Esker Q4 2012 Sales Activity — a Record Year
Sustained Patterns of Growth Powered by Cloud-Based Solutions
Madison, WI — January 22, 2013
A record quarter (and year)
Esker experienced its most successful year and quarter in company history despite difficult market conditions. Esker sales revenue for FY 2012 reached over 40 million euros, achieving 11% growth based on a current exchange rate and 6% growth based on a fixed rate. Q4 2012 increased 9% based on a current exchange rate and 5% based on a fixed rate over Q4 2011.
Continued momentum of cloud-based solutions
During times of economic uncertainty, companies will often look for flexibility and maximum spending productivity for their IT systems. Cloud-based solutions respond to this challenge by helping to reduce initial investment and operating costs, and ensure continuous software updates. Companies of all sizes and in every world market strongly favor cloud-based solutions versus traditional software license solutions.
While license-based sales stagnate, cloud computing solutions continue to grow. Subsequently, recurring revenue related to the use of Esker cloud platforms (revenue traffic) increased 24.3% in Q4 2012, compared to 22% in FY 2012, representing close to 20 million euros. Given the momentum of signed cloud computing contracts in 2012, this growth trend will continue in the coming years. Thanks to strategic positioning and development plans in place since 2005, Esker benefits from this fundamental change in IT business and achieves a significant competitive advantage.
Profitability sustained
At a minimum, Esker anticipates to maintain the profitability levels it achieved in 2011. Strong sales in 2012, coupled with rigorous spending controls, will enable Esker to achieve an accelerated transition towards a cloud-based model.
As of December 31, 2012, company cash rests at over 11.1 million euros (versus 10.7 million euros on December 31, 2011). With net cash largely positive, Esker has the financial autonomy to invest in its development while continuing its policy of dividend payment and share buy-back programs.
Outlook for 2013
Three primary factors — recurring revenue (over 70%), the entry into production of 2012 signed contracts, and the continued growth of cloud-based solutions — will equip Esker to achieve growth close to 10% in 2013. Progressive 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 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 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.