Asure Software (ASUR) Stock Forecast & Price Target

Asure Software Inc. has demonstrated significant operational efficiency and growth potential, characterized by a gross margin increase to 73.2%, up 150 basis points year-over-year, indicating stronger profitability. The company's adjusted EBITDA margin is projected to expand to between 23% and 24%, reflecting consistent operational performance in line with prior guidance. Additionally, for fiscal year 2024, total revenue increased by 17%, driven by a 15% growth in recurring revenue, which now constitutes 96% of total revenue, further underscoring a robust foundation for future expansion.

Asure Software Inc. is facing significant growth challenges, particularly with a projected flat year-over-year revenue of approximately $5 million from forms/W-2 in Q1/25, contributing to a negative outlook for recurring growth. Additionally, the company reported an adjusted EBITDA of $6.2 million for Q4/24, falling 4% short of both internal forecasts and consensus expectations, primarily due to a revenue shortfall and higher-than-anticipated net interest costs. Furthermore, the Q4/24 non-GAAP EPS of $0.15 was below both the firm's and consensus expectations, reflecting ongoing operational difficulties that could hinder the company's financial health moving forward.