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Asure Software, Inc. (ASUR)
Q3 2012 Results Earnings Call
November 14, 2012 11:00 AM ET
Cheryl Trbula - Investor Relations
Pat Goepel - Chief Executive Officer
Jennifer Crow - Chief Financial Officer
Aaron Martin - AIGH Investments
Thomas Pfister - RedChip Company
David Baratta - Sebago Capital
Previous Statements by ASUR
» Asure Software's CEO Discusses Q2 2012 Results - Earnings Call Transcript
» Asure Software's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Asure Software's CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Asure Software's CEO Discusses Q3 2011 Results - Earnings Call Transcript
I would now like to turn the call over to Cheryl Trbula of Asure Software. Please proceed.
Thanks you, Allison, and welcome everyone to Asure Software’s conference call. Before we start, I’d like to mention that some of the statements made by management during this call might include projections, estimates and other forward-looking information. This will include any discussion of the company’s business outlook.
These particular forward-looking statements and all other statements that maybe made on this call that are not historical are subject to a number of risks and uncertainties that could affect their outcomes.
You are urged to consider the risk factors relating to the company’s business contained in our latest periodic statements on file with the Securities and Exchange Commission. These risk factors are important and they could cause actual results to differ materially.
This call is also being recorded on behalf of Asure Software and is copyrighted material. It cannot be re-recorded or re-broadcast without the company’s expressed permission and your participation implies consent to the calls recording.
After we’ve completed our review of the quarter, we will open up the call for questions from the financial analysts community.
I would now like to turn the call over to Pat Goepel, CEO of Asure Software. Pat?
Thanks, Cheryl. And I’d like to welcome investors, clients, interested third patients, employees to the Third Quarter Asure Conference Call. The third quarter was the floury of activity as we closed on the acquisition of PeopleCube, and PeopleCube primarily web-based organization that we are excited about. We closed that for $9.8 million cash, $3 million of seller note and 255,000 shares of stock.
With that we have a lot of synergies in the product line especially with our Netsimplicity and what we are now calling AsureSpace. With that acquisition we established our European office for our customers in London. A lot of activity in product development in addition to acquisition where we launched series of enhancement in our SaaS business, really excited about the product development that we have incurred as a result of the enhancements.
We’ve also established and expanded the leadership team and transition from our CFO to David Scoglio, from David Scoglio to the recent announcement where we hired Jennifer Crow as our CFO, and Jennifer will be on the call today and we’ll introduce her and she will be going through some of the detailed results.
On the marketing side, we also hired Jen Roth and I worked with Jen in my past life. She is a 20 plus year performer in marketing and has an established track record and we are excited that she joined us as well, as we continue to solidify a share over the next three to five years for the growth that we are anticipating.
For the quarter revenue was up 35% to the acquisition of PeopleCube. We were below guidance and in three areas, one, we had deferred revenue and Jennifer will talk through the details. We did lose the large customer in the financial services industry within PeopleCube and the business mix was at 80% instead of 75%, so that accounts for most of the mix.
On EBITDA, we came in on EBITDA with some one-time items just below guidance and the affected to deferred haircut put us out of the range in EBITDA.
As far as bookings, bookings were down across the Board about 20% to 40%, that is not what we anticipated, not what we expect that out of our organization. We were disappointed with the Booking. That being said, I think the organization swallowed an acquisition in PeopleCube long-term, it’s going to be great for us, short-term it was the pain and we were distracted.
Despite that we had some great wins, Pearson, Xerox, Merck were all new SaaS customers that were booked this quarter. Carnegie Mellon University was the SaaS customer this quarter and AsureForce Goodwill Industries and Salisbury University were big wins for the quarter.
So, one, when we’ve had a disappointing bookings to be able to write-off those names in a disappointing quarter is heartening. We are also though adjusting low performers in focus and we will see progress at bookings, Jen Roth as well from a VP of Marketing is looking at our lead generation and our flow and we’ll hope to get back on track.
At this point in time, I’m going to turn over to detail numbers and introduce Jennifer Crow. I’ve got the opportunity now Jennifer to work with you nine days and I’m excited for your tenure at Asure and appreciate all the hard work and getting starting, I think as investor we’ll do one-on-one meetings and I think you’d be excited as I am when you speak with Jennifer. Jennifer?
Thank you, Pat. Good morning, everyone. I want to take a few minute to just go over the third quarter financial highlights, and then Pat and I will be happy to answer any questions during the Q&A period at the end of this morning’s call.