AUSTIN, Texas - Asure (NASDAQ: ASUR), a provider of cloud-based Human Capital Management (HCM) software, has announced a strategic partnership with MyHRScreens, a background screening service provider. This alliance is set to offer small and mid-sized business clients of Asure advanced background screening capabilities as part of their hiring process.
The services that will be made available through this partnership include criminal history checks, employment verifications, education verifications, and drug testing. These additions aim to help businesses make informed and confident hiring decisions swiftly, improving the safety and efficiency of their hiring practices.
Pat Goepel, Chairman and CEO of Asure Software (NASDAQ:ASUR), emphasized the importance of background screenings in safeguarding organizations against potential risks and liabilities. He expressed that this partnership not only broadens Asure's service offerings for growth-oriented small businesses but also supports them in maintaining safe workplaces and speeding up their hiring procedures.
The integration of MyHRScreens' services with Asure's HCM solutions promises to ensure accuracy and adherence to legal standards in the hiring process, enhancing the overall recruitment efficiency for Asure's small and mid-sized business clientele.
Asure's suite of HCM solutions encompasses HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company leverages AI technology to improve scalability and efficiency while maintaining a focus on client interactions.
In other recent news, Asure Software has made headlines with its robust Q1 2024 revenues, despite a net loss of $300,000. The company generated revenues of $31.7 million, bolstered by strategic initiatives, core business contributions, and recent acquisitions. Asure has also reaffirmed its 2024 revenue guidance of $125 million to $129 million, signaling confidence in its future performance.
In light of these developments, TD Cowen revised its price target for Asure Software, reducing it to $10.00 from the previous $12.00, while maintaining a Buy rating on the stock. This adjustment was made following Asure Software's mixed first-quarter and second-quarter revenue and EBITDA projections, which fell short of consensus estimates.
Recent strategic partnerships with firms like Workday (NASDAQ:WDAY), SAP, and HRlogics, and a focus on 401(k) retirement solutions for small businesses, indicate Asure's commitment to growth and innovation.
The company's forward-looking statements, according to TD Cowen, suggest an improvement as the company progresses through 2024. Despite the reduction in the price target, TD Cowen maintains a positive outlook on Asure Software's stock.
InvestingPro Insights
As Asure (NASDAQ: ASUR) forges a strategic partnership with MyHRScreens to strengthen its Human Capital Management offerings, the company's financial health and market performance are essential factors for investors to consider. According to InvestingPro data, Asure currently boasts a market capitalization of $210.89 million, indicating a significant presence in the industry. The company's impressive gross profit margin, standing at 71.17% over the last twelve months as of Q1 2024, underscores the efficiency of its operations and its ability to maintain profitability on its core services.
Despite not being profitable over the last twelve months, Asure's net income is expected to grow this year, as per an InvestingPro Tip. This potential turnaround is further supported by analysts' predictions that the company will become profitable within the year. Additionally, Asure holds more cash than debt on its balance sheet, providing it with financial flexibility to invest in strategic partnerships like the one with MyHRScreens and potentially enhance its market position.
Investors looking to delve deeper into Asure's financial performance and future outlook can find a wealth of additional InvestingPro Tips. For instance, there are 5 more tips available that further analyze Asure's financial metrics and market potential. These insights can be accessed via InvestingPro's platform at https://www.investing.com/pro/ASUR, and interested investors can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing a more comprehensive understanding of the company's investment profile.
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