Asure Software Inc

Good afternoon and welcome to Assure's second quarter of 2024 earnings conference call. Joining us today on today's call are Chairman and CEO Pat Geppel, Chief Financial Officer John Pence, and Vice President of Investor Relations Patrick McKillop. Following the prepared remarks will be a question and answer session for the analysts and investors. I would now like to turn the call over to your host, Patrick McKillop, for introductory remarks. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Assure's second quarter 2024 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. The 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. 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 September 12th, we will be hosting one-on-one meetings at the Barrington Fall Conference, which is being held virtually. Also, the team will have a member attending the Lake Street Conference in New York that same day. We are planning on some non-deal road shows for September and October. Also in November, we are hosting one-on-one meetings at the Needham SaaS Conference, which is being held virtually. We anticipate more conference participation during the fall months, based on last year's schedule, and look forward to connecting with all of you soon. Investor outreach is very important to Assure, and I would 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 like to turn the call over to Pat Geppel, Chairman and CEO.

Pat. Thank you, Patrick, and welcome everyone to Assure Software's second quarter 2024 earnings results call. I am joined on this call by our CFO, John Pence, and we will provide a business update for our second quarter 2024 results as well as our outlook for the rest of 2024. Following our remarks, we will be available to answer your questions. Our second quarter revenues were very solid, coming in at $28 million, and our reoccurring revenues were up 18% during the quarter, which is a nice improvement. Our revenues were driven by strong contributions from our Assure Marketplace Offering, Payroll Tax Management, and interest earned from funds held for clients, which we refer to as flow. During Q2, we are pleased to see our organic growth rates increase to 7% from 3.5% during Q1, and we believe that we will deliver double-digit growth in the back half of 2024. In 2023, you may recall we raised money to make acquisitions, improve our technology, grow over ERTC revenues, and deliver double-digit growth. We have executed this plan very well in the first half of 2024. We remain excited about the opportunities that I had for our business and are very pleased with the continued momentum of our payroll tax management business as evidenced by the recent deal we announced with Venture. Our deal with Venture, the largest privately held organization in the HR technology and service sector for our payroll tax management solution, will deliver comprehensive payroll tax management for PRISM HR clients and Venture's internal operation. This is a significant win for our payroll tax solution and coupled with the wins in the enterprise space with Venture's providers of Workday and SAP clients, we expect that over time as this business grows, it will contribute to growing our float balances as well. Our pipeline for this solution remains robust, and we look forward to potentially announcing more deals in the future. We have also recently formed a partnership with MyHRScreens, the premier provider of background screening services, This collaboration aims to expand access to a comprehensive background screening solutions for small and mid-sized businesses, facilitating a safer and more efficient hiring process. Additionally, in July, we acquired an applicant tracking system technology company, which enhances Assure's product suite for small and medium-sized businesses. This highly rated applicant tracking system features an automated simple all-in-one hiring tool which includes services such as job ad writing powered by ai automated interview scheduling and auto submission to major job posting sites the technology has good growth and creates a very good cross-sell opportunity for us plus it is complementary to our existing hr compliance solution Our portfolio of products and partnerships continues to grow in addition to others previously announced, like HR Logix for tax credit and proactive health management program for health management tools and services. These partnerships are great additions that really enable Assure to offer more solutions in addition to our payroll processing for small and medium-sized businesses. Our sales team. now have a broader product offering in their arsenal to help win new business as well as upsell existing clients. Strategic sales initiatives such as bundling our payroll services with our 401k offering allow us to continue to win new clients and they continue to see positive results. The need for small businesses to offer 401k plans is driven by many states mandating such plans as there's funding available to small businesses to set up these plans through tax credits from the Secure 2.0 Act from the US government. Assure has the expertise to help small businesses navigate this process successfully. Our sales efforts during the second quarter resulted in a 131% increase in new bookings versus the prior year. We continue to work on expanding our Salesforce income, which we are projecting to go to about 130 reps by year end 2024. Also, we continue to make use of digital marketing efforts to support the sales team with sales leads and help increase productivity. Based on our current business trends, we're updating our full year 2024 revenue guides to a range of $123 to $129 million, and we still expect adjusted EBITDA margins of between 20% and 21%. The forward guidance range of 2024 is the result of variability of timing of closing and implementing both large enterprise arrangement and anticipated acquisition. Our guidance in 2024 implies a very healthy double-digit growth rate if we exclude ERTC from 2023 revenues for comparison. Now, I'd like to hand it off to John to discuss our financial results in more detail, as well as our Quarter 3 guidance. John?