Asure Software Q3 results beat estimates on organic growth

Overview

• Cloud HCM software provider's Q3 revenue rose 10% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q3 increased and beat analyst expectations

• Company completed acquisition of southeastern US payroll processing business in October

Outlook

• Asure forecasts Q4 revenue between $42 mln and $44 mln

• Company expects full-year 2026 revenue of $162 mln to $164 mln

• Asure projects 2027 revenue between $183 mln and $187 mln

Result Drivers

• ORGANIC GROWTH - Co said improved organic growth and higher attach rates across client base drove Q3 results

• ACQUISITION IMPACT - Co said recent payroll processing acquisition expands mid-market exposure and adds technology to update offerings

• PRODUCT ADOPTION - Co said growing adoption of AsureWorks™ contributed to pipeline growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Asure Software Inc is $13.00, about 79.8% above its October 28 closing price of $7.23

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 27 - Manhattan Associates Q3 revenue beats estimates on cloud subscription growth

• Oct 28 - Alkami Technology Q3 revenue beats estimates on digital banking user growth

• Oct 27 - SoFi Technologies Q3 adjusted revenue beats on member, product growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)