Asure’s first quarter results were met with a positive market response, reflecting management’s focus on product expansion and increased cross-selling activity. The company’s ongoing investments in its technology stack and the introduction of new solutions—such as enhancements to its Payroll Tax Management and the rollout of AsurePay—helped drive broad-based growth. CEO Pat Goepel specifically credited the formation of specialized sales teams for higher attach rates, noting, “We have highlighted attach rates as a primary driver and we think having the sales specialists drive attach rates is going to be important.” Management also pointed to a strong contracted revenue backlog and early momentum from partnerships with firms like Strata as important contributors to first quarter performance.
Is now the time to buy ASUR? Find out in our full research report (it’s free).
Asure (ASUR) Q1 CY2025 Highlights:
- Revenue: $34.85 million vs analyst estimates of $34.25 million (10.1% year-on-year growth, 1.7% beat)
- The company reconfirmed its revenue guidance for the full year of $136 million at the midpoint
- EBITDA guidance for the full year is $31.96 million at the midpoint, above analyst estimates of $31.48 million
- Operating Margin: -5.8%, down from -1.4% in the same quarter last year
- Billings: $31.04 million at quarter end, up 6% year on year
- Market Capitalization: $262.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Asure’s Q1 Earnings Call
- Joshua Reilly (Needham & Company) asked when dedicated sales teams would begin to materially impact business performance. CEO Pat Goepel responded that attach rates are improving, and shared a client example illustrating a move from payroll-only to multi-product usage, but emphasized results are still early.
- Joshua Reilly (Needham & Company) inquired about retention trends in HR compliance post-ERTC. Goepel explained that retention rates have stabilized now that the ERTC-linked cohort has lapped, and expects traditional growth to resume in the second half.
- Eric Martinuzzi (Lake Street) asked about the impact of tariffs and economic uncertainty on the sales pipeline. Goepel stated that pipeline and sales activity remain healthy, with only minor lengthening in deal cycles, and the company’s client base is relatively insulated from tariff exposure.
- Charles Nabhan (Stephens) requested more detail on investment priorities and the product roadmap. CFO John Pence highlighted acquisitions in insurance brokerage and applicant tracking, as well as internal development in client lifecycle management to streamline onboarding and cross-selling.
- Greg Gibas (Northland Securities) sought clarity on drivers of accelerated revenue growth in the second half. Goepel cited increased attach rates, growing contracted backlog, and new enterprise partnerships as primary contributors, while Pence noted cost structure normalization will support margin expansion.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the continued uptake and monetization of new products like AsurePay and the Canada tax solution, (2) the pace of cross-selling as attach rates expand across the client base, and (3) the integration and financial contribution from newly acquired reseller partners. Execution on operational efficiencies and sustained backlog growth will also be important signposts for tracking progress toward management’s mid-term revenue and margin targets.
Asure currently trades at $9.30, down from $9.77 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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