Esker Q2 2013 Sales Activity
Pursuit of Cloud-Based Solution Adoption Continues to be Driving Force of Business Growth
Madison, WI — July 22, 2013
Second quarter builds off of first quarter success
Esker sales revenue increased 4% based on a current exchange rate and 3% based on a fixed rate over a very strong Q2 2012 (+8%). These excellent results are largely attributed to the continued demand for software as a service (SaaS) document automation solutions and the decreased interest in traditional software license solutions and maintenance.
Continued growth (up 16%) in cloud-based solutions
Revenue related to Esker cloud platforms increased 16% in Q2 2013, representing 60% of company sales revenue. Difficult market conditions often force companies 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.
The shifting preference to cloud-based solutions continued its acceleration over Q2 2013. Although the decline in license-based sales reduces overall company performance in the short term, it will have less impact in the coming quarters as Esker’s overall growth will continue to improve.
Sustained profitability
Despite a slight decline in the U.S. dollar, strong sales in the first half of 2013, combined with rigorous spending controls, will allow Esker to achieve an operating income equivalent to the same period in 2012.
As of June 30, 2013, company cash rests at 12.6 million euros (versus 10.9 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 buy-back program.
Outlook for second half of 2013
Three primary factors — recurring revenue (close to 75%), the entry into production of contracts signed in the first half of 2013, and the continued growth of cloud-based solutions — will equip Esker to achieve improved growth in the second half of 2013, similar to what it achieved in 2012.
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 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 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 www.twitter.com/eskerinc and join the conversation on the Esker blog at www.quitpaper.com.