AUSTIN, Texas - Asure (NASDAQ: ASUR), a provider of cloud-based Human Capital Management (HCM) software, announced the acquisition of HireClick, a hiring solution for small and mid-sized businesses, aimed at enhancing its recruitment process capabilities. The move is designed to integrate HireClick's user-friendly applicant tracking features into Asure's comprehensive HCM offerings.
HireClick's platform offers tools for job description creation, job board posting, applicant tracking, and hiring, all streamlined through an intuitive interface. This includes a personalized careers website, mobile-friendly applications, and AI-driven job description assistance. Scott Peterson, Vice President and General Manager for HireClick, expressed enthusiasm for the acquisition, noting the opportunity to expand the solution's reach under Asure's umbrella.
Pat Goepel, Chairman and CEO of Asure, emphasized the importance of efficient hiring in business success and expressed confidence that HireClick's addition would help alleviate the administrative challenges of people management. The acquisition reflects Asure's strategic commitment to supporting businesses in the competitive talent acquisition landscape.
Asure's suite of HCM solutions spans HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management, all enhanced by AI technology to improve scalability and client service. The integration of HireClick is expected to fortify Asure's position in the HCM market, offering a more robust set of tools to businesses striving to attract and retain skilled employees.
The financial terms of the acquisition were not disclosed in the press release statement. Asure's stock performance and further information about the company's services are available on its website. The acquisition is a testament to Asure's ongoing efforts to expand its HCM capabilities and provide effective workforce management solutions.
In other recent news, Asure Software (NASDAQ:ASUR), Inc. reported robust second quarter results in 2024, with revenues of $28 million and an 18% increase in recurring revenues. The company's performance was largely driven by its Marketplace offering, Payroll Tax Management, and interest from funds held for clients. Over the past 10 months, Asure completed nine acquisitions, contributing approximately $15 million to its annual recurring revenue.
These developments suggest a strong second half of 2024 for Asure, with projected revenues ranging from $123 million to $129 million and adjusted EBITDA margins of 20% to 21%. The company is also navigating challenges from the Employee Retention Tax Credit (ERTC), but expects these to start easing.
In addition to these highlights, Asure sees a strong cross-sell demand with 70% of sales from new customers and 30% from existing customers. The company's Payroll Tax Management offering and new product offerings have led to a significant increase in backlog. Further details on Asure's progress and projections for 2025 will be provided in the upcoming November call.
InvestingPro Insights
As Asure (NASDAQ: ASUR) broadens its Human Capital Management (HCM) portfolio with the acquisition of HireClick, the company's financial health and market performance offer additional context for stakeholders. According to InvestingPro data, Asure boasts a market capitalization of $221.19 million, reflecting its size and market presence within the HCM software industry.
InvestingPro Tips highlight several key aspects of Asure's financial situation. Notably, the company holds more cash than debt on its balance sheet, providing it with financial stability and the flexibility to pursue strategic acquisitions like HireClick. Additionally, analysts predict that Asure will be profitable this year, which could signal a positive outlook for the company's future earnings potential.
Moreover, Asure's gross profit margins have been impressive, standing at 69.9% for the last twelve months as of Q2 2024. This indicates that the company has been effective in managing its cost of goods sold and maintaining profitability on its products and services. Despite a slight decline in quarterly revenue growth of -7.81% in Q2 2024, the company's strong gross profit margins may help cushion the impact of fluctuating sales figures.
Investors and analysts alike may find these insights particularly relevant as they assess Asure's current position and its potential for future growth, especially in the wake of strategic initiatives like the HireClick acquisition. For further analysis and additional InvestingPro Tips, Asure's detailed financial metrics and expert insights can be found at: https://www.investing.com/pro/ASUR.
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