Esker achieves a new record quarter with 19% sales revenue growth
Esker:
SALES REVENUE IN M€ (UNAUDITED) |
Q2 2022
|
|
Q2 2021
|
|
Q2 2022/Q2 2021 GROWTH(4) |
|
H1 2022
|
|
H1 2022/H1 2021 GROWTH(4)
|
|
SAAS (1) |
31.5 |
|
25.6 |
|
+16% |
|
60.8 |
|
+17% |
|
IMPLEMENTATION SERVICES(2) |
6.4 |
|
5.5 |
|
+12% |
|
12.1 |
|
+9% |
|
LEGACY PRODUCTS(3) |
1.9 |
|
2.3 |
|
-28% |
|
3.3 |
|
-26% |
|
TOTAL |
39.8 |
|
33.4 |
|
+12% |
|
76.3 |
|
+13% |
|
BOOKINGS(5) |
4.0 |
|
3.3 |
|
+25% |
|
7.6 |
|
+14% |
(1) |
Includes subscriptions and transactional revenue |
(2) |
Includes implementation, training and Professional Services |
(3) |
Includes Esker DeliveryWare, Fax Servers and Host Access |
(4) |
Growth based on a constant exchange rate: 2022 exchange rates applied to 2021 figures |
(5) |
Expressed as Annual Recurring Revenue (ARR), a standard metric for SaaS or subscription business. 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. Service revenue is also not included in ARR as it is non-recurring. |
Record quarter, record half year
Esker Q2 2022 sales revenue amounted to 39.8 million euros, an 19% increase over Q2 2021 based on current exchange rates (+12% based on constant rates). Half-year sales revenue grew 19% based on current exchange rates (+13% based on constant rates) to 76.3 million euros. Once again, Esker has experienced its best quarter and half year in company history.
Cloud revenue (+23% based on current rates and +16% based on constant rates) continued to drive growth, representing 79% of the company’s business. This excellent performance, despite an unfavorable base effect, is the result of the many customer contracts signed in previous quarters that are now progressively entering production.
Implementation services gradually returned to a more normal pace (+17% based on current rates and +12% on constant rates) after the pandemic resurgence in Q1 and the resulting shortfalls of resources and personnel for both Esker’s teams and its customers.
The performance of traditional licensed and legacy products declined sharply, in correlation with tightening market conditions. These products represent only 5% of company business.
Best quarter in terms of bookings
Esker reported a record number of bookings in Q2. The Annual Recurring Value (ARR) of new contracts signed during Q2 2022 increased by 25% over Q2 2021 to 4.0 million euros (14.6 million euros, or +41% over the total duration of the contracts). The dynamic pace of signed contracts in Q2 was particularly noted in France, the United States and Australia.
Strengthened financial structure for future growth
As of June 30, 2022, company cash rests at 43.1 million euros, after settlement of the acquisition of Market Dojo, dividend payment and obtaining a new 12 million euro loan. With 26.5 million euros in net cash (versus 33.6 million euros on June 30, 2021) and close to 130,000 treasury shares immediately available, Esker has the significant financial autonomy necessary to pursue a strategy that is focused primarily on accelerating organic growth, supplemented by targeted external growth operations aimed at advancing coverage of adjacent markets and enhance value delivered to customers.
Outlook for 2022
Given the strong Q2 2022 performance and despite the accumulation of economic uncertainties, Esker maintains its full-year organic growth forecast of 15-16%. At this level of growth, profitability is expected to stand at around 12-15%.
About Esker
Esker is a global cloud platform built to unlock strategic value for finance and customer service professionals, and strengthen collaboration between companies by automating the cash conversion cycle. Esker’s solutions incorporate technologies like Artificial Intelligence (AI) to drive increased productivity, enhanced visibility, reduced fraud risk, and improved collaboration with customers, suppliers and internally. 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 blog.esker.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220712005996/en/
Contacts
Press Contact: Christina Davies
Tel: (972) 366-7453 | cdavies@ideagrove.com
Investor Relations Contact: Emmanuel Olivier
Tel: +33 (0)4 72 83 46 46 – olivier@esker.fr
