Asure Software Inc

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the first quarter 2023 Assure Software Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone keypad. At this time, I would like to turn the conference over to Mr. Randall Radinsky. Sir, please begin.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Assure's first quarter 2023 earnings call. Following the close of markets, we released our financial results. The earnings release is available on the SDC's website and our investor relations website at investor.assuresoftware.com, where you can also find the investor presentation. 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. 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. With that, I would now like to turn the call over to Pat Geffel, Chairman and CEO. Pat,

Thank you, Randall, and welcome everyone to Assure 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. 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. And 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've made across the business. 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 Assure 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, and 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. 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 markets. In a 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 mid-sized 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.