Esker achieves steady sales growth alongside dynamic increase in
new bookings
Esker:
Sales Revenue in M€
(Unaudited)
Q1 2024 M€
Q1 2023 M€
Q1 2024/Q1 2023
Growth(4)
SaaS(1)
39.6
35.4
+12%
Implementation Services(2)
7.7
6.3
+22%
Legacy Products(3)
0.4
1.1
-64%
TOTAL
47.7
42.8
+12%
Bookings(5) (4)
5.95
4.12
+37%
(1)Includes subscriptions and
transactional revenue
(2)Includes Consulting and Professional
Services
(3)Includes Esker DeliveryWare, Fax
Servers and Host Access
(4)Growth based on a constant exchange
rate: 2024 exchange rates applied to 2023 figures
(5)Expressed as Annual Recurring Revenue
(ARR). ARR is the average annual subscription value that customers
commit to pay over the life of a contract. Revenue from platform
transactions is not included as it is uncertain by nature and
depends on the number of transactions effectively processed, which
is not known at the time the contract is signed.
Steady sales growth
Esker Q1 2024 consolidated sales revenue amounted to 47.7
million euros, a 12% increase over Q1 2023 based on current as well
as constant exchange rates. Once again, Esker has achieved its best
quarter in company history.
Over Q3, Esker’s SaaS activities continued to drive growth (+12%
based on current and constant exchange rates) to represent 83% of
the company’s overall revenue. This performance is the result of
the many customer contracts signed during 2023 that are now
progressively entering production and driving subscriptions up by
29% compared to Q1 2023. Transaction volumes remained stable in the
first quarter due to fewer working days during the period and a
slight decrease in fax and mail volumes.
Implementation services grew by 22%, representing 16% of the
company’s overall revenue. This strong performance is a result of
the number of ongoing customer implementations and was achieved
without significantly increasing the consultant headcount thanks to
the contribution of Esker’s partner network.
The performance of legacy products continued its downward trend,
accounting for only 1% of sales, in line with the company’s overall
approach.
An excellent quarter for new bookings
Esker achieved the second-best quarter in its history in terms
of bookings, extending the momentum of the record set in Q4 2023.
The annual recurring value (ARR) of new contracts signed during Q1
2024 increased by 37% based on constant exchange rates compared to
Q1 2023 to reach 5.95 million euros, 18.1 million euros over the
total duration of the contracts.
This performance was mainly driven by the U.S., where bookings
increased by 73% over the quarter, confirming the momentum achieved
at the end of 2023. Sales activity in Europe (excluding France) was
down 18% compared to Q1 2023 due to a particularly demanding base
effect (+191% in Q1 2023). Adjusted for an exceptional contract
closed in 2023, bookings in Europe increased by over 114%.
Bookings in France and Asia-Pacific increased by 29% and 83%
respectively, both benefiting from comparisons with a less
demanding base period.
A solid financial structure
As of March 31, 2024, company cash rests at 53.8 million euros,
including 4.8 million euros classified as long-term investments,
compared to 52.2 million euros on December 31, 2023. With moderate
financial debt, 7.8 million euros as of March 31, 2024, and 134,000
treasury shares, Esker has the financial autonomy to pursue its
strategy based on accelerating organic growth, complemented by
targeted acquisitions to integrate adjacent markets and elevate the
customer value proposition.
Outlook for 2024
Esker is off to a strong start in 2024, in line with its
objectives thanks to the significant new bookings in 2023 and at
the beginning of this year, which will gradually fuel sales growth.
Additionally, the strategy of moderate investments adopted for the
year will make a significant contribution to improving
profitability. Against a backdrop of exceptional bookings in Q1
2024, Esker expects its revenue growth to be between 12-14%,
excluding acquisitions and currency effects, for 2024. At this
level of activity, the operating margin will be between 12-13% of
revenue.
Despite a difficult economic and geopolitical environment, Esker
projects strong organic revenue growth and acceleration in its
sales performance, while retaining its employees. Its structure
remains fundamentally profitable.
An English webcast with Jean-Michel Bérard (Esker CEO) and
Emmanuel Olivier (Esker COO) will take place April 16, 2024, at
6:30 p.m. Central European Time. To participate, please join call
here.
About Esker
Esker is a global cloud platform built to unlock strategic value
for Finance, Procurement and Customer Service professionals, and
strengthen collaboration between companies by automating the cash
conversion cycle. Esker’s solutions incorporate AI technologies to
drive increased productivity, enhanced visibility, reduced fraud
risk, and improved collaboration with customers, suppliers and
employees. 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. For more
information on Esker and its solutions, visit www.esker.com. Follow
Esker on LinkedIn and join the conversation on the Esker blog at
esker.com/blog.
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version on businesswire.com: https://www.businesswire.com/news/home/20240416702853/en/
Press Contact: Lindsey Harrison Tel: (630) 730-1808 |
eskerpr@walkersands.com
Investor Relations Contact: Emmanuel Olivier Tel: +33
(0)4 72 83 46 46 | emmanuel.olivier@esker.com