9505

What To Expect From Asure Software’s (ASUR) Q4 Earnings


Petr Huřťák /
2023/02/27 4:34 am EST

Online payroll and human resource software provider Asure (NASDAQ:ASUR) will be reporting earnings today after market hours. Here's what you need to know.

Last quarter Asure Software reported revenues of $21.9 million, up 21.8% year on year, beating analyst revenue expectations by 3.26%. It was a solid quarter for the company, with a significant improvement in gross margin and a decent beat of analyst estimates.

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 12.5% year on year to $23.8 million, slowing down from the 28.5% 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 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 2.58%.

Looking at Asure Software's peers in the HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Ceridian delivered top-line growth of 19.1% year on year, beating analyst estimates by 3.39% and Paycom Software reported revenues up 30% year on year, exceeding estimates by 1.06%. Ceridian traded up 7.48% on the results, Paycom Software was down 1.73%. Read our full analysis of Ceridian's results here and Paycom Software's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 0.93% over the last month. Asure Software is up 1.94% during the same time, and is heading into the earnings with analyst price target of $13.5, compared to share price of $10.74.

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.