Esker Q3 2012 Sales Activity
Cloud-Based Solutions Experience Accelerated Growth
Madison, WI – October 17, 2012
Sales revenue for Esker in Q3 2012 increased 10% based on a current exchange rate and 4% based on a fixed rate over a particularly strong Q3 2011 (+20%). These favorable results can be largely attributed to the success of Esker’s document process automation solutions (+7%) as well as the shrinking gap between the euro and the U.S. dollar.
Continued progress of cloud-based solutions
In times of economic malaise, companies have a tendency to abandon traditional software license projects or put them on hold, instead looking to cloud-based solutions which require less capital and offer a faster ROI. Subsequently, on-demand solutions were largely preferred over license sales in Q3 2012, with Esker’s on-demand solutions (i.e., FlyDoc and Esker on Demand) continuing to achieve steady growth rates (+30% in Q3 versus 27% in Q2 and 21% in Q1) — representing over half of Esker’s activity this quarter (57%). And, despite a still-sluggish economy, Esker experienced a significant increase in newly signed cloud-based contracts (over Q3 2011). This continued success positions Esker to achieve sustainable and profitable growth throughout the upcoming years.
A profitable third quarter
Strong sales in Q3, coupled with rigorous spending controls and a significant increase in the U.S. dollar, will enable Esker to realize an increase in operating income over the same period in 2011. As of September 30, 2012, company cash rests at over 11.1 million euros (versus 9.7 million euros on September 30, 2011, after dividend payment (552k euros) and the share buy-back program (500k euros).
Positive outlook for 2012
Factors such as recurring revenue (representing over 72% of sales revenue), the constant rate at which Esker continues to sign new contracts, and a stronger U.S. dollar will be instrumental in achieving an increase in operating profit and 10% growth over the course of 2012.
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 sales 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 36 million euros in sales revenue in 2011, 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.