Esker Q2 2014 Sales Activity
Cloud-based solutions continue to power company growth in 2014
A Strong Second Quarter
Compared to Q2 2013, Esker sales revenue in Q2 2014 increased 9% based on a constant exchange rate (6% based on a current exchange rate). Despite a further decline in the U.S. dollar, Esker’s positive results are largely a result of the continued demand for software as a service (SaaS) document process automation solutions.
Growth Up 15% in Cloud-Based Solutions
Total revenue related to Esker’s cloud platform increased 15% in Q2 2014, representing 65% of company sales revenue over the quarter. Revenue strictly related to documents processed in production on Esker’s cloud platform (excluding Professional Services) rose 21% due to the acceleration of implementation time for on-demand solutions.
Outlook for 2014
Even with 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 second-quarter contracts and stable market conditions will enable Esker to achieve close to 10% growth over the year.
Strengthened Financial Structure
Esker anticipates operating profits to improve thanks to increased growth and consolidation of past investment efforts. As of June 30, 2014, company cash rests at 13.9 million euros, versus 12.6 million euros the previous year, after dividend payment (880k euros) and share repurchases (totaling 996k euros). With net cash largely positive, Esker has the financial independence to pursue acquisitions 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, Latin 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.