquisitions we of a

got So pure, you that our from then is number that. answers pretty and

Operator

Instructions] next is Partners. Richard ROTH question from Our from coming Baldry [Operator Capital

Richard Baldry

OpEx you was to to profitability call of to the side guiding be controlled it'll pretty for the growth concerned -- in And seeing we XQ internal next the results? from flattish. organic that to on given little be your that see spending well than a OpEx Your hiring it should that get you're the it, seems on maybe looks XQ the sort what year, at underlying be like all implied accelerating you're business the more or

John Pence

you of my Pat I'll let go. and give I'll perspective kind

would We it trying that to perspective. sales fourth costs were in kind [indiscernible] the going were we as invest see for think as the pivot away on XXXX get quarter, of heavily ahead guidance, of the to planning of from were into year. I for a quarter but say next my our fourth ops ready sharp going the we quarter, we was and we just -- incremental giving the for I we year. pretty don't fourth talked lot terms pressure as a not the end about of even

to the So is structure think have I cost think but we pretty I deliver revenue, stable. the that

Patrick Goepel

in management a Rich, Board did talk In a we well the million bit we XXXX, as and point to a seeing deck, go are kind our model I fortunate as $XXX the it's good $XXX in as purposes, and business, that's think and past model. And of I ERTC And level illustrative at the level. at EBITDA Yes. quite that. to us of more revenue. percentage to think out and in about XX% XX% of investor do so at levels we're one for more is we we you're think year it's kind what roughly we kind had it, pop a call This level. A adjusted running it's What at we're very -- of allowed what increased of, much million, technology payroll, in for focused on. scale invest -- XXXX, and that

of revenue was Now onetime it done. and and ERTC, with kind you're one

Here, it's allowing model. invest a us to in in a repetitive business

while year, onetime ERTC this so revenue. was roughly million or So $XX

most revenue Next repetitive year is as of we model revenue. with guidance, that

we've around We're have our couple in done us the in to of where invested in outcome. we and NetSuite, model. important see able AWS. bank some invest our to us in allows going the been accounts, we've platform that invest to pretty people around common efficiency AI, but we starting to what and build also a business it's you're move can marketplace tools, we perspective, it's So with service scalability the movement area. And really simplification growth a scale really the in Primarily, the then money invest cost just good think last is asset the of we and rightsize years. From and of repetitive revenue, in winners Salesforce, infrastructure only accelerated

we here. and outlook pleased way we're with the well on So really think our

how today. that's at it looking but question, the appreciate I we're So

Richard Baldry

mix all business? usually from of sort of terms of that changing the to QX the revenue dip is think terms you given in of type different QX W-X magnitude upswing because in And this seasonality a Do at in in year the QX.

John Pence

the Yes. by the dramatic to because just coming and also acquisitions, some that that don't as muted the have of So these acquisitions think some be that too, I start right? fact it of you're going revenues some of will of on.

probably So [ a ] say simple I'd not as This dramatic. hazard is

Richard Baldry

be And me pipeline. last about more the for M&A would

et you terms Do done it like the you're macro going So in ones of that feel your after those backdrop, feeling fit cash like looking -- they capabilities, against you've you're the and grasp valuation well. of cetera, really within the recently of has sounds are the recently? sort flow Just targets at targets Are about you all well how changed pipeline are at? that?

John Pence

an it, there as think kind putting I these cost I really they this do are small And they the and the in everything Pat exit. effect providers. going smaller risk My take continue to with of to business perspective want for is of the there's the is doing of think model. these states on better had I important some various regulations time stay think are this the place providers, or goldilocks, to of mean, that unique having system. mentioned, banking whether a time to the It's business on in

it's it So structure. in house afford our order cost being that I if space. in seriously. terms We've in some in time to a of terms it very a think get very of take trying embraced compliant. hard provider small the unique of We to you're It's

Operator

is Your Rhee coming Van Jeff from from Craig-Hallum. question today next

Jeff Van Rhee

it, months? How the has line what are terms few productivity? XX for you to the in in changed of reps last, A call that for On seeing me. ramp X sales, months, to the time

Patrick Goepel

of think it's quality hire up a probably the productivity and I if up gone us. Jeff, anything, bit has gone for

really pleased been we've So with that.

is think some I is the pace of it quick. change of --

of XXX(k). We are filing if marketplace ERTC. as good really had kind you kind we're success in at think -- So a about as now in well of lot tax and where we've other in introducing words, of the

medical We have kind product. a benefits of

the to to and a sale And and so while new takes get person area. newer then sometimes new in those And to concept have that now a you that products. times, delivering a reps of

The quality of reps. and XCRTC ] we're of really really, that our gives confidence really, happy say a a other go longer about around little bit reps, now is again, to the to the year. revenue tax were strong a would upmarket I process is to and that longer. And take Workday, have we And you're it had area with bit when another little thing those even -- talking the sale numbers, takes only and XXX go bookings [ XX%. book-to-bill filing implementation dollar sales customers up a or us really start SAP But a implement. or but you with for they higher bookings, to reason

we So good really training. onboarding we think have

to the to I lot doing of lot just product get more our the a products a sell that reps kind to the where X at in charm Bay. of people a We up. go bag don't sale. or the products companies of the salespeople We we're business other mix the from we have give that product productivity they our all the of give say our in and the is opportunity right of would isolate perspective. Part some

only X our that than a were added in consultative couldn't but you product, take a we I the folks. longer future. And does value more pleased and if more I'll with you what little selling it sales Sometimes be bit think makes more tell

Jeff Van Rhee

hear. Good to Good.

longer, being when to start So run and of ago larger know, on show you we size should start potentially to it needle mid-X-figure these I of deals the end taking to just start do to move from payroll and tax the deals by the standpoint? a up kind those those of move the do a about revenue Would management, year? rates just when deals -- don't minute us needle? low we Or help think referenced

Patrick Goepel

so. process example. I'll process about us X year finish, April they'll live year, have with months. company start X We with a live went XX,XXX almost between start mean, last over on employees, you X from or give took been a and I I but XXX,XXX and has and X. to And X March company going that went months Yes. employee that

kind well what partner introduced with you'll combo in X a ramp. And these some deal of start is they'll think the solution we sales pipelines no, call as that, deals I box will will as but And what yes, market call that, that layering increase some management some of addressable half will in of We size. the then just banking see as in that year, now. cases, will deals. of [indiscernible] right a our consolidated treasury the well we're we've towards we some processes have in total the and think second

nicely, that see positioned we're we the year. throughout So really and you'll think

Jeff Van Rhee

hear great to It's well. Yes. marketplace product the on as

segment. think marketplace the just contracting a maybe of for goal ramp time of do So to off strong you bit expectations to had for structure, expectations? of end think And different HRV the of of Zazon obviously, referenced, other [ start, some lines relative Equifax ] year the little outside which I Equifax, and how a and How that the by are you about for goals time a ramping then from the contribution to year. deals line relative

Patrick Goepel

Yes.

at kind just of perspective, think business X we ways. look I our from the

we're our have core We business coming growth that and of that business. get off to momentum kind going

a momentum year. that's of own enhanced the of that growth. whether over then past $XXX offerings product working. of kind we that pulled of XXX(k) rate imply a have out in million The some initiative, management, newer to layer whether our probably $XXX it XX-ish then that or and look acquisitions those And we've that's XXX(k), XX% We the perspective, growth of acquisitions these which vehicle have XX%. And a made initiatives, we a we're the and some marketplace XX% In million of so goal products second somewhere of we XXX(k), to. From we've treasury initiatives had that some to at published its separate is the products. you enhanced kind some

from the our health probably receiving we'll bit into have expanded a it's our the an away of was see marketplace perspective, number digits. And the number So you some little early we just but well initiative, from did -- call marketplace, to whether initiatives, we Recently, -- because acquisition, we a it certainly, and a double the a little grow extent, too probably took -- capability commissions. won't bit which care target to too then

So of the we're kind the of Jeff. in middle movie,

give did a acquisition end X bit more first little ago. quarter, of days X I here think at we the and the you color I'll

I to us I end say out the a right don't now. limit would we'll would put come clearer number. want at targets with that So of quarter, the first

Operator

coming Colicchio Next from from Vincent question Barrington Research. is

Vincent Colicchio

have ERTC? a do exclude we Pat, growth Yes. booking for if number QX, you

Patrick Goepel

is well, was quarter ERT, XX%. fourth closer to XX% If ERTC we're I if And we if the XX%, specifically, year, the exclude for in -- exclude think excluding we fourth it quarter. the

a And -- bookings, business. So pay that off. and you'll lot starting that and more good, on I in the bundling going think see strong to the bundling is initiatives

Bryan Bergin

as that do 'XX? base grow as for companies, employee expectations quarter? And their And in your the far what in are client they

Patrick Goepel

half about we you because the environment people, cetera. We macro -- with it growth, flat depending your was the you cut either in a just client, were into area point basis the get X.X rates what modeled roughly going backdrop had belief didn't float. et if second We and recession interest modeled On a people some to think then on be or the flat. and either modeling

sales a get a on if the up call get we hiring that's what we And kind worked So those don't benefit do quarters growing of some too or I'll same-store initiatives growth. model. to of

Vincent Colicchio

clients? then bookings existing you the quarter in your have breakdown do and And new between

Patrick Goepel

is we're believe logos to do business. an our that we're to we things want and having sure is the the X XX% working success. we over with us. do out And same that make is of to had lot XX% we're have making just sales even that time. doing bundles what base hard it about do have And with that a bundling drive that opportunity bundling. We We that our new easier to we we of across to to the want business things off One success of continue we kick

still Some of we'll more strategy, initiatives, the early sales sales. and those rollout check things augment technology the product-driven and days. from kind doing about a of into We're excited that get that box we're we'll but we're

at and a Revenue done he's President, fantastic and our Officer [indiscernible], who's I job. when look So Chief bookings

initiatives we're base those that's we're that we we do to to growth is do model, the going a sales and we that success percentages. while think think lot better, there's even achieved of of we've One trying the that where work in can

to We people also a work to those bundling groups continue those sales on of have product-driven grow. to really of hired and couple

Operator

Gibas question is Greg next from Our Capital. coming from Northland

Gregory Gibas

organically, XX% with right? to acquisitions that from clarify, Just growth think I and is were inorganically, saying you

John Pence

Yes.

the I think and split what quarter, last roughly both XX% guidance for with the of -- organic kind full implying we even were the talking or between year, higher said with we growth evenly inorganic. we were a about

of get think especially the about to think perfectly come we as think But still relative view don't be kind contributor. again, with I closed. the that that's going So it's acquisitions. to way right changed. And the never linear, They're they of kind to as that's of going overall year in

Gregory Gibas

if regarding anything if count Wondering CRC anything changed the then there. Yes, you're see And Great. to wanted I just there. trends. seeing and count head

XXXX that of I you of or think you head that said in roughly terms just flat. changed count growth modeled off customer seed Has guidance, declined? anything count

John Pence

so terms my No, of change other the significant employee we've per perspective, or again, not seen the -- employees. the of last or year a from in account one way in

Gregory Gibas

I I look XXXX in lastly, know of without big seasonal, would you Got XXXX? would us or advise trends cadence-wise that terms guess, just I what versus it. like QX. think was quarterly ERTC And How about on as kind of

John Pence

Sorry.

think the delivered you million, just component again, million our That if million to million. $XXX approximately $XX we And $XXX think $XXX has growing I about right? in you're to as it. million no guidance a of year. for So RTC in $XXX is full So ERTC $XXX that, million to for base $XXX approximately million it, 'XX,

of So ERTC the that's kind at looking vis-a-vis we're way 'XX.

Patrick Goepel

about the X revenue. When I'd [ a and it onetime onetime ] of the revenue, ERTC revenue right? sales process other. that last was and of XXx and only you thing that with And mainly million you Because had $XXX ERTC. business, they bookings Yes. you say each year repetitive $XX the think XXXX build had million or on was

when pretty margins EBITDA here, XX% revenue adjusted XX%. business. repetitive we see year we're had about just then have exit to to We million at excited quarter, that kind XX%. we're to close from think base. when a growth you, is you fourth and multiyear a now in scale you'll in we we grow base, And growth. And that could that And $XXX to XXXX, XXXX. I'd perspective, we the the you into finished leads had close a growth of And in you the what think XX% strategy. that grow million, Pick So $XXX remind to start number XXX, then

So set up well employees we think really clients long-term alike. we're and for and

momentum really currently so about the feel we good have. that And I

John Pence

a mean Yes. a right? XX%, but year, of And really again, again, And the compares, to on. start -- keep I point just I 'XX I couple performing the creates made noise So think. this exclude it's ERTC this think was of just the is to just we times, to that's the 'XX but reemphasize, focused ERTC would numbers growth, of just lot fine. we going to it's great perform when it the core business, you in to terms something and

Operator

our like question-and-answer or the back further reached session. the end I'd over any to We turn closing for of comments. floor

Patrick Goepel

some pleased nondeal how here momentum, We're Patrick of to high No, going I'd performers sales road March. the We're and Conference they business. kickoff with the off the came in you, mentioned, had Roth XXXX, events stay our of about together. positioned shows. we're -- future very XXXX. And see really excited us. some with group a at the tell see really we're for good around we do They

So going out the community. to to we're get

have bunch We coming a in up May.

an soon, investor. hope and we So day, a thank I to Have your as interest you. and see appreciate you great really

Operator

and That webcast. teleconference does you. conclude Thank today's

your for wonderful thank day. and your participation disconnect We have at line may you You time, today. this a

Asure Software (ASUR) 26 Feb 242023 Q4 Earnings call transcript