Thu, Oct 31, 8:44 PM (63 days ago)
Asure Software, Inc. (ASUR) reported its Q3 2024 results with total revenue of $29,304, a slight decrease from $29,334 in Q3 2023, primarily due to an 88% decline in professional services revenue linked to the Employee Retention Tax Credit (ERTC). Recurring revenue, however, increased by 20% year-over-year, driven by payroll and tax management services. The company incurred a net loss of $3,901, compared to a loss of $2,206 in the prior year, reflecting rising operational costs, particularly in general and administrative expenses, which rose 12% to $10,378. Cash and cash equivalents decreased to $11,248 from $30,317 at year-end 2023, while working capital fell to $14,428. Cash used in operating activities was $394, influenced by significant non-cash adjustments. The company’s liquidity is supported by ongoing cash generation, though future capital needs may arise for acquisitions or operational growth. Asure's acquisition strategy includes recent purchases to enhance its HCM offerings, which could impact future operational performance amid market uncertainties, including ERTC program changes.