Asure: Questionable Approach And Upside Potential

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About: Asure Software, Inc. (ASUR)
by: Tech and Growth
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Tech and Growth
Tech, software, internet, IPOs
Summary

The recent divestiture of the Workspace Management business to FM:Systems will allow Asure to be a pure-play SaaS HCM player in SMB and mid-size markets.

Asure’s shift into such SaaS markets is not followed by relevant online strategies despite its ambition to achieve a ~10% target organic growth.

Considering an expected revenue of $74 million and 1.76 P/S, we do not see the stock trading higher than ~$8.34 per share by FY 2020.

Overview

The recent divestiture of the Workspace Management business to FM:Systems will allow Asure (ASUR) to be a pure-play SaaS HCM (Human Capital Management). We found the background of the divestment strategic, given