Esker 2013 Annual Results
Company profitability and optimism remain high as cloud-based solution adoption continues to power business growth
Madison, WI — March 25, 2014
Continued Momentum of Cloud-Based Solutions
Esker sales revenue in 2013 reached 41.1 million euros, a 4% increase over 2012 based on a fixed exchange rate and a 2% increase based on a current exchange rate. This growth is driven by the ongoing success of cloud-based document process automation. Revenue generated in 2013 by contracts in production was up 16%, representing 25.2 million euros (over 61% of Esker’s activity). This number does not take into account end-of-year signed contracts which will begin production in 2014.
Cloud-based solutions have become the preferred business model for new IT investments, to the detriment of traditional license sales. In 2013, Esker license sales declined 18%, representing only 8% of company sales revenue. Given Esker’s strong position in cloud-based solutions, this development is a real opportunity for even more company growth in the coming years.
Operating Results Remain Consistent
Operating income was down slightly (9%) from previous years to 3.9 million euros due to three primary factors: 1) The accelerated transition to the cloud impacts short-term results. The decline in license sales totaled over 0.8 million euros in 2013, and has not yet been offset by cloud-based contracts signed over the same period, currently being put into production; 2) The company made large investments to reinforce its ability to develop and improve solutions. Expenditures related to R&D exceeded 0.58 million euros (+22%) over 2012. This investment level is considered sufficient and will not be increased in 2014; and 3) Changes in foreign currencies compared to the euro, specifically the U.S. and Australian dollars and the British pound, hindered the company’s profitability in 2013 — the impact on operating income is estimated at nearly 250k euros compared to 2012.
Strengthened Financial Structure
Given a positive extraordinary event (+60k euros) and a decreasing actual tax rate compared to 2012, net income increased by more than 6% in 2013. Thanks to highly profitable operating activity and rigorous controls of its working capital, Esker generated over 6 million euros in operating cash flow, a 20% increase over 2012.
As of December 31, 2013, after taking into account investments and dividend payments (0.7 million euros), company cash rests at 13.4 million euros, 2 million euros more compared to 2012. Esker’s financial structure is reinforced with equity of 18.7 million euros and financial liability of 1.4 million euros.
Outlook for 2014
Based on its business model and the success of its solutions, Esker anticipates similar results in 2014 to those of 2013. This should lead to accelerated growth based on the rebalancing of its product portfolio in favor of cloud-based solutions and subsequently, improved overall profitability.
About Esker
Esker is a worldwide leader in document process automation solutions. Addressing all types of business processes, from accounts payable and accounts receivable to order processing and procurement, Esker’s 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 around the world reduce the use of paper and eliminate manual processes while improving their productivity, efficiency and environmental impact.
With 41.1 million euros in sales revenue in 2013, 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.