Slide 1: Investor Presentation
June 2017 Investor Presentation We help build companies of the future By Pat Goepel NASDAQ: ASUR
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT (Under the Private Securities Litigation Reform Act of 1995) Statements made in this presentation regarding Asure’s business which are not historical facts are "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the S
Slide 3: Asure Overview
ASURE OVERVIEW 3 NASDAQ: ASUR
Slide 4: Asure Software At-a-Glance
ASURE SOFTWARE AT-A-GLANCE FOUNDED RE-INVENTED 1985 2016 OWNERSHIP – PUBLICLY TRADED : ASUR 2016 REVENUE ~ 332 CORPORATE HEADQUARTERS $35.5M (+54%) EMPLOYEES Austin, TX 2017 REVENUE GUIDANCE 8,000 Offices in WA, OR, TX, FL, IL, NV, MI, MA, VT, UK $53.0M - $56.0M CLIENTS & GROWING Presence in 80 coun
Slide 5: What We Do
WHAT WE DO • A leading provider of Human Capital Management (HCM) and Workplace management software • Asure has created a new category that links traditional HCM with workspace solutions via innovative, cutting-edge technology • We help build companies of the future. Our cloud platform helps organiz
Slide 6: Asure's Global Reach
ASURE’S GLOBAL REACH 4,161 Locations in 80 countries ASURE HEADQUARTERS ASURE BUSINESS OFFICE ASURE PARTNER CLIENT LOCATION & EMPLOYEES Locations People North America 3,672 3,694M Rest of the World 532 1,291M 6 NASDAQ: ASUR
Slide 7: Investment Merits
INVESTMENT MERITS • Human Capital Management is a very attractive market • Large market opportunity (~$13B) with above average growth (8.2%) • Long-term customer relationships • Highly predictable, recurring revenues • Lack of customer concentration and low economic sensitivity • Ability to cross se
Slide 8: Market Opportunity
MARKET OPPORTUNITY 8
Slide 9: Worldwide Market: 44% of the HCM Market is wide-open
WORLDWIDE MARKET 44% of the HCM Market is wide-open 22% of respondents who had an HCM Solution were in a replacement cycle in 2015. Of those, one-third were planning to move to a cloud solution.* SAP- 11% HCM Applications Market $15.4 Workday - 9% Size & Growth in Billions $12.2 Ultimate CAGR: 8.2%
Slide 10: Poised for Growth: Cloud Services Adoption
POISED FOR GROWTH 180 Saas (33% CAGR) 24% CAGR Cloud Services 2013 - 2018 Adoption will Continue Installed Workloads in Millions 160 IaaS (13% CAGR) 140 SaaS Most High Deployed PaaS (21% CAGR) 120 Global Cloud Service by 2018 100 80 60 40 20 0 2013 2014 2015 2016 2017 2018 *Source: Cisco Global Clou
Slide 11: Market Drivers
MARKET DRIVERS 11
Slide 12: Fueling the Workplace of the Future
GLOBAL MACRO TRENDS FUELING THE WORKPLACE OF THE FUTURE THE WAY PEOPLE WORK TODAY HAS CHANGED – THE FUTURE IS HERE. 12
Slide 13: Workplace Trend: Workstyles Have Changed
WORKPLACE TREND: WORKSTYLES HAVE CHANGED MORE AND MORE ORGANIZATIONS ARE IMPLEMENTING STRATEGIES AND SOLUTIONS THAT ALLOW PEOPLE TO WORK FROM ANYWHERE, ANYTIME AND ON ANY DEVICE. WHERE ORGANIZATIONS EXPECT PEOPLE WILL WORK THE AVERAGE ORGANIZATION HAS 7 DESKS FOR EVERY 10 EMPLOYEES 13
Slide 14: Workplace Trend: Workstyles Have Changed
WORKPLACE TREND: WORKSTYLES HAVE CHANGED HOTELING INITIATIVES ARE TAKING CENTER STAGE BENEFITS TO EMPLOYERS • Cost-Related Benefits • Agile Workforce • Employee Attraction & Retention • Better Business Continuity • Increased Employee Engagement BENEFITS TO EMPLOYEES • Increased Flexibility & Loyalty
Slide 15: Building Companies of the Future
BUILDING COMPANIES OF THE FUTURE 15
Slide 16: People, Workplace & Assets Together
WHAT BUSINESS REALLY NEEDS HCM Platform as a Service bringing PEOPLE, WORKPLACE & ASSETS TOGETHER EMPLOYEES REAL TECH ESTATE 16
Slide 17: Value Proposition
VALUE PROPOSITION We help build companies of the future. Our cloud platform helps organizations to better manage the people and space for a mobile, digital, multi-generational, global organization. Innovative & Workplace Industry-Leading Global, flexible Asset and agile Integrated SaaS Savings & Exp
Slide 18: Disparate Field of Solutions
DISPARATE FIELD OF SOLUTIONS HELPING BUILD COMPANIES OF THE FUTURE SPACE MANAGEMENT HOTELING HOT DESKING ROOM BOOKING MOBILE SCHEDULING HCM PROVIDERS ASSET MANAGEMENT TALENT MANAGEMENT MOVE MANAGEMENT BUSINESS INTELLIGENCE VIDEO CONFERENCING ASURE SOFTWARE MOBILE TIME TRACKING PAYROLL & TAX RECRUITM
Slide 19: Client Portfolio & Cross Sell Opportunity
CLIENT PORTFOLIO & CROSS SELL OPPORTUNITY Time & Labor Workspace Human Capital Management Management Management Healthcare Banking Financial Education Gov’t/ Non-Profit Mangrove acquisition increases our total addressable market with existing customers by $400M 19
Slide 20: Financials
FINANCIALS 20
Slide 21: Selected Financial Data
SELECTED FINANCIAL DATA TICKER PRICE 5/26/17 52 WEEK HIGH 52 WEEK LOW ASUR $14.40 $15.40 $4.45 in 000s Cash YTD Q1-2017 $2,288 2016 $12,767 2015 $1,158 OUTSTANDING SHARES 6/1/17 12.1M* Total Current Assets $44,327 $45,599 $7,685 Total Assets Total Current Liability $95,097 $48,012 $85,823 $41,392 $3
Slide 22: Selected Financial Data: First Quarter 2017
SELECTED FINANCIAL DATA First Quarter 2017 Financial Summary Actual Results (in millions except per share data and percentages) Q1 2017 Q1 2016 Change (%) Revenue $ 10.7 $ 6.7 60% Gross Margin $ 8.3 $ 5.0 66% Gross Margin (as a % of revenue) 77.3% 74.3% 3% EBITDA $ 0.9 $ (0.5) 303% EBITDA, excluding
Slide 23: Financial Outlook
FINANCIAL OUTLOOK EBITDA excluding one-times TOTAL REVENUE NET INCOME/LOSS NET INCOME/LOSS BREAK EVEN 2015 REVENUE 2016 REVENUE 2017 REVENUE GUIDANCE $26.9M $35.5M $53.0M - $56.0M FY 2017 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 + _ 2015 EBITDA 2016 EBITDA 2017 EBITDA GUIDANCE
Slide 24: Net Operating Loss (NOL)
NET OPERATING LOSS (NOL) EXPIRING NOL AMOUNTS 12/31/2018 27,373,255 12/31/2019 52,518 12/31/2020 35,219,901 12/31/2021 4,507,944 12/31/2022 550 12/31/2023 12,831,960 12/31/2024 8,448,684 $115M+ in Federal Net 12/31/2025 3,806,478 Operating loss (NOL) 12/31/2026 12/31/2027 2,453,227 3,299,138 Carryfo
Slide 25: Appendix
APPENDIX 25
Slide 26: Non-GAAP Financial Measures
*Non-GAAP Financial Measures This presentation includes the following financial measures defined as non-GAAP financial measures by the Securities and Exchange Commission: EBITDA and GAAP Net Income/(Loss) excluding one-time expenses. These supplemental financial measures are not required by GAAP, no
Slide 27: Reconciliation of GAAP Net Income (Loss) to EBITDA
Reconciliation of GAAP Net Income (Loss) to Net Income (Loss) Before Interest, Taxes, Depreciation, Amortization and Stock Compensation Expense (EBITDA) and EBITDA Excluding One-time Expenses YTD December 31, YTD December 31, YTD December 31, YTD December 31, $000s 2016 2015 2015 2014 Net Loss $ (97
Slide 28: Asure Value Compares
ASURE VALUE COMPARES CSOD Workday ULTI PCTY Q1 3/31/17 Q4 1/31/17 Q1 3/31/17 Q1 3/31/17 ASUR Revenue (in 000’s) $111,582 $436,672 $228,491 $90,273 $10,727 Net Income (Loss) (in 000’s) $(16,211) $(105,565) $7,334 $14,801 $(1,059) ENT Value 2.13B 16.62B 6.11B 2.14B 142.75M YOY Revenue Growth 12% 35% 2
Slide 29: www.AsureSoftware.com
[GQ] ASuURESOFTWARE www.Asuresoftware.com