Asure Software Inc

Good afternoon and welcome to Azure's second quarter 2025 earnings conference call. Joining us for today's call are Chairman and CEO Pat Gepel, Chief Financial Officer John Pence, and VP of Investor Relations Patrick McAulop. Following their prepared remarks, there will be a question and answer session for the analysts and investors. I would now like to turn the call over to Patrick McCullough for introductory remarks. Please go ahead.

Patrick McCullough Thank you, operator. Good afternoon, everyone, and thank you for joining us for Assure's second quarter 2025 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 people of our upcoming investor relations activities. On August 18th, we will be hosting a virtual NDR with Barrington Research. During September, we will attend the Lake Street Conference in New York on September 11th and participate in the Barrington Research Virtual Conference on September 16th. On November 20th, we will be attending the Stevens Conference in Nashville, as well as the Needham Technology Conference in New York. We also expect to schedule some additional non-deal roadshows this fall. Investor outreach is very important to assure, and I would like to thank all those that assist us in our efforts to efforts to connect with investors. Finally, I would like to remind everyone that this call is being recorded and that 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 2025 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 2025 results as well as our outlook for the second half of 2025. Following our remarks, we'll be available to answer your questions. We're pleased to report that our second quarter revenues were solid, coming in at $30.1 million, an increase of 7%, versus our second quarter prior year, and excluding the impact of ERTC revenue growth was 10%. Our revenues reflect continued strong performance from our payroll tax management product and improving attached rates of our human capital management products. On July 1st, we acquired the Latham Time Corporation, and we are excited to have them as part of the Assure family. Latham has a storied legacy as a pioneer in mechanical time clocks and a trusted name in workforce management for over a century. It was founded in 1919 by George and Louis Latham, who began selling time clocks across the Southeast region of the United States and was still managed by the fourth generation of the family. The company has evolved from punch clocks in early years and transformed into modern software provider delivering intuitive cloud-based time and attendance solutions through its flagship platform, PayClock Online. We believe the combination of Latham with our existing time and attendance business is a natural fit, which will allow us to achieve scale in this segment of the market. The acquisition reinforces Assure's commitment to supporting America's growing businesses through with simple, effective tools to better manage their workforce and grow their business. The target customer base for Latham, which has approximately 14,000 clients, matches well with Assure's focus on growing companies. The go-to-market strategy is very similar in nature, and direct sales, as well as strong reseller network, is available to Assure. We view the time and attendance segment As a gateway to payroll processing and a rapid self-installation software used with the Latham product, we believe we can accelerate our payroll sales and further drive the opportunity to have increased attach rates. AssurePay is an example of demand for such features, such as earned wage access, where an employee's hours can be validated at the time clock or in the time of attendance system. We believe the clients of Latham also are in need of many additional products Assure has to offer, such as tax, HR compliance, benefit administration, 401K, and more. We expect the acquisition of Latham Time Corporation to bring additional high-margin revenue to Assure. Our payroll tax management product has continued its momentum as we go live with more clients each and every day, and our team has an active pipeline. of new opportunities. AssurePay is a multi-year initiative, continues to make very good progress in its launch with thousands of cards ordered by our clients and more being activated every day. In just a few years, we've accomplished quite a bit as we have been busy building out capabilities with acquired point solutions. We're investing capital to integrate these point solutions for an improved client experience, which we expect to drive our attach rates higher and ultimately drive improved organic growth. While we're in the early innings of these efforts, we have seen some positive indicators such as improved attach rates during Q2 with an increase of 400 basis points versus the year-ago period. Our suite of human capital management products is now stronger than ever and includes a well-rounded offering to meet the needs of growing businesses with payroll tax, HR compliance, insurance, 401K, time and attendance. The total addressable market for our products is very large, and we're working to capture increased wallet share. We feel our efforts can lead us to better service, our client base of over 100,000, with the best experience in the human capital management industry, whether it's small growing businesses or an enterprise-level business. we want to be the provider of choice for our clients offering everything they need from the first state of hire all the way through an employee's retirement. Our bookings for the second quarter declined by 53% year over year, primarily due to large enterprise deals, which were booked in the second quarter of 2024. Excluding those from comparison, we saw bookings increase 15% for the quarter. Our contracted revenue backlog declined is 82 million of 68% versus a year ago and remains at record levels. Based on our current business trends, we're increasing our full year 2025 revenue guidance to a range of 138 to 142 million in revenue with adjusted EBITDA margins of between 22 and 24% from prior guidance of 134 to 138 in revenue with adjusted EBITDA margins of between 23 and 24 percent. This guidance includes the anticipated impact of the Latham time acquisition. Now, I would like to hand it off to John to discuss our financial results in more detail, as well as our Q3 guidance. John?