Slide 1: Payroll & HR Solutions that help Businesses Grow
Payroll & HR Solutions that help Businesses Grow Investor Presentation February 2024
Slide 2: Forward Looking Statements: Safe Harbor Statement
(Under the Private Securities Litigation Reform Act of 1995) Forward Looking Statements Safe Harbor Statement This presentation contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securit
Slide 3: Chairman's Comments
Chairman’s Comments • Asure’s strong momentum continued in the year 2023 with results driven by solid execution across the business. The continued improvement of our solutions over the last few years is being reflected by our continued growth and we are elated to see positive impressions from our cl
Slide 4: Company Overview: By the Numbers
Company Overview By the Numbers Leading provider of Human Capital Management (HCM) software and services that help companies stay compliant, pay their employees, and save money. $125-$129M 87% 20%-21% FY2024 Recurring FY2024 Revenue Revenue(2) Adjusted EBITDA : ASUR Guidance(5) Margin Guidance(4) ~1
Slide 5: Asure's Next Chapter Has Yet to be Written
Asure’s Next Chapter Has Yet to be Written The Biggest1 HCM Company You’ve Never Heard of Asure has the culture and growth characteristics of a young pure- play HCM business wrapped in the framework of a 35-year-old publicly-traded company. $125 to In just 8 years, since acquiring Mangrove HCM in 20
Slide 6: Strong Financial Profile, Significant Near-Term Growth
Strong Financial Profile, Significant Near-Term Growth 1 Revenue Adjusted EBITDA 20%-21% $25M - 20% $27M $18M $23M ▲ 26% $11M $125M $3M ▲ 19% – ▲ 16% $129M 12% $101M $12M 10% $85M $73M $8M 10% FY 2021A FY 2022A FY 2023A FY 2024E FY 2021A FY 2022A FY 2023A FY 2024E Guidance Guidance Core ERTC Note FY
Slide 7: One HCM Platform, Smartly Architected for Scale
Anatomy of HCM Business One HCM Platform, Smartly Architected for Scale Decoupled Platform Serves Multiple Markets Payroll SMB DIRECT ENTERPRISE DIRECT Full-suite HCM software and Large, multi-state enterprises Treasury services for small businesses from a single screen face the same payroll tax cha
Slide 8: HCM Business Opportunity
Large and Growing Addressable Market HCM Business Opportunity Market Size Market Tailwinds SMB shift to cloud software driving US HCM TAM $90B+ US HCM TAM growth (CAGR 7.6% through 2025 and reach $90B+) Total US HCM TAM is growing at 7.6% CAGR(1) Tight labor markets have accelerated the need for $45
Slide 9: Payroll Engine
Anatomy of HCM Business Payroll Engine Payroll & HR Self-Service SMBs manage payroll, Employees manage data, benefits, and HR time, paystubs, W2, etc. Payroll Processing Calculate gross pay, employee & employer taxes, deductions, and net pay Time & Attendance Captures time, tracks accruals, sends ho
Slide 10: Tax Engine
Anatomy of HCM Business Tax Engine Payroll Tax Management (PTM) HCM firms and complex, multi-state enterprises manage all aspects of payroll tax filing SUI Rate Notice File Schedule Exchange Tracking Taxes Liabilities Employee & Employer Tax Tax API Engine Tax Data Payroll Federal State Local Engine
Slide 11: Treasury Engine
Anatomy of HCM Business Treasury Engine Compliant Money Movement HCM firms and multi-state enterprises manage the impounding and disbursement of funds Impound ACH Emp Remit to Taxing Reconcile Client Funds Direct Deposit Agencies Cash Employee Payroll Pay Engine Treasury Engine API Federal State Loc
Slide 12: Marketplace | Monetizing HCM Data
Anatomy of HCM Business Marketplace | Monetizing HCM Data Today’s Data Set ~100k Employers Earned ~1.7M Employees Wage Banking Access Benefits Income Verification Retirement Life Events Wallet API www.asuresoftware.com 12
Slide 13: SMB HCM | End-To-End Solution
SMB HCM | End-To-End Solution Powering growth for 100K employers Empowering freedom for 1.7M employees • Labor Law Compliance • Fully Outsourced HR also includes: • HR Online Library o Omni-channel employee relations • HR native to payroll software for o Compliance guidance: HR mgr & emp and self-se
Slide 14: HCM Business | Competitive Landscape
HCM Business | Competitive Landscape Micro & Small Businesses ADP and Paychex are Asure’s largest competitors with more presence in major markets, but they also create the largest opportunity with significant churn in SMB markets. Many SMBs rely on their CPA or in-house software like QuickBooks. CPA
Slide 15: SMB HCM | How, Why, and Where We Win
SMB HCM | How, Why, and Where We Win How Clients Find Asure Why Clients Choose Asure* SMB Trusted Advisor Universe 1 or 2 (Not Important) 3 or 4 5 or 6 7 or 8 9 or 10 (Extremely Important) High-Quality Customer Service 4% 88% Bank 4.4k Has the specific features I need 16% 68% Benefit CPA Relationshi
Slide 16: Acquisitive Growth | Reseller Roll-Up
Acquisitive Growth | Reseller Roll-Up ~$200M+ 200+ Resellers Reseller • Reseller’s top line is ~10 to 15x+ our license fees Markup • Highly accretive acquisitions • Clients already use Asure’s software ~$14M o No data conversion o No software migration Asure's Current Reseller’s Payroll o No user re
Slide 17: Profit Expands as Revenue Composition Changes and We Achieve Scale
Profit Expands as Revenue Composition changes and we achieve Scale $200 As Revenue Grows… $150 Gross Profit $125 $140 Adjusted EBITDA Approaches ~30% $100 Operating Income Approaches ~20% $100 Net Income (Loss) $80 Total Revenue $65 $60 $40 $35 $25 $30 $20 $15 $15 $10 $5 $5 ($5) Business Model as Re
Slide 18: Select Financial Data
Select Financial Data 18
Slide 19: 4Q23 Financial Highlights
4Q23 Financial Highlights Total Recurring Total Revenue Recurring Revenue Adjusted Revenue Revenue excl. ERTC excl. ERTC Net Income EBITDA $26.3 $25.3 $25.0 $25.0 $2.8 YoY YoY YoY YoY YoY YoY -10% 4% 15% 15% -$2.5m -54% $(3.6) *All figures presented in millions 19
Slide 20: Growth Results
YoY Revenue: 4Q22 Bridge to 4Q23 QoQ Revenue: 3Q23 Bridge to 4Q23 Core ERTC Core ERTC $7.3M 2.9% $1.0M $4.9M .9% 2.6% $1.0M Growth 12.1% Results $25.3M $24.4M $25.3M $22.0M Year over year performance 4Q Organic Inorganic 4Q 3Q Organic Inorganic 4Q 22 Growth Growth 23 23 Growth Growth 23 Waterfall De
Slide 21: Select Financial Data
Select Financial Data : ASUR in $Millions 4Q22 3Q23 4Q23 Cash and Equivalents 17.0 32.8 30.3 Total Equity 145.1 191.7 191.7 Debt 34.9 2.8 4.3 Client Funds Assets 203.6 172.5 219.1 Outstanding Shares (as of 12-31-2023) ~25.0M Enterprise Value (as of 2-23-2024) $218.4M Average Daily Volume 90 day ~300
Slide 22: Valuation Expansion Opportunity
Valuation Expansion Opportunity *Data source: Capital IQ *Numbers and multiples are rounded and are based on calendar 2024 Street mean as of 02/09/24; Asure figures based on mid-point of 2024 guidance ranges. www.asuresoftware.com 22
Slide 23: HCM Growth Model
Lifetime Value M&A Growth Accretive Compounding Growing Clients Employers grow staff annualized impact acquisitions HCM ~2% each year TOTAL Growth Model STRATEGIC Direct Sales ~10% ~20% Sales reps with industry experience SAME 8-10 Years STORE PRICING 2-4% Long-term Clients stay SALES ~2% growth mod
Slide 24: Disclosure Regarding Non-GAAP and Adjusted Financial Measures (1 of 4)
Disclosure Regarding Non-GAAP and Adjusted Financial Measures (1 of 4) This presentation includes information about bookings, non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, ad
Slide 25: Disclosure Regarding Non-GAAP and Adjusted Financial Measures (2 of 4)
Disclosure Regarding Non-GAAP and Adjusted Financial Measures (2 of 4) Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one- time items. EBITDA differs from net income (loss) in that it excludes items such as int
Slide 26: Disclosure Regarding Non-GAAP and Adjusted Financial Measures (3 of 4)
Disclosure Regarding Non-GAAP and Adjusted Financial Measures (3 of 4) Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs. Amortization of Purchased Intangibles. The Company views amortization of acquisition
Slide 27: Disclosure Regarding Non-GAAP and Adjusted Financial Measures (4 of 4)
Disclosure Regarding Non-GAAP and Adjusted Financial Measures (4 of 4) One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results
Slide 28: Appendix 1: Valuation Comparisons
Appendix 1 Valuation Comparisons 28
Slide 29: Comparable Public Companies Operational Detail
Comparable Public Companies Operational Detail ($ in millions, excluding per share data) 29
Slide 30: Comparable Public Companies Valuation Detail
Comparable Public Companies Valuation Detail ($ in millions, excluding per share data) 30
Slide 31: Appendix 2: Unaudited Supplemental Quarterly Financial Information
Appendix 2 Unaudited Supplemental Quarterly Financial Information 31
Slide 32: Information Regarding Unaudited Supplemental Quarterly Financial Information
Information Regarding Unaudited Supplemental Quarterly Financial Information • The Unaudited Supplemental Quarterly Financial Information in the appendix of this presentation reflect Asure Software, Inc.’s (the “Company”) financial statements for the periods presented give effect in prior periods ce
Slide 33: Balance Sheets (Unaudited)
Balance Sheets (Unaudited) Mar. 31, 2022 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 12,054 $ 14,594 $ 10,885 $ 17,010 $ 21,438 $ 21,613 $ 32,787 $ 30,317 Accounts receivable, net of allowance fo
Slide 34: Income Statements (Unaudited)
Income Statements (Unaudited) THREE MONTHS ENDED Mar. 31, 2022 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 Revenue: Recurring $ 23,004 $ 19,014 $ 20,059 $ 24,146 $ 27,956 $ 22,960 $ 23,833 $ 24,985 Professional services, hardware and other 1,329
Slide 35: Statements of Cash Flows (Unaudited)
Statements of Cash Flows (Unaudited) THREE MONTHS ENDED Mar. 31, 2022 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 Cash flows from operating activities: Net (loss) income $ (3,017) $ (5,860) $ (4,533) $ (1,056) $ 339 $ (3,765) $ (2,206) $ (3,582)
Slide 36: Non-GAAP Reconciliation (Unaudited, 1 of 2)
Non-GAAP Reconciliation (Unaudited, 1 of 2) THREE MONTHS ENDED Mar. 31, 2022 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 Revenue $ 24,333 $ 20,300 $ 21,903 $ 29,292 $ 33,064 $ 30,420 $ 29,334 $ 26,264 GAAP to Non-GAAP Gross Profit Gross Profit $
Slide 37: Non-GAAP Reconciliation (Unaudited, 2 of 2)
Non-GAAP Reconciliation (Unaudited, 2 of 2) THREE MONTHS ENDED Mar. 31, 2022 Jun. 30, 2022 Sep. 30, 2022 Dec. 31, 2022 Mar. 31, 2023 Jun. 30, 2023 Sep. 30, 2023 Dec. 31, 2023 Revenue $ 24,333 $ 20,300 $ 21,903 $ 29,292 $ 33,064 $ 30,420 $ 29,334 $ 26,264 GAAP Net income (loss) to Adjusted EBITDA GAA