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Asure Software, Inc. (ASUR)
Q2 2011 Earnings Call
August 10, 2011; 11:00 am ET
Pat Goepel - President, Chief Executive Officer & Director
David Scoglio - Chief Financial Officer, Vice President & Secretary
Cheryl Trbula - Investor Relations
Mike Chadwick (ph) - Private Investor
Previous Statements by ASUR
» Asure's CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Asure Software CEO Discusses Q4 2010 Results - Earnings Call Transcript
» Asure Software CEO Discusses Q3 2010 Results – Earnings Call Transcript
I would now like to turn the call over to Cheryl Trbula of Asure Software. Please proceed.
Thank you Jen 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 may be made on this call, that are not historical, are subject to a number of risks and uncertainties that could affect their outcome. You are urged to consider the risk factors relating to the company’s business contained in our latest periodic reports 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 recorded or rebroadcast without the company’s expressed permission and your participation implies consent to the call’s recording. After we’ve completed our review of the quarter, we’ll open up the call for questions from the financial analyst community.
I would now like to turn the call over to Pat Goepel, CEO of Asure Software. Pat.
Thanks Cheryl. I’d like to welcome shareholders; potential shareholders, clients, employees and other interested parties that are on the call today.
In the second quarter Asure produced and really had an outstanding quarter. What we are becoming is a very predictable business and especially in the backdrop of a lot of unpredictability in the markets over the last couple of weeks, Asure us really becoming predictable business and it’s led by the changes that we made to go to a cloud-based company, sometime around two years ago and in the transformation that we’ve undergone in simplifying our business, the fruits of that have really paid off.
Some key metrics that highlight the predictability of the business would be our cash in the quarter was up 48%, our differed revenue was up 33% year-over-year, 10% for the quarter. Our client retention rate is in the high 80s; our reoccurring revenue is now up to 80% for the business, 95% in the iEmployee business; our bookings are up 41%, 28% quarter-over-quarter and we have no debt. That type of result doesn’t happen by accident. It’s taken us a couple of years to simplify the business and go after the predictability. We are excited and proud about the results this quarter.
Our new clients this quarter are ABB, JCPenney, Niki, Over&Amea (ph) and Orange Loud, produces the type of clients that leads to stability. It also talks a little bit about our increasingly global reach as a client. We’ve been able to sell clients in Australia, New Zealand, Europe. We’re starting to get some traction in the Middle East in addition to the United States.
What is also leading the change in the results is our products. We are very proud of our products and that simplicity just had a release of 861 that went very well. Our customer satisfaction and our customer inquiries are going down, which is a great sign for us to be more profitable in the future, because happy clients will lead to a better bottom line.
Both products are making progress in their quest to be accessible via mobile devices or iPads or client experiences. You get our information when you need it and finally we’re actively looking to get bigger. We feel that now that the company is on the right growth trajectory in the way we want it to grow. We certainly think that there are acquisition opportunities to be available.
A bit more on that a little bit later. Right now I’d like to pass the phone or the room to Dave Scoglio, our CFO, to give you more color on the actual results in the quarter.
Thanks Pat. I’m going to take a few minutes to go over the second quarter financial highlights and at the end of the call we’ll be happy to answer any questions around my comments or Pat’s comments as well.
In the second quarter revenue was at $2.34 million, actually a 7% decline over the comparable period in 2010, however that decline was permanently driven by lower one-time revenue of around $224,000 difference. But the good news is, it was offset by higher recurring revenue of about $32,000.
Compared with last quarter, Q1 of 2011, revenue actually increased 3% and this was driven by a $63,000 increase in recurring revenue. So for Pat’s comments around moving to cloud-based referring revenue, we are certainly moving in the right direction there.
Overall Pat talked about out recurring revenue at 80%. This is a slight increase; about 17 basis points compared with Q1 ’11 and actually up 7 points from the comparable quarter in 2010.