Esker Q1 2014 Sales Activity
Cloud-Based Solutions Drive Successful First Quarter Results, Positioning Esker for Continued Growth in 2014
Madison, WI — April 24, 2014
A Strong First Quarter
Compared to Q1 2013, Esker sales revenue in Q1 2014 increased 12% based on a constant exchange rate (9% based on a current exchange rate). Despite the ongoing decline of the U.S. dollar, Esker’s excellent results are largely a result of the continued demand for software as a service (SaaS) document process automation solutions.
Growth Up 21% in Cloud-Based Solutions
Revenue related to Esker cloud platforms increased 21% in Q1 2014, representing 67% of company sales revenue. This growth can be attributed to two key factors: 1) A significant number of customers who signed at the end of 2013 now entering production, and 2) A substantial rise in document processing activity for some customers. A 2013 initiative to reduce implementation time for on-demand solutions has already generated positive results with customers entering into production faster.
Outlook for 2014
Due to a significant reduction in the volume of legacy products and traditional license sales, baseline revenue has improved over the past year. Factors such as recurring revenue (close to 80%), the start of production on signed first-quarter contracts and modest improvements in market conditions will enable Esker to gradually improve its sales revenue throughout 2014.
Strengthened Financial Structure
Esker anticipates operating profits to improve in 2014 thanks to increased growth and consolidation of past investment efforts. As of March 31, 2014, company cash rests at 15.1 million euros, versus 13.2 million euros the previous year. With net cash largely positive, Esker has the financial independence to invest in development while continuing its policy of dividend payment and share repurchase program.
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.