Esker 2012 Half-Year Results
Sustaining strong growth and profitability
Madison, WI – September 19, 2012
Continued success in cloud-based document process automation solutions
For the first half of 2012 Esker sales revenue grew 14% based on current exchange rates (8% based on constant exchange rates), despite a sluggish economy, particularly in Europe. This solid performance is largely attributed to strong sales from cloud-based document process automation solutions — which increased 27% over 2011 and represent 53% of company sales.
In addition to revenue growth over the past year, Esker has also experienced an increase in the amount of signed cloud-based deals. This trend corresponds with a wider adoption in the corporate world of Software as a Service (SaaS) solutions, which are gradually replacing the traditional license model. Across the world, companies of all sizes are moving to cloud computing because of its ability to reduce upfront investment, be easily implemented, and provide greater flexibility and continuous updates. As one of the first software vendors to successfully migrate to cloud computing — mainly due to its strategic development plans put in place in 2005 — Esker is seeing its efforts rewarded today with the success of its unparalleled on-demand solutions.
The increasing value of newly signed deals in the first half of this year will not only have a positive effect in the second half of 2012 but promote growth in 2013 and beyond.
Pre-taxed income grew by 62%
The rapid growth of Esker’s cloud-based business has had a positive effect on its financial results, with a 40% increase in operating income and 62% increase in pre-taxed income for the first half of 2102. Pre-taxed income surpassed 2 million euros, achieving 10% of sales revenue (versus 7% in the first half of 2011). A slightly more favorable euro to U.S. dollar exchange rate also generated an increase in financial income (+0.2 million euros).
Because of predictable and recurring sales revenue, Esker is able to gradually increase its investment in R&D, marketing, and business development without compromising profitability. Esker’s business model, based on cloud-based solutions and recurring revenue, has enabled the company to combine both strong growth ambitions and sustainable profitability.
Taking into account a sharp increase in income tax over the same period in 2011 (+0.39 million euros), this half year’s net income increased 34% over last year. Company cash rests at over 11 million euros and shareholders’ equity at 14.5 million euros.
Outlook for remainder of 2012
Esker anticipates growth of nearly 10% over the last half of 2012 based on first half results, foreseeable changes in market conditions, a favorable euro to U.S. dollar exchange rate, and the successful implementation of its 2012 operating plan.
About Esker
Esker is the worldwide leader in document process automation solutions. Addressing all types of business processes — from accounts payable and accounts receivable to sales order processing and procurement — Esker cloud computing solutions enable companies to automate the reception, processing and sending of any business document with one platform. Esker helps over 80,000 companies across the world to reduce the use of paper and eliminate manual processes while improving their productivity, efficiency and environmental impact.
With 36 million euros in sales revenue in 2011, Esker operates in North America, Europe and Asia Pacific with global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. Esker is listed on the NYSE Alternext in Paris (Code ISIN FR0000035818). For more information, visit www.esker.com. Follow Esker on Twitter at twitter.com/eskerinc and join the conversation on the Esker blog at www.quitpaper.com.