Asure Software Inc. (NASDAQ:ASUR) Spikes After Record Q3

Asure Software Inc. (NASDAQ:ASUR)

Asure Software Inc. (NASDAQ:ASUR) shares gained 12.97% after the Austin-based maker of human capital management programs reported record revenue for the third quarter. The achievement was driven by continued growth across the entire business as the company continued to integrate multiple acquisitions made this year.

Asure Software Inc. (NASDAQ:ASUR)

ASUR Stock Performance

The better-than-expected third quarter financial results helped strengthen the stock’s sentiments on Wall Street. Investors’ confidence appears to be slowly building up, the stock having come under pressure in recent months.

For the full year, Asure Software Inc. (NASDAQ:ASUR) is up by more than 40%. The stock faces immediate resistance at the $13.50 mark, above which it could make a push for its 52-week high of $16.03 a share.

Asure’s Q3 Financial Results

Revenue for the three months ended September 30, 2017, increased 65% to $15.5 million. Cloud revenue was up 97%, as hardware revenue increased 48% compared to the third quarter of 2016. Gross margin came in at $12.1 million or 78.1% of total revenue, representing a 64% increase from $7.4 million reported last year.

Asure Software Inc. (NASDAQ:ASUR) reported a net income per share of $0.15 a share compared to a non-GAAP net income per share of $0.22 a share reported last year. The Chief Financial Officer, Kelyn Brannon, attributes the better than expected Q3 financial results to the execution of a cloud sales initiative that helped produce solid gross margins and recurring revenue.

“Additionally, our strong cash position as well as our investments in infrastructure and processes has increased the operating leverage of our business model. Overall, our results in the third quarter reflect the increasing demand for our solutions as well as the cost and operational synergies from the strategic acquisitions we have completed this year,” said Mr. Brannon.

For the full year, Asure Software Inc. (NASDAQ:ASUR) expects revenue of between $54.25 million and $56.25 million. Excluding one-time items, Non-GAAP EBITDA should range between $12.2 million and $13.5 million. The company is also projecting Non-GAAP net loss per share of between $0.06 and $0.02 a share.

Asure Software is projecting revenues of $70 million for 2018 as it moves to integrate already completed acquisitions. The company also plans to carry out multiple ‘tuck-in” acquisitions of service bureaus, which could drive further growth.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.