Q3 2017 Sales Activity
Esker achieves a new record quarter with sales exceeding 17%
Middleton, WI — October 18, 2017
Another record quarter — SaaS activity up 27%
Esker Q3 2017 consolidated sales revenue totaled 18.0 million euros, a 17% increase over Q3 2016 (14% based on a constant exchange rate). For the first nine months of 2017, consolidated sales totaled 55.8 million euros, up 15% (+10% in organic growth).
Esker’s own activity has been very dynamic and continues to be driven primarily 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. The strength of the euro against the U.S. dollar and the British pound had a negative impact on the quarter’s sales by 0.4 million euros.
This third quarter includes the sales revenue of German company, e-integration GmbH, acquired at the beginning of the year. With 0.9 million euros in sales revenue, e-integration GmbH achieved 8% growth over the same period in 2016. This performance is in line with expectations and reinforces the relevance of the acquisition for Esker.
Revenues from SaaS-based automation solutions increased by 27% (21% at constant scope and exchange rates), representing 85% of the business. This performance reflects the rapid implementation 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 September 30, 2017, company cash rests at 21.7 million euros after payment of the Décines mail production factory. With 9.0 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.
Positive outlook for 2017
Esker confirms it expects to achieve double-digit organic growth in 2017. Strong recurring revenue (78% of sales in Q3) offers excellent visibility, and a record number of new contracts signed this quarter (a cumulative value of more than double the signed contracts in Q3 2016) will fuel the company’s growth for 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.