Asure Software Inc

Good afternoon and welcome to Azure's fourth quarter and full year 2025 earnings conference call. Joining us for today's call are Chairman and CEO Pat Geppel, Chief Financial Officer John Pence, and VP of Investor Relations Patrick McKillop. 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 McKillop for introductory remarks. Please go ahead.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Assure's fourth quarter and full year 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. 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 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. In March, we will attend the Roth Conference in Dana Point, California on March 23rd and 24th. We are also planning for some non-deal road shows during March and April. On May 13th, we are attending the 21st Annual Needham TMT Conference in New York. And on May 14th, the Hooligan and Loeke One Conference, also in New York. On May 28th, we will attend the Craig Hallam Conference in Minneapolis. 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. 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 fourth quarter and full year 2025 earnings results call. I am joined on this call by our CFO, John Pence. and we will provide a business update for our fourth quarter and full year 2025 results, as well as our outlook for the remainder of 2026. Following our remarks, we'll be available to answer your questions. We're excited to report that our full year revenues were very strong, coming in at $140.5 million, an increase of 17% versus the prior year. Contributors to our success in 2025 were broad-based, with many product lines showing growth, such as payroll, benefits, recruiting, time and attendance, as well as our payroll tax management businesses. Organic growth in the fourth quarter was 10%, which improved sequentially from the third quarter of 4%, and for the full year of 2025, it was 5%. We believe that we are at an inflection point in the business following the launch of Assure Central last October with more than two-thirds of our clients upgrading to the new portal. Assure Central offers clients a new experience with a brand-new look and feel, improves their workflow, as well as enabling us to amplify items such as event-driven marketing efforts, our cross-selling or attach rates, with more than 100,000 clients have improved throughout last year. The number of clients buying multiple products from us in our payroll business has grown by 10% in the fourth quarter over the prior year. We believe that the Assure Central portal will continue to help drive further improvements in attach rates and continued acceleration of organic growth. Now, let me take a moment to address one of the most important topics shaping today's business landscape, AI. First off, we have new slides in our investor presentation which highlight our approach to AI, and I encourage you to review them. Also, we're hosting an AI Fireside Chat with myself and our Chief Technology Officer, Yasmeen Rodriguez, on March 11th at 3.30 Central Time, 4.30 Eastern Time. And we look forward to your participation in this exciting event where we'll discuss Assure's current perspective on artificial intelligence. Much of the public conversation focuses on fears of large-scale labor disruption, but our exposure to that risk is far lower than many might assume. It is worthwhile to mention that our revenue model is not a typical SAS seat-based model and is instead a function of total employee count in payroll runs, benefit, and retirement plan uptake and reoccurring services. Furthermore, our clients are primarily blue, gray, and white-collar main street businesses, organizations rooted in essential work that is far more resilient to automation. At the same time, while AI is being deployed across many areas of the economy, We believe that highly sensitive functions like payroll, tax filing remain uniquely protected. These processes involve complex regulations, confidential data, and real-time compliance obligations, areas where the margin for error is effectively zero. Payroll is already one of the most mission-critical and heavily regulated responsibilities inside any business. When you're navigating local tax rules, shifting labor laws, and ongoing compliance requirements, accuracy and accountability aren't optional, especially when you're moving approximately $20 billion annually like Assure does. That's why we see AI not as replacement for oversight, but as a powerful tool to enhance precision, efficiency, and decision-making. We have adopted AI assertively, but thoughtfully in ways that strengthen our platform while humans remain in the lead to ensure trust and compliance. During 2024, we built a secure model, agnostic AI layer directly into our payroll and tax system of record. In early 2025, we launched Luna, the industry's first true AI agent for payroll and HR. Unlike traditional generative chatbots, Luna understands, assures full product sweep, and can act, not just provide suggestions. Luna detects issues, resolves them, logs outcomes, and supports both employees through self-service and business owners and administrators across their workflows. Today, Our Luna AI can perform over 50 actions, which are live, audible, and permission control. In the first 90 days of Assure Central's general availability, conversations with Luna resulted in 80,000-plus messages and avoided thousands of support center interactions, which offset the workload of about three client service reps and clearly showed how AI is driving our operational efficiency. Internally, we have been using AI to help increase product development, drive revenue productivity, and further operational efficiency. In terms of product, we can build faster with AI-assisted engineering and quality assurance, resulting in faster release cycles. Within revenue productivity, our SDR agent collects and enriches buyer insights in three minutes versus typical one-hour discovery, and our list-building agent crawls job boards for new HR postings, creating 1,000-plus leads. Operationally, our agent helps with sentiment analysis during phone calls with clients and analyzes support tickets to prioritize product and process improvement. We're continuing to invest in tomorrow's AI capabilities for both our client product experience and our internal processes to enable our entire organization to work more efficiently. Now, moving from AI, recently at our sales kickoff in Austin, we introduced a new offering called AssureWorks, which we are launching internally in a limited scope. AssureWorks is our administrative services outsourcing or ASO model. Rather than simply providing payroll and HR software, we take responsibility for running key administrative processes on behalf of the client supported by our Luna AI and our Assure Central platform. We're seeing a clear shift in the market. Small and mid-sized businesses face increasingly regulatory complexity, and leaner staffing models and may no longer have the bandwidth to manage payroll and HR compliance internally. With AssureWorks, clients can rely on Assure's expertise and systems to execute that work, helping reduce compliance risk and allowing them to focus on their core business. Strategically, this expands our share of wallet and deepens client relationships. Clients who adopt managed payroll and compliance services typically represent two to three times the revenue of a payroll-only client, with further upside as additional models are managed. This is not a PEO model, and we're not taking on co-employment risk. For businesses that feel constrained by the cost or the rigidity of a traditional PEO, AssureWorks offers a flexible alternative with operational support and greater control. We will scale AssureWorks thoughtfully as we build sales, implementation, and support capacity based on our early results. Our sales efforts for 2025 resulted in a 35% increase in new bookings Additionally, we continue to have a very healthy contracted backlog of approximately $100 million, which continues to grow and was up 18% since our third quarter of 2025. We expect to convert approximately 41% of this backlog in the next 12 months, and this combined with our historic retention rates gives us a lot of confidence in our 2026 guides. Now, I would like to hand it off to John to discuss our financial results in more detail, as well as our guidance. John?