Asure Software Inc

Good afternoon and welcome to Assure's fourth quarter and full year 2023 earnings conference call. Joining us for today's call are Chairman and CEO Pat Keppel, Chief Financial Officer John Pence, and VP of Investor Relations Patrick McKillop. Following the prepared remarks will be a question and answer session for their analysts and investors. I'll now turn the call over to Patrick McKillop for introductory remarks. Please go ahead, Patrick.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Assure's fourth quarter and full year 2023 earnings results call. Following the close of the markets, we released our financial results. The earnings release is available on the SEC'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 a 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 the words such as expects, believes, in May to indicate forward-looking statements. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from current expectations. I will hand the call over to Pat in a moment, but I just wanted to take a moment to remind folks of our upcoming investor relations activities. On March 17th through the 19th, we will attend the 36th Annual Roth Conference in Dana Point, California. We also plan to do a few non-deal roadshows later this spring as well. Investor outreach is very important to Assure, and I'd like to thank all of those that assist us in our efforts to connect with investors. Finally, I would 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 turn over the call to Pat Geppel, Chairman and CEO. Pat?

Thank you, Patrick, and welcome, everyone, to Assure Software's fourth quarter and full year 2023 earnings results call. I am joined on this call by our CFO, John Pence, and we'll provide a business update for our fourth quarter and full year 2023 results, as well as our outlook for 2024. Following our remarks, we'll be available to answer your questions. As you can see from our reported results, our strong momentum continued during 2023 with strength coming from solid execution across the business. Our total revenue growth in 2023 was 24% up versus the prior year. Excluding ERTC, our revenues were up 19%. Our reoccurring revenues grew 16%. versus the prior year, excluding ERTC, our reoccurring revenues were up 19%. Our net loss was 9.2 million, a $5.3 million improvement versus the prior year, and adjusted EBITDA was up 97% versus the prior year period. Lastly, our cash from operations for 2023 was 18.9 million, versus 13.7 million in 2022. We have multiple growth drivers in our business with HR compliance, Assure Marketplace, and our payroll tax management solutions showing very strong growth in 2023. We believe that over time, these business lines can become much larger contributors to our overall revenues as our payroll tax management offering continues to grow it can contribute to our float balances growing as well we continue to build on our momentum by advancing our technology through leading partnerships and launching strategic sales initiatives such as the bundling of our 401k products with payroll to drive new client additions this particular initiative was launched a short time ago and the reception we have received thus far has been very positive many small businesses traditionally have not had the resources to offer 401k retirement solutions but around 20 or more states in the u.s have mandated these plans and many more have introduced legislation mandating 401k plans for small businesses the u.s government The Cures Act 2.0 aims to increase employee participation in retirement plans by providing tax credits to support the setup of employer-based retirement plans. And Assure has the solutions they need to set up those plans. We continue to advance our technology with partnerships. as evidenced by the recent invitation to join the SAP Partner Edge open ecosystem. The partnership with SAP will allow Assure to enhance its payroll tax engine by integrating with the SAP systems and streamline payroll tax processes for its existing SAP clients. Also, in today's press release, we mentioned we received Workday Global Payroll Certification for integration into Workday HCM and Assure Payroll Tax Management. This solution helps large enterprises streamline processes, enhance compliance accuracy, and stay ahead of regulatory changes. The certification accelerates Assure's payroll tax business into the Workday human capital management ecosystem. Our sales efforts during 2023 resulted in a 56% increase in new bookings versus the prior year and we're pleased with the productivity per rep we're experiencing. We've expanded our sales force during the year to approximately 110 reps with plans to go about 130 and have been very pleased with the quality of new hires that we've made. We're supporting our sales efforts with digital marketing, which will drive higher levels of sales leads and productivity in 2024. Based on our current business trends, we're reiterating our full year 2024 revenue guidance of $125 to $129 million, with EBITDA margins of between 20% and 21%. As a reminder, this 2024 guidance excludes any potential contributions from ERTC filing, but does include our plan to resume acquisitions in earnest. We have signed agreements to purchase approximately $7 million of annual reoccurring revenue, and the pipeline is very strong. As we look at the business excluding ERTC from 2023, Our guidance for 2024 implies a 25% plus growth rate, which is very positive. Additionally, reviewing our growth, excluding ERTC for the past few years, we're witnessing solid double digit growth in the implied 25% growth rate in our guidance of 2024 would be an acceleration of the rates we saw in previous years. Now, I would like to hand it off to John Pence to discuss our financial results in more detail, as well as our quarter one guidance. John?