Esker 2016 Half-Year Results
Cloud-Based Document Process Automation Solutions Drive Record Growth and Profitability
Madison, WI — September 16, 2016
Cloud Computing Drives Double-Digit Growth
Esker’s 2016 half-year sales revenue grew 18%, totaling 33.18 million euros. After adjusting for currency effects and acquisitions made in 2015, Esker’s revenue grew 15% in the first half of 2016 over the same period the previous year. While changes in the U.S. dollar had significantly benefited sales revenue in 2015, the cumulative effect of exchange rate fluctuations had little impact on the 2016 income statement (less than 0.8%).
The success of Esker’s cloud-based document process automation solutions continues to drive company growth across all markets. Revenue generated by cloud-based solutions was up 22% in the first half of 2016 (compared to the first half of 2015), representing nearly 76% of total revenue. Sales of on-premises document process automation solutions stabilized (-2%), representing 17% of sales. Meanwhile, revenue on legacy products (8% of sales) remains on its expected downward trend (-6%), with no significant impact to overall revenue.
Strong Profitability & Increased Investment Efforts
For the first half of 2016, Esker’s operating income increased by 30%, representing 17% of sales revenue versus 16% for the same period in 2015. Esker’s continued investment plan enables the company to align increases in resources with increases in activity. Consequently, Esker provides both a steady increase in sales revenue and invests in the marketing and development of its products and solutions as to ensure sustainable and profitable growth for years to come.
Pre-tax income increased 23% after provisions for exceptional costs related to the preparation of the planned office move in 2017. Given a stable effective tax rate compared to 2015, and taking into account Esker’s share in the joint venture formed with the Neopost Group in 2015, net income for the first half 2016 increased by 29% to nearly 4 million euros.
Enhanced Financial Strength to Accelerate Growth
As of June 30, 2016, company cash increased by 1.7 million euros to 18.6 million euros, after 1.55 million euros in shareholder dividend payment (up 25%).
Over the past few years, Esker has contracted loans totaling 8.3 million euros as of June 30, 2016, because of very favorable bank financing terms. Esker believes that this treasury will give the company the ability to act quickly on acquisition opportunities in order to accelerate development and strengthen its solution portfolio and customer base. In this context, Esker announced its intention to rapidly strengthen its position in the German and Northern European markets.
Outlook for 2016
Based on growing sales success and on the recurrence of its business model, Esker anticipates a second half in line with trends achieved in the first half of the year.
About Esker
Esker is a worldwide leader in cloud-based document process automation software. Esker solutions help organizations of all sizes to improve efficiencies, accuracy, visibility and costs associated with business processes. Esker provides on-demand and on-premises software to automate accounts payable, order processing, accounts receivable, purchasing and more. Founded in 1985, Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. Last year Esker generated 58.5 million euros in total sales revenue. For more information on Esker and its solutions, visit www.esker.com. Follow Esker on Twitter @EskerInc and join the conversation on the Esker blog at blog.esker.com.