Asure’s (NASDAQ:ASUR) Q1 Sales Top Estimates But Quarterly Revenue Guidance Significantly Misses Expectations
Online payroll and human resource software provider Asure (NASDAQ:ASUR) announced better-than-expected revenue in Q1 CY2025, with sales up 10.1% year on year to $34.85 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $31 million was less impressive, coming in 2.2% below expectations. Its GAAP loss of $0.09 per share was 40.6% below analysts’ consensus estimates.
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Asure (ASUR) Q1 CY2025 Highlights:
“We are excited to be off to a great start to 2025 with healthy results for our first quarter of 2025 with our revenues increasing 10% from the prior year first quarter. Our results were driven by strong performance coming from our Payroll Tax Management and initial contribution from our recently acquired product offerings,” said Asure Chairman and CEO Pat Goepel.
Company Overview
Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs).
Sales Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last three years, Asure grew its sales at a 15.1% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell slightly short of our standards for the software sector, which enjoys a number of secular tailwinds.
This quarter, Asure reported year-on-year revenue growth of 10.1%, and its $34.85 million of revenue exceeded Wall Street’s estimates by 1.7%. Company management is currently guiding for a 10.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 12.7% over the next 12 months, a slight deceleration versus the last three years. Despite the slowdown, this projection is above average for the sector and implies the market is baking in some success for its newer products and services.