+ All Categories
Home > Documents > Investor Presentation Helping Small & Mid-Sized Businesses ...

Investor Presentation Helping Small & Mid-Sized Businesses ...

Date post: 28-Oct-2021
Category:
Upload: others
View: 3 times
Download: 0 times
Share this document with a friend
35
Helping Small & Mid-Sized Businesses get the most from their Human Capital March 2021 Investor Presentation
Transcript
Page 1: Investor Presentation Helping Small & Mid-Sized Businesses ...

Helping Small & Mid-Sized Businesses get the most from their Human CapitalM a r c h 2 0 2 1

Investor Presentation

Page 2: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Safe Harbor Statement(Under the Private Securities Litigation Reform Act of 1995)

This press release contains forward-looking statements about our financial results, which may include expected GAAP and non-GAAP financial and other operating and non-operating results, including revenue, net income, diluted earnings per share, operating cash flow growth, operating margin improvement, deferred revenue growth, expected revenue run rate, expected tax

rates, stock-based compensation expenses, amortization of purchased intangibles, amortization of debt discount and shares outstanding. The achievement or success of the matters covered by

such forward-looking statements involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results

could differ materially from the results expressed or implied by the forward-looking statements we make. The risks and uncertainties referred to above include -- but are not limited to -- risks

associated with possible fluctuations in the company's financial and operating results; the company's rate of growth and anticipated revenue run rate, including impact of the current environment, the spread of major epidemics (including Coronavirus) and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains and

extended shut down of businesses, reductions in employment and an increase in business failures, specifically among our clients, the company's ability to convert deferred revenue and unbilled

deferred revenue into revenue and cash flow, and ability to maintain continued growth of deferred revenue and unbilled deferred revenue; foreign currency exchange rates; errors,

interruptions or delays in the company's services or the company's Web hosting; breaches of the company's security measures; changes in the forgiveness provisions for loans under the

Paycheck Protection Program; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; the financial and other impact of any previous and future acquisitions; the nature of the company's business model, including risks related to government

contracts; the company's ability to continue to release, gain customer acceptance of and provide support for new and improved versions of the company's services; successful customer

deployment and utilization of the company's existing and future services; changes in the company's sales cycle; competition; various financial aspects of the company's subscription model;

unexpected increases in attrition or decreases in new business; the company's ability to realize benefits from strategic partnerships and strategic investments; the emerging markets in which

the company operates; unique aspects of entering or expanding in international markets, including the compliance with United States export control laws, the company's ability to hire, retain and motivate employees and manage the company's growth; changes in the company's customer base; technological developments; litigation and any related claims, negotiations and

settlements, including with respect to intellectual property matters or industry-specific regulations; unanticipated changes in the company's effective tax rate; factors affecting the company's

outstanding convertible notes, term loan, and revolving credit facility; fluctuations in the number of company shares outstanding and the price of such shares; collection of receivables; interest

rates; factors affecting the company's deferred tax assets and ability to value and utilize them; the potential negative impact of indirect tax exposure; the risks and expenses associated with the company's real estate and office facilities space; and general developments in the economy, financial markets, credit markets and the impact of current and future accounting pronouncements

and other financial reporting standards. Further information on these and other factors that could affect the company's financial results is included in the reports on Forms 10-K, 10-Q and 8-K,

and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the SEC Filings section of the Investor Information section of

the company's website at investor.asuresoftware.com. Asure Software assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Page 3: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 3

Chairman’s Comments

• Our increased focus on small business is paying off as new customer additions exceeded losses

with broader adoption of multiple solutions, driving revenue growth in the fourth quarter.

• Fourth-quarter revenue, non-GAAP HCM EBITDA, and non-GAAP HCM EPS increased from third-

quarter 2020.

• The high-caliber sales representatives we added in the second half of 2020 helped us achieve

encouraging results during a difficult economic landscape.

• As an essential small business, Asure remains committed to helping our more than 70,000 indirect

and 10,000 direct small-business customers grow in this challenging environment.Chairman & CEO

Pat Goepel

Page 4: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.comwww.asuresoftware.com 4

95% RepetitiveSTICKY SOLUTIONS

CLIENTS STAY 8-10 YRS

8-10 YearsNO GEOGRAPHIC OR INDUSTRY

REVENUE CONCENTRATION

Diverse Client Base

HIGH INSIDER OWNERSHIP

FOR PUBLIC COMPANY

Insider Ownership

Our Business

~480Employees

HQAustin, TX

Leading provider of Human Capital Management (HCM) software andservices that help SMBs stay compliant, pay their employees, andsave money.

# Clients*Employees

Paid*Total

Revenue

Direct 10k 150k $50M

Resellers 70k 850k $15M

Total 80k 1M+ $65M

: ASUR

RECURING PAYROLL

& HR REVENUE

*Estimated as of 3-8-2021

Page 5: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Our Story

5

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.

In just 10 years, since Pat Goepel became CEO,

revenue grew 10x to ~$100M before divesting

the Space Management business and pivoting to

HCM-only in December 2019.

Acquired Evolution HCM platform

2017

Pat Goepelbecame CEO

2010Forgent IPO1985

Forgent became Asure2007

Acquired Mangrove HCM platform

2016

Sold Workspace business;Became pure-play HCM

2019 (December)

Acquired ~15 HCM resellers2016 to 2020

$10M Revenue

$54M Revenue

~$65M Revenue

Young SaaSHCM Pure-Play

Page 6: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Competitive Landscape

Small Business Opportunity

Asure is focused on growing

sales in underserved smaller

markets.

~94%1 of small businesses

operate outside the Top-10

US markets.

Un

de

rserve

d M

arke

ts

In-house, CPAs, Regional Payroll Providers

Tier-2, Tier-3 CitiesMajor Metro Markets

SM

BL

arg

e &

En

terp

rise

SMBADP and Paychex are our 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.

Large & EnterprisePaylocity, Paycom, and Paycor are fast growing providers for medium to large sized businesses but we rarely see them in SMB deals.

ADP, UKG, Workday, and Ceridian serve large and enterprise customers in all geographic markets.

1Small Business Administration 6

Page 7: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Valuation Expansion Opportunity

7

EV/Revenue 2.5x 5x 8x 14x 20x

Revenue Growth 5% 6% 4% 19% 21%

EBITDA Margin 12% 25% 41% 24% 39%

Revenue Growth + EBITDA Margin 17% 31% 45% 43% 60%

Implied Asure Stock Price* at Same Valuations

$8 $15 $25 $43 $63

*Data source: Capital IQ*Numbers and multiples based on calendar 2021 Street mean as of 3/5/21

Page 8: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.comwww.asuresoftware.com

Growth & Margin ExpansionRule of 40: 10-10-20 Model

Asure’s business model has many ways to grow revenue. Our organic

model has several revenue drivers, and our indirect reseller network

represents an acquisition pipeline exceeding $200M in top-line revenue.

Margin expansion will occur naturally as fixed costs are spread across a

growing business along with key initiatives to drive out cost.

5-Year plan Double revenue and expand margins to 20%+ EBITDA

10% OrganicSame store sales,

cross-sell, and pricing

10% InorganicAccretive acquisitions from 200+ resellers

20% EBITDAWe become more

efficient as we grow

BASELINE REVENUE

20%+ EBITDA

10% Inorganic

Growth

10% Organic

Growth

BASELINE

8

Page 9: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 9

Asure’s HCM Suite

Solutions for a Modern Workforce

Employer HCM Tools

Payroll, HR, and Time &

Attendance solutions that

help entrepreneurs stay

compliant, save money, and

get the most from their

human capital

Employee Self-Service

Employees stay productive

by tracking and editing their

HR data when and where

they want without the hassle

of paper forms.

SMB tools that help businesses

more effectively manage every

step of the employee lifecycle

and self-service tools that keep

employees engaged and as

productive as possible.

Page 10: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.comwww.asuresoftware.com 10

Two Sales ChannelsOne Platform

Direct SalesAsureHCM SaaS

platform for SMBs

One PlatformOne tech-stack for both sales

channels improves R&D efficiency

and creates operating leverage

White-label ResellersAsureHCMPartner suite

powers HCM resellers

Page 11: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

SMB HCM

Go to Market Strategy

Go Where the Competition Isn’t~94% of SMBs do business outside the Top-10 US market3 – where competition is lower

US TAM

HCM$90B

7.6% CAGR1

50% US

HCM is

SMB2

$45B

Small market

SMBs

$42B

1. Source: Census, D&B, IHS, Nelson Hall, Market Study Report LLC

2. Netscribes, Inc.

3. SBA

Single Platform

1 Direct SalesNew logos and cross-sell

2 “Circle of Influence”Referral relationships (Broker, CPA, Bank)

3 ResellersRecruit referral partners and new resellers

4 Reseller roll-upAcquired resellers become direct sales

Direct → Referral → Reseller → Rollup

11

Page 12: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Why Asure Wins

Service delivery modelFully compliant with ACH banking

rules; SOC 1 Type 2 certified

Tax and HR ComplianceProducts compliant with HR laws and

maintain federal, state & local tax tables, and file taxes on client’s behalf

Save Time and MoneyOutsourcing repetitive payroll and HR

tasks need for b ack-office staff, reduces errors, and saves money.

We help grow Benefit Brokers’ business - Not compete with it

• Product differentiation with revenue sharing • Unlike larger national providers, we protect brokers’ books and they remain broker of record (BOR)• Provide pay-as-you-go workers’ comp processing to maximize broker’s earning potential

12

Page 13: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Where Asure Wins

Where new clients are sourced

ADP andPaychex

CPA andRegional Payroll

In-house

Other

~60% New clients come from

SMB’s circle of influence:Brokers, Banks, and CPAs

Where clients come fromChurn from ADP & Paychex

Represent ~50% of new clients

Direct sales & marketing

13

Page 14: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

~

~

~

SAME STORE SALES ~2%

PRICING2-4%

CHURN8-12%

BOOKINGS10-15%

TOTAL

~10%

BASELINE

Organic Growth Model

Long-term growth model with multiple ways to achieve 8-12% organic growth

~95%Recurring Revenue80k clients paying1M employees and interest from client float

8-10 YearsClients stay for long time

Direct SalesWith sales reps with industry experience

Growing ClientsSMBs grow staff~2% each year

Lifetime ValueCompounding impact

of price increases

*Our growth model is being provided for informational purposes only and assumes there was limited growth in 2020 due to the effects of Covid-19. As such, our five-year growth plan remains unchanged through 2025.

14

Page 15: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.comwww.asuresoftware.com

Organic Growth Strategy

Grow Direct Sales Team + Force Multiplier

34

65~75

~100

~120

2019 2020 2021 2022 2023

Space

HCM

Grow Direct Sales ForcePath to doubling sales team of highly

productive HCM reps by 2023

Referral NetworkNo-conflict alternative to larger national

providers for the SMBs’ “circle of influence”

Regional Bank

HR Consultant

Benefit Broker

CPA

15

Page 16: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Ramp to Sales Rep Productivity1

1 2 3 4 5 6 7 8

Projected Profitability of a Customer in Years

1st year Sales reps

building referral relationships and

pipeline + cycle time to close

deals

2nd year sales reps closing

deals while still developing referral

relationships

Sale Reps generally are curating mature referral relationships ad become fully productive within 36 months

1These models are based on a number of internal assumptions and are being presented to illustratethe interaction between projected sales representative productivity and customer profitability

Assumes annual revenues double

over 8-year life

Assumes breakeven in 12 to 18 months

Revenue grows with price increases, upsell,

and same-store sales

Organic Growth Strategy

Return on Sales Investment

YEAR 1

YEAR 2 YEAR 3

16

Page 17: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Inorganic Growth Strategy

Reseller Roll-up

# Resellers by Exit Horizon

Total 0-3 Years 3-5 years 5+ years

# Resellers ~200+ 30 100 70

Asure’s annualized license revenue ~$16M $2M $8M $6M

Reseller’s payroll-only revenue ~$200M $30M $100M $70M

Reseller’s TOTAL top-line revenue ~$250M $40M $120M $90M

By recruiting referral partners and regionalpayroll providers to become HCM resellers, wemonetize those relationships and create futureroll-up prospects. We believe Asure’s resellersthen present accretive acquisition opportunitieswith high retention rates because theircustomers are already using our platforms.

17

Page 18: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Inorganic Growth Strategy

Acquisition Economics

Reseller Asure Acquire Year #1 Year #2 Year #3 Year #4

Direct Revenue $1M

Purchase Price ~2x

Revenue

$1M $1M $1M $1M

Reseller Revenue $.1M ($.1M) ($.1M) ($.1M) ($.1M)

Total Revenue $1M $.1M $.9M $.9M $.9M $.9M

Gross Profit $.6M $.07M $.6M $.6M $.6M $.6M

OPEX $.4M $.02M $.1M $.1M $.1M $.1M

Seller Discretion $.2M n/a n/a n/a n/a n/a

Net Profit $0 $.05M $.5M $.5M $.5M $.5M

Cash Flow $0 $.05M $.5M $.5M $.5M $.5M

$2M $1.5M $1.0M $0.5M $0

Asure Post-AcquisitionPre-Acquisition

Revenue grows ~10x recognizing 100% of topline

Highly profitable accretive revenue

Cash generation; Payback ~4 years

* This example is based on Asure’s internal estimates, which is being provided to show how the acquisition of a reseller could affect Asure’s financial results after the acquisition. This is an example only and should not be relied on as a predictor of Asure’s financial results after an acquisition.

18

Page 19: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 19

Scale… …and Margin Expansion

Consolidate

Platform versions and back-end architecture

Self-Service

Make full-service clients more self-

sufficient with training and tools

Simplify

The business by reducing vendors, legal entities, bank accounts, and more

Standardize

Processes by deepening the

integration of prior regional acquisitions

Asure is built to scale for significant growth

One-to-many platform

With opportunity to expand EBITDA 20%+

Repeatable processes

Scalable infrastructure

Accretive M&A

*Our growth model is being provided for informational purposes only and assumes there was limited growth in 2020 due to the effects of Covid-19. As such, our five-year growth plan remains unchanged through 2025.

Page 20: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

C-Suite with Proven Track Record of Growth

Chairman & CEO

Pat Goepel

President & CRO

Eyal GoldsteinCFO

John Pence

20

Page 21: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

ExperiencedSenior Leadership Team

Yasmine Rodriguez

SVP Tax & Compliance

Marian Sbar

General CounselChief of Staff

Todd Waletzki Cheryl Trbula

VP Human Resources

Mike Vannoy

VP Product & Marketing

Brian Wehrle

VP Engineering

21

Page 22: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

Board of Directors

W. Carl Drew

Independent Director

Bradford Oberwager

Independent Director

Daniel M. Gill

Lead Independent Director

Pat Goepel

Chairman and CEO

Grace Lee

Independent Director

Bjorn Reynolds

Independent Director

Ben Allen

Independent Director

Asure’s board has decades of industry experience optimizing and building fast growing HCM companies. Their tremendous depth in M&A, Finance, Technology, HR, and Sales & Marketing has

helped them drive organic and inorganic growth while creating shareholder value in the HCM space

22

Page 23: Investor Presentation Helping Small & Mid-Sized Businesses ...

23

Select Financial Data

Page 24: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

COVID

$18.9

$14.1

$16.0 $16.4

$21.1 $18.5 $19.4

$21.0 -2%

-13%

-5%

-1%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

$0M

$10M

$20M

1Q20 2Q20 3Q20 4Q20 1Q21E 2Q21E 3Q21E 4Q21E

*In Millions*Excludes 2019 non-strategic customer contracts for comparison purposes*1Q21E through 4Q21E is not guidance, it is presented for informational purposes only

Sequential Growth in Challenging Environment

Unemployment %YoY Growth %Total Revenue

24

Page 25: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com

4Q20 Financial Highlights

$16.4

Total Revenue ($ in millions)

$15.9

Recurring Revenue ($ in millions)

$10.9

Non-GAAP HCM Gross Profit

($ in millions)

$1.1

Non-GAAP HCM EBITDA

($ in millions)

Q-Q2.6%

Q-Q6.0%

Q-Q3.9%

Q-Q13.0%

*Q-Q = Sequential quarterly growth from 3Q20 to 4Q20 25

Page 26: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com*Includes $8.9M of PPP loan, which we expect to be forgiven by 2Q21**Data source: Capital IQ, 3/8/2021

in $Millions 4Q19 3Q20 4Q20

Cash and Equivalents 28.8 12.9 28.6

Total Equity 137.6 130.1 145.7

Debt* 26.7 23.7 24.5

Client Funds Assets 126.6 199.3 321.1

Outstanding Shares (as of 3-8-2021)** ~19.0M

Market Cap (as of 3-8-2021)** $151.9M

Average Daily Volume 90 day** ~90k

Select Financial Data

: ASUR

52 week high

$9.2552 week low

$4.30Price as of 3.8.2021

$8.01

26

Page 27: Investor Presentation Helping Small & Mid-Sized Businesses ...

27

Appendix 1Reconciliation of Non-GAAP Measures

Page 28: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 28

Disclosure Regarding NON-GAAP Financial Measures (1 of 3)

*Non-GAAP Financial Measures. This press release includes information about non-GAAP HCM Net Earnings (Loss), non-GAAP HCM Net Earnings

(Loss) per share, non-GAAP EPS, non-GAAP tax rates, non-GAAP HCM gross profit, and non-GAAP HCM EBITDA (collectively the "non-GAAP

financial measures"). These non-GAAP financial measures are measurements of financial performance that are not prepared in accordance with U.S.

generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP financial

measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with

the company's consolidated financial statements prepared in accordance with GAAP.

Non-GAAP HCM EBITDA differs from GAAP net loss excludes items such as interest, tax, depreciation, amortization, stock compensation, and one-

time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

Non-GAAP HCM Earnings (Loss) per share differs from GAAP earnings per share in that it assumes a 0% non-GAAP tax rate, uses diluted share

counts, and excludes items such as amortization, stock compensation, and one-time expenses.

Non-GAAP HCM gross profit differs from GAAP gross profit in that it excludes amortization, stock compensation, and one-time items.

Management uses both GAAP and non-GAAP measures when planning, monitoring, and evaluating the company's performance.

Page 29: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 29

Disclosure Regarding NON-GAAP Financial Measures (2 of 3)

The primary purpose of using non-GAAP measures is to provide supplemental information that may prove useful to investors and to enable investors

to evaluate the company's results in the same way management does.

Management believes that supplementing GAAP disclosure with non-GAAP disclosure provides investors with a more complete view of the

company's operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the company's business.

Further, to the extent that other companies use similar methods in calculating non-GAAP measures, the provision of supplemental non-GAAP

information can allow for a comparison of the company's relative performance against other companies that also report non-GAAP operating results.

Specifically, management is excluding the following items from its non-GAAP earnings per share, as applicable, for the periods presented in the first

quarter 2020 financial statements:

Quarterly and annual GAAP income statements for 2019 were recast as if the Workspace Management business, which was sold on December 2,

2019. Further, the Workspace Management GAAP income statements were recast into income from discontinued operations.

Stock-Based Compensation Expenses. The company's compensation strategy includes the use of stock-based compensation to attract and retain

employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention,

rather than to motivate or reward operational performance for any particular period. Thus, stock-based compensation expense varies for reasons that

are generally unrelated to operational decisions and performance in any particular period.

Page 30: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 30

Disclosure Regarding NON-GAAP Financial Measures (3 of 3)

Amortization of Purchased Intangibles. The company views amortization of acquisition-related intangible assets, such as the amortization of the cost

associated with an acquired company's research and development efforts, trade names, customer lists and customer relationships, and acquired

lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are

continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by

operations during any particular period.

Income Tax Effects and Adjustments. Beginning in first quarter 2018, the company started using a fixed projected non-GAAP tax rate in order to

provide better consistency across the interim reporting periods by eliminating the effects of items such as changes in the tax valuation allowance and

non-cash tax effects of acquired goodwill and amortization, since each of these can vary in size and frequency. This tax rate could be subject to

change for a variety of reasons, such as significant changes in the acquisition activity or fundamental tax law changes in major jurisdictions where the

company operates. The company re-evaluates this tax rate on an annual basis or when any significant events that may materially affect this rate occur.

The non-GAAP tax rate is currently projected to be approximately zero (0.0) percent.

Amortization of Capitalized Internal-Use Software, Acquisition-Related, and One-Time Expenses. The company’s non-GAAP financial measures

exclude amortization of internal-use capitalized software costs and acquisition-related expenses as well as one-time expenses, such as material tax

credits, material interest-expense credits, severance, recruitment, proforma adjustments of the impact of post-sale HCM restructuring, and relocation.

Page 31: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 31

Non-GAAP Reconciliation (1 of 2)

31

Page 32: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 32

Non-GAAP Reconciliation (2 of 2)

32

Page 33: Investor Presentation Helping Small & Mid-Sized Businesses ...

33

Appendix 2Valuation Comparisons

Page 34: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 34

($ in millions, excluding per share data)

Comparable Public Companies Operational Detail

Source: LTM financials based on latest publicly available financial statements. Projections per First Call median estimates

LTM Margins Revenue EBITDA

Company Gross EBITDA LTM CY 2020 CY 2021 LTM CY 2020 CY 2021

High Growth Payroll

Paycom Software, Inc. 88.4% 25.2% $ 841.4 $ 841.4 $ 1,010.0 $ 212.4 $ 212.4 $ 395.5

Paylocity Holding Corporation 66.3 15.0 584.4 581.5 693.0 87.5 158.4 168.0

Workday, Inc. 72.6 2.9 4,318.0 4,318.0 4,994.3 124.1 124.1 1,168.1

Mean 75.8% 14.4% $ 1,914.6 $ 1,913.6 $ 2,232.4 $ 141.3 $ 165.0 $ 577.2

Median 72.6 15.0 841.4 841.4 1,010.0 124.1 158.4 395.5

Low-Mid Growth Payroll

Automatic Data Processing, Inc. 44.7% 26.1% $ 14,591.1 $ 14,466.4 $ 15,353.3 $ 3,812.7 $ 3,648.3 $ 3,823.3

Ceridian HCM Holding Inc. 45.8 7.2 842.5 842.5 924.5 60.3 60.3 160.7

Intuit Inc. 82.6 30.1 7,717.0 7,745.5 9,963.8 2,321.0 2,956.6 3,544.2

Paychex, Inc. 68.3 40.5 3,973.7 3,946.3 4,110.2 1,608.0 1,610.9 1,679.2

Mean 60.4% 26.0% $ 6,781.1 $ 6,750.2 $ 7,587.9 $ 1,950.5 $ 2,069.0 $ 2,301.9

Median 57.1 28.1 5,845.4 5,845.9 7,037.0 1,964.5 2,283.8 2,611.7

Asure Software, Inc. 54.6% 8.7% $ 66.7 $ 65.3 $ 68.5 $ 5.8 $ 7.7 $ 8.0

34

Page 35: Investor Presentation Helping Small & Mid-Sized Businesses ...

www.asuresoftware.com 35

($ in millions, excluding per share data)

Comparable Public Companies Valuation Detail

¹ Based on diluted shares outstanding, calculated using treasury method.

Closing % of Enterprise Value Multiples

Price 52 Week Market Enterprise Revenue EBITDA

Company 3/8/2021 High % Float Cap Net Cash Value LTM CY 2020 CY 2021 LTM CY 2020 CY 2021

High Growth Payroll

Paycom Software, Inc. $ 366.23 77.7% 83.4% $ 21,146.1 $ 92.9 $ 21,053.2 25.0x 25.0x 20.8x 99.1x 99.1x 53.2x

Paylocity Holding Corporation 167.08 76.5 71.6 9,278.8 52.9 9,225.9 15.8 15.9 13.3 NM 58.3 54.9

Workday, Inc. 231.07 81.7 75.2 57,956.5 1,297.6 56,658.9 13.1 13.1 11.3 NM NM 48.5

Mean 78.7% 76.7% $ 29,460.5 $ 481.1 $ 28,979.3 18.0x 18.0x 15.2x 99.1x 78.7x 52.2x

Median 77.7 75.2 21,146.1 92.9 21,053.2 15.8 15.9 13.3 99.1 78.7 53.2

Low-Mid Growth Payroll

Automatic Data Processing, Inc. $ 180.42 98.2% 99.8% $ 77,400.0 $(837.5) $ 78,237.5 5.4x 5.4x 5.1x 20.5x 21.4x 20.5x

Ceridian HCM Holding Inc. 80.95 72.3 89.9 12,326.1 (523.7) 12,849.8 15.3 15.3 13.9 NM NM 80.0

Intuit Inc. 370.42 87.4 97.1 101,930.7 (83.0) 102,013.7 13.2 13.2 10.2 44.0 34.5 28.8

Paychex, Inc. 93.20 93.2 89.2 33,778.8 (27.7) 33,806.5 8.5 8.6 8.2 21.0 21.0 20.1

Mean 87.8% 94.0% $ 56,358.9 $(368.0) $ 56,726.9 10.6x 10.6x 9.4x 28.5x 25.6x 37.3x

Median 90.3 93.5 55,589.4 (303.4) 56,022.0 10.9 10.9 9.2 21.0 21.4 24.6

Asure Software, Inc. $ 8.01 86.6% 76.8% $ 151.9 $(18.4) $ 170.3 2.6x 2.6x 2.5x 29.4x 22.1x 21.3x

35


Recommended