Esker Q4 2016 Sales Activity
A record quarter and year fuelled by growth in cloud-based solutions
Derby, UK — January 19, 2017
A Record Quarter & Year
Esker Q4 2016 sales revenue amounted to 17.5 million euros, a 9% increase over Q4 2015 on a current and constant currency exchange rate basis. These results are largely due to the dynamic growth of Esker’s cloud-based solutions. Sales revenue for 2016 totaled 66 million euros, up 13% over 2015 (12% based on constant exchange rate and like-for-like [LFL] growth). Esker has once again experienced its most successful quarter and year in company history, despite an unfavorable base effect on legacy products.
Total revenue related to Esker’s cloud-based solutions increased 20% in 2016, representing 77% of total company sales revenue (79% in Q4). This growth is due to a high volume of customers that signed in 2016 and are now entering production, as well as intense platform usage by existing customers.
Profitability & Strengthened Financial Structure
Esker expects improvement in operating profit compared to its 2015 fiscal year. By successfully managing its dynamic growth, Esker has been able to improve financial results and strengthen technical and sales investments, ensuring sustainable growth for years to come.
As of December 31, 2016, company cash rests at 20.8 million euros. With 15.9 million euros in net cash and close to 180,000 in treasury shares, Esker has the financial independence necessary to pursue its strategy of combining organic growth and acquisitions.
Positive Outlook for 2017
Esker anticipates it will achieve double-digit organic growth again in 2017. Factors such as recurring revenue in Q4 (close to 80%) and a record number of new contracts signed will fuel the company’s growth for 2017 and the years ahead.
A slight decline in legacy products and license-based document process automation products could temporarily affect overall growth in Q1, without jeopardising the company’s economic model based on sustainable and profitable growth.
About Esker
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 organisations 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 2015, Esker generated 58.5 million euros in total sales revenue. For more information on Esker and its solutions, visit www.esker.co.uk. Follow Esker on Twitter @EskerNEurope and join the conversation on the Esker blog at blog.esker.com.