Asure Software Earnings: What To Look For From ASUR

Adam Hejl /
2022/05/06 7:12 am EDT

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

Last quarter Asure Software reported revenues of $21.1 million, up 28.4% year on year, beating analyst revenue expectations by 2%. It was a solid quarter for the company, with a significant improvement in gross margin and a strong top line growth.

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 18.9% year on year to $23.5 million, improving on the 4.51% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 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 3.59%.

Looking at Asure Software's peers in the HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Paylocity delivered top-line growth of 32.2% year on year, beating analyst estimates by 1.79% and Ceridian reported revenues up 25% year on year, exceeding estimates by 1.33%. Paylocity traded flat on the results, and Ceridian was down 2.05%. Read our full analysis of Paylocity's results here and Ceridian's results here.

Tech stocks have had a rocky start in 2022 and software stocks have been swept alongside with it, with share price down on average 17% over the last month. Asure Software is down 23% during the same time, and is heading into the earnings with analyst price target of $12.1, compared to share price of $5.53.

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.