Asure Software (NASDAQ: ASUR), a leading provider of workplace management solutions, is a tech stock with significant upside potential. Below are five reasons for investors to add ASUR to their portfolios:
Global leader in its space: With the recent acquisitions of ADI Time, Legiant, and PeopleCube, ASUR is now the leading global provider of workspace management solutions. The acquisition of PeopleCube in early July more than tripled the Company's client base to over 11,000, adding clients such as Royal Bank of Canada and ChevronTexaco. ASUR's recent partnership with MPAY, a payroll software company that serves over 54,000 employers, further broadened the Company's reach. With its newly expanded product offerings, ASUR is able to serve clients of all sizes, from small businesses (which account for 99.7% of all U.S. firms) to multinational corporations.
Capitalizing on the rapid growth of cloud computing: Cloud computing, in which data and software are hosted remotely and accessed via the web, is gaining in popularity among businesses. Moving to the cloud can eliminate the need for companies to build and maintain a complex in-house IT system, reducing costs and improving efficiency over the long term. According to Jack Clark, journalist for ZDNet UK, "By 2020 cloud is going to be a major - and permanent - part of the enterprise computing infrastructure."
ASUR's cloud-based solutions enable users to streamline business processes. The Company's products have demonstrated the ability to save companies time and money, giving ASUR a competitive edge in the marketplace.
Multibillion-dollar market opportunity: IDC forecasts the global human capital management (NASDAQ:HCM) applications market will reach $8.1 billion by 2015. Time and attendance systems account for $1.5 billion of this market, and meeting room scheduling accounts for $150 million. A significant portion of the HCM market is composed of small and mid-sized businesses using outdated technology, creating a sweet spot for cloud-based solutions such as ASUR's.
Strong, high-margin revenue growth: ASUR generated $10.9 million in 2011 and expects to achieve 65% revenue growth with 75% gross margins for fiscal 2012. Following the PeopleCube acquisition, ASUR increased its Q3 and Q4 2012 revenue guidance to $7.1 million and to $8.1 million, respectively. The Company also issued 2013 guidance of $31 million in revenue, $9 million in EBITDA, and $7 million ($1.30 per share) of free cash flow.
Shares of ASUR have appreciated well over the past six months. Investors who bought the stock when it was trading at $4.55 back in February could have recognized a 76% gain five months later, when the stock reached its 52-week high of $8.00 following the PeopleCube acquisition. The stock currently trades around $7.00, and RedChip analysts have increased their price target to $19.15 per share. Don't miss your chance to invest.
To learn more about ASUR, watch CEO Pat Goepel's presentation from our June virtual conference or download the latest RedChip Research note on the Company. Also make sure to dial into ASUR's second quarter earnings conference call on Tuesday, August 14, 2012 at 11:00 a.m. Eastern time. To participate, dial (877) 853-5636, or (631) 291-4544 for international callers. The conference ID for all callers is 15153489.
Disclosure: The subject security is a client of RedChip Companies, Inc. RedChip Companies, Inc., employees and affiliates may have positions and affect transactions in the securities or options of the issuers mentioned herein. For full financial disclosures for all RedChip clients, please visit http://www.redchip.com/disclosures.asp?src=rcv.