Asure Software Inc (NASDAQ: ASUR)

Asure is a provider of cloud based Human Capital Management software solutions delivered as Software as a Service to businesses of all sizes. The company offers a comprehensive suite that includes payroll tax filing HR management tools time and attendance software recruiting benefits administration and related services. At the core of the offering is the Asure HCM platform which integrates these functions into a single cloud based system. Asure distributes its solutions directly and through a national network of reseller partners who white label the technology for end users. The company's mission is to help employers reduce administrative burdens and focus resources on growth.

Asure generates revenue primarily from recurring per employee per month subscription fees for its software platforms. Additional revenue comes from transaction based processing fees for payroll tax filing payment processing and funds movement. The company also charges implementation and setup fees when clients adopt new solutions or require custom configurations. Hardware sales and Hardware as a Service arrangements provide another revenue stream especially for time and attendance devices such as clocks and biometric readers. Overall the revenue model combines software subscriptions services and hardware to serve a broad customer base ranging from small employers to large enterprises.

Asure competes in the human capital management market against larger established firms such as ADP Paychex UKG Paylocity Paycom Ceridian isolved and Gusto. The company's competitive advantages stem from its flexible easy to use cloud based Software as a Service solution that is affordable and backed by a proven deployment methodology. Asure invests continuously in research and development to enhance its platform and introduce new features that address evolving client needs. While larger competitors may have greater financial and technical resources Asure focuses on delivering tailored solutions and responsive service to small and mid sized businesses. The firm also leverages its network of reseller partners to gain access to regional markets and industry niches that larger players may overlook. Despite these strengths Asure faces challenges including competition from vendors with extensive field sales forces and from large processors that offer loss leader pricing to win long term contracts.

Asure serves more than 100,000 clients across the United States spanning a variety of industries including professional services retail manufacturing and healthcare. Approximately 35% of these clients have direct contracts with Asure while the remaining 65% work through reseller partners who white label the company's solutions. The direct client base consists primarily of small and mid sized employers seeking an all in one human capital management platform. Indirect clients benefit from the localized expertise of reseller partners such as regional payroll providers certified public accountants and benefit brokers. Overall the customer mix reflects a balance between direct relationships and partner driven distribution.