Esker Q1 2013 Sales Activity
Cloud-Based Solutions Continue to Power Company Growth
Madison, WI — April 22, 2013
First quarter results in-line with 2012 successes
Esker sales revenue increased 5% based on a current exchange rate and 3% based on a fixed rate over a very strong Q1 2012 (+15%). These excellent results are largely attributed to the sustained demand for Software as a Service (SaaS) document automation solutions.
Cloud-based solutions spearhead growth
Revenue related to Esker cloud platforms increased 24% in Q1, representing 62% of company sales revenue. This growth was even more prominent in the United States, where the Esker on Demand solutions increased 45%.
During times of economic uncertainty, companies are often forced to improve flexibility and scale-back resources for their IT systems. Cloud-based solutions respond to this challenge by reducing initial investment and operating costs, as well as ensuring continuous software updates. Companies of all sizes worldwide strongly favor cloud-based solutions versus traditional software license solutions.
Accelerated transition to cloud-based solutions
The shifting preference in favor of cloud-based solutions has only increased over Q1. Although the decline in license-based sales reduces the overall performance of the company short term, the rise in signed on-demand contracts enables Esker to build a reserve of profitable growth for the coming years.
Sustained profitability
Despite a slight decline in the U.S. dollar, quarterly sales levels, combined with rigorous spending controls, will allow Esker to achieve an operating income equivalent to the same period in 2012.
As of March 31, 2013, company cash rests at 13.2 million euros (versus 11.4 million euros the prior year). With net cash largely positive, Esker has the financial independence to invest in development while continuing its policy of dividend payment and share buy-back program.
Outlook for 2013
Three primary factors — recurring revenue (close to 75%), the entry into production of 2012 signed contracts, and the continued growth of cloud-based solutions — will equip Esker to achieve similar growth in 2013 to what it achieved in 2012. Strong sales revenue combined with careful investment management will enable the company to generate positive operational results in 2013.
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 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 40.3 million euros in sales revenue in 2012, 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.