Esker Q4 2013 Sales Activity
High Adoption Rates of Cloud-Based Solutions Power a Successful Fourth Quarter and Position Esker for Continued Growth in the New Year
Madison, WI — January 22, 2014
Fourth quarter results in line with 2013 successes
Esker sales revenue in Q4 2013 increased 3.5% based on the constant exchange rate and remained stable based on current rates over Q4 2012. Similar to previous quarters, the ongoing success of cloudbased solution adoption resulted in a decline in traditional license sales and legacy products.
Continued growth (up 15%) in cloud-based solutions
Revenue related to Esker cloud platforms increased 15% in Q4 2013, representing 63% of company sales revenue. A 2013 initiative to reduce on-demand solution implementation time has already generated positive results with customers entering into production faster and Professional Services consultants having more time to invest in presales efforts.
Strengthened financial structure
Esker anticipates operating profits to be similar to those achieved in 2012, despite significant investments in research and development. As of December 31, 2013, company cash rests at 13.1 million euros, versus 11.1 million euros the previous year, after dividend payment (660k euros), a significant decrease of the U.S. dollar to euro exchange rate and a slight investment in share repurchase. With net cash on hand largely positive, Esker has the financial independence to invest in development while continuing its policy of dividend payment and share repurchase program.
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 75%), the start of production on signed fourth-quarter contracts and slight improvements in market conditions will enable Esker to gradually improve its sales revenue. In the short term, Esker does not expect an increase in its workforce.
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 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.