Q2 2017 Sales Activity
Esker achieves a new record quarter with sales exceeding 13%
Middleton, WI — July 18, 2017
Another record quarter
Esker Q2 2017 sales revenue totaled to 19.1 million euros, a 13% increase over Q2 2016 (9% based on a constant exchange rate). For the first half of 2017, sales revenue amounted to 37.8 million euro, up 14% (9% in organic growth).
This second quarter includes the sales revenue of recently acquired German company, e-integration GmbH. With 0.9 million euros in sales revenue, e-integration GmbH achieved 24% growth over the same period in 2016. This performance is slightly higher than expected and reinforces the relevance of the acquisition for Esker. With or without e-integration GmbH’s contribution, Esker has once again experienced its most successful quarter in company history.
Esker’s own activity has been very dynamic and continues to be mainly driven by cloud-based activities. The excellent performance of Esker’s cloud-based solutions largely offsets an unfavorable base effect by the more traditional and legacy products, which, as previously announced, was due to several non-recurring deals recorded in the first half of 2016.
Despite the reduced number of working days this quarter, revenues from SaaS-based document process automation solutions increased by 25% (18% at constant scope and exchange rates), representing 84% of the business. This performance reflects the rapid roll-out of the numerous contracts signed in recent quarters, as well as the development of Esker’s existing customers.
Strengthened financial structure for future growth
As of June 30, 2017, company cash rests at 23.4 million euros after dividend payment. With 9.7 million euros in net cash and 140,000 in treasury shares immediately available, Esker has the financial resources necessary to pursue its strategy of combining organic growth and acquisitions.
Outlook for 2017
Esker confirms it expects to achieve double-digit organic growth in 2017. Unlike the first half of 2017, the second half will not be impacted by an unfavorable base effect due to several large non-recurring deals recorded in 2016. Strong recurring revenue (78% of sales in Q2) offers excellent visibility, and a record number of new contracts signed this quarter will fuel the company’s growth for 2017 and the quarters ahead.
Esker is a worldwide leader in cloud-based document process automation software. Esker solutions, including the acquisition of the TermSync accounts receivable solution in 2015, help organizations of all sizes to improve efficiencies, accuracy, visibility and costs associated with business processes. Esker provides on-demand and on-premises software to automate accounts payable, order processing, accounts receivable, purchasing and more.
Founded in 1985, Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. In 2016, Esker generated 66 million euros in total sales revenue. For more information on Esker and its solutions, visit www.esker.com. Follow Esker on Twitter @EskerInc and join the conversation on the Esker blog at blog.esker.com.