Asure Software (NASDAQ: ASUR), a cloud computing company specializing in workforce management software, recently announced its second product launch of 2012. The software company plans to release AsureSpace, the next-generation version of its meeting room management solution, on June 23.
The rollout of AsureSpace follows the recently announced launch of AsureForce, a suite of time and labor management solutions for automating payroll processing. AsureForce has demonstrated the ability to reduce labor costs up to 5% and decrease payroll preparation time up to 80% for users.
ASUR operates in the rapidly growing software-as-a-service (SaaS) segment, in which software is accessed online rather than installed on the user's computer. Because the software is web-based, users can access it from anywhere in the world. SaaS also costs less up front, places fewer demands on the user's IT resources, and can be deployed more rapidly than installed software, making SaaS extremely attractive to prospective clients. According to Gartner, global spending on SaaS is expected to rise 17.9% this year to $14.5 billion.
ASUR serves over 3,000 clients worldwide. The Company's client base includes blue-chip companies such as McDonald's, GE, Nike and Microsoft; top universities such as Cornell and Duke, healthcare providers such as the American Red Cross and the CDC, and numerous other organizations. ASUR continues to grow its customer base by adding new clients and expanding sales to existing clients. During the first quarter of 2012, organic cloud bookings grew 80% sequentially and 40% year-over-year. ASUR's management expects annual revenue to grow 65% year-over-year in 2012 to reach $18 million, with a 75% gross margin and EBITDA of $4 million.
Currently trading at a low free cash flow ratio compared to its peers, ASUR recently completed a 3-for-2 stock split. Research suggests that stock splits are correlated with strong near- and long-term stock performance. To learn why RedChip analysts rate ASUR a Strong Buy, download the latest RedChip research report on the Company.
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