Asure Software Inc (ASUR) 2023 Q1 法說會逐字稿

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the First Quarter 2023 Asure Software Earnings Conference Call. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Randal Rudniski. Sir, please begin.

女士們先生們，美好的一天，感謝你們的支持。歡迎參加 2023 年第一季度 Asure Software 收益電話會議。 （操作員說明）此時，我想將會議轉交給 Randal Rudniski 先生。先生，請開始。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Asure's First Quarter 2023 Earnings Call. Following the close of markets, we released our financial results. The earnings release is available on the SEC's website and our Investor Relations website at investor.asuresoftware.com, where you can also find the investor presentation.

謝謝你，運營商。大家下午好，感謝您加入我們的 Asure 2023 年第一季度財報電話會議。市場收盤後，我們發布了財務業績。收益發布可在 SEC 網站和我們的投資者關係網站 investor.asuresoftware.com 上獲取，您還可以在此處找到投資者介紹。

During our call today, we will reference non-GAAP financial measures, which we believe to be useful to investors and exclude the impact of certain items. A description and timing of these items, along with the reconciliation of non-GAAP measures to their most comparable GAAP measures can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future events and as such, involve some risks. We use words such as expects, believes and may to indicate forward-looking statements, and we encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations.

在我們今天的電話會議中，我們將參考非 GAAP 財務指標，我們認為這些指標對投資者有用，並且排除了某些項目的影響。這些項目的描述和時間安排，以及非 GAAP 措施與其最具可比性的 GAAP 措施的調節，可以在我們的收益發布中找到。今天的電話會議還將包含涉及未來事件的前瞻性陳述，因此涉及一些風險。我們使用預期、相信和可能等詞語來表示前瞻性陳述，我們鼓勵您查看我們向美國證券交易委員會提交的文件，以獲取有關可能導致實際結果與我們當前預期存在重大差異的因素的更多信息。

Finally, I'd like to remind everyone that this call is being recorded, and it will be made available for replay via a link available on the Investor Relations section of our website.

最後，我想提醒大家，這個電話正在錄音中，可以通過我們網站投資者關係部分的鏈接進行重播。

With that, I would now like to turn the call over to Patrick Goepel, Chairman and CEO. Pat?

有了這個，我現在想把電話轉給董事長兼首席執行官 Patrick Goepel。拍？

Thank you, Randal, and welcome, everyone, to Asure Software's First Quarter 2023 Earnings Call. I will begin today's presentation with an update on our business highlights and strategy, and then I'll turn the call over to our CFO, John Pence, for a more detailed review of our financial results and outlook for 2023. We will then conclude the session with time to answer your questions. as is demonstrated from our results, the strong momentum we built in the business in 2022 carried through to the first quarter of 2023.

謝謝 Randal，歡迎大家參加 Asure Software 的 2023 年第一季度收益電話會議。我將以我們的業務亮點和戰略的最新情況開始今天的演講，然後我會將電話轉給我們的首席財務官 John Pence，以更詳細地審查我們的財務業績和 2023 年展望。然後我們將結束會話與時間來回答你的問題。正如我們的業績所證明的那樣，我們在 2022 年建立的業務強勁勢頭一直持續到 2023 年第一季度。

Our revenues exceeded $33 million for the quarter, rising by 36% relative to the prior year's quarter, all of which was organic. Net income of $300,000 was a $3.4 million improvement from last year. Adjusted EBITDA more than doubled to $8.2 million from $3.4 million for a margin of 25%. It is also notable that our first quarter adjusted EBITDA was higher than we delivered in all of 2021, showing the growing significance of our scale and investments. In our non-GAAP gross profit margin climbed to $26 million from $17 million for a margin of 78% versus 68% in the prior year's quarter. We believe these results are the product of a very strong client reception to the investments and product enhancements we made across the business.

本季度我們的收入超過 3300 萬美元，比去年同期增長 36%，所有這些都是有機的。 300,000 美元的淨收入比去年增加了 340 萬美元。調整後的 EBITDA 從 340 萬美元增長了一倍多，達到 820 萬美元，利潤率為 25%。同樣值得注意的是，我們第一季度調整後的 EBITDA 高於我們 2021 年全年的交付水平，表明我們的規模和投資的重要性越來越大。在我們的非 GAAP 毛利率中，毛利率從 1700 萬美元攀升至 2600 萬美元，毛利率為 78%，而去年同期為 68%。我們相信這些結果是客戶對我們在整個業務中所做的投資和產品改進非常強烈的接受的產物。

It also reflects our efforts to streamline and consolidate our business processes so that we can take advantage of new opportunities such as those in the Asure marketplace. The strength of client reception to our solutions is notable in our new sales bookings, which grew by 163% in the quarter relative to prior year. The enhancements that we've made to our sales programs are working in the upgrades to our solutions are attracting strong demand. I also want to point out the growth we achieved this quarter is over and above the 43% growth rate we reported in new sales bookings in the comparable period last year.

它還反映了我們為簡化和整合業務流程所做的努力，以便我們可以利用 Asure 市場中的新機會。客戶對我們解決方案的接受程度在我們的新銷售預訂中很明顯，該季度與去年同期相比增長了 163%。我們對銷售計劃所做的改進正在對我們的解決方案進行升級，吸引了強勁的需求。我還想指出，我們本季度實現的增長超過了去年同期新銷售預訂的 43% 增長率。

Our revenue and margin performance, which was entirely organic, were driven by strong contribution from several parts of the business in the first quarter. The first is HR compliance. Our HR compliance solutions are resonating strongly in the market. In the quarter, our compliance revenues more than doubled relative to prior year as our solutions continue to drive cross-selling activity and attract new clients. These solutions ensure small and midsize businesses can navigate the increasingly complex regulations in federal, state and local jurisdictions, helping businesses to remain compliant in a very effective and scalable manner.

我們的收入和利潤率表現完全是有機的，受到第一季度業務多個部分的強勁貢獻的推動。首先是人力資源合規性。我們的人力資源合規解決方案在市場上引起強烈反響。本季度，由於我們的解決方案繼續推動交叉銷售活動並吸引新客戶，我們的合規收入比上一年增長了一倍多。這些解決方案確保中小型企業能夠駕馭聯邦、州和地方司法管轄區日益複雜的法規，幫助企業以非常有效和可擴展的方式保持合規性。

Next is our Asure marketplace solutions, Asure marketplace contributed meaningfully to our revenue performance in the quarter. We lost Asure marketplace in 2022 on the belief that our data and automation will enable us to broaden the scope of our solutions so we can offer new value to our clients and, of course, their employees. Asure marketplace leverages the vast amount of data in our domain and allows us to explore, test and create new sources of revenue. We continue to believe it could represent upwards of 30% to 40% of our overall revenues in the future. We are also continuing to expand the number and types of integrations we offer and expect to have further announcements in 2023.

接下來是我們的 Asure 市場解決方案，Asure 市場為我們本季度的收入表現做出了有意義的貢獻。我們在 2022 年失去了 Asure 市場，因為我們相信我們的數據和自動化將使我們能夠擴大解決方案的範圍，從而為我們的客戶，當然還有他們的員工提供新的價值。 Asure marketplace 利用我們領域中的大量數據，使我們能夠探索、測試和創造新的收入來源。我們仍然相信它可能占我們未來總收入的 30% 至 40% 以上。我們還將繼續擴大我們提供的集成的數量和類型，並預計將在 2023 年發布進一步的公告。

Interest revenues were also a strong contributor to revenue performance in the quarter. The rise in the yield curve has an important driver in this area. However, the real story is that the upside we're achieving is a result of our success in consolidating our back-office systems and bank accounts. These efforts have enabled us to drive higher investable balances and revenues, and John will talk more about this in his section.

利息收入也是本季度收入表現的重要貢獻者。收益率曲線的上昇在這方面具有重要的推動力。然而，真實情況是，我們取得的優勢是我們成功整合後台系統和銀行賬戶的結果。這些努力使我們能夠推動更高的可投資餘額和收入，John 將在他的部分中詳細討論這一點。

Lastly, I want to highlight the contribution to revenues from the processing of employee retention tax credit or ERTC. We have leveraged our differentiated tax processing capabilities to tap into this program on a very efficient basis. Notably, we converted 55% of each incremental dollar of revenues into adjusted EBITDA in the quarter relative to the prior year's quarter. This high flow-through is a direct result of our enhanced automation within our systems, our improved efficiencies via consolidation and increased penetration from high-margin revenue segments.

最後，我想強調處理員工保留稅收抵免或 ERTC 對收入的貢獻。我們利用我們差異化的稅務處理能力，非常有效地利用了這個項目。值得注意的是，相對於去年同期，我們在本季度將每一美元增量收入的 55% 轉換為調整後的 EBITDA。這種高流量是我們在系統中增強自動化、通過整合提高效率以及提高高利潤收入部門的滲透率的直接結果。

Now I will turn to the initiatives we have underway in 2023 and our progress in achieving the milestones on our journey. Let us begin with sales development. Sales development. Our focus in 2023 is on bundled offerings and new innovative products to drive value and diversify revenue streams. Behind these initiatives, we're driving performances by expanding our sales force and supporting our team with more effective marketing and sales lead development. Our bundling success has been particularly strong in HR compliance, where the value of the solutions is resonating with clients.

現在我將談談我們在 2023 年實施的舉措以及我們在實現我們的旅程中的里程碑方面取得的進展。讓我們從銷售發展開始。銷售發展。我們在 2023 年的重點是捆綁產品和新的創新產品，以推動價值和收入來源多樣化。在這些舉措的背後，我們正在通過擴大我們的銷售隊伍並通過更有效的營銷和銷售線索開發支持我們的團隊來推動業績。我們的捆綁成功在人力資源合規性方面尤為突出，解決方案的價值在這方面引起了客戶的共鳴。

We're also utilizing ERTC to cross-sell compliance and other solutions, which we expect to drive future reoccurring revenues. Our product initiatives have focused on the introduction of Asure marketplace and enhancements to our tax and treasury platforms. We believe that the Asure marketplace has the potential to transform our business in significant and positive ways. The marketplace supports a wide range of business-to-business and business-to-consumer applications, business applications can include income verification, tax preparation, retirement solutions and earn wage access. We're also developing consumer applications and expect those to be part of the Asure marketplace in the future. Asure marketplace supports Equifax's work number solution where we work with Equifax to provide data to help consumers with their mortgage applications, car loans, government benefits and other end users.

我們還利用 ERTC 交叉銷售合規性和其他解決方案，我們預計這將推動未來的經常性收入。我們的產品計劃側重於引入 Asure 市場和增強我們的稅務和財務平台。我們相信 Asure 市場有潛力以重要和積極的方式改變我們的業務。該市場支持廣泛的企業對企業和企業對消費者應用程序，業務應用程序可以包括收入驗證、稅務準備、退休解決方案和賺取工資。我們還在開發消費者應用程序，並希望這些應用程序將來成為 Asure 市場的一部分。 Asure marketplace 支持 Equifax 的工作號碼解決方案，我們與 Equifax 合作提供數據，以幫助消費者處理他們的抵押貸款申請、汽車貸款、政府福利和其他最終用戶。

Earlier this year, we also announced our partnership with ZayZoon to allow customers to offer their employees earned wage access, earned wage access allows employers to pay their employees in real time. This separates or differentiates employers in a competitive labor market and provides flexibility to employees. We believe earned wage access will be an increasingly common benefit moving forward, and we're very excited about our work with ZayZoon and the opportunity in this area. Another key initiative we've been working on is our strategic enhancements to the tax platform to capitalize on our unique position in the market. We're consolidating to a single tax engine introducing a new tax portal and improving technology to facilitate integrations, including ERTC processing. Overall, we anticipate this area of our business to deliver strong double-digit revenue growth in 2023, reflecting the enhancements we have made.

今年早些時候，我們還宣布了與 ZayZoon 的合作夥伴關係，允許客戶為其員工提供賺取工資的權限，賺取工資的權限允許雇主實時支付員工工資。這在競爭激烈的勞動力市場中將雇主分開或區分，並為僱員提供靈活性。我們相信，獲得工資將成為一種越來越普遍的福利，我們對與 ZayZoon 的合作以及在這一領域的機會感到非常興奮。我們一直在努力的另一項重要舉措是我們對稅務平台的戰略改進，以利用我們在市場上的獨特地位。我們正在整合為一個單一的稅務引擎，引入一個新的稅務門戶並改進技術以促進集成，包括 ERTC 處理。總體而言，我們預計該業務領域將在 2023 年實現兩位數的強勁收入增長，這反映了我們所做的改進。

Let's now turn to the enterprise efficiency initiatives. The goals of our efficiency plan are to create a leaner and more flexible organization to create a technology foundation to support our longer-term growth and to reduce costs. In terms of cost savings, our plan anticipates approximately $5 million in annual savings. We expect to implement the plan by year-end 2023, and we are on track to achieve this goal. Cost reductions have already begun from these initiatives, the consolidation of human capital management platforms to reduce duplication of efforts and accelerate product development, the increased use of robotics to enhance efficiency and improve automation and the standardization of processes and data to give us greater flexibility in operations and also to reduce costs.

現在讓我們轉向企業效率計劃。我們效率計劃的目標是創建一個更精簡、更靈活的組織，以創建技術基礎來支持我們的長期增長並降低成本。在成本節約方面，我們的計劃預計每年可節省約 500 萬美元。我們預計在 2023 年底前實施該計劃，我們正在按計劃實現這一目標。這些舉措已經開始降低成本，整合人力資本管理平台以減少重複工作並加速產品開發，增加機器人技術的使用以提高效率和改進自動化，以及流程和數據的標準化使我們在運營和降低成本。

We, on costs, these initiatives are expected to enable us to accelerate product development to enhance margins and to improve quality and service delivery with increased revenue retention. The acceleration of our sales activity and efficiency gains from our enterprise initiatives is a positive start to the year. Based on our performance and our current expectations, we are now introducing revised higher 2023 financial guidance.

在成本方面，我們預計這些舉措將使我們能夠加快產品開發，以提高利潤率，並通過增加收入保留來提高質量和服務交付。我們銷售活動的加速和企業舉措帶來的效率提升是今年的一個積極開端。根據我們的表現和目前的預期，我們現在推出修訂後的更高 2023 年財務指南。

We are now guiding for revenues of $111 million to $113 million and an adjusted EBITDA margin of 17% to 18%. Our previous guidance was for revenues of $105 million to $107 million and an adjusted EBITDA margin of 15% to 17%. Our 2023 guidance reflects our organic performance and does not include acquisitions. We're also introducing second quarter 2023 guidance of revenues of $25 million to $26 million, which is approximately 25% higher than the second quarter of 2022, all of which is expected to be organic growth. For adjusted EBITDA, we're guiding to $2.5 million to $3.5 million in the second quarter.

我們現在的指導收入為 1.11 億美元至 1.13 億美元，調整後的 EBITDA 利潤率為 17% 至 18%。我們之前的指導是收入為 1.05 億美元至 1.07 億美元，調整後的 EBITDA 利潤率為 15% 至 17%。我們的 2023 年指引反映了我們的有機表現，不包括收購。我們還推出了 2023 年第二季度 2500 萬至 2600 萬美元的收入指導，比 2022 年第二季度高出約 25%，預計所有這些都將實現有機增長。對於調整後的 EBITDA，我們預計第二季度為 250 萬至 350 萬美元。

As you can see from our guidance, we expect 2023 will be a strong year for revenues and adjusted EBITDA margins. We're excited about the year ahead and believe our investments in sales successes will drive performance in 2023 and beyond. Macroeconomic complexities continue to be on our radar but we believe our expanding portfolio of growth solutions are highly targeted sales initiatives and the business momentum will continue to drive performance in 2023 and beyond.

從我們的指引中可以看出，我們預計 2023 年將是收入和調整後 EBITDA 利潤率強勁的一年。我們對未來一年感到興奮，並相信我們對銷售成功的投資將推動 2023 年及以後的業績。宏觀經濟的複雜性繼續受到我們的關注，但我們相信，我們不斷擴大的增長解決方案組合是針對性很強的銷售舉措，業務勢頭將繼續推動 2023 年及以後的業績。

Now I would like to hand off to John to discuss our financial results in more detail. John?

現在我想請約翰更詳細地討論我們的財務業績。約翰？

Thanks, Pat. As Randal mentioned at the beginning of this call, several of the financial figures discussed today are given on a non-GAAP or adjusted basis. You will find a description of these GAAP to non-GAAP reconciliations in the earnings release that was made available earlier today. Reconciliations themselves are also included in our most recent investor presentation posted on the Investor Relations section of our website at investor.asuresoftware.com.

謝謝，帕特。正如 Randal 在本次電話會議開始時提到的，今天討論的一些財務數據是在非 GAAP 或調整後的基礎上給出的。您將在今天早些時候發布的收益報告中找到這些 GAAP 與非 GAAP 調節的描述。調節本身也包含在我們最新的投資者介紹中，該介紹發佈在我們網站 investor.asuresoftware.com 的投資者關係部分。

Now on to the first quarter results. Revenues reached $33.1 million in the first quarter, rising by 36% relative to prior year, all of which was organic. Recurring revenues rose 22% relative to prior year to $28 million, while non-recurring revenues more than tripled to $5.1 million. Our revenue improvement was broad-based and was made up of similar drivers as the fourth quarter of 2022 revenue growth with notable contributions from our recurring HR compliance business, which has seen success in their differentiated solution as well as being bundled with our ERTC offerings. Increased interest revenues with average client balances exceeding $220 million for the quarter and a contribution to revenues from Asure marketplace, which was introduced in the third quarter of 2022. Finally, we also experienced a nice uplift generating revenues from processing of earned retention tax credits, and you can see that impact on our professional services revenue.

現在來看看第一季度的結果。第一季度的收入達到 3310 萬美元，比去年同期增長 36%，所有這些都是有機收入。經常性收入較上年增長 22% 至 2800 萬美元，而非經常性收入增長兩倍多至 510 萬美元。我們的收入增長基礎廣泛，由與 2022 年第四季度收入增長類似的驅動因素組成，我們經常性的人力資源合規業務做出了顯著貢獻，該業務在差異化解決方案中取得了成功，並與我們的 ERTC 產品捆綁在一起。本季度平均客戶餘額超過 2.2 億美元，增加了利息收入，並對 2022 年第三季度推出的 Asure 市場的收入做出了貢獻。最後，我們還經歷了通過處理賺取的保留稅收抵免產生的收入的大幅提升，你可以看到這對我們專業服務收入的影響。

It's also important to keep in mind that the first quarter results are seasonally strong as recurring year-end W-2 ACA revenue is recognized in this period. We do expect our 2023 revenues to show the normal seasonal fluctuations. Net income for the quarter was $0.3 million, a $3.4 million improvement over the prior year's loss of $3 million. This is a notable achievement and reflects our scaling of our business as well as our improved operational efficiencies. Gross margins rose by 10 percentage points to 74% in the first quarter relative to prior year, while non-GAAP gross margins rose 9 percentage points to 78%. This reflects our strong revenue gains, the high margin mix of our growth and the impact of our standardization and consolidation efforts.

同樣重要的是要記住，第一季度的業績季節性強勁，因為在此期間確認了經常性的年終 W-2 ACA 收入。我們確實預計 2023 年的收入會出現正常的季節性波動。本季度的淨收入為 30 萬美元，比去年同期的虧損 300 萬美元減少了 340 萬美元。這是一項了不起的成就，反映了我們業務的擴展以及運營效率的提高。與去年同期相比，第一季度毛利率上升 10 個百分點至 74%，而非美國通用會計準則毛利率上升 9 個百分點至 78%。這反映了我們強勁的收入增長、我們增長的高利潤組合以及我們標準化和整合工作的影響。

EBITDA for the quarter was $6.8 million, a $4.3 million improvement from prior year's quarter of $2.6 million. Adjusted EBITDA rose by $4.8 million relative to prior year to $8.2 million, and our adjusted EBITDA margin reached 24.8% in the quarter compared with 14% in the prior year. Margin expansion was driven by growing high-margin revenue streams, continued progress with our efficiency initiatives and scale benefits from our growth. These gains more than offset the investments we are making and the expansion of our sales and marketing activities, as well as the development of technology to drive revenue success. We continue to believe there is substantial margin upside over the longer term as the business scales. We ended the quarter with cash and cash equivalents of $21.4 million. We also had $35.9 million of debt, which is comprised of $30.5 million drawn under our senior credit facility with the remainder made up of seller notes from acquisitions.

本季度的 EBITDA 為 680 萬美元，比去年同期的 260 萬美元增加了 430 萬美元。調整後的 EBITDA 比去年同期增加 480 萬美元，達到 820 萬美元，本季度調整後的 EBITDA 利潤率達到 24.8%，而去年同期為 14%。利潤率的增長是由不斷增長的高利潤收入流、我們的效率計劃的持續進展以及我們的增長帶來的規模效益推動的。這些收益遠遠抵消了我們正在進行的投資和我們銷售和營銷活動的擴展，以及推動收入成功的技術發展。我們仍然相信，隨著業務規模的擴大，從長遠來看，利潤率會有很大的上升空間。本季度末，我們的現金和現金等價物為 2140 萬美元。我們還有 3590 萬美元的債務，其中包括在我們的高級信貸額度下提取的 3050 萬美元，其餘部分由收購的賣方票據組成。

Now in terms of our guidance for the second quarter and full year 2023, our guidance is offered with a backdrop of continued economic uncertainty and a dynamic labor market. We are raising our full year 2023 revenue guidance to a range of $111 million to $113 million and adjusted EBITDA margin to a range of 17% to 18%. We are also introducing guidance for the second quarter revenues of $25 million to $26 million and adjusted EBITDA of $2.5 million to $3.5 million. Our revenue performance was strong in multiple categories in the first quarter, with trends building on the momentum we developed in the second half of 2022. These results are encouraging and inform our outlook for 2023. We expect continued positive momentum and bundling success with our HR compliance and tax processing solutions. We believe our multi-tiered HR offerings and automated ERTC filing capabilities are resonating with our small and midsize business customers.

現在，就我們對 2023 年第二季度和全年的指導而言，我們的指導是在持續的經濟不確定性和充滿活力的勞動力市場的背景下提供的。我們將 2023 年全年收入指引上調至 1.11 億美元至 1.13 億美元，並將 EBITDA 利潤率調整至 17% 至 18%。我們還引入了 2500 萬美元至 2600 萬美元的第二季度收入指引和 250 萬美元至 350 萬美元的調整後 EBITDA。第一季度，我們在多個類別的收入表現強勁，趨勢建立在我們 2022 年下半年發展的勢頭之上。這些結果令人鼓舞，並為我們 2023 年的展望提供了信息。我們預計人力資源將繼續保持積極勢頭並取得成功合規和稅務處理解決方案。我們相信我們的多層人力資源產品和自動化 ERTC 歸檔功能正在引起我們的中小型企業客戶的共鳴。

Asure marketplace is also expected to be an important driver in 2023. We are growing our list of partners and expect strong momentum from this solution. This is the result of a dedicated effort to enhance our technology and to leverage the data we have in our business. For other projects are anticipated to go live in the coming quarters. Regarding interest income, we have enjoyed our best quarter yet with float as our consolidated efforts have enabled us to take full advantage of rising rates. We believe quote revenue will be a strong contributor to our revenue performance in 2023. We are also continuing to advance our product development, sales development and our centralization initiatives as we focus on high-margin revenue streams and generating efficiencies in operating savings. In terms of acquisitions, while nothing is imminent, we will continue to be prudent in evaluating targets and will execute if the right opportunity arises to create value for our channels.

預計 Asure 市場也將成為 2023 年的重要驅動力。我們正在擴大合作夥伴名單，並期待該解決方案的強勁勢頭。這是致力於增強我們的技術和利用我們在業務中擁有的數據的不懈努力的結果。對於其他項目，預計將在未來幾個季度上線。關於利息收入，我們享受了迄今為止最好的浮動季度，因為我們的綜合努力使我們能夠充分利用利率上升的優勢。我們相信，報價收入將對我們 2023 年的收入業績做出重要貢獻。我們還將繼續推進我們的產品開發、銷售開發和集中化計劃，因為我們專注於高利潤收入流並提高運營節約的效率。在收購方面，雖然一切都不是迫在眉睫，但我們將繼續審慎評估目標，並在合適的機會出現時執行，為我們的渠道創造價值。

With that, I will turn the call back to Pat for closing remarks.

有了這個，我會把電話轉回給帕特，讓他發表結束語。

Thanks, John. I'd like to conclude by saying we are very pleased with our performance in the first quarter of 2023 with notable successes in the following areas. First, we grew revenues organically by 36% year-over-year in the first quarter, driven by new sales bookings growth of 163% across multiple products. The successes that we had are the result of a lot of hard work over several quarters to enhance our products and a focus on our sales efforts in building out our sales team. We're continuing to invest in product and technology to create a foundation for sustainable growth, and we made strides in enhancing our human capital management, tax and treasury systems. These enhancements will help bolster our suite of offerings and provide our sales force with increased cross-selling opportunities.

謝謝，約翰。最後，我想說我們對我們在 2023 年第一季度的表現感到非常滿意，我們在以下領域取得了顯著的成功。首先，在多個產品的新銷售預訂增長 163% 的推動下，我們第一季度的收入同比有機增長 36%。我們取得的成功是幾個季度為改進我們的產品所做的大量努力以及專注於我們的銷售工作以建立我們的銷售團隊的結果。我們繼續投資於產品和技術，為可持續增長奠定基礎，我們在加強人力資本管理、稅收和財政系統方面取得了長足進步。這些增強功能將有助於加強我們的產品組合，並為我們的銷售人員提供更多的交叉銷售機會。

We also improved our cost structure and efficiencies by pursuing consolidation and standardization initiatives. As a result, we are on track to deliver annual savings of $5 million annually once the implementation is complete. These efforts enabled us to deliver margin expansion with quarter 1 adjusted EBITDA margins reaching 25% and non-GAAP gross margins reaching 78%. Fourth, 2023, based on our current outlook, we anticipate delivering double-digit organic revenue growth and strong adjusted EBITDA margin gains, our revised higher revenue guidance anticipates positive momentum with our HR compliance and our tax solutions, reflecting the upgrades we have made and leveraging our prior success in bundling our solutions.

我們還通過實施整合和標準化舉措改善了成本結構和效率。因此，一旦實施完成，我們有望每年節省 500 萬美元。這些努力使我們實現了利潤率擴張，第一季度調整後的 EBITDA 利潤率達到 25%，非 GAAP 毛利率達到 78%。第四，根據我們目前的展望，到 2023 年，我們預計將實現兩位數的有機收入增長和強勁的調整後 EBITDA 利潤率收益，我們修訂後的更高收入指引預計我們的人力資源合規性和稅務解決方案將呈現積極勢頭，反映出我們所做的升級和利用我們先前在捆綁解決方案方面取得的成功。

We also believe that Asure marketplace is a game changer for Asure as it enables us to leverage our technology and data to deliver new high-margin revenue streams -- interest revenues also are anticipated to continue to increase due to the rise in rates and investable balances. As we continue to grow in 2023 and beyond, we expect efficiencies through the scale and consolidation to drive continued margin expansion, ultimately, guiding us to sustainable positive net income and free cash flow.

我們還相信 Asure 市場是 Asure 的遊戲規則改變者，因為它使我們能夠利用我們的技術和數據來提供新的高利潤收入流——由於利率和可投資餘額的上升，預計利息收入也將繼續增加.隨著我們在 2023 年及以後繼續增長，我們預計通過規模和整合提高效率將推動利潤率持續擴張，最終引導我們實現可持續的正淨收入和自由現金流。

In conclusion, we're very excited about the performance of the business in our future direction we're eager for the quarters and years to come and remain focused on delivering consistent results for our stakeholders. We look forward to speaking with you again next quarter or at one of our many investor conferences we're attending in the second quarter.

總之，我們對業務在我們未來方向的表現感到非常興奮，我們渴望在未來的幾個季度和幾年內繼續專注於為我們的利益相關者提供一致的結果。我們期待在下個季度或在第二季度參加的眾多投資者會議中再次與您交談。

So with that, I'll turn the call back to the operator for the question-and-answer session. Operator?

因此，我會將電話轉回接線員進行問答環節。操作員？

(Operator Instructions) Our first question or comment comes from the line of Joshua Reilly from Needham & Company.

（操作員說明）我們的第一個問題或評論來自 Needham & Company 的 Joshua Reilly。

Great job on the execution here in the quarter. It's fun to see these other items layering in the model. I guess just on the ERTC. As we see that coming through the rest of the year here, maybe you can help us with how we should think about how the ERTC is going to be layering into pro services and other revenue. Can you just review, are some customers bringing large batches at once and then there's a steady state amount after that, that they bring you? Or how is that working exactly?

本季度這裡的執行工作做得很好。看到這些其他項目在模型中分層很有趣。我想就在 ERTC 上。正如我們在今年餘下時間看到的那樣，也許您可以幫助我們考慮如何考慮 ERTC 將如何分層到專業服務和其他收入中。你能不能回顧一下，一些客戶是否一次帶來了大批量，然後他們給你帶來了穩定的數量？或者它是如何工作的？

There's a lot of questions there, Josh. I'll try to address them. As it kind of factors into the balance of the year, we've not taken a ton of extra credit into the balance of the year for ERTC. We think it will be some, but probably not at the same levels that we've had in Q4 and Q1. At least that's not what we've modeled point, and they're all different flavors. We have some, where we do have these minimum relationships, and then we have some, where we're just directly contracting with the customers. So it's a little bit of all different flavors.

喬什，那裡有很多問題。我會嘗試解決這些問題。由於它會影響年度餘額，因此我們沒有將大量額外信用計入 ERTC 的年度餘額。我們認為會有一些，但可能不會達到我們在第四季度和第一季度的水平。至少那不是我們建模的重點，而且它們都是不同的口味。我們有一些，我們確實有這些最低限度的關係，然後我們有一些，我們只是直接與客戶簽訂合同。所以它有一點點不同的味道。

Got it. And then a follow-up on EBITDA guidance here. It implies pretty healthy margins, which is great to see the nice uplift here. Can you just help us parse out how much of the uplift specifically this quarter in the EBITDA margin guidance for the year is from higher interest income assumptions in the model versus other sources of margin accretive revenue like ERTC and marketplace entering the model?

知道了。然後在此處對 EBITDA 指南進行跟進。這意味著相當健康的利潤率，很高興看到這裡的良好提升。你能幫我們分析一下本季度 EBITDA 利潤率指導中有多少具體的提升是來自模型中更高的利息收入假設，而不是其他利潤增加收入來源，如 ERTC 和進入模型的市場？

So I mean I'll take a shot and you can give your perspective. I think in terms of the model, what we've tried to demonstrate both Q4 and Q1 is that as we add these incremental revenues to the top line, we think we've got a pretty efficient operating model. So it's kind of -- it's like the (inaudible) concept, which dollar contributes to that incremental dollar to the margin. I don't know. I mean it's a combination of marketplace, high margin, flows to high margin. ERTC a pretty high margin, right? It's a compliance that pretty high margin. So what we're really doing is adding a lot of different revenue streams that are high margin. So I wouldn't attribute the increase in guidance and the flow-through to one specific revenue stream personally. I don't know, Pat, you…

所以我的意思是我會試一試，你可以給出你的觀點。我認為就模型而言，我們試圖在第四季度和第一季度展示的是，當我們將這些增量收入添加到頂線時，我們認為我們擁有一個非常有效的運營模型。所以它有點 - 就像（聽不清）概念，美元對邊際的增量美元有貢獻。我不知道。我的意思是它是市場、高利潤、流向高利潤的結合。 ERTC 的利潤率相當高，對吧？這是一個相當高的保證金合規性。所以我們真正在做的是增加許多不同的高利潤收入來源。因此，我個人不會將指導和流量的增加歸因於一個特定的收入來源。我不知道，帕特，你……

Yes, Josh. And I would agree with it, John. I think if you think about the first quarter, we had approximately $5 million or so of W-2s, compared to $4.2 million last year. That in and itself is going to create some high margin in the quarter. ERTC, if you look at the onetime revenues, professional services, if you assume run rate, usually, it's about $1.5 million the rest would be ERTC, we're guiding what we think is appropriately with the visibility we have in Q2 and the rest of the year, where, obviously, the operational and gross margin improvements we've made over the last couple of years are starting to pay off. And we believe the guide is appropriate, and we do think we have some upside based on volume, if it's there. But right now, we think that's the appropriate guide, and we're pleased that we were able to raise guidance now 2 quarters in a row.

是的，喬希。我同意，約翰。我想如果你想想第一季度，我們有大約 500 萬美元左右的 W-2，而去年是 420 萬美元。這本身將在本季度創造一些高利潤。 ERTC，如果你看一下一次性收入，專業服務，如果你假設運行率，通常情況下，它大約是 150 萬美元，其餘的將是 ERTC，我們正在指導我們認為適當的我們在第二季度和其他時間的可見性很明顯，我們在過去幾年中取得的運營和毛利率改善開始得到回報。我們相信該指南是合適的，我們確實認為我們有一些基於數量的上行空間，如果有的話。但現在，我們認為這是合適的指南，我們很高興能夠連續兩個季度提高指南。

Got it. Fun to see the strong results.

知道了。看到強大的結果很有趣。

Thanks, Josh. Appreciate it.

謝謝，喬希。欣賞它。

Our next question comment comes from the line of Bryan Bergin from Cowen and Company.

我們的下一個問題評論來自 Cowen and Company 的 Bryan Bergin。

I guess just wanted to start off at a high level on the demand environment. So you clearly carried strong momentum here. But would value your perspective on any changes at all versus, let's say, 3 months ago, just given the U.S. banking volatility since we last spoke. So is there any nuances in client behavior that's changed? And then anything you can comment on through April?

我想只是想從高層次的需求環境開始。所以你顯然在這裡帶來了強勁的勢頭。但會重視你對任何變化的看法，比方說，3 個月前，只是考慮到自我們上次談話以來美國銀行業的波動。那麼，客戶行為是否有任何細微差別發生了變化？然後到四月份你有什麼可以評論的嗎？

Yes. We haven't seen it. I mean, I think volume has been really positive in the small business marketplace. I think there's trepidation in obviously to regional banks and some of that stuff. But as far as just creating buying behavior, we just haven't seen it right now. Our clients still can't find enough employees. Maybe when they would look for 5, they're looking for 3, but they're still looking for employees. I think the trepidation is more what will come. And if 2 or 3 regional banks is in or is there going to be more down the horizon, I think those are the questions that they have. But as far as running their business, growing their business, we haven't seen a great deal of behavior change lately.

是的。我們還沒有看到它。我的意思是，我認為小企業市場的交易量非常積極。我認為區域銀行和其中一些東西顯然會感到不安。但就創造購買行為而言，我們現在還沒有看到。我們的客戶仍然找不到足夠的員工。也許當他們尋找 5 人時，他們正在尋找 3 人，但他們仍在尋找員工。我認為恐懼更多的是將要發生的事情。如果有 2 家或 3 家地區性銀行存在，或者未來還會有更多，我認為這些就是他們面臨的問題。但就經營他們的業務、發展他們的業務而言，我們最近沒有看到很大的行為變化。

The only thing I would add potentially is you're reading the same stuff that we are. I think just what goes on in cars with debt ceiling and do they, in fact, create a recession by their behavior. I think that's the other thing that's kind of going on in the background. But again, to Pat's point, I think we've seen it manifest in our results yet, but I do think that's at least what everybody is talking about when we talk to the people.

我唯一可能要補充的是，您正在閱讀與我們相同的內容。我認為在有債務上限的汽車中發生的事情，事實上，他們的行為是否造成了經濟衰退。我認為這是在後台發生的另一件事。但同樣，對於 Pat 的觀點，我認為我們已經在我們的結果中看到它的體現，但我確實認為這至少是我們與人們交談時每個人都在談論的內容。

Okay. Okay. Understood. And then pivoting to margin, maybe margin progression. So can you just talk about your investment initiatives as you're going to progress through the year? Just looking at the EBITDA outlook, the EBITDA margin in 2Q and then the implied second half the EBITDA margin, any key considerations we should be mindful of whether it's revenue mix or timing of investments as you move through the balance of the year?

好的。好的。明白了。然後轉向保證金，也許是保證金進展。那麼，您能否談談您將在這一年取得進展的投資計劃？只要看看 EBITDA 前景，第二季度的 EBITDA 利潤率，然後是隱含的下半年 EBITDA 利潤率，我們應該注意的任何關鍵考慮因素是收入組合還是投資時機，因為您在今年的餘額中移動？

No, I think that John, you can answer as well. I think just at a macro level, we're investing in product. We're investing in salespeople. We think we've made some healthy investments to date, and we'll continue to invest in that. As far as growth or growth drivers or HR compliance, the marketplace, tax and ERTC and float in addition to just driving more bundles of products and services. So we'll continue down that playbook. We think we have pretty good visibility in not only revenue but also margin and we'll continue to make some investments to grow the business.

不，我認為約翰，你也可以回答。我認為就宏觀層面而言，我們正在投資於產品。我們正在投資於銷售人員。我們認為迄今為止我們已經進行了一些健康的投資，我們將繼續投資於此。就增長或增長驅動因素或人力資源合規性而言，市場、稅收和 ERTC 以及浮動除了推動更多的產品和服務捆綁外。因此，我們將繼續執行該劇本。我們認為我們不僅在收入方面而且在利潤方面都有很好的知名度，我們將繼續進行一些投資以發展業務。

Yes. I would just say that -- I mean, I think in general, some of the employment environment helped us. We've been able to opportunistically add some people into the debt environment and also into the sales environment. We had a budget for the year, but we've been able to get them in earlier than we might have hoped. So I think we're actually optimistic with some of those hires that they'll start to contribute earlier. So that's the only thing I would say back to past points.

是的。我只想說——我的意思是，我認為總的來說，一些就業環境對我們有所幫助。我們已經能夠機會主義地將一些人添加到債務環境和銷售環境中。我們有當年的預算，但我們已經能夠比我們希望的更早地投入使用。所以我認為我們實際上對其中一些員工感到樂觀，他們會更早開始做出貢獻。所以這是我唯一要說的回到過去的觀點。

Does that go for sales as well? Or was that mostly debt?

這也適用於銷售嗎？還是那主要是債務？

No. We have some good sales hires as well this quarter.

不，本季度我們也有一些優秀的銷售人員。

Our next question or comment comes from the line of Eric -- I'm sorry. Eric Martinuzzi from Lake Street Capital Markets.

我們的下一個問題或評論來自埃里克——對不起。來自 Lake Street Capital Markets 的 Eric Martinuzzi。

Congrats as well on the quarter and the outlook. Just curious regarding the cost structure, this $5 million of annualized savings by the end of the year. Is there -- are there people related cuts that are coming here? Is this all on the back of integrated systems and the elimination of maybe some consultants, where is that savings coming from?

也祝賀本季度和前景。只是對成本結構感到好奇，到年底每年可節省 500 萬美元。是否有 - 是否有與人相關的削減即將到來？這一切都是在集成系統的支持下進行的，並且可能會取消一些顧問，這些節省來自哪裡？

Exactly. Yes, it's a combination -- it's not a white switch event. We've been working on this for the last couple of years, trying to get the business more standardized and nationalized. We're just starting to see some of the benefits of that, both on the system side as well as on the operations side. So I think we're starting to realize some of the efforts that we've been putting forth. And again, we're putting those dollars back to work again in terms of putting it into the product and put it in the sales force that they hopefully start to create that momentum going forward for us and continue that momentum going forward for us.

確切地。是的，它是一個組合——它不是一個白色開關事件。在過去的幾年裡，我們一直致力於此，試圖讓業務更加標準化和國有化。我們才剛剛開始看到它的一些好處，無論是在系統方面還是在運營方面。所以我認為我們開始意識到我們一直在付出的一些努力。再一次，我們將這些美元重新投入到產品中，並將其投入到銷售隊伍中，希望他們開始為我們創造前進的動力，並繼續為我們前進。

Eric, I'll give maybe an example. And while I think it ties to your question in a limited world, but we put some calories and thought into a treasury system internally. And what we were able to do is go from 125 bank accounts to less than 20. So from a systems perspective, we were able to make those changes, same costs in the bank fees that we were paying to the tune of $800,000. What we were also able to do is build an automated or a more automated check reconciliation process as part of that.

埃里克，我可能會舉個例子。雖然我認為這與你在有限世界中的問題有關，但我們在內部將一些卡路里和想法放入了財務系統。我們能夠做的是從 125 個銀行賬戶減少到不到 20 個。所以從系統的角度來看，我們能夠做出這些改變，我們支付的銀行費用相同，達到 800,000 美元。我們還能夠做的是構建一個自動化或更自動化的支票對賬流程，作為其中的一部分。

So we were able to do more with less and take some people out of that reconciliation process by making it easier and then as well as automate the process. And then when you look at some feature functionality that we're able to build with some of the regional banks ran into some potential issues, we were able to isolate those accounts right away and not have to really do a ton of manual effort. So that's one example within about 7 pretty big projects that we've been able to not only get some savings, and we'll have some savings to come. But then as John stated, redeploy them into development and sales resources.

因此，我們能夠事半功倍，通過簡化和自動化流程，讓一些人不再參與對帳流程。然後，當您查看我們能夠與一些區域性銀行一起構建的某些功能時，遇到了一些潛在問題，我們能夠立即隔離這些帳戶，而不必真正進行大量手動操作。所以這是大約 7 個相當大的項目中的一個例子，我們不僅能夠節省一些費用，而且我們還會節省一些費用。但正如約翰所說，將他們重新部署到開發和銷售資源中。

Our next question or comment comes from the line of Jeff Van Rhee from Craig-Hallum Capital Group.

我們的下一個問題或評論來自 Craig-Hallum Capital Group 的 Jeff Van Rhee。

A number for me. First, obviously, Pat, you've done a lot on the product side. You've got a lot of capabilities. I think the pace of innovation is probably the highest I've seen. Have you seen specifically as it relates to new customer capture changes in win rates to the degree that you can track them and measure them?

給我一個號碼。首先，顯然，帕特，你在產品方面做了很多工作。你有很多能力。我認為創新的步伐可能是我見過的最快的。您是否特別看到它與新客戶捕獲的贏率變化相關，以至於您可以跟踪和衡量它們？

We definitely have seen the volume go up quite a bit. Our pipeline is very strong. When you think at a pace of change, it's almost in every area of the business. We invested in software tools around marketing, marketing lead sources are up over 40% of new sales is a marketing-led process that was probably 18% a year ago. So continuing to drive results in that area. We're getting more at due to kind of the pipeline.

我們肯定已經看到音量增加了很多。我們的管道非常強大。當您以變化的步伐思考時，它幾乎遍及業務的每個領域。我們投資了圍繞營銷的軟件工具，營銷線索來源佔新銷售額的 40% 以上是營銷主導的流程，一年前這一比例可能為 18%。因此，繼續推動該領域的成果。由於某種管道，我們得到了更多。

Our win rates are going up and they're increasingly going up in a bundle when we lead with either ERTC, HC compliance, we have higher win rates and able to capture the business owner as opposed to perhaps a functional leader. So those are the reasons why we've been able to win and then kind of continuing to drive a more modern UI and a modern system, we're gaining kind of win rates as we speak. But we also think we have a number of items that we're early in this journey, and we'll get those breakthrough results continuing all throughout the year and early next. So it's a journey, and it's a series of small differences on all aspects of it, but really, really pleased where we're at.

當我們以 ERTC、HC 合規性領先時，我們的獲勝率正在上升，並且它們越來越多地捆綁在一起，我們有更高的獲勝率，並且能夠吸引企業主，而不是職能領導者。所以這就是我們能夠獲勝然後繼續推動更現代的用戶界面和現代系統的原因，我們正在獲得某種程度的獲勝率。但我們也認為我們有許多項目處於這一旅程的早期階段，我們將在全年和明年初繼續取得這些突破性成果。所以這是一段旅程，它在各個方面都有一系列細微的差異，但我們真的非常高興我們所處的位置。

Makes sense. I mean, obviously, you're seeing good cross-sell, upsell and presumably larger deal counts. What about the seats, the tax ID numbers being processed on a weekly or monthly basis, what kind of an growth have you seen kind of year-over-year recently? And how does that compare to 3, 6 months ago?

說得通。我的意思是，很明顯，你看到了良好的交叉銷售、追加銷售和可能更大的交易數量。每週或每月處理的席位、稅號如何，您最近看到了什麼樣的同比增長？與 3、6 個月前相比如何？

I mean, I just think W-2s. I mean we did $4.2 million in W-2 revenue last year, we did close to $5 million this year. There -- clearly, that means we're getting more revenue for W-2s and in effect, a good proxy for people that we produce payroll in. But it's not just payroll, right? Our HR compliance line is more than double than so not only the companies that are using payroll but also using HR compliance has gone up dramatically, and we're still at a relatively low penetration rate. So for us, it's about the marketplace. It's about more people on the platform, more companies on the platform and then a really good cross-sell component that allows them to use more and more products and services.

我的意思是，我只是認為 W-2s。我的意思是我們去年的 W-2 收入為 420 萬美元，今年接近 500 萬美元。那裡 - 顯然，這意味著我們獲得了更多的 W-2 收入，實際上，這是我們產生工資的人的一個很好的代表。但這不僅僅是工資，對吧？我們的人力資源合規線比原來多了一倍多，因此不僅使用工資單的公司而且使用人力資源合規性的公司都大幅增加，而且我們的滲透率仍然相對較低。所以對我們來說，這是關於市場的。這是關於更多的人在平台上，更多的公司在平台上，然後是一個非常好的交叉銷售組件，允許他們使用越來越多的產品和服務。

Okay. Just 2 other quick ones for me then. Just sales headcount now and goals maybe by year-end and then the last would be, Pat, you mentioned some consumer apps that you're thinking of with respect to marketplace. I don't know if you want to tip your hand, but even giving a broader sense of what might be to come there would be interesting.

好的。對我來說只有另外兩個快速的。現在只是銷售人員數量，目標可能是年底，然後最後一個是，帕特，你提到了一些你正在考慮的與市場相關的消費者應用程序。我不知道你是否願意透露你的手，但即使更廣泛地了解那裡可能會發生什麼也會很有趣。

Yes. I think, first of all, sales into, I think March 31, we were at 94%. We'll be over 100 here in the second quarter. We'll give you kind of a proxy in the third and fourth quarter. But I would assume we'll be in the low 100s over the rest of the year. As far as consumer apps, et cetera, I think one of the areas where we roll out the ZayZoon relationship, which is earned wage access. Obviously, our employees now have access if they want to get paid on an off-cycle payment to 12 times a year to deal with rent. They have the opportunity to do that and they can do that with a click on a button, that's an example of it. I think you'll see a more formal rollout of the employee and employer portal that really addresses that. But that's probably the second half of the year. So I'll raise that in one of the future earnings calls, but that's kind of a tip to where we're going.

是的。我認為，首先是銷售額，我認為 3 月 31 日，我們達到了 94%。我們將在第二季度超過 100 人。我們會在第三和第四季度給你一個代理。但我認為我們將在今年餘下的時間裡保持在 100 左右。就消費者應用程序等而言，我認為我們推出 ZayZoon 關係的領域之一是賺取工資。顯然，我們的員工現在可以使用每年 12 次的非週期付款來處理租金。他們有機會這樣做，他們可以通過單擊按鈕來做到這一點，這就是一個例子。我認為您會看到更正式的員工和雇主門戶網站的推出，真正解決了這個問題。但這可能是今年下半年。因此，我將在未來的一次財報電話會議上提出這一點，但這是我們前進方向的一個提示。

Our next question or comment comes from the line of Greg Gibas from Northland Capital Securities.

我們的下一個問題或評論來自 Northland Capital Securities 的 Greg Gibas。

Congrats on the quarter. Wondering what you expect maybe the marketplace to contribute to the top line this year as a percentage of the total?

祝賀這個季度。想知道您期望今年市場對總收入的貢獻百分比是多少？

Yes, Greg, first of all, welcome to coverage universe. We appreciate you Northland covering us and Northland is a great firm. So thank you. What I would say in the marketplace, we announced a couple of press releases here with Harbor Compliance and ZayZoon. I think the rollout of ZayZoon is just starting to happen. I think you'll see more revenue in the back half of the year. A rollout of the marketplace is company specific. It's a technical interface as well as in some areas like ZayZoon a consumer adoption so it takes some time.

是的，格雷格，首先，歡迎來到報導世界。感謝您向 Northland 報導我們，Northland 是一家偉大的公司。所以謝謝。我要在市場上說的是，我們在這裡與 Harbor Compliance 和 ZayZoon 宣布了幾份新聞稿。我認為 ZayZoon 的推出才剛剛開始。我認為你會在今年下半年看到更多的收入。市場的推出是公司特定的。它是一個技術界面，在某些領域（如 ZayZoon）是消費者採用的，因此需要一些時間。

I think it will be more meaningful in '24, but it'll continue to be revenue in 2023. I think you'll see announcements at the pace of about 2 a quarter throughout 2023 and more to come in that area. But the marketplace is -- the idea is strong. We see some really nice opportunities. It does take a while to set them off. But once you do, you have some meaningful revenues. So we're excited about the model. And you'll see some activity and we'll telegraph that. And then over time, you'll see more revenue and we'll provide updates quarterly on that.

我認為它在 24 年會更有意義，但它會在 2023 年繼續成為收入。我認為你會在整個 2023 年看到每季度發布 2 次左右的公告，並且該領域還會有更多公告。但市場是——這個想法很強大。我們看到了一些非常好的機會。確實需要一段時間才能將它們關閉。但是一旦你這樣做了，你就會有一些有意義的收入。所以我們對這個模型感到興奮。你會看到一些活動，我們會用電報表示。然後隨著時間的推移，你會看到更多的收入，我們將每季度提供更新。

Okay. Sounds good. Wanted to follow up on kind of the increased margins. Great to see the expectations for the year going up. Wondering how much of that improvement is a result of increased scale from revenue growth versus maybe the improving operating efficiencies you've been talking about?

好的。聽起來不錯。想要跟進增加的利潤率。很高興看到對這一年的期望上升。想知道這種改進有多少是收入增長帶來的規模擴大的結果，而不是您一直在談論的運營效率的提高？

Yes, I think it's -- again, I try to address this comment again. I think it's a combination, right? So the revenues that we are adding incremental are very, very high margin and have a pretty solid fall through. So I think it's taking cost out of the structure and redeploying those into the R&D and sales areas. But then simultaneously adding revenue streams to the top line that have a pretty healthy fall through. So I think it's a combination of both of those.

是的，我認為它是——再次，我嘗試再次解決這個評論。我認為這是一個組合，對吧？因此，我們增加的增量收入是非常非常高的利潤率，並且有相當可觀的下降。因此，我認為它正在將成本從結構中剔除，並將其重新部署到研發和銷售領域。但同時將收入流添加到收入下降非常健康的收入流中。所以我認為這是兩者的結合。

Yes. And the only thing I would add is, I think we've talked about this before, but it's a high fixed cost business with the platform investments. And for example, you have a tax change, the programming on a tax change, whether you have one client or 100,000 clients, it's the same amount of work. We feel like we've gotten through the high fixed cost, and we're getting into a kind of rhythm of some incremental fall-through and we're pleased with that fall through. And as we get scale, the benefits of scale, if we do this right, every piece of work becomes a little bit cheaper at scale than the previous, and we believe we're on that track. And then as John said, the mix has been favorable as well for us where we've been able to layer in higher-margin products. So really excited about the opportunity and where we could go. We're just getting started and to be able to raise margin again is very rewarding for us.

是的。我唯一要補充的是，我想我們之前已經討論過這個問題，但這是一項平台投資的高固定成本業務。例如，你有一個稅收變化，稅收變化的編程，無論你有一個客戶還是 100,000 個客戶，工作量都是一樣的。我們覺得我們已經度過了高昂的固定成本，我們正在進入一種漸進式跌倒的節奏，我們對這種跌倒感到滿意。隨著規模的擴大，規模的好處，如果我們做對了，每件作品的規模都會比以前便宜一點，我們相信我們在這條軌道上。然後正如約翰所說，這種組合對我們也很有利，因為我們能夠在利潤率更高的產品中分層。對這個機會和我們可以去的地方感到非常興奮。我們才剛剛開始，能夠再次提高利潤率對我們來說是非常有益的。

Got it. Helpful. I guess the last one for me, just relating to the recurring revenue growth, nice to see it up 22% year-over-year. I noticed it was a little bit lower than the 25% growth you saw last quarter. Just wondering if you can give a sense of maybe what that driver was?

知道了。有幫助。我想最後一個對我來說，只是與經常性收入增長有關，很高興看到它同比增長 22%。我注意到這比上個季度 25% 的增長率略低。只是想知道您是否可以大概了解那個驅動程序是什麼？

Yes. I don't know, quarter-over-quarter, I mean, sales have been very strong. Bookings have been strong. Retention was a little bit ahead. I don't think there was anything super notable. I think for us, we were happy with the results and happy with the growth. Maybe there was a little anomaly in the compare, but I don't think there was anything that stood out that we were concerned about.

是的。我不知道，環比，我的意思是，銷售一直非常強勁。預訂量一直很大。保留有點超前。我認為沒有什麼特別值得注意的。我認為對我們來說，我們對結果和成長感到滿意。也許比較中有一點異常，但我不認為有任何我們關心的突出問題。

Okay. Fair enough. Appreciate it, guys. Thanks.

好的。很公平。欣賞它，伙計們。謝謝。

(Operator Instructions) Our next question comment comes from the line of Rich Baldry from ROTH MKM.

（操作員說明）我們的下一個問題評論來自 ROTH MKM 的 Rich Baldry 系列。

Could you maybe talk about the growth in the new sales bookings. I think you said it was 163% on top of a pretty tough compare year-over-year. How do you feel about your ability to keep growing that? Is that an area where maybe you're understaffed or stressed star and maybe you could talk about sales tenure in that area? Is that one of the things that's helping you sort of trying to get a gauge for how much capacity you have to keep that up. And then maybe tag that with how broad you saw that new sales bookings. Was it concentrated around verticals or geographies or in the enterprise partner side? Or do you feel it was pretty broad-based?

你能談談新銷售預訂的增長嗎？我想你說的是 163%，這是一個非常艱難的同比比較。您如何看待自己保持增長的能力？在那個領域你可能人手不足或壓力很大，也許你可以談談那個領域的銷售任期？這是幫助您嘗試衡量您必須保持多少容量的事情之一嗎？然後也許用你看到的新銷售預訂的範圍來標記它。它是集中在垂直行業或地理區域，還是集中在企業合作夥伴方面？還是您覺得它的基礎很廣泛？

Yes. Thanks, Rich, and thanks for a thoughtful question. First of all, I think from a numbers game, we're going to continue to invest in sales from the numbers but what I'm most pleased with from a sales perspective is our marketing programs are really starting to pay off. Our cadence is really get our pipeline is growing. And then what I would say the investment we made really since December of '19, our turnover has been low, people are successful. They're achieving.

是的。謝謝，里奇，也謝謝你提了一個深思熟慮的問題。首先，我認為從數字遊戲來看，我們將繼續從數字中投資於銷售，但從銷售的角度來看，我最高興的是我們的營銷計劃真正開始產生回報。我們的節奏確實讓我們的管道在增長。然後我要說的是我們自 19 年 12 月以來所做的投資，我們的營業額一直很低，人們都很成功。他們正在實現。

We just came off our Summit Awards meeting. And people are starting to talk about that they're going to reach the next Summit awards next year, potentially in the early second half of the year. So people are winning. They're excited they're winning, and they have visibility. And as you know from covering this space, years 2 and years 3 you get exponential productivity improvement is once you understand the space, you're able to really drive results. And I would say it's been a broad swath of sales reps that have led to this performance. Really good marketing, really good bundling activity and then excellent leadership.

我們剛剛結束了峰會頒獎典禮。人們開始談論他們將在明年獲得下一個峰會獎項，可能是在今年下半年初。所以人們贏了。他們很高興他們贏了，而且他們有知名度。正如你從這個領域了解到的那樣，第 2 年和第 3 年你會得到指數級的生產力提高，一旦你了解了這個領域，你就能夠真正推動結果。而且我會說這是導致這種表現的大量銷售代表。非常好的營銷，非常好的捆綁活動，然後是出色的領導。

The combination of Eyal Goldstein, our President and Chief Revenue Officer; and Mike Vannoy, our marketing lead. They've really got a nice rhythm going, the people are excited. And by the way, ex-level management is recruiting really good people. They're seeing the results. They're seeing success. They have bigger territories than most of their competitors. They have bigger bundling opportunities than most of their competitors. And people are gravitating where they can win. So I think series of keeping our people with us engaged. They're getting good leadership. They're getting the good bundles; they're getting good tools to be successful. Pipelines are strong, and we're having success. So we don't want to mess with they're happy. We want them to continue to drive excellent results, and we see that for the foreseeable future.

我們的總裁兼首席營收官 Eyal Goldstein 的組合；和我們的營銷主管 Mike Vannoy。他們的節奏真的很好，人們很興奮。順便說一句，前任管理層正在招聘非常優秀的人才。他們正在看到結果。他們看到了成功。他們擁有比大多數競爭對手更大的領土。與大多數競爭對手相比，他們擁有更大的捆綁機會。人們正在吸引他們可以獲勝的地方。因此，我認為要讓我們的員工與我們保持聯繫。他們得到了很好的領導。他們得到了很好的捆綁；他們正在獲得成功的好工具。管道很強大，我們正在取得成功。所以我們不想打擾他們的快樂。我們希望他們繼續取得優異的成績，我們在可預見的未來看到了這一點。

And last for me, when you look into the M&A sort of pipeline, do you feel like there's been some softening of expectations from the other side? And then maybe contrast that to your internal efficiencies are improving. So does that lower the hurdle to what you could acquire because you can make it more accretive, quicker, sort of faster than you might have thought so previously.

最後對我來說，當你研究併購的管道時，你是否覺得對方的期望有所緩和？然後也許對比一下你的內部效率正在提高。這也降低了你可以獲得什麼的障礙，因為你可以讓它比你以前想像的更增值、更快、有點快。

Yes. So first of all, I think there's no doubt that I think there is a little bit of a softening of expectations. We've been really heads down on growing our organic revenue and getting the operational efficiencies as well as the growth engine in place. We'll turn to the second half of '23 and '24 to look at acquisitions. There's nothing imminent here because we've been really focused on eliminating distractions and just growing our business and growing our revenue. I do think as we look to pop out and we've been engaged in some conversations, I do think our expectations have changed a bit.

是的。所以首先，我認為毫無疑問，我認為期望有所軟化。我們一直在努力增加我們的有機收入，提高運營效率以及到位的增長引擎。我們將轉向 23 年下半年和 24 年的收購情況。這裡沒有什麼迫在眉睫的事情，因為我們一直專注於消除乾擾，只是發展我們的業務和增加我們的收入。我確實認為，當我們希望突然出現並且我們已經進行了一些對話時，我確實認為我們的期望發生了一些變化。

And then as far as the integration of any potential acquisitions, we're really confident that we can get those integrated in a very short order, and that's all really due to some of the system changes we made, some of the operational efficiencies. And so our people are ready to digest business when the time is right. I think the market is starting to come to us as far as future targets, but that will be a second half really 2024 conversation as opposed to right now. But when the time is right, we're definitely going to strike, and we do think expectations are starting to come in a bit.

然後就任何潛在收購的整合而言，我們真的有信心我們可以在很短的時間內完成這些整合，而這一切都歸功於我們所做的一些系統更改，一些運營效率。因此，我們的員工已準備好在適當的時候消化業務。我認為市場開始向我們提出未來目標，但這將是真正的 2024 年下半年的對話，而不是現在。但當時機成熟時，我們肯定會出擊，而且我們確實認為預期開始有所增加。

Congrats on another great quarter, Pat.

恭喜又一個偉大的季度，帕特。

Thank you. Appreciate it.

謝謝。欣賞它。

Our next question comment comes from the line of Vincent Colicchio from Barrington Research.

我們的下一個問題評論來自 Barrington Research 的 Vincent Colicchio。

Yes, Pat, congrats on the quarter. Just a couple for me, most of the mine were asked. Curious about the bookings growth breakdown between new and existing clients?

是的，帕特，祝賀這個季度。對我來說只有幾個，我的大部分都被問到了。對新客戶和現有客戶之間的預訂增長細分感到好奇嗎？

Yes. I think we're about 55% to 60% existing clients, 40 to 45 new business. Maybe it ticks up a little bit on existing clients, but pretty good overall, and we are pleased with the mix.

是的。我認為我們大約有 55% 到 60% 的現有客戶，40 到 45 個新業務。也許它對現有客戶有一點影響，但總體來說相當不錯，我們對這種組合感到滿意。

And you had mentioned a couple of times that you're happy with the marketing programs. I thought maybe you can give us more color in terms of which programs are working best.

你曾多次提到你對營銷計劃感到滿意。我想也許你可以給我們更多關於哪些程序最有效的顏色。

Yes. No, we implemented sales loss, which is kind of an auto dollar tool a while ago, ZoomInfo, which has been very successful. So the tools are in place. I thought leadership. Mike Vannoy does a really nice job with that. But it's not just Mike, Mary Simmons in the HR compliance area, there's a really good job of spelling out what it means to be compliant in HR. So we have some good campaigns. We have a good cadence. We meet just on sales and marketing really every day to talk about the cadence and the messaging and the scripts and how we're going to market. And we put that in place.

是的。不，我們實施了銷售損失，這是一種自動美元工具，前一段時間，ZoomInfo 非常成功。所以工具已經到位。我以為領導。 Mike Vannoy 在這方面做得非常好。但不僅僅是 Mike，人力資源合規領域的 Mary Simmons，在闡明人力資源合規意味著什麼方面做得非常好。所以我們有一些很好的活動。我們的節奏很好。我們實際上每天都在銷售和營銷方面開會，討論節奏、消息傳遞和腳本以及我們將如何進行營銷。我們將其落實到位。

And then finally, from a systems perspective, we have rolled out the Service Cloud of Salesforce across the whole organization. So everybody's on a common phone system, common chat system, common service cloud, common sales force. So the tools are in place and then the leaders and the individual contributors are executing in a big way. And so the focus has been there and then success breeds success. And when you have success and you can build on it, people have the opportunity with the comp plan to make a lot of money. And we've gone to quarterly attainment. So they see line of sight in a very short period of time where they have ability to blow it out. And it really aligns with the 4 quarters of the year. So -- and then it goes back to what I call our rainmaker, but (inaudible) has put this program together and has really done a nice job.

最後，從系統的角度來看，我們在整個組織中推出了 Salesforce 的服務雲。所以每個人都在一個共同的電話系統、共同的聊天系統、共同的服務雲、共同的銷售隊伍中。所以工具已經到位，然後領導者和個人貢獻者正在大力執行。因此，重點一直在那裡，然後成功孕育成功。當你取得成功並且可以在此基礎上再接再厲時，人們就有機會通過薪酬計劃賺很多錢。我們已經達到了季度成就。因此，他們可以在很短的時間內看到視線，並有能力將其炸毀。它確實與一年中的 4 個季度保持一致。所以 - 然後它又回到了我所說的我們的造雨者，但是（聽不清）已經把這個程序放在一起並且確實做得很好。

And the last one for me. I missed what you said earlier in response to an earlier question about ERTC. What is your growth expectation for the balance of the year?

最後一個給我。我錯過了您之前在回答有關 ERTC 的問題時所說的話。您對今年餘下時間的增長預期是多少？

We don't have a lot -- obviously, we have a little bit played in for the balance of the year, but not having it growing off of this quarter or the fourth quarter. Obviously, when we put out our guidance at the end of Q4 for Q1, we exceeded it in terms of what our expectations were, but we've not played in a ton of growth relative to this quarter for the balance of the year on ERTC specifically.

我們沒有太多 - 顯然，我們在今年餘下的時間裡發揮了一些作用，但在本季度或第四季度沒有增長。顯然，當我們在第 4 季度末發布第 1 季度的指導時，我們超出了我們的預期，但在 ERTC 的今年餘下時間裡，相對於本季度，我們並沒有實現大量增長具體來說。

I'm showing no additional questions in the queue at this time. I'd like to turn the conference back over to management for any closing remarks.

我目前沒有在隊列中顯示其他問題。我想將會議轉回管理層聽取任何閉幕詞。

No, I appreciate all of you joining on the call today, whether you're investor, third-party analysts, current client employee. Asure has been on this journey for a long time. We're really excited about the momentum that is happening here. We're doing all the right things. We're starting to get rewarded for it. But I still believe the best stage of Asure Software are to come. And they're that way because the people that are long for the journey and have done all the hard work. So I appreciate each and every one of you, and we look forward to seeing you at one of the conferences that we're at in the second quarter or in the second quarter earnings call. So thanks, and have a great day. Take care. Thank you.

不，我感謝你們今天加入電話會議，無論你是投資者、第三方分析師，還是當前的客戶員工。 Asure 已經踏上這段旅程很長時間了。我們對這裡發生的勢頭感到非常興奮。我們正在做所有正確的事情。我們開始因此而得到回報。但我仍然相信 Asure Software 最好的階段即將到來。他們之所以這樣，是因為那些渴望旅程的人已經完成了所有艱苦的工作。因此，我感謝你們每一個人，我們期待在我們第二季度或第二季度財報電話會議中的一個會議上見到您。所以謝謝，祝你有美好的一天。小心。謝謝。

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day.

女士們，先生們，感謝你們參加今天的會議。程序到此結束。您現在可以斷開連接。每個人，祝你有美好的一天。