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Asure Software (ASUR) Q3 Earnings Report Preview: What To Look For


Radek Strnad /
2022/11/07 2:04 am EST

Online payroll and human resource software provider Asure (NASDAQ:ASUR) will be reporting results today after market hours. Here's what investors should know.

Last quarter Asure Software reported revenues of $20.3 million, up 18.2% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and a full year guidance missing analysts' expectations.

Is Asure Software buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Asure Software's revenue to grow 17.9% year on year to $21.2 million, improving on the 12.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.04 per share.

Asure Software Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.42%.

Looking at Asure Software's peers in the HR software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Paycor delivered top-line growth of 27.5% year on year, beating analyst estimates by 4.42% and Ceridian reported revenues up 22.7% year on year, exceeding estimates by 3.28%. Paycor traded down 5.03% on the results, Ceridian was up 1.60%. Read our full analysis of Paycor's results here and Ceridian's results here.

The technology sell-off has been putting pressure on stocks since November and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 5.91% over the last month. Asure Software is up 26.2% during the same time, and is heading into the earnings with analyst price target of $11.20, compared to share price of $6.40.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.