Q1 2022 Asure Software Inc Earnings Call

May 9, 2022

Whether you're a shareholder client, employee or perspective shareholder or analysts. I'll begin today's presentation with an update on our business highlights and strategy, and then we'll turn the call over to our C F o, John pets, for a more detailed review of our financial results and outlook for the remainder of the 2022 fiscal year. We will then conclude the session with time to answer your questions.

Patrick F. Goepel: Whether you’re a shareholder, client, employee, or prospective shareholder or analyst. I’ll begin today’s presentation with an update on our business highlights and strategy and then we’ll turn the call over to our CFO, John Pence for a more detailed review of our financial results and outlook for the remainder of the 2022 fiscal year. We will then conclude the session with time to answer your questions.

First of all, I am pleased with the way our business performed in the first quarter. We delivered solid execution of our 2022 business plan and we continue to build our sales and product momentum, and we showed meaningful progress in key business areas. We grew revenues by 23% in non-GAAP EBITDA by 18% relative to the prior year. We also improved our business mix, with reoccurring revenues representing 95% of our total revenues.

Patrick F. Goepel: First of all, I am pleased with the way our business performed in the first quarter. We delivered solid execution of our 2022 business plan, and we continue to build our sales and product momentum, and we showed meaningful progress in key business areas. We grew revenues by 23% in non-GAAP EBITDA by 18% relative to the prior year. We also improved our business mix with reoccurring revenues representing 95% of our total revenues.

Let's now turn to the progress we made in across the business in the first quarter. I'm really excited about what we are able to achieve and how that sets us up for the remainder of 2022 and looking into 2023. I will start with innovation of product and technology. We had important achievements in the first quarter which are the culmination of a lot of dedicated effort over the past few quarters. Our technology focus as two main vectors. one is to enhance the connections between our platform with partners to provide new ways to creating value for clients in the entire human capital management ecosystem. We believe there is a meaningful opportunity in this area to create new high-margin revenue streams for sure.

Patrick F. Goepel: Let’s now turn to the progress we made across the business in the first quarter. I’m really excited about what we are able to achieve and how that sets us up for the remainder of 2022 and looking into 2023. I will start with innovation of product and technology. We had important achievements in the first quarter, which were the culmination of a lot of dedicated effort over the past few quarters. Our technology focus has two main vectors. One is to enhance the connections between our platform with partners to provide new ways of creating value for clients and the entire Human Capital Management ecosystem. We believe there’s a meaningful opportunity in this area to create new high margin revenue streams for Asure.

A great example of our focus in this area is our announcement this morning that we have launched the integration marketplace. With 128 prebuilt integrations, we now have the foundation to create new client solutions and new revenue streams. We're able to introduce integration marketplace because of our commitment to create a strong technical platforms through research and development investments. It's the culmination of our efforts since we pivoted to become a pure play human capital management provider when we sold the space business. We now feature Equifax as a new partner in our ecosystem. We're proud to have them on board and excited to bring new solutions to the marketplace. Another good example is a launch of our new treasury management system to bring automation to our clients. This solution, geared for human capital management providers and larger enterprises to enable them to operate more efficiently and reduce restk. It automes the reconciliation of employers' daily cash positions and provides real time visibility into this critical piece of the payroll cycle.

Patrick F. Goepel: A great example of our focus in this area is that our announcement this morning that we have launched the integration marketplace with 128 prebuilt integrations, we now have the foundation to create new client solutions and new revenue streams. We’re able to introduce integration marketplace because of our commitment to create a strong technical platform through research and development investments. It’s the culmination of our efforts since we pivoted to become a pure play Human Capital Management provider, when we sold the space business. We now feature Equifax as a new partner in our ecosystem. We’re proud to have them on board and excited to bring new solutions to the marketplace. Another good example is the launch of our new Treasury Management System to bring automation to our clients. This solution geared for Human Capital Management providers and larger enterprises to enable them to operate more efficiently and reduce risk. It automates the reconciliation of employers daily cash positions and provides real time visibility into this critical piece of the payroll cycle.

The second important aspect of our technology strategy is to move from the legacy transactional way the payroll industry as operated, to a world. We provide new tools for employees to connect and run their lives. We're creating new emploe solutions through initiatives like earn, wage access, electronic wallets and more. Our efforts in this area our supported by our a? I first strategy. That means our a? I have now been hardened So our products can be extended to other providers with new application. Another example is our arrangement with empyee Navigator, who managees benefits on boarding and compliance for six thousand companies with one million employees. Our integration with them enables employees to have full visibility of their benefits, compensation and other information so they can manage our lives with secure and reliable information. We're also very hopeful about introducing earned wage access. Our solutution is in the marketplace today and we're expanding our number of vendors we have. This adds a valuable new service to our roster, moves us closer to having a direct relationshipip with employees and is the direction the human capital management industry needs to go. Our product strategy is all about the future positioning of a sure with its unique collection of assets to to deliver to businesses and their employees unique value. This is where we think the market is going and we intend to be leaders in taking it there. We're also very proud of the achievements we made in the quarter in the areas of sales development and sales infrastructure. Our focus on delivering the right solutions and value to the market is beginning to pay off. This is evident in the 43% annual growth we achieve in our new sales performance in the first quarter. We believe this type of performance positions us well.

Patrick F. Goepel: The second important aspect of our technology strategy is to move from the legacy transactional way the payroll industry has operated to a world we provide new tools for employees to connect and run their lives. We are creating new employee solutions through initiatives like earn wage access, electronic wallets, and more, our efforts in this area are supported by our API first strategy. That means our APIs have now been hardened. So our products can be extended to other providers with new applications. Another example is our arrangement with employee navigator who manages benefits, onboarding and compliance for 60,000 companies with 10 million employees. Our integration with them enables employees to have full visibility of their benefits, compensation, and other information so they can manage their lives with secure and reliable information. We’re also very hopeful about introducing earned wage access. Our solution is in the marketplace today and we’re expanding our number of vendors we have. This adds a valuable new service to our roster, moves us closer to having a direct relationship with employees and it’s the direction the Human Capital Management industry needs to go. Our product strategy is all about the future positioning of Asure with its unique collection of assets to look to deliver to businesses and their employees unique value. This is where we think the market is going and we intend to be leaders in taking it there. We’re also very proud of the achievements we made in the quarter in the areas of sales development and sales infrastructure. Our focus on delivering the right solutions and value to the market is beginning to pay off. This is evident in the 43% annual growth we achieved in our new sales performance in the first quarter. We believe this type of performance positions us well for accelerated organic growth in the second half of 2022 and into 2023. We also had sales success in our business lines. The business lines provide us with unique differentiation in the marketplace enable us to expand our relationships and tap into larger client segments. The area of tax filing and human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double-digit underlying organic revenue growth relative to prior year. We strengthened our technology in this area and our focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance. We’re excited about the long-term potential of this business line and continue to believe it’ll be meaningful contributor to our revenues over time as the market comes to appreciate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth in our revenues prior to -- relative to prior year. This is a differentiator for us in the small - the medium-sized business segment. It offers several digital and service options, ranging from self-service human resource support all the way up to fully outsourced HR solutions. We comply with federal state, local employment laws, enable a business to replace an internal HR manager using our team of certified HR professionals at a fraction of the cost. The increasing complexity of today's labor market, provides a strong underpinning for demand for our leading edge solutions. We are excited about this opportunity we have here and we believe we will have continued success in the near future and beyond. We're also keeping an eye on acquisition opportunities. We intend to be opportunistic as a demonstrated by a small acquisition we made in January of fully integrated by the end of the quarter.

For accelerated organic growth in the second half of 2022 and into 2023. We also had sales success.

Speaker 2: For accelerated organic growth in the second half of 2022 and into 2023. We also had sales success.

In our business linelines. The business lines provide us with unique differentiation in the marketplace, enable us to expand our relationships and tap into larger client segments. The area of tax filing in human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double digit underlying organic revenue growth relative to prior year. We strengthen our technology in this area and our focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance, were excited about the long term potential of this business line and continue to believe it will be meaningful contributor to our revenues over time as the market comes to apprecitiate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth.

Speaker 2: in our business lines. The business lines provide us with unique differentiation in the marketplace enable us to expand our relationships and tap into larger client segments. The area of tax filing and human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double-digit underlying organic revenue growth relative to prior year. We strengthened our technology in this area and our focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance. We’re excited about the long-term potential of this business line and continue to believe it’ll be meaningful contributor to our revenues over time as the market comes to appreciate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth

In our revenues prior to relative to prior year. This is a differentiator for us in the small- the medium sized business segment. It offers several digital and service options, ranging from self service human resource support all the way up to fully outsource HR solutions. We comply with federal state, local employment laws, enable a business to replace an internal HR manager using our team of certified HR professionals. That a fraction of the cost, increasing complexity of pit today's labor market, provides a strong underpinning for demand for our leading edge solutionswe are excited about this opportunity we have here and we believe we will have continued success in the near future and beyond. We're also keeping an Ye on acquisition opportunities. We intend to be opportunistic as a demonstrated by a small acquisition we made in January of fully integrated by the end of the quarter, by a way.

Patrick F. Goepel: in our revenues prior to -- relative to prior year. This is a differentiator for us in the small - the medium-sized business segment. It offers several digital and service options, ranging from self-service human resource support all the way up to fully outsourced HR solutions. We comply with federal state, local employment laws, enable a business to replace an internal HR manager using our team of certified HR professionals at a fraction of the cost. The increasing complexity of today's labor market, provides a strong underpinning for demand for our leading edge solutions. We are excited about this opportunity we have here and we believe we will have continued success in the near future and beyond. We're also keeping an eye on acquisition opportunities. We intend to be opportunistic as a demonstrated by a small acquisition we made in January of fully integrated by the end of the quarter.

By a way of update, the integration of the two resellers we acquired at the end of third quarter- 2021 - has gone extremely well. We're very pleased with the execution of our integration efforts and the underlying businesses continued to perform to expectation. Our proven acquisition model delivers meaningful synergies in seamless integration. We intend to repeat future successes in this area. Our commitment to develop a future state platform for our clients and to be the most trusted partner for small businesses is intact. We're in a labor environmentof almost unprecedented change from perspectives of regulation, mobility and talent. Our innovative solutions helpped got our clients through this dynamic environment So they can focus on their core business. Now I would like to hand up to John to discuss our financial results in more detail. John thanks that. As randall mentioned at the beginning of this call, several of the financial figures discussed today our non-GAAP : you will find a description of our GAAP to non-GAAP reconciliationations in the earnings release that was made available earlier today. The reconciliationations themselves are also included in our most recent investor presentation, hosted in the Investor Relations section of our website at a suresoftware T com.

Multiple speakers: [Patrick Goepel] By a way of update, the integration of the two resellers we acquired at the end of third quarter, 2021 has gone extremely well. We're very pleased with the execution of our integration efforts and the underlying businesses continued to perform to expectation. Our proven acquisition model delivers meaningful synergies in seamless integration. We intend to repeat future successes in this area. Our commitment to develop a future state platform for our clients and to be the most trusted partner for small businesses is intact. We're in a labor environment of almost unprecedented change from perspectives of regulation, mobility and talent. Our innovative solutions helped get our clients through this dynamic environment so they can focus on their core business. Now, I would like to hand up to John to discuss our financial results in more detail. John? [John Pence] Thanks Pat. As Randall mentioned at the beginning of this call, several of the financial figures discussed today are non-GAAP. You will find a description of our GAAP to non-GAAP reconciliations in the earnings release that was made available earlier today. The reconciliations themselves are also included in our most recent investor presentation, hosted in the Investor Relations section of our website at asuresoftware.com.

Now on to the results.

John F. Pence: Now on to the results. Overall we are pleased with our financial performance in the first quarter. Here are some of the highlights.

Overall we are pleased with our financial performance in the first quarter. Here are some of the highlights.

John F. Pence: Overall we are pleased with our financial performance in the first quarter. Here are some of the highlights.

In terms of revenues, the first quarter was our highest revenue quarter since we repositioned as a pure-play HCM provider. Our 23% revenue growth in the quarter versus prior year was driven by three point eight million were 20% growth in recurring revenues. Our nonrecurring revenues increased by one thousand versus prior year and was aided by continuing success of our employee retention tax credit program, where we have now delivered to our customers more than three million of stimulus through this government program. We also had strong cross-selling success with clients, as we saw strong demand for our HR consulting and tax solutions.

John F. Pence: In terms of revenues, the first quarter was our highest revenue quarter since we repositioned as a pure play HCM provider. Our 23% revenue growth in the quarter versus prior year was driven by $3.8 million or 20% growth in recurring revenues. Our non-recurring revenues increased by $800,000 versus prior year and was aided by continuing success of our employee retention tax credit program, where we have now delivered to our customers more than $300 million of stimulus through this government program. We also had strong cross selling success with clients as we saw strong demand for our HR consulting and tax solutions.

non-GAAP gross profit margin remained strong in the first quarter at six-nine percent of revenuesover the past two years, we have improved our non-GAAP gross margins almost 500 basis points.

John F. Pence: Non-GAAP gross profit margin remains strong in the first quarter at 69% of revenues. Over the past two years, we have improved our non-GAAP gross margins by almost 500 basis points. As we continue to increase the scale and efficiency of our operations.

As we continue to increase the scale and efficiency of our operations.

Speaker 5: As we continue to increase the scale and efficiency of our operations.

non-GAAP EBITDA rose by six thousand, or 18%, in the first quarter relative to prior year, and our non-GAAP EBITDA margin remained stable at 17% of revenues.

John F. Pence: Non-GAAP EBITDA rose by $600,000 or 18% in the first quarter relative to prior year and our non-GAAP EBITDA margin remains stable at 17% of revenues. We accomplish this despite the headwinds from higher benefits expense this year, as a result of last year’s reductions in response to the impact of COVID on our business.

We accomplished this despite the headwinds from higher benefits expense this year as a result of last year's reductions in response to the impact of COVID-19 on our business.

Speaker 5: We accomplished this despite the headwinds from higher benefits expense this year as a result of last year's reductions in response to the impact of COVID-19 on our business.

That headwind was approximately one million in our year-over-year comparisons, without which we would have generated even stronger EBITDA margin gains. The business will continue to face these headwinds in the second quarter.

John F. Pence: That headwind was approximately one million in our year-over-year comparisons, without which we would have generated even stronger EBITDA margin gains. The business will continue to face these headwinds in the second quarter.

We think it's also instructive to look at our EBITDA margins on a sequential quarter-over-quarter basis. We believe that looking at our EBITDA margin this way provides further validation of our strategy to grow margins by increasing the scale of the business. In the first quarter we grew revenues by three point two million relative to the fourth quarter to 24.3 million.

John F. Pence: We think it's also instructive to look at our EBITDA margins on a sequential quarter-over-quarter basis. We believe that looking at our EBITDA margin this way provides further validation of our strategy to grow margins by increasing the scale of the business. In the first quarter we grew revenues by $3.2 million relative to the fourth quarter to $24.3 million.

But that same period we grew non-GAAP EBITDA by one point six million, representing an EBITDA conversion rate of 50% of revenues.

John F. Pence: But that same period, we grew non-GAAP EBITDA by $1.6 million, representing an EBITDA conversion rate of 50% of revenues. That EBITDA conversion drove our non-GAAP EBITDA margin to 17% in the quarter from 11% in the previous quarter, that’s an increase of 520 basis points relative to Q4.

betty EBITDA conversion drove our non-GAAP EBITDA margin to 17% in the quarter, from 11% in the previous quarter.

Speaker 6: betty EBITDA conversion drove our non-GAAP EBITDA margin to 17% in the quarter, from 11% in the previous quarter.

That's an increase of 520 basis points relative to Q4.

Speaker 5: That's an increase of 520 basis points relative to Q4.

As we have stated before, in 2022 we are reinvesting a portion of our profit improvement to fuel technical improvements that support our product strategy and business processes.

John F. Pence: As we have stated before, in 2022 we are reinvesting a portion of our profit improvement to fuel technical improvements that support our product strategy and business processes. The further expansion of sales and marketing activities and to further enhance our service capability.

The further expansion of sales and market activities and to further enhance our service capability.

Speaker 5: The further expansion of sales and marketing activities and to further enhance our service capability.

We believe these investments will generate enhanced revenue activity in the second half of this year and in 2023. as these investments take hold, it will begin to self-fund themselves. Accordingly, the headwind from these investments will be temporary and we believe we will lead to higher levels of value creation in the future.

John F. Pence: We believe these investments will generate enhanced revenue activity in the second half of this year and in 2023. As these investments take hold, it will begin to self-fund themselves. Accordingly, the headwind from these investments will be temporary and we believe we will lead to higher levels of value creation in the future.

We ended the quar with Ash and cash quivalents of twelvepoint one thousand. We also had 35.8 million of debt, which is comprisedof the initial three million draw in our our senior credit facility, with the remainder made up of seller notes from acquisitions.

John F. Pence: We ended the quarter with cash and cash equivalents of $12.1 million. We also had $35.8 million of debt, which is comprised of the initial $3 million draw in our senior credit facility, with the remainder made up of seller notes from acquisitions. Client fund assets were $238.7 million at March 31.

Client fund assets were 238.7 million at March thirty-first.

Speaker 6: Client fund assets were $238.7 million at March 31.

Now I'm going to turn to guidance for the remainder point twenty two.

John F. Pence: Now I’m going to turn to guidance for the remainder of 2022.

It's important to keep in mind that first quarters are seasonally strong.

John F. Pence: It’s important to keep in mind that first quarters are seasonally strong as recurring year-end W-2, ACA revenue is recognized in this period. We are providing the following guidance.

As recurring year-endwtwo AC revenue is recognized in this period.

Speaker 5: As recurring year-endwtwo AC revenue is recognized in this period.

We are providing following guidance.

Speaker 6: We are providing following guidance.

Firstly, full year: 20.022 thousand revenues. We have raised the low end of our guidance range to 88 million and accordingly we have our revised guidance for 20: 22 revenues is a range of 88 to nine million. Our previous guidance was a range of 85 to nine million.

John F. Pence: Firstly, full year 2022 revenues, we have raised the low end of our guidance range to $88 million, and accordingly, our revised guidance for 2022 revenues is a range of $88 million to $90 million. Our previous guidance was a range of $85 million to $90 million.

We believe sales momentum is building throughout our organization and we have experienced higher levels across selling activity.

John F. Pence: We believe sales momentum is building throughout our organization and we have experienced higher levels across selling activity.

We expect to exit 2022 with higher levels of organic revenue growth. Giving us confidence is our performance.

John F. Pence: We expect to exit 2022 with higher levels of organic revenue growth, giving us confidence is our performance with cross selling activity, strong demand of our tax and HR consulting solutions and positive expectations relating to the technological and platform innovations we have announced to-date. These platform extensions provide new and unique revenue streams and we are extremely excited about them.

With cross-selling activity, strong demand of our tax and HR consulting solutions, and positive expectations relating to the technological and platform innovations we've announced to date. These platform extensions provide new and unique revenue streams and we are extremely excited about them.

Speaker 5: With cross-selling activity, strong demand of our tax and HR consulting solutions, and positive expectations relating to the technological and platform innovations we've announced to date. These platform extensions provide new and unique revenue streams and we are extremely excited about them.

For non-GAAP EBITDA, we are setting a range of eight point five to one million for 2022. We expect EBITDA trends in 2022 to show the same seasonal variations as we've seen in recent past. The first quarter is typically the strongest quarter, followed by seasonally adjusted performance for the balance of the year.

John F. Pence: For non-GAAP EBITDA, we are setting a range of $8.5 million to $10 million for 2022. We expect EBITDA trends in 2022 to show the same seasonal variations as we’ve seen in recent past. The first quarter is typically the strongest quarter followed by seasonally adjusted performance for the balance of the year.

non-gaapebita in the second quarter is expected to come in a little lower than in prior year second quarter. We continue to make incremental investments in sales headcount, sales tools marketing, advertising and other initiatives designed to utilize our more robust technical platform and leverage the innovative partnerships and integrations we have underway.

John F. Pence: Non-GAAP EBITDA in the second quarter is expected to come in a little lower than in prior year second quarter. We continue to make incremental investments in sales head count, sales tools, marketing, advertising, and other initiatives designed to utilize our more robust technical platform and leverage the innovative partnerships and integrations we have underway.

In the second quarter of 2022. We will also continue to experience a headwind of the restoration of incentives and benefits in the second half of 2021.

John F. Pence: In the second quarter of 2022, we will also continue to experience a headwind of the restoration of incentives and benefits in the second half of 2021, which will lead to higher cost in the current period than in prior year. From the second quarter we expect revenues and non-GAAP EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels of EBITDA through the year.

Which will lead to higher cost in the current period than in prior year.

Speaker 6: Which will lead to higher cost in the current period than in prior year. From the second quarter we expect revenues and non-ap EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels at E DA through the year.

From the second quarter we expect revenues and non-ap EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels at E DA through the year.

Speaker 5: From the second quarter we expect revenues and non-ap EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels at E DA through the year.

Looking into the 2023 and beyond, we continue to focus our long-term targets of 10% annual growth in organic revenues and 10% growth in inorganic revenue.

John F. Pence: Looking into the 2023 and beyond, we continue to focus our long-term targets of 10% annual growth in organic revenues and 10% growth in inorganic revenue.

Those remain achieable objectives in our mind.

John F. Pence: Those remain achievable objectives in our mind. We also believe that as a business scales, we can deliver 20% non-GAAP EBITDA margins via revenue gains and efficiencies.

We also believe that, as a business scales, we can deliver 20% non-GAAP EBITDA margins via revenue gains and efficiencies.

Speaker 7: We also believe that as a business scales, we can deliver 20% non-GAAP EBITDA margins via revenue gains and efficiencies.

We think our margin performance over the last couple of quarters shows the upside potential we can deliver by building scale and delivering synergies from acquisitions.

John F. Pence: We think our margin performance over the last couple of quarters shows the upside potential we can deliver by building scale and delivering synergies from acquisitions. We have the tools and focus to deliver on these goals, longer term and we intend to achieve them.

We have the tool and focus to deliver on these goals longer term and we intend to achieve them.

Speaker 5: We have the tools and focus to deliver on these goals, longer term and we intend to achieve them.

With that, I will turn the call back to Pat for some closing remarks.

John F. Pence: With that, I will turn the call back to Pat for some closing remarks.

Thanks se. We really excited about the opportunities ahead for our organization in 2022. We've develop some innovative solutions with partners, while also enhancing our own technology to improve client service and product capabilities. We believe developments in this area will bring tremendous value to assure stakeholders to clients in the entire community. We've invested in sales, and marketing are experiencing strong demand for our solutions, such as H? R consulting and our tax solution. We we've had great success with cross selling and our employee retention tax grredit program continues to resonate the market and deliver tremendous value for our clients. We expect our investments in these areas will bring more robust levels of organic revenue growth in the second half of 2022 and beyond. Our acquisition strategy is also proving itself. The integration has gone seamlessly. The business our hitting our objectives and they re helping to build scale and operating margins. And our business- we're happy to have proven the business model here. We expect 2022 will be a strong year with double digit revenue growth, strong margin performance and our portfolio of new innovative solutions that as poised to deliver new revenue streams and value for our business. So with that, I'll send the call back to the operator for the questions operator.

Patrick F. Goepel: Thanks, John. We’re really excited about the opportunities ahead for our organization in 2022. We’ve developed some innovative solutions with partners, while also enhancing our own technology to improve client service and product capabilities. We believe developments in this area will bring tremendous value to Asure stakeholders to clients and the entire community. We’ve invested in sales and marketing, are experiencing strong demand for our solutions such as HR consulting and our tax solution. We’ve had great success with cross-selling and our employee retention tax credit program continues to resonate in the market and deliver tremendous value for our clients. We expect our investments in these areas, we’ll bring more robust levels of organic revenue growth in the second half of 2022 and beyond, our acquisition strategy is also proving itself. The integration has gone seamlessly, the business are hitting our objectives, and they’re helping to build scale and operating margins in our business. We’re happy to have proven the business model here. We expect 2022 will be a strong year with double-digit revenue growth, strong margin performance and a portfolio of new innovative solutions that is poised to deliver new revenue streams and value for our business. So with that, I’ll send the call back to the operator for the questions. Operator?

Thank you. As a reminder, to ask a question you need to press star one on your telephone and to draw a question, just putippalkey once again that star one for questions. one more questions.

Operator: Thank you. As a reminder, to ask a question you need to press star one on your telephone and to withdraw your question, just press the pound key. Once again, that's star one for questions. One hold for questions.

Our first question is something: line of brrian Bergen from cvin. Your line is open.

Operator: Our first question will come from the line of Bryan Bergin from Cowen. Your line is open.

Hi guys, good afternoon. Thank you first. 1: we've got here just on organic growth, So we're looking at the sles. Can you dig a little bit more there on the 1% year-over-year just just here case, why that is? It matched up here with the good commentary in the bookings performance equr, So can you maybe comment on your-on client churn or just other factors that are causing out?

Bryan C. Bergin: Hi, guys. Good afternoon. Thank you. First one, we’ve got here, just on organic growth, so we’re looking at the slides. Can you dig in a little bit more there on the 1% year-over-year? I’m just curious why that isn’t matching up here with the good commentary and the bookings performance that you point out. So can you maybe comment on year-end client churn or just other factors that are causing that?

one comment Ryan, when we were looking at kind of the year on year comparisons- I think we were actually- they really impacted last year year on W two revenue. If you think about W revenue it's kind of based on the number of employees by employers, So So for example, if they work one day or if they work the entire year the same, you only they provided to do the employee. I think we had more employees kind of turning in and out of our customers to that over year. So two revenue actually down in our core business, not substantially, the by like 10%. So I think that's a little bit of the compare difference for my perspective Pat of year and I just think some of it itiss also the mix a little bit of the repetitive revenue versus non repetitive. You know I think normalized that in the first quarter we're going to be in single digits and moving to the fourth quarter, double digits said So I feel good about where we are. The repetitive revenue is strong. forty 2% growth in sales especially were repetitive and the pipeline is, you know, really really strong. So I think as we momove through these quarters you'll see that incrementally go up.

Multiple speakers: [John Pence] think I’ll give you one comment, Bryan, when we were looking at kind of the year-on-year comparisons, I think we were actually favorably impacted last year on W-2 revenue. If you think about W-2 revenue, it’s kind of based on a number of employees by employers. So for example, if they work one day or if they worked the entire year, it’s the same – you still need to get provided W-2 to that employee. I think we had more employees kind of churn in and out of our customers through that COVID year. So W-2 revenue was actually down in our core business, not substantially, but probably like 10%. So I think that’s a little bit of the compare difference from my perspective. Pat, I don’t know if you have any other thoughts on that. [Pat Goepel] Yes. And I just think some of it is also the mix a little bit of the repetitive revenue versus non-repetitive. I think normalized that at the first quarter, we’re going to be in single digits and then moving to the fourth quarter double digits. And so I feel good about where we are the repetitive revenue is strong, 42% growth in sales, especially repetitive. And the pipeline is really, really strong. So I think as we move through these quarters, you’ll see that incrementally go up.

Ok.

Multiple speakers: [Bryan Bergin] Okay. Okay. And then follow-up here, just on your ERTC offering. So can you just comment on the demand – as you think about this going forward? When does that start to kind of tail off and maybe just any context you give us from a standpoint of revenue mix that that can provide. [John Pence] I think the program’s going to be available for five years, right. Look back, so it’s going to be really has somebody already tapped that or not? So it’ll definitely start to be less robust. I think that back half of this year and then in the four years, but it’s still a product that can be sold if the customer hasn’t already made a filing yet. [Pat Goepel] Yes. And as far as sales bookings, it’s probably started to trail a bit. It will still continue, like John mentioned, and then from delivery of that, we’ve done real good delivery here in the third, fourth quarter, and the first quarter. I anticipate that the demand will continue and the delivery will continue, but maybe not as robust as the third and fourth quarter.

Okay and follow up here just just on your, your ER RT C offering. So you just come out the demand there as you think about this going forward. When does that start to kind of tail off? And maybe just any context you give us from a standpoint of retherving mix, that that's compared. I think that I think a program is going to be available for five years- right was back. So it's going to be really, has somebody already haveap that or not? So it'll definitely start to be less robust. But I think that back up this year and then in four years. But it's still procts to be sold if if the customer hasn't already made a filing it. Yeah, as far as sales bookings, it's probably started to trail a bit. It will still continue, like John mentioned. And then from delivery of that we've done real good delivery here in the third fourth quarter. In the first quarter I anticipate that the the demand will continue and the delivery will continue, but maybe not as robust as the third fourth quarter.

Speaker 13: Okay and follow up here just just on your, your ER RT C offering. So you just come out the demand there as you think about this going forward. When does that start to kind of tail off? And maybe just any context you give us from a standpoint of retherving mix, that that's compared. I think that I think a program is going to be available for five years- right was back. So it's going to be really, has somebody already haveap that or not? So it'll definitely start to be less robust. But I think that back up this year and then in four years. But it's still procts to be sold if if the customer hasn't already made a filing it. Yeah, as far as sales bookings, it's probably started to trail a bit. It will still continue, like John mentioned. And then from delivery of that we've done real good delivery here in the third fourth quarter. In the first quarter I anticipate that the the demand will continue and the delivery will continue, but maybe not as robust as the third fourth quarter.

Ok Thank you.

Bryan C. Bergin: Okay. Thank you.

And our next question: constant line of Josh Riley: from meeting the company you may begin.

Operator: And our next question comes from the line of Josh Reilly from Needham & Company. You may begin.

I think we taking my questionions today just curious: how are you thinking about the acquisition strategy? Or now you've got the two most recent deals kind of integrated and, given the volatility in the market, I think it'd be helpful to give up investors an update on what you're thinking there.

Joshua Christopher Reilly: Yes. Thanks for taking my questions today. Just curious, how are you thinking about the acquisition strategy here now? You’ve got the two most recent deals kind of integrated and given the volatility in the markets, I think it’d be helpful to give us investors an update on what you’re thinking there.

Yes really, I'm pointing towards the second half of 2022 and really 2023. I don't think you'll see anything imminent, Josh. We'll continue to be opportunistic and are looking at that. We're focused on our business and really building out the product capability and we'll add tuck-in acquisitions as we go. So nothing imminent, but we're going to continue to be opportunistic.

Patrick F. Goepel: Yes, really I’m pointing towards the second half of 2022 and really 2023. I don’t think you’ll see anything imminent, Josh. We’ll continue to be opportunistic and are looking at that. We’re focused on our business and really building out the product capability and we’ll add tuck-in acquisitions as we go. So nothing imminent, but we’re going to continue to be opportunistic.

Got it and then have you seen any impact to customer confidence either since the Ukraine war started or more recently now in the last few weeks, some more localized macroeconomic issues in the United States?

Joshua Christopher Reilly: Got it. And then have you seen any impact to customer confidence either since the Ukraine war has started or more recently now in the last few weeks some more localized macroeconomic issues in the United States?

i't not see anything and all but that time too, I think we still an our, our target audience there still has, you know, real strugglle getting enough people back to work, for you're still a lot of job money's out there. So I don't think this thisiness arreally ties to Ukraine or competident, and there's still a lot of want to talk out in our our- yeah, we're. We're really main Street America small business. I think people are looking- whether you know your bank, credit union, retail shop or restaurant, you're looking for help. We believe that demand environment for our solutions is pretty good and i- I think you know, for the U CAn't Ukraine war and others in the news. You know our folks feel inflation a bit but also really want to be active in upgrading to a digital presence or getting more customers, are serving customers and and we want to help them do that. So I think the Deb demand environment's very strong for us. It will continue to grow.

Multiple speakers: [John Pence] I have not seen anything and I’ll let Pat comment too. I think we still in our target audience, we're still having real struggles getting enough people back to work more, right. There’s still a lot of job openings out there. So I don’t think that’s necessarily tied to Ukraine. We are confident, I think there’s still a lot of help wanted, it turns out in our customer base. [Pat Goepel] Yes. We’re really Main Street America small business. I think people are looking whether you’re a bank, credit union, retail shop or restaurant, you’re looking for help. We believe that demand environment for our solutions is pretty good and high. I think for the Ukraine war and others in the news, our folks feel inflation a bit, but also really want to be active in upgrading to a digital presence or getting more customers or serving customers and we want to help them do that. So I think the demand environment’s very strong for us and will continue to grow.

Thanks guys.

Joshua Christopher Reilly: Thanks guys.

And our restaurant. Call on Eric Martin. newuy from Lake screek, you may begin.

Operator: And our next question will come from the line of Eric Martinuzzi from Lake Street. You may begin.

Yes I want to dive into the competitive landscape here, and I'm specifically talking about the, where your sales, for your direct sales force, is competing for the attention of partners. What can you tell us about that?

Eric Martinuzzi: Yes. I wanted to dive into the competitive landscape here. And I’m specifically talking about where your sales for your direct sales force is competing for the attention of partners. What can you tell us about that?

it'so. For example, on the partners, our tax filing sales force, I think demand is very high. So we think we're in a competitive environment, whether it's an eight P master tax or cerid sanal tax environment. Those are are to main competitors. I think you will see some further announcements, sign some wins in the second and third quarter. I think the pipeline is really strong in that area. On human management consulting, we've sold more in the first quarter than we did all of last year. That we'll continue to grow very, very pleased with the business line there. And then small business services. You know we're going out and competing very, very effectively and as we continue to get more salespeople- I think our average tenure actually went down a month because we're bring new salespeople on- we have a gold to be over 90 and in the third fourth quarter in the back half of the year. So we're continuing that. That we're adding because we think we can compete effectively. As far as the reseller network, I would say there's been a pretty good pipeline. That demand for open a P I is something that you know we've announced here today and and we think we'll continue to have traction in that area through the second half for the year. And it is critical to our success because we believe that as part as our partner network wants to have more and more solutions available, with our micro services technology we're able to to spend those up faster and we think that will garner more customers down a road. So we think the momentum is there and we're positioned very nicely for the second half of the year.

Patrick F. Goepel: So, for example, on the partners – our tax filing sales force, I think demand is very high. So we think we’re in a competitive environment, whether it’s an ADP master tax or a Ceridian standalone tax environment. Those are the two main competitors. I think you will see some further announcements on some wins in the second and third quarter. I think the pipeline is really strong in that area. On human management consulting, we’ve sold more in the first quarter than we did all of last year. That will continue to grow very, very pleased with the business line there. And in small business services, we’re going out and competing very, very effectively. And as we continue to get more sales people, I think our average tenure actually went down a month, because we’re bringing new sales people on. We have a goal to be over 90 in the third, fourth quarter and the back half of the year. So we’re continuing to add and then we’re adding, because we think we can compete effectively. As far as the reseller network, I would say, there’s been a pretty good pipeline. The demand for open APIs is something that we’ve announced here today and we think we’ll continue to have traction in that area through the second half of the year. And it is critical to our success, because we believe that as our partner network wants to have more and more solutions available with our microservices technology, we’re able to spin those up faster and we think that will garner more customers down the road. So we think the momentum is there and we’re positioned very nicely for the second half of the year.

Do you feel like- I mean, if I were to compare where the platform is now versus a year ago, do you feel like you lost some opportunities because you didn't have the integration marketplace, because you weren't API first?

Eric Martinuzzi: Do you feel like, I mean, if we were to compare where the platform is now versus a year ago, do you feel like you lost some opportunities because you didn’t have the integrations marketplace because you weren’t API first?

Know it's a great questionnaeric from our perspective. It's we've been building this for 3, four years and it's we've done some foundational work. There's no question that. You know we laid the seeds to get to this point in time and- But I think also COVID-19, when you think about there were more tax law changes in the last two years than probably the previous 20. everybody had to go through some maintenance efforts then and really take care of their core customers, and now it's time to get very aggressive and and in acquiring new partners and services. So for me it's just an evolution- no punattended- of the timeline and some of the work we've done over the last couple of years, and I think we're poised really well for success in the second half.

Patrick F. Goepel: It’s a great question, Eric. From our perspective, it’s – we’ve been building this for three, four years and it’s – we’ve done some foundational work. There’s no question that we laid the seeds to get to this point in time. And but I think also COVID when you think about there were more tax law changes in the last two years than probably the previous 20. Everybody had to go through some maintenance efforts and really take care of their core customers. And now it’s time to get very aggressive in acquiring new partners and services. So for me, it’s just an evolution upon attended of the timeline and some of the work we’ve done over the last couple years. And I think we’re poised really well for success in the second half.

Okay and then just one more, if I could. For John , based on the full year adjusted EBITDA look of eight a half to one million. How did that translate into free cash flow?

Eric Martinuzzi: Okay. And then just one more, if I could, for John, based on the full year adjusted EBITDA outlook of $8.5 million to $10 million. How does that translate into free cash flow?

That's a good question, I think if you look at that GAAP and non-GAAP reconciliation, I mean the biggest, biggest adjustments, CAn't we see them on that reconciliation? But the ones that kind of issue would be interest.

John F. Pence: That’s a good question. I think if you look at that GAAP to non-GAAP reconciliation, I mean, the biggest adjustments can’t really see them on that reconciliation, but the ones that kind of issue would be interest. And then there’s a little bit of arbitrage between commissions and software capitalization, those are probably the three major items. You can strip those out of the actual GAAP cash flow, but those would be the kind of free, I think, key drivers in terms of free cash flow versus what you see in the kind of non-GAAP EBITDA.

And then there's a little bit of the arbitrage between Commission and software capitalization that you're priing fivebably the three major items. You can strip those out of the acttive GA cash flow, but those would be the kind three key drivers in terms of free cash flow versus what you're seeing, the kind of noton-get EBITDA.

Speaker 22: And then there's a little bit of the arbitrage between Commission and software capitalization that you're priing fivebably the three major items. You can strip those out of the acttive GA cash flow, but those would be the kind three key drivers in terms of free cash flow versus what you're seeing, the kind of noton-get EBITDA.

Okay thanks for taking my.

Eric Martinuzzi: Okay. Thanks for taking my --

Thanks.

Patrick F. Goepel: Thanks Eric.

ernnex question: counina, Richard bought from rock capital. You may begin.

Operator: Our next question will come to line of Richard Baldry from Roth Capital. You may begin.

Thanks with respect to your two most recent acquisitions. We've typically seen them be to move up front and then over time, cut costs. But they they came in, you know, essentially accretive that when they were. Does that argue that they're fully integrated, cost wise now, or there are still more costs to be taken out of those sort of slowly through the balance of this year?

Richard Kenneth Baldry: Thanks. With respect to your two most recent acquisitions, we’ve typically seen them be dilutive upfront and then over time cut costs, but they came in essentially accretive when they were. Does that argue that they’re fully integrated cost wise now or there are still more costs to be taken out of those sort of slowly through the balance of this year?

There'll be a little bit more to come out, but I think VIS on a key point. We've tightened the model quite as it terms of imformication.

John F. Pence: Yes. There’ll be a little bit more to come out, but I think good hit on a key point. We’ve tightened the model quite a bit in terms of integration. If they’re re-papered, we didn’t bring on a lot of extra bank accounts as we did with past acquisitions, the employees came across onto our federal ID. So they were brought through our payroll versus maintaining separate payroll systems for them. So I think we are getting better with the playbook in terms of the acquisitions and they become a lot more creative, a lot sooner, but there’s still going to be cost to rationalize out as we get more of our processes in place. For example, getting on a common some of the back office might not be all the way maybe plus yet, might not have the phone systems yet.

If they're repapered.

Speaker 24: If they're repapered.

Didn't bring on a lot of extra bank accounts as we did P acquisitions. The employees came across on to our federal ID's. They were frintt our fayro vers maintaining federal systems for them. So I think we are getting better with the placebook in terms of the acquisitition, that they ve become a lot more creative, lot sooner. But there's still going to be cost to rationalize out as we get more of our processes in place, for example getting on a common. You know some of the back office might not be all would pay any.

Speaker 25: Didn't bring on a lot of extra bank accounts as we did P acquisitions. The employees came across on to our federal ID's. They were frintt our fayro vers maintaining federal systems for them. So I think we are getting better with the placebook in terms of the acquisitition, that they ve become a lot more creative, lot sooner. But there's still going to be cost to rationalize out as we get more of our processes in place, for example getting on a common. You know some of the back office might not be all would pay any.

Yeah I not have the phoneonessystem.

Speaker 5: Yeah I not have the phoneonessystem.

So you'll see an additional savecan to come out that dramatic. I think it will be a gradual over time, but we've got a lot of the centate fees out.

John F. Pence: So you’ll see additional savings come out -- not dramatic. I think it’ll be gradual over time, but we’ve gotten a lot of synergies out a lot quicker than in the past.

Black water it that.

Speaker 5: Black water it that.

Yes I would say we're three to six months ahead of previous acquisitions with these acquisitions and that gives us confidence in the model going forward.

Patrick F. Goepel: Yes. I would say we’re three to six months ahead of previous acquisitions with these acquisitions and that gives us confidence in the model going forward.

Most of the other address and maybe just a very broad concept. With inflation running hot, can you talk about how you think that could impact your model anywhere from you? Incremental interest earned, also of the tax, holding balances versus costs, or how tough it is to find sort of people to to keep building out the businessthank.

Richard Kenneth Baldry: Most of mine addressed. So maybe just a very broad concept with inflation running high. Can you talk about how you think that could impact your model anywhere from incremental interest earned off the tax withholding balances versus costs or how tough it is to find people to keep building out the business. Thanks.

You get the key, the key points right me.

Multiple speakers: [John Pence] You hit the key points, right? I mean most contractors are the outside of employment are going to be kind of locked in for some amount of time, right? We don’t have outside of freight. There might be some kind of near-term hits where to bill, they’ll pass on a cost to us. And we can generally pass that on to our customers. Big part of our cost structure is employees, right? So about 70% of our cost structure is going to be in benefits or wages to our employees. So as wage pressure happens, that that impacts us just like anybody else. So we’ve got to figure out accretive ways to still deliver the service cost effectively. So that’s on us to try to figure out you hit on a key point about float, we’re in the process. I think we’ve talked about it over the last couple calls about how we were kind of rationalize our footprint in terms of banks and we’re well done that journey. I think it’s going to time really well for us as we get into this consolidated bank view. We’re sitting on an average $200 million at any point in time and we can put that money to work and as the rates go up, obviously that, that adds to the top line for us. So I think we’ve not played out a ton of that in to our model, we’ve got some rating uses in the back after year if Fed’s going to come in, but we don’t get to necessarily take all that immediately. As we have a ladder that we would invest in probably on average about three years long. So as we have more money cooling and as we start to get the back office rationalize, we put more money to work rates go up. It’s all good. So that’ll – that’s the benefit of the rating for us, but again, we have some wage pressures potentially on our cost pressure. Pat, I don’t know if you have any other thoughts. [Pat Goepel] No, just I think we’ve modeled in some of the moves that we anticipate from the Fed. I think the impact of 2023 will be much larger than 2022. But in modeling that, we were able to raise the lower end of our revenue guides and overall raise our EBITDA guides. So the float treasury tax impact and some of the momentum we’re seeing will definitely play in 2022 as well as 2023.

Those contracts, the outside of the employment kind of lock in for some of bad time. Right, we don't have out of freight. There might be some kind of near term that's were to ll pass on a cost if we can only pass it on to our customers. Big part of our cost structure is.

Speaker 7: Those contracts, the outside of the employment kind of lock in for some of bad time. Right, we don't have out of freight. There might be some kind of near term that's were to ll pass on a cost if we can only pass it on to our customers. Big part of our cost structure is.

Its employees right. So that's sey percent of our cost structures going to be in benefits or wages employees. So as wage pressure happen, that impacts us's just just like anybody else. So we've got to figure out creativeve ways is still to look at the service prospectively. So that's on us, we to try to figure out. But we H on keepy point about the float we're in the process think, talked about over the last call, about how we've kind of rationalize our, our footprint in terms of banks.

Speaker 7: Its employees right. So that's sey percent of our cost structures going to be in benefits or wages employees. So as wage pressure happen, that impacts us's just just like anybody else. So we've got to figure out creativeve ways is still to look at the service prospectively. So that's on us, we to try to figure out. But we H on keepy point about the float we're in the process think, talked about over the last call, about how we've kind of rationalize our, our footprint in terms of banks.

And we're welled on that jurney I think it's going to time really well for us as we get into this consolidated ban. You we're sitting on an average two million of dollars. Any point time and.

Speaker 5: And we're welled on that jurney I think it's going to time really well for us as we get into this consolidated ban. You we're sitting on an average two million of dollars. Any point time and.

We can put that way to work and as the rates go off obviously that adds the top line for us. So I think we've not played out ton of that in D our model. We've got some rating.

Speaker 26: We can put that way to work and as the rates go off obviously that adds the top line for us. So I think we've not played out ton of that in D our model. We've got some rating.

umin the back up of the years go.

Speaker 26: umin the back up of the years go.

That's going to come in, but we don't get neurevery thing all that immediately. You know, as we have a lder, that we that probably an average that three years, So as we have more money, as we start the back off that line, were rates go up, it's all good. So that's the the benefit of the rating increase for us. but- and we have some some wage pressureres potentially on our our conststruct that. No, just I think you know we've modeled in some some of the moves that we anticipate from the Fed. I think the impact of 2020 three will be much larger than 2022. But in modeling that you know we were able to raise the lower end of our revenue guidance and overall raise or even a guidance. So the float treasury tax impact and some of the momentum we're seeing will definitely play in two twenty two as well as 2020 three

Speaker 5: That's going to come in, but we don't get neurevery thing all that immediately. You know, as we have a lder, that we that probably an average that three years, So as we have more money, as we start the back off that line, were rates go up, it's all good. So that's the the benefit of the rating increase for us. but- and we have some some wage pressureres potentially on our our conststruct that. No, just I think you know we've modeled in some some of the moves that we anticipate from the Fed. I think the impact of 2020 three will be much larger than 2022. But in modeling that you know we were able to raise the lower end of our revenue guidance and overall raise or even a guidance. So the float treasury tax impact and some of the momentum we're seeing will definitely play in two twenty two as well as 2020 three

And maybe contrast that part with pricing power, and you've got a lot of experience going back a long time in the payroll space. So how price Elastic and do you feel like the market is?

Richard Kenneth Baldry: And maybe contrast that part with pricing power, you’ve got a lot of experience going back a long time in the payroll space. So how price elastic do you feel like the market is just from an overall perspective to offset some of those potential inflationary impacts on costs?

Just from an overall perspective, to offset some of those those potential inflationary impacts on costs.

Speaker 27: Just from an overall perspective, to offset some of those those potential inflationary impacts on costs.

Yes I think as we do. You know I always talk about payroll being a negative, satisfyer business and which means you know I have A. I've been in the industry 30 years. I don't think I've ever gotten a letter saying: pack, great job in those taxes right, But if something is in correct of, something needs to be fixed. You know you got to react quickly but those vendor relationships and trusted relationships are really important and typically they do have some pricing power as you integrate, as you really lock in with the customer over multiple products and services. So if you do a good job you do have some pricing power. You know we think we're well position short term. We do think we'll get some benefit as interest rates go up and and, more importantly, as we're providing value to our clients and services. So we think we're positioned very well in this environment and we'll continue to drive value forward.

Patrick F. Goepel: Yes. I think as we do – I always talk about payroll being a negative satisfier business. And which means I haven’t – I’ve been in the industry 30 years. I don’t think I’ve ever gotten a letter saying Pat, great job on those taxes, right. But if something is incorrect or something needs to be fixed, you got to react quickly. But those vendor relationships and trusted relationships are really important. And typically, they do have some pricing power as you integrate. And as you really lock in with the customer over multiple products and services. So if you do a good job, you do have some pricing power. We think we’re well-positioned short-term. We do think we’ll get some benefit as interest rates go up and more importantly, as we’re providing value to our clients and services. So we think we’re positioned very well in this environment and we’ll continue to drive value forward.

Thank you. Our next question is also the line of Jeff andry from Craig ham capital may againin.

Operator: Thank you. Our next question will come from the line of Jeff Van Rhee from Craig-Hallum Capital. You may begin.

They guys is anon for Jeff. Pushed a couple quick ones here. First on sales headcount, I thank you, finishished last quarter with 75, targeting 90 by year, and cur. You see you have an update there on on total number hired during the quarter and then anything you're seeing as far as you know.

Unknown Speaker: Hey guys, this is Aaron on for Jeff. Just a couple quick ones here. First on sales head count, I think you finished last quarter with 75 targeting 90 by year-end. Just curious if you have an update there on total number hired during the quarter. And then anything you’re seeing as far as process of getting those reps in and getting them ramped.

Process of getting those, those reps, in and getting them ramped.

Speaker 28: Process of getting those, those reps, in and getting them ramped.

Yes just as far as the environment, you know, with sales reps and and's D RS, you know we made some progress in that area. You know, probably somewhere close to 80 or so that are committed to joining a sure and and so that's up maybe five or so. As far as the process, you know, for for us it's quality, that quantity. Naturally we want more feet on Ind Street because we think we can have them productive, our pipeline is is almost double where it was a year ago, which gives us a lot of confidence and and I would say the 42% increase year over year, you know we think we got a shot to beat that in second and third quarter, So a lot of momentum in that area. I would say it's a tough environment to hire really good salespeople in that the market is, you know, hot right now. So we've done a good job of, I think, getting the right talent, you investing in the right tools for them going to be successful and giving them an opportunity to to do really, really well. We, you know, want to hire more in the future and it'll be a game of hiring more but also really more important in that, hiring the right people and want to see us get to 90 ty end of the year.

Patrick F. Goepel: Yes. Just as far as the environment with sales reps and SDRs, we made some progress in that area, probably somewhere close to 80 or so that are committed to joining Asure. And so that’s up maybe five or so. As far as the process for us it’s quality, not quantity. Naturally, we want more feet on the street because we think we can have them productive. Our pipeline is almost double where it was a year ago, which gives us a lot of confidence. And I would say the 42% increase year-over-year, we think we got a shot to beat that in second and third quarter. So a lot of momentum in that area. I would say it’s a tough environment to hire really good sales people in that the market is hot right now. So we’ve done a good job of I think getting the right talent, investing in the right tools for them to be successful and giving them an opportunity to do really, really well. We want to hire more in the future and it’ll be a game of hiring more, but also really more important in that hiring the right people and want to see us get to 90 by the end of the year.

I think you got trouble and then second one just curious on you know you mentioned crosssell and I I apologize if I if I missed it but anyway to quantify uh. You know some of the strong crosssell you're seeing and then then where the.

Unknown Speaker: Got you. Thank you. That’s helpful. And then second one, just curious on, you mentioned cross sell and I apologize if I missed it, but anyway to quantify some of the strong cross-sell you’re seeing, and then where are the premier areas where you’re seeing the most uptake on the cross-sell?

premiary - areas where you're seeing the most uptake on the crosssell.

Speaker 28: premiary - areas where you're seeing the most uptake on the crosssell.

Well you know I highlighted H? R consulting services and you know where we're really, you know, having some some good success and we sold more in the first quarter than we sold all of last year, So that's an excellent stat. The fact that our average clients are taking three plus products right from the get go is is a great staf for us. I think we need to provide a little bit more data in cross sell as the year goes on. But you know, H? R consulting, tax filing as well as money movement, you know, tend to be kind of the products and services that we lead with naturally, time and attendance and the R T C which we've highlighted over the last year we've had some really good success on. So more data to come. And then our VES DAC. You know there's kind of a walk up to over $40 per employee per months on the cross sell and it we'll provide a little bit more formal guidance throughout the year as we get meaningful progress in those numbers.

Patrick F. Goepel: Well, I highlighted HR consulting services and where we’re really having some good success and we sold more in the first quarter than we sold all of last year. So that’s an excellent stat. The fact that our average clients are taking three plus products right from the get go is a great step for us. I think we need to provide a little bit more data in cross sell as the year goes on, but HR consulting, tax filing as well as money movement, tend to be kind of the products and services that we lead with naturally time and attendance and ERTC, which we’ve highlighted over the last year. We’ve had some really good success on. So more data to come. And then – and in our investor deck, there’s kind of a walk up to over $40 per employee per month on the cross selling. And we’ll provide a little bit more formal guidance throughout the year as we get our meaningful progress in those numbers.

How and thanks that for me.

Unknown Speaker: Awesome. Thanks. That’s it for me.

Thank you.

Patrick F. Goepel: Thank you. Operator, any other questions?

operat or any other quest.

Speaker 2: operat or any other quest.

I'm not showing any further question in queue at this moment.

Operator: I'm not showing any further questions in the queue at this moment.

Great well' listen. Appreciate your time today. We're very pleased with the first quarter. We thought we executed well on the business plan. We set up guidance throughout the year and feel good about what we're accomplishing here at assure and we appreciate your interest and look forward to seeing you next time. Thank you.

Patrick F. Goepel: Great. Well, listen, I appreciate your time today. We’re very pleased with the first quarter. We thought we executed well on the business plan. We set up guides throughout the year and feel good about what we’re accomplishing here at Asure. And we appreciate your interest and look forward to seeing you next time. Take care.

And this concludes today's conference call. Thank you for participating. You may now disconnect everyone. Have a great day.

Operator: And this concludes today’s conference call. Thank you for participating. You may now disconnect. Everyone, have a great day.

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Speaker 4: [music]

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Speaker 4: Really.

Good afternoon and welcome to assha's first quarter twentthousand and 22 earnings conference call. Joining us for today's call are a shared Chairman and CEO , Pat gouble.

Speaker 14: Good afternoon and welcome to assha's first quarter twentthousand and 22 earnings conference call. Joining us for today's call are a shared Chairman and CEO , Pat gouble. aust Chief Financial Officer, John Pence.

aust Chief Financial Officer, John Pence.

Speaker 14: aust Chief Financial Officer, John Pence.

And Head of VES Relations, randall rudisky.

Speaker 14: And Head of VES Relations, randall rudisky.

Following the prepared remarks, there will be a question-andwer cession for the analysts and investors.

Speaker 14: Following the prepared remarks, there will be a question-andwer cession for the analysts and investors.

I when I went to kenneicop.

Speaker 14: I when I went to kenneicop.

potssky for introductory remarks. Please go ahead.

Speaker 31: potssky for introductory remarks. Please go ahead.

Thank you, operator. Good afternoon everyone and thank you for joining us for assure's first quarter 2022 earnings callfollowing the closing markets, we released our financial results. The earnings release is available on the SEC's website.

Speaker 32: Thank you, operator. Good afternoon everyone and thank you for joining us for assure's first quarter 2022 earnings callfollowing the closing markets, we released our financial results. The earnings release is available on the SEC's website.

Where you can also find an on our.

Speaker 33: Where you can also find an on our.

Investor relation section of our website you can find the investor presentation.

Speaker 33: Investor relation section of our website you can 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.

Speaker 33: 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, we'll also contain forward-looking statements that refer to future events and, as such, involve some risks.

Speaker 33: Today's call, we'll 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.

Speaker 33: 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.

Finally I'd like to remind everyone this call is being recorded and that will be made available for replay via link available on the Investor relation section of our website. With that, I would now like to turn the call over to Pat geppel, Chairman and CEO , Pat.

Speaker 34: Finally I'd like to remind everyone this call is being recorded and that will be made available for replay via link available on the Investor relation section of our website. With that, I would now like to turn the call over to Pat geppel, Chairman and CEO , Pat.

Thank you randall, and welcome everyone to assure software's first quarter earnings call. We sure appreciate your interest, whether you're a shareholder client, employee or prospective shareholder or analysts. I'll begin today's presentation with an update on our business highlights and strategy, and then we'll turn the call over to our CFO , John pets, for a more detailed review of our financial results and outlook for the remainder of the 2022 fiscal year. We will then conclude the session with time to answer your questions.

Speaker 3: Thank you randall, and welcome everyone to assure software's first quarter earnings call. We sure appreciate your interest, whether you're a shareholder client, employee or prospective shareholder or analysts. I'll begin today's presentation with an update on our business highlights and strategy, and then we'll turn the call over to our CFO , John pets, for a more detailed review of our financial results and outlook for the remainder of the 2022 fiscal year. We will then conclude the session with time to answer your questions.

Speaker 16: First of all, I am pleased with the way our business performed in the first quarter. We delivered solid execution of our 2022 business plan and we continue to build our sales and product momentum, and we showed meaningful progress in key business areas. We grew revenues by 23% in non-GAAP EBITDA by 18% relative to the prior year. We also improved our business mix, with reoccurring revenues representing 95% of our total revenues.

Let's now turn to the progress we made in across the business in the first quarter. I'm really excited about what we are able to achieve and how that sets us up for the remainder of 2022 and looking into 2023. I will start with innovation of product and technology. We had important achievements in the first quarter which are the culmination of a lot of dedicated effort over the past few quarters. Our technology focus has two main vectors. one is to enhance the connections between our platform with partners to provide new ways to creating value for clients in the entire human capital management ecosystem. We believe there is a meaningful opportunity in this area to create new high-margin revenue streams for assure.

Speaker 3: Let's now turn to the progress we made in across the business in the first quarter. I'm really excited about what we are able to achieve and how that sets us up for the remainder of 2022 and looking into 2023. I will start with innovation of product and technology. We had important achievements in the first quarter which are the culmination of a lot of dedicated effort over the past few quarters. Our technology focus has two main vectors. one is to enhance the connections between our platform with partners to provide new ways to creating value for clients in the entire human capital management ecosystem. We believe there is a meaningful opportunity in this area to create new high-margin revenue streams for assure.

A great example of our focus in this area is our announcement this morning that we have launch the integration marketplace. With 128 prebuilt integrations, we now have the foundation to create new client solutions and new revenue streams. We're able to introduce integration marketplace because of our commitment to create a strong technical platforms through research and development investments. It's the culmination of our efforts since we pivoted to become a pure play human capital management provider when we sold the space business. We now feature Equifax as a new partner in our ecosystem. We're proud to have them on board and excited to bring new solutions to the marketplace. Another good example is a launch of our new treasury management system to bring automation to our clients. This solution, geared for human capital management providers and larger enterprises to enable them to operate more efficiently and reduce restk. It automes the reconciliation of employers' daily cash positions and provides real time visibility into this critical piece of the payroll cycle.

Speaker 35: A great example of our focus in this area is our announcement this morning that we have launch the integration marketplace. With 128 prebuilt integrations, we now have the foundation to create new client solutions and new revenue streams. We're able to introduce integration marketplace because of our commitment to create a strong technical platforms through research and development investments. It's the culmination of our efforts since we pivoted to become a pure play human capital management provider when we sold the space business. We now feature Equifax as a new partner in our ecosystem. We're proud to have them on board and excited to bring new solutions to the marketplace. Another good example is a launch of our new treasury management system to bring automation to our clients. This solution, geared for human capital management providers and larger enterprises to enable them to operate more efficiently and reduce restk. It automes the reconciliation of employers' daily cash positions and provides real time visibility into this critical piece of the payroll cycle.

The second important aspect of our technology strategy is to move from the legacy transactional way- the payroll industry as operate-d, to a world. We provide new tools for employees to connect and run their lives. We're creating new employee solutions through initiatives like earn, wage access, electronic wallets and more. Our efforts in this area our supported by our a? I first strategy. That means our a? I have now been hardened So our products can be extended to other providers with new application. And another example is our arrangement with empyee Navigator, who managees benefits on boarding and compliance for six thousand companies with one million employees. Our integration with them enables employees to have full visibility of their benefits, compensation and other information so they can manage our lives with secure and reliable information. We're also very hopeful about introducing earned wage access. Our solutution is in the marketplace today and we're expanding our number of vendors we have. This adds a valuable new service to our roster, moves us closer to having a direct relationshipip with employees and is the direction the human capital management industry needs to go. Our product strategy is all about the future positioning of a sure with its unique collection of assets to to deliver to businesses and their employees unique value. This is where we think the market is going and we intend to be leaders in taking it there. We're also very proud of the achievements we made in the quarter in the areas of sales development and sales infrastructure. Our focus on delivering the right solutions and value to the market is beginning to pay off. This is evident in the 43% annual growth we achieve in our new sales performance in the first quarter. We believe this type of performance positions us well.

Speaker 16: The second important aspect of our technology strategy is to move from the legacy transactional way- the payroll industry as operate-d, to a world. We provide new tools for employees to connect and run their lives. We're creating new employee solutions through initiatives like earn, wage access, electronic wallets and more. Our efforts in this area our supported by our a? I first strategy. That means our a? I have now been hardened So our products can be extended to other providers with new application. And another example is our arrangement with empyee Navigator, who managees benefits on boarding and compliance for six thousand companies with one million employees. Our integration with them enables employees to have full visibility of their benefits, compensation and other information so they can manage our lives with secure and reliable information. We're also very hopeful about introducing earned wage access. Our solutution is in the marketplace today and we're expanding our number of vendors we have. This adds a valuable new service to our roster, moves us closer to having a direct relationshipip with employees and is the direction the human capital management industry needs to go. Our product strategy is all about the future positioning of a sure with its unique collection of assets to to deliver to businesses and their employees unique value. This is where we think the market is going and we intend to be leaders in taking it there. We're also very proud of the achievements we made in the quarter in the areas of sales development and sales infrastructure. Our focus on delivering the right solutions and value to the market is beginning to pay off. This is evident in the 43% annual growth we achieve in our new sales performance in the first quarter. We believe this type of performance positions us well.

For accelerated organic growth in the second half of 2022 and into 2023. We also had sales success.

Speaker 35: For accelerated organic growth in the second half of 2022 and into 2023. We also had sales success.

In our business linelines. The business lines provide us with unique differentiation in the marketplace, enable us to expand our relationships and tap into larger client segments. The area of tax filing in human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double-digit underlying organic revenue growth relative to prior year. We strengthen our technology in this area and our focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance. Were excited about the long-term potential of this business line and continue to believe it will be meaningful contributor to our revenues over time as the market comes to apprecitiate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth.

Speaker 35: In our business linelines. The business lines provide us with unique differentiation in the marketplace, enable us to expand our relationships and tap into larger client segments. The area of tax filing in human resources were two of those business segments that we had real good success in the first quarter. In our tax segment, our initiatives and unique market position drove strong double-digit underlying organic revenue growth relative to prior year. We strengthen our technology in this area and our focusing sales to differentiate our solutions from its competitors. We have seen momentum build in this business with a very impressive first quarter performance. Were excited about the long-term potential of this business line and continue to believe it will be meaningful contributor to our revenues over time as the market comes to apprecitiate this unique and differentiated offering. In HR consulting, our focus and unique business model drove 6% organic growth.

Speaker 3: In our revenues prior to relative to prior year. This is a differentiator for us in the small- the medium sized business segment. It offers several digital and service options, ranging from self service human resource support all the way up to fully outsource HR solutions. We comply with federal state, local employment laws, enable a business to replace an internal HR manager using our team of certified HR professionals. That a fraction of the cost, increasing complexity of pit today's labor market, provides a strong underpinning for demand for our leading edge solutionswe are excited about this opportunity we have here and we believe we will have continued success in the near future and beyond. We're also keeping an Ye on acquisition opportunities. We intend to be opportunistic as a demonstrated by a small acquisition we made in January of fully integrated by the end of the quarter, by a way.

By way of update, the integration of the two resellers we acquired at the end of third quarter. 2021 as gone extremely well. We're very pleased with the execution of our integration efforts and the underlying businesses continued to perform to expectation. Our proven acquisition model delivers meaningful synergies in seamless integration. We intend to repeat future successes in this area. Our commitment to develop a future state platform for our clients and to be the most trusted partner for small businesses is then, intact. We're in a labor environment of almost unprecedented change from perspectives of regulation, mobility and talent. Our innovative solutions helpped got our clients through this dynamic environment So they can focus on their core business. Now I would like to hand up to John to discuss our financial results in more detail. John thanks that. As randall mentioned at the beginning of this call, several of the financial figures discussed today our non-GAAP : you will find a description of our GAAP to non-GAAP reconciliationations in the earnings release that was made available earlier today. The reconciliationations themselves are also included in our most recent investor presentation, hosted in the Investor Relations section of our website at a suresoftware com.

Speaker 4: By way of update, the integration of the two resellers we acquired at the end of third quarter. 2021 as gone extremely well. We're very pleased with the execution of our integration efforts and the underlying businesses continued to perform to expectation. Our proven acquisition model delivers meaningful synergies in seamless integration. We intend to repeat future successes in this area. Our commitment to develop a future state platform for our clients and to be the most trusted partner for small businesses is then, intact. We're in a labor environment of almost unprecedented change from perspectives of regulation, mobility and talent. Our innovative solutions helpped got our clients through this dynamic environment So they can focus on their core business. Now I would like to hand up to John to discuss our financial results in more detail. John thanks that. As randall mentioned at the beginning of this call, several of the financial figures discussed today our non-GAAP : you will find a description of our GAAP to non-GAAP reconciliationations in the earnings release that was made available earlier today. The reconciliationations themselves are also included in our most recent investor presentation, hosted in the Investor Relations section of our website at a suresoftware com.

Now on to the results.

Speaker 7: Now on to the results.

Overall we are pleased with our financial performance in the first quarter. Here are some of the highlights.

Speaker 7: Overall we are pleased with our financial performance in the first quarter. Here are some of the highlights.

In terms of revenues, the first quarter was our highest revenue quarter since we repositioned as a pure-play HCM provider. Our 23% revenue growth in the quarter versus prior year was driven by three point eight million were 20% growth in recurring revenues. Our nonrecurring revenues increased by eight thousand versus prior year and was aided by continuing success of our employee retention tax credit program, where we have now delivered to our customers more than three million of stimulus through this government program. We also had strong cross-selling success with clients, as we saw strong demand for our HR consulting and tax solutions.

Speaker 7: In terms of revenues, the first quarter was our highest revenue quarter since we repositioned as a pure-play HCM provider. Our 23% revenue growth in the quarter versus prior year was driven by three point eight million were 20% growth in recurring revenues. Our nonrecurring revenues increased by eight thousand versus prior year and was aided by continuing success of our employee retention tax credit program, where we have now delivered to our customers more than three million of stimulus through this government program. We also had strong cross-selling success with clients, as we saw strong demand for our HR consulting and tax solutions.

non-GAAP gross profit margin remained strong in the first quarter as six-nine percent of revenuesover the past two years, we have improved our non-GAAP gross margins almost 500 basis points.

Speaker 7: non-GAAP gross profit margin remained strong in the first quarter as six-nine percent of revenuesover the past two years, we have improved our non-GAAP gross margins almost 500 basis points.

As we continue to increase the scale and efficiency of our operations.

Speaker 7: As we continue to increase the scale and efficiency of our operations.

non-GAAP EBITDA rose by six thousand, or 18%, in the first quarter relative to prior year, and our non-GAAP EBITDA margin remained stable at 17% of revenues.

Speaker 7: non-GAAP EBITDA rose by six thousand, or 18%, in the first quarter relative to prior year, and our non-GAAP EBITDA margin remained stable at 17% of revenues.

We accomplished this despite the headwinds from higher benefits expense this year as a result of last year's reductions in response to the impact of COVID-19 on our business.

Speaker 6: We accomplished this despite the headwinds from higher benefits expense this year as a result of last year's reductions in response to the impact of COVID-19 on our business.

Speaker 6: That headwind was approximately one million in our year-over-year comparisons, without which we would have generated even stronger EBITDA margin gains. The business will continue to face these headwinds in the second quarter.

Speaker 6: We think it's also instructive to look at our EBITDA margins on a sequential quarter-over-quarter basis. We believe that looking at our EBITDA margin this way provides further validation of our strategy to grow margins by increasing the scale of the business. In the first quarter we grew revenues by three point two million relative to the fourth quarter to 24.3 million.

But that same period we grew non-GAAP EBITDA by one point six million, representing an EBITDA conversion rate of 50% of revenues.

Speaker 7: But that same period we grew non-GAAP EBITDA by one point six million, representing an EBITDA conversion rate of 50% of revenues.

betty EBITDA conversion drove our non-GAAP EBITDA margin to 17% in the quarter, from 11% in the previous quarter.

Speaker 7: betty EBITDA conversion drove our non-GAAP EBITDA margin to 17% in the quarter, from 11% in the previous quarter.

That's an increase of 520 basis points relative to Q4.

Speaker 7: That's an increase of 520 basis points relative to Q4.

As we have stated before, in 2022 we are reinvesting a portion of our profit improvement to fuel technical improvements that support our product strategy and business processes.

Speaker 7: As we have stated before, in 2022 we are reinvesting a portion of our profit improvement to fuel technical improvements that support our product strategy and business processes.

The further expansion of sales and market activities and to further enhance our service capability.

Speaker 7: The further expansion of sales and market activities and to further enhance our service capability.

Speaker 8: We believe these investments will generate enhanced revenue activity in the second half of this year and in 2023. as these investments take hold, it will begin to self-fund themselves. Accordingly, the headwind from these investments will be temporary and we believe we will lead to higher levels of value creation in the future.

We ended the quter with cash and cash equivalents of twelvepoint one thousand. We also had 35.8 million of debt, which is comprisedof the initial three million DRA in our senior credit facility, with the remainder made up of seller notes from acquisitions.

Speaker 8: We ended the quter with cash and cash equivalents of twelvepoint one thousand. We also had 35.8 million of debt, which is comprisedof the initial three million DRA in our senior credit facility, with the remainder made up of seller notes from acquisitions.

Client fund assets were 238.7 million at March thirty-first.

Speaker 6: Client fund assets were 238.7 million at March thirty-first.

Now I'm going to turn to guidance for the remainder point twenty two.

Speaker 7: Now I'm going to turn to guidance for the remainder point twenty two.

It's important to keep in mind that first quarters are seasonally strong.

Speaker 7: It's important to keep in mind that first quarters are seasonally strong.

As recurring year- endw two AC revenue is recognized in this period.

Speaker 7: As recurring year- endw two AC revenue is recognized in this period.

We are providing following guidance.

Speaker 7: We are providing following guidance.

Firstly, full year twent Y 22 revenues. We have raised the low end of our guidance range to 88 million and accordingly we have our revised guidance for twent 22. revenues is a range of 88 to nine million. Our previous guidance was a range of 85 to nine million.

Speaker 6: Firstly, full year twent Y 22 revenues. We have raised the low end of our guidance range to 88 million and accordingly we have our revised guidance for twent 22. revenues is a range of 88 to nine million. Our previous guidance was a range of 85 to nine million.

We believe sales momentum is building throughout our organization and we have experienced higher levels across selling activity.

Speaker 6: We believe sales momentum is building throughout our organization and we have experienced higher levels across selling activity.

We expect to exit 2022 with higher levels of organic revenue growth. Giving us confidence is our performance.

Speaker 36: We expect to exit 2022 with higher levels of organic revenue growth. Giving us confidence is our performance.

Speaker 6: With cross-selling activity, strong demand of our tax and HR consulting solutions, and positive expectations relating to the technological and platform innovations we've announced to date. These platform extensions provide new and unique revenue streams and we are extremely excited about them.

Speaker 7: For non-GAAP EBITDA, we are setting a range of eight point five to one million for 2022. We expect EBITDA trends in 2022 to show the same seasonal variations as we've seen in recent past. The first quarter is typically the strongest quarter, followed by seasonally adjusted performance for the balance of the year.

Speaker 7: non-gaapebita in the second quarter is expected to come in a little lower than in prior year second quarter. We continue to make incremental investments in sales headcount, sales tools marketing, advertising and other initiatives designed to utilize our more robust technical platform and leverage the innovative partnerships and integrations we have underway.

In the second quarter of 2022. We will also continue to experience a headwind of the restoration of incentives and benefits in the second half of 2021.

Speaker 7: In the second quarter of 2022. We will also continue to experience a headwind of the restoration of incentives and benefits in the second half of 2021.

Which will lead to higher cost in the current period than in prior year.

Speaker 6: Which will lead to higher cost in the current period than in prior year.

From the second quarter we expect revenues and non-ap EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels at E DA through the year.

Speaker 7: From the second quarter we expect revenues and non-ap EBITDA will strengthen for the remainder of 2022, with accelerating revenue performance driving higher levels at E DA through the year.

Looking into the 2023 and beyond, we continue to focus our long-term targets of 10% annual growth in organic revenues and 10% growth in inorganic revenue.

Speaker 7: Looking into the 2023 and beyond, we continue to focus our long-term targets of 10% annual growth in organic revenues and 10% growth in inorganic revenue.

Those remain achieable objectives in our mind.

Speaker 6: Those remain achieable objectives in our mind.

We also believe that, as a business scales, we can deliver 20% non-GAAP EBITDA margins via revenue gains and efficiencies.

Speaker 6: We also believe that, as a business scales, we can deliver 20% non-GAAP EBITDA margins via revenue gains and efficiencies.

We think our margin performance over the last couple of quarters shows the upside potential we can deliver by building scale and delivering synergies from acquisitions.

Speaker 6: We think our margin performance over the last couple of quarters shows the upside potential we can deliver by building scale and delivering synergies from acquisitions.

We have the tool and focus to deliver on these goals longer term and we intend to achieve them.

Speaker 6: We have the tool and focus to deliver on these goals longer term and we intend to achieve them.

With that, I will turn the call back to Pat for some closing remarks.

Speaker 7: With that, I will turn the call back to Pat for some closing remarks.

Thanks se. We're really excited about the opportunities ahead for our organization in 2022. We've develop some innovative solutions with partners, while also enhancing our own technology to improve client service and product capabilities. We believe developments in this area will bring tremendous value to assure stakeholders to clients in the entire community. We've invested in sales and marketing, experiencing strong demand for our solutions, such as H? R consulting and our tax solution. We we've had great success with cross selling and our employee retention tax grantit program continues to resonate the market and deliver tremendous value for our clients. We expect our investments in these areas will bring more robust levels of organic revenue growth in the second half of 2022 and beyond. Our acquisition strategy is also proving itself. The integration has gone seamlessly. The business our hitting our objectives and they re helping to build scale and operating margins. And our business- we're happy to have proven the business model here. We expect 2022 will be a strong year with double digit revenue growth, strong margin performance and our portfolio of new innovative solutions that as poised to deliver new revenue streams and value for our business. So with that, I'll send the call back to the operator for the questions operator.

Speaker 2: Thanks se. We're really excited about the opportunities ahead for our organization in 2022. We've develop some innovative solutions with partners, while also enhancing our own technology to improve client service and product capabilities. We believe developments in this area will bring tremendous value to assure stakeholders to clients in the entire community. We've invested in sales and marketing, experiencing strong demand for our solutions, such as H? R consulting and our tax solution. We we've had great success with cross selling and our employee retention tax grantit program continues to resonate the market and deliver tremendous value for our clients. We expect our investments in these areas will bring more robust levels of organic revenue growth in the second half of 2022 and beyond. Our acquisition strategy is also proving itself. The integration has gone seamlessly. The business our hitting our objectives and they re helping to build scale and operating margins. And our business- we're happy to have proven the business model here. We expect 2022 will be a strong year with double digit revenue growth, strong margin performance and our portfolio of new innovative solutions that as poised to deliver new revenue streams and value for our business. So with that, I'll send the call back to the operator for the questions operator.

Thank you. As a reminder, to ask a question you need to press star one on your telephone and to warddraw a question, just pippalkey. Once again that star one for questions. one more questions.

Speaker 9: Thank you. As a reminder, to ask a question you need to press star one on your telephone and to warddraw a question, just pippalkey. Once again that star one for questions. one more questions.

Our first question is something: line of brrian Bergen from cvin. Your line is open.

Speaker 10: Our first question is something: line of brrian Bergen from cvin. Your line is open.

Hi guys, good afternoon. Thank you first. 1: we've got here just on organic growth, So we're looking at the sles. Can you dig a little bit more there on the 1% year-over-year, just just your case? Why that is? It matched up here with the good comary and the bookings performance E R out. So can you maybe comment on your-on client churn or just other factors that are causing it?

Speaker 10: Hi guys, good afternoon. Thank you first. 1: we've got here just on organic growth, So we're looking at the sles. Can you dig a little bit more there on the 1% year-over-year, just just your case? Why that is? It matched up here with the good comary and the bookings performance E R out. So can you maybe comment on your-on client churn or just other factors that are causing it?

ll 1: one comment: Ryan, when we were looking at kind of the year on year comparisons- I think we were actually- they really impacted last year year on W to revenue. If you think about W revenue it's kind of based on the number of employees by employers, So So, for example, if they work one day or if they work entire year the sameing, you only have provided that to the employee. I think we had more employees kind of turnney in and out of our customers to that coover year. So W two revenue is actually down in our core business, not substantially, the by like 10%. So I think that's a little bit of the compare difference from my perspective Pat, and I just think some of it ISS also the next-ix, a little bit of the repetitive revenue versus non repetitive. You know, I think normalized that in the first quarter we're going to be in single digits and moving to the fourth quarter double digits said So I feel good about where we are. The repetitive revenue is strong. forty 2% growth in sales especially were repetitive and the pipeline is, you know really, really strong. So I think as we moved through these quarters you'll see that incrementally go up.

Speaker 11: ll 1: one comment: Ryan, when we were looking at kind of the year on year comparisons- I think we were actually- they really impacted last year year on W to revenue. If you think about W revenue it's kind of based on the number of employees by employers, So So, for example, if they work one day or if they work entire year the sameing, you only have provided that to the employee. I think we had more employees kind of turnney in and out of our customers to that coover year. So W two revenue is actually down in our core business, not substantially, the by like 10%. So I think that's a little bit of the compare difference from my perspective Pat, and I just think some of it ISS also the next-ix, a little bit of the repetitive revenue versus non repetitive. You know, I think normalized that in the first quarter we're going to be in single digits and moving to the fourth quarter double digits said So I feel good about where we are. The repetitive revenue is strong. forty 2% growth in sales especially were repetitive and the pipeline is, you know really, really strong. So I think as we moved through these quarters you'll see that incrementally go up.

Ok.

Speaker 12: Ok.

Okay and follow here just just on your your ER RT C offering. So you just come out on the demand there as you think about this going forward. When does that start to to kind of tail off and maybe just any context you give us from a standpoint of revenue mix, that that's compared. I think that I think a program is going to be available for five years. Right was back, So it's going to be really. Has somebody already toap that or not? So you, it'll definitely start to be less robust, I think the back up this year and then in four years. But it's still probabct to be sold if if the customer hasn't already made a followiling it. Yeah, as far as sales bookings, it's probably started to trail a bit. It will still continue, like John mentioned, and then from delivery of that we've done real good delivery here in the third fourth quarter. In the first quarter I anticipate that the the demand will continue and the delivery will continue, but maybe not as robust as the third fourth quarter.

Speaker 13: Okay and follow here just just on your your ER RT C offering. So you just come out on the demand there as you think about this going forward. When does that start to to kind of tail off and maybe just any context you give us from a standpoint of revenue mix, that that's compared. I think that I think a program is going to be available for five years. Right was back, So it's going to be really. Has somebody already toap that or not? So you, it'll definitely start to be less robust, I think the back up this year and then in four years. But it's still probabct to be sold if if the customer hasn't already made a followiling it. Yeah, as far as sales bookings, it's probably started to trail a bit. It will still continue, like John mentioned, and then from delivery of that we've done real good delivery here in the third fourth quarter. In the first quarter I anticipate that the the demand will continue and the delivery will continue, but maybe not as robust as the third fourth quarter.

Ok Thank you.

Speaker 4: Ok Thank you.

And their next question: constant line of Josh Riley: from meeting the company you may begin.

Speaker 37: And their next question: constant line of Josh Riley: from meeting the company you may begin.

Yes thanks for taking my questionions today. Just curious: how are you thinking about the acquisition strategy? Or now you've got the two most recent deals kind of integrated and, given the volatility in the market, I think it'd be helpful to give up investors an update on what you're thinking there.

Speaker 15: Yes thanks for taking my questionions today. Just curious: how are you thinking about the acquisition strategy? Or now you've got the two most recent deals kind of integrated and, given the volatility in the market, I think it'd be helpful to give up investors an update on what you're thinking there.

Speaker 21: Yes really, I'm pointing towards the second half of 2022 and really 2023. I don't think you'll see anything imminent, Josh. We'll continue to be opportunistic and are looking at that. We're focused on our business and really building out the product capability and we'll add tuck-in acquisitions as we go. So nothing imminent, but we're going to continue to be opportunistic.

Got it and then have you seen any impact to customer confidence, either since the Ukraine waro started or more recently now in the last few weeks, some more localized macroeconomic issues in the United States?

Speaker 17: Got it and then have you seen any impact to customer confidence, either since the Ukraine waro started or more recently now in the last few weeks, some more localized macroeconomic issues in the United States?

i't not see anything and all but that time too, I think we still an our, our target audience there still has, you know, real strugglle, getting enough people back to work, for you's stilla lot ofjob money's out there. So I don't think this cessarily ties to Ukraine or comftident and there's still a lot of want to time out in our, our custo. Yeah, we're. We're really main Street America small business. I think people are looking- whether you know your bank, credit union, retail shop or restaurant, you're looking for help. We believe that demand environment for our solutions is pretty good and high. I think you know for the U CAn't Ukraine war and others in the news. You know our folks feel inflation a bit but also really want to be active in upgrading to a digital presence or getting more customers, are serving customers and and we want to help them do that. So I think the Deb demand environmentis very strong for us. It will continue to grow.

Speaker 18: i't not see anything and all but that time too, I think we still an our, our target audience there still has, you know, real strugglle, getting enough people back to work, for you's stilla lot ofjob money's out there. So I don't think this cessarily ties to Ukraine or comftident and there's still a lot of want to time out in our, our custo. Yeah, we're. We're really main Street America small business. I think people are looking- whether you know your bank, credit union, retail shop or restaurant, you're looking for help. We believe that demand environment for our solutions is pretty good and high. I think you know for the U CAn't Ukraine war and others in the news. You know our folks feel inflation a bit but also really want to be active in upgrading to a digital presence or getting more customers, are serving customers and and we want to help them do that. So I think the Deb demand environmentis very strong for us. It will continue to grow.

Thanks guys.

Speaker 4: Thanks guys.

And our restaurant call: not have Eric Martin. newuy from Lake screek, you may begin.

Speaker 37: And our restaurant call: not have Eric Martin. newuy from Lake screek, you may begin.

Speaker 19: Yes I want to dive into the competitive landscape here, and I'm specifically talking about the, where your sales, for your direct sales force, is competing for the attention of partners. What can you tell us about that?

itso, for example, on the partners, our tax filing sales force, I think demand is very high. So we think we're in a competitive environment, whether it's an eight P master tax or cerid sanal tax environment, those that are to main competitors. I think you will see some further announcement sign, some wins in the second and third quarter. I think the pipeline is really strong in that area. On human management consulting, we've sold more in the first quarter than we did all of last year. That will'll continue to grow very, very pleased with the business line there. And then small business services. You know we're going out and competing very, very effectively and as we continue to get more salespeople- I think our average tenure actually went down a month because we're bring ING new salespeople on- we have a gold to be over 90 and in the third, fourth quarter in the back half of the year. So we're continuing that. That we're adding because we think we can compete effectively. As far as the reseller network, I would say there's been a pretty good pipeline. The demand for open a P I is something that you know we've announced here today and and we think we'll continue to have traction in that area through the second half for the year. And it is critical to our success because we believe that as part as our partner network wants to have more and more solutions available, with our micro services technology we're able to to spend those up faster and we think that will garner more customers down a road. So we think the momentum is there and we're positioned very nicely for the second half of the year.

Speaker 10: itso, for example, on the partners, our tax filing sales force, I think demand is very high. So we think we're in a competitive environment, whether it's an eight P master tax or cerid sanal tax environment, those that are to main competitors. I think you will see some further announcement sign, some wins in the second and third quarter. I think the pipeline is really strong in that area. On human management consulting, we've sold more in the first quarter than we did all of last year. That will'll continue to grow very, very pleased with the business line there. And then small business services. You know we're going out and competing very, very effectively and as we continue to get more salespeople- I think our average tenure actually went down a month because we're bring ING new salespeople on- we have a gold to be over 90 and in the third, fourth quarter in the back half of the year. So we're continuing that. That we're adding because we think we can compete effectively. As far as the reseller network, I would say there's been a pretty good pipeline. The demand for open a P I is something that you know we've announced here today and and we think we'll continue to have traction in that area through the second half for the year. And it is critical to our success because we believe that as part as our partner network wants to have more and more solutions available, with our micro services technology we're able to to spend those up faster and we think that will garner more customers down a road. So we think the momentum is there and we're positioned very nicely for the second half of the year.

Do you feel like- and I mean, if I were to compare where the platform is now versus a year ago- do you feel like you lost some opportunities because you didn't have the integration marketplace, because you weren't API first?

Speaker 20: Do you feel like- and I mean, if I were to compare where the platform is now versus a year ago- do you feel like you lost some opportunities because you didn't have the integration marketplace, because you weren't API first?

You know it's a great questionnaeric from our perspective. It's we've been building this for 3, four years and it's we've done some foundational work. There's no question that. You know we laid the seeds to get to this point in time and- But I think also COVID-19, when you think about there were more tax law changes in the last two years than probably the previous 20. everybody had to go through some maintenance efforts than and really take care of their core customers, and now it's time to get very aggressive and and in acquiring new partners and services. So for me it's just an evolution- no punattended- of the timeline and some of the work we've done over the last couple of years, and I think we're poised really well for success in the second half.

Speaker 21: You know it's a great questionnaeric from our perspective. It's we've been building this for 3, four years and it's we've done some foundational work. There's no question that. You know we laid the seeds to get to this point in time and- But I think also COVID-19, when you think about there were more tax law changes in the last two years than probably the previous 20. everybody had to go through some maintenance efforts than and really take care of their core customers, and now it's time to get very aggressive and and in acquiring new partners and services. So for me it's just an evolution- no punattended- of the timeline and some of the work we've done over the last couple of years, and I think we're poised really well for success in the second half.

Okay and then just one more. If I took for John , based on the full year adjusted EBITDA, look eight a half to one million. How did that translate into free cash flow?

Speaker 20: Okay and then just one more. If I took for John , based on the full year adjusted EBITDA, look eight a half to one million. How did that translate into free cash flow?

Speaker 11: That's a good question, I think if you look at that GAAP and non-GAAP reconciliation, I mean the biggest, biggest adjustments, CAn't we see them on that reconciliation? But the ones that kind of issue would be interest.

And then there's a little bit of the arbitrage between Commission and software capitalization. Because you're pri by the three major items, you can strip those out of the acttiual GAAP cash flow. But those would be the kind three key drivers in terms of free cash flow versus what you're seeing, the kind of not -get EBITDA.

Speaker 22: And then there's a little bit of the arbitrage between Commission and software capitalization. Because you're pri by the three major items, you can strip those out of the acttiual GAAP cash flow. But those would be the kind three key drivers in terms of free cash flow versus what you're seeing, the kind of not -get EBITDA.

Okay thanks for taking my.

Speaker 12: Okay thanks for taking my.

Thanks right.

Speaker 2: Thanks right.

ernnenext question: counina, Richard boat re from rock capital. You may begin.

Speaker 37: ernnenext question: counina, Richard boat re from rock capital. You may begin.

Speaker 23: Thanks with respect to your two most recent acquisitions. We've typically seen them be to move up front and then over time, cut costs. But they they came in, you know, essentially accretive that when they were. Does that argue that they're fully integrated, cost wise now, or there are still more costs to be taken out of those sort of slowly through the balance of this year?

There'll be a little bit more to come out, but I think VIS on a key point: we we've tightened the model quite as it terms to imformication.

Speaker 8: There'll be a little bit more to come out, but I think VIS on a key point: we we've tightened the model quite as it terms to imformication.

That they're repapered.

Speaker 24: That they're repapered.

Didn't bring on a lot of extra bank accounts as we did P acquisitions. The employees came across onto our federal ID's. They were brintt our payro over to maintaining fayeral systems for them. Soi think we are getting better with the playbook in terms of the acquisitions, that they ve become a lot more accreative lot sooner. But there's still going to be cost to rationalize out as we get more of our processes in place, for example getting on a common. You know some of the back office might not be all would pay any.

Speaker 25: Didn't bring on a lot of extra bank accounts as we did P acquisitions. The employees came across onto our federal ID's. They were brintt our payro over to maintaining fayeral systems for them. Soi think we are getting better with the playbook in terms of the acquisitions, that they ve become a lot more accreative lot sooner. But there's still going to be cost to rationalize out as we get more of our processes in place, for example getting on a common. You know some of the back office might not be all would pay any.

Yet I not have the phoneones system.

Speaker 5: Yet I not have the phoneones system.

So you'll see additional saveance to come out. That that dramatic. I think it'll be gradual over time but we've got a lot of the centate fees out.

Speaker 6: So you'll see additional saveance to come out. That that dramatic. I think it'll be gradual over time but we've got a lot of the centate fees out.

A Black work than.

Speaker 5: A Black work than.

Yes I would say we're three to six months ahead of previous acquisitions with these acquisitions and that gives us confidence in the model going forward.

Speaker 21: Yes I would say we're three to six months ahead of previous acquisitions with these acquisitions and that gives us confidence in the model going forward.

Most of the address maybe just a very broad concept. With inflation running hot, can you talk about how you think that could impact your model, anywhere from incremental interest earned- also of the tax, holding balances versus costs, or how tough it is to find sort of people to keep building out the businessthank.

Speaker 23: Most of the address maybe just a very broad concept. With inflation running hot, can you talk about how you think that could impact your model, anywhere from incremental interest earned- also of the tax, holding balances versus costs, or how tough it is to find sort of people to keep building out the businessthank.

He does a key, the keyth points right me.

Speaker 7: He does a key, the keyth points right me.

Those contracts? Are you the outside of the employment kind of lock in for some a bad time right? We don't of freight there might be some kind of near term fits. Were to pass on a cost, we can tonly pass that on to our customers. Big part of our cost structure is.

Speaker 5: Those contracts? Are you the outside of the employment kind of lock in for some a bad time right? We don't of freight there might be some kind of near term fits. Were to pass on a cost, we can tonly pass that on to our customers. Big part of our cost structure is.

Employees right, So that's sey percent of our cost structureures going tobe in benefited or wages employees, So that's wage pressure. Happen that? That impacts us just just like anybody else. So we've got to figure out creativeve ways is still a look the service prospectively. So that's on us to try to figure out. But we H a keepy point about the float. We're in the process.

Speaker 6: Employees right, So that's sey percent of our cost structureures going tobe in benefited or wages employees, So that's wage pressure. Happen that? That impacts us just just like anybody else. So we've got to figure out creativeve ways is still a look the service prospectively. So that's on us to try to figure out. But we H a keepy point about the float. We're in the process.

Think we've talked about it over the last calls, about how we've kind of rationalize our footprint in terms of banks.

Speaker 5: Think we've talked about it over the last calls, about how we've kind of rationalize our footprint in terms of banks.

And we're well on that jurney I think it's going to time really well for us as we get into this consolidated bank. View we're sitting on an average two million of dollars. A point time and.

Speaker 6: And we're well on that jurney I think it's going to time really well for us as we get into this consolidated bank. View we're sitting on an average two million of dollars. A point time and.

We can put that way to work and as the rates go off, obviously that adds the top line for us. So I think we've not played out a ton of that. In D our model we've got some rating.

Speaker 26: We can put that way to work and as the rates go off, obviously that adds the top line for us. So I think we've not played out a ton of that. In D our model we've got some rating.

In the back up of the years go.

Speaker 26: In the back up of the years go.

That's going to come in, but we don't get neurevery thing all that immediately know, as we have a lder, that we that's probably an average that three years, So as we have more money, as we start the back off, were rates go up, it's all good. So that's the the benefit of the rating increase for us. but- and we have some some wage pressure essentially on our- our conststruct that. No just I think you know we've modeled in some some of the moves that we anticipate from the Fed. I think the impact of two thousand and twenty three will be much larger than 2022. But in modeling that you know we were able to raise the lower end of our revenue guidance and overall raise or even a guidance. So the float treasury tax impact and some of the momentum we're seeing will definitely play in two twenty two as well as two thousand and twenty three

Speaker 26: That's going to come in, but we don't get neurevery thing all that immediately know, as we have a lder, that we that's probably an average that three years, So as we have more money, as we start the back off, were rates go up, it's all good. So that's the the benefit of the rating increase for us. but- and we have some some wage pressure essentially on our- our conststruct that. No just I think you know we've modeled in some some of the moves that we anticipate from the Fed. I think the impact of 2020 three will be much larger than 2022. But in modeling that you know we were able to raise the lower end of our revenue guidance and overall raise or even a guidance. So the float treasury tax impact and some of the momentum we're seeing will definitely play in two twenty two as well as 2020 three

And maybe contrast that part with pricing power, and you've got a lot of experience going back a long time in the payroll space. So how price Elastic and do you feel like the market is?

Speaker 4: And maybe contrast that part with pricing power, and you've got a lot of experience going back a long time in the payroll space. So how price Elastic and do you feel like the market is?

Just from an overall perspective, to offset some of those potential inflationary impacts on costs.

Speaker 27: Just from an overall perspective, to offset some of those potential inflationary impacts on costs.

Yes I think as we do. You know I always talk about payroll being a negative, satisfyer business and which means you know I have A. I've been in the industry 30 years. I don't think I've ever gotten a letter saying: ack, great job in those taxes right, But if something is in correct of, something needs to be fixed. You know you got to react quickly, but those vendor relationships and trusted relationships are really important and typically they do have some pricing power as you integrate, as you really lock in with the customer over multiple products and services. So if you do a good job, we do have some pricing power. You know we think we're well position short term. We do think we'll get some benefit as interest rates go up and and, more importantly, as we're providing value to our clients and services. So we think we're positioned very well in this environment and we'll continue to drive value forward.

Speaker 38: Yes I think as we do. You know I always talk about payroll being a negative, satisfyer business and which means you know I have A. I've been in the industry 30 years. I don't think I've ever gotten a letter saying: ack, great job in those taxes right, But if something is in correct of, something needs to be fixed. You know you got to react quickly, but those vendor relationships and trusted relationships are really important and typically they do have some pricing power as you integrate, as you really lock in with the customer over multiple products and services. So if you do a good job, we do have some pricing power. You know we think we're well position short term. We do think we'll get some benefit as interest rates go up and and, more importantly, as we're providing value to our clients and services. So we think we're positioned very well in this environment and we'll continue to drive value forward.

Thank you. Our next question will also the line of Jeff and ry from Craig ham capital may againin.

Speaker 37: Thank you. Our next question will also the line of Jeff and ry from Craig ham capital may againin.

Like guys, is anon for Jeff. Pushed a couple quick ones here. First, on sales headcount, I think you finishished last quarter with 75, targeting 90 by year, and cur- you see you have an update there on total number hired during the quarter and then anything you're seeing as far as you know.

Speaker 28: Like guys, is anon for Jeff. Pushed a couple quick ones here. First, on sales headcount, I think you finishished last quarter with 75, targeting 90 by year, and cur- you see you have an update there on total number hired during the quarter and then anything you're seeing as far as you know.

Process of getting those, those reps, in and getting them ramped.

Speaker 28: Process of getting those, those reps, in and getting them ramped.

Yeah just as far as the environment, you know, with sales reps and and's, the RS, you know we made some progress in that area. You know, probably somewhere close to 80 or so that are committed to joining a sure and and, So that's up maybe five or so. As far as the process, you know, for for us it's quality, that quantity. Naturally we want more feet on Ind Street because we think we can have them productive, our pipeline is is almost double where it was a year ago, which gives us a lot of confidence and and I would say the 42% increase year over year, you know we think we got a shot to beat that in second and third quarters, So a lot of momentum in that area. I would say it's a tough environment to hire really good salespeople in that the market is, you know, hot right now. So we've done a good job of, I think, getting the right talent, you investing in the right tools for them going to be successful and giving them an opportunity to to do really, really well. We, you know, want to hire more in the future and it'll be a game of hiring more but also really more important in that, hiring the right people and want to see us get to 90 ty end of the year.

Speaker 16: Yeah just as far as the environment, you know, with sales reps and and's, the RS, you know we made some progress in that area. You know, probably somewhere close to 80 or so that are committed to joining a sure and and, So that's up maybe five or so. As far as the process, you know, for for us it's quality, that quantity. Naturally we want more feet on Ind Street because we think we can have them productive, our pipeline is is almost double where it was a year ago, which gives us a lot of confidence and and I would say the 42% increase year over year, you know we think we got a shot to beat that in second and third quarters, So a lot of momentum in that area. I would say it's a tough environment to hire really good salespeople in that the market is, you know, hot right now. So we've done a good job of, I think, getting the right talent, you investing in the right tools for them going to be successful and giving them an opportunity to to do really, really well. We, you know, want to hire more in the future and it'll be a game of hiring more but also really more important in that, hiring the right people and want to see us get to 90 ty end of the year.

I think you got simple and then second one just curious on you know you mentioned crosssell and I I apologize if I if I missed it but any way to quantify uh. You know some of the strong crosssell you're seeing and then then where the.

Speaker 39: I think you got simple and then second one just curious on you know you mentioned crosssell and I I apologize if I if I missed it but any way to quantify uh. You know some of the strong crosssell you're seeing and then then where the.

Premier areas where you're seeing the most uptake on the crosssell.

Speaker 28: Premier areas where you're seeing the most uptake on the crosssell.

Well you know I highlighted H? R consulting services and you know where we're really, you know, having some some good success and we sold more in the first quarter than we sold all of last year, So that's an excellent stat. The fact that our average clients are taking three plus products right from the get go is is a great staf for us. I think we need to provide a little bit more data in cross sell as the year goes on. But you know, H? R consulting, tax filing as well as money movement, you know, tend to be kind of the products and services that we lead with naturally, time and attendance and R T C, which we've highlighted over the last year. We've had some really good success time. So more data to come. And then our vestor DAC. You know there's kind of a walk up to over $40 per employee per months on the cross sell and it we'll provide a little bit more formal guidance throughout the year as we get meaningful progress in those numbers.

Speaker 21: Well you know I highlighted H? R consulting services and you know where we're really, you know, having some some good success and we sold more in the first quarter than we sold all of last year, So that's an excellent stat. The fact that our average clients are taking three plus products right from the get go is is a great staf for us. I think we need to provide a little bit more data in cross sell as the year goes on. But you know, H? R consulting, tax filing as well as money movement, you know, tend to be kind of the products and services that we lead with naturally, time and attendance and R T C, which we've highlighted over the last year. We've had some really good success time. So more data to come. And then our vestor DAC. You know there's kind of a walk up to over $40 per employee per months on the cross sell and it we'll provide a little bit more formal guidance throughout the year as we get meaningful progress in those numbers.

aw ome thanks, So that' is for me.

Speaker 28: aw ome thanks, So that' is for me.

Thank you.

Speaker 10: Thank you.

operat or any other quest.

Speaker 2: operat or any other quest.

I'm not showing any further question than I queue at this moment.

Speaker 29: I'm not showing any further question than I queue at this moment.

Great well' listen. Appreciate your time today. We're very pleased with the first quarter. We thought we executed well on the business plan. We set up guidance throughout the year and feel good about what we're accomplishing here at sure, and we appreciate your interest and look forward to seeing you next time. Thank you.

Speaker 3: Great well' listen. Appreciate your time today. We're very pleased with the first quarter. We thought we executed well on the business plan. We set up guidance throughout the year and feel good about what we're accomplishing here at sure, and we appreciate your interest and look forward to seeing you next time. Thank you.

And this concludes today's conference call. Thank you for participating. You may now disconnect everyone. Have a great day.

Speaker 14: And this concludes today's conference call. Thank you for participating. You may now disconnect everyone. Have a great day.

Q1 2022 Asure Software Inc Earnings Call

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