Austin-based Asure Software saw its share price climb on Monday after the company reported quarterly earnings that beat Wall Street projections.
Asure Software, whose products are used to help companies manage mobile workforces spread around the world, reported net income of $300,000, or 10 cents per share, for the quarter ended Sept. 30. That beat the consensus of 7 cents per share from analysts surveyed by Zacks Investment Research.
The company reported revenue of $9.4 million for the quarter, which was below analysts’ projections of $9.58 million.
Asure Software said its financial growth was attributable in part to the acquisition this year of Mangrove Employer Services of Tampa. Mangrove's products focus on what's known as human capital management, including human resources and payroll applications that enable companies to recruit, manage, pay and analyze their workforce. Asure's products include a tool for managing hoteling, which is the practice of providing office space for mobile workers on as as-needed basis rather than a traditional reserved desk.
Asure said revenue from its cloud computing offerings increased 65 percent, software revenue increased 213 percent and professional services revenue increased 78 percent from the third quarter of 2015.
Pat Goepel, Asure Software’s CEO, said the third quarter “represented the beginning of a ‘new normal' for Asure—a period where our unified platform and expanded market focus led us to realize many of the benefits we expected in this new stage of growth.”
“Not only did we continue to see a year-over-year increase in many of our key metrics, such as pro forma revenue, gross margin, and EBITDA, but we also produced another quarter of profitability, demonstrating the strong demand for both our established and new solutions, as well as the continued near-term realization of some of the synergies from the Mangrove acquisition,” Goepel said in a written statement.
Asure has about 150 employees worldwide, including about 100 in Austin. The company has more than 7,500 clients worldwide.
Asure’s shares closed Monday up 28 cents, or 3.8 percent, at $7.53.
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