Esker achieves record quarter in revenue and bookings
A record quarter for sales
Esker Q3 2022 sales revenue amounted to 40.4 million euros, a 21% increase over Q3 2021 based on current exchange rates (+13% based on constant exchange rates). For the first nine months of 2022, Esker sales were 116.8 million euros, up 19% based on current exchange rates (13% at constant exchange rates). Despite continuing market uncertainties, Esker achieved the best quarter in its history.
The difference between growth at constant exchange rates and reported growth is mainly due to the strength of the U.S. dollar against the euro. The average euro/dollar exchange rate was 1.00 for Q3 2022, compared to 1.18 in for Q3 2021.
Esker’s cloud solutions continue to drive growth, accounting for 81% of total revenue, an increase of +26% based on current exchange rates and +17% at constant exchange rates. This excellent performance, despite an unfavourable base effect, is the result of numerous customer contracts signed in previous quarters that are gradually going into production. This momentum more than offsets the slight signs of a slowdown in volumes in Europe.
A record quarter for new bookings
Esker also recorded its best quarter in its history in terms of bookings. The annual recurring value (ARR) of new contracts signed during Q3 2022 increased by +49% (at constant exchange rates) compared to Q3 2021, reaching 4.9 million euros (18.0 million euros over the total duration of the contracts, or +39%).
The pace of new bookings was extremely dynamic in the U.S. (+70%) and in Asia-Pacific (+258%), which benefited from a very favourable base effect due to the COVID-19 pandemic, compared to 2021 performance. In contrast, Europe saw a 26% decline in bookings due to concerns about the war in Ukraine and inflation in energy costs.
A solid financial structure
As of September 30, 2022, company cash rests at 47.1 million euros (versus 38.0 million euros as of September 30, 2021). With 31.5 million euros in net cash (compared to 36.9 million euros on September 30, 2021) and nearly 130,000 treasury shares, Esker has the financial autonomy to execute its strategy based on accelerating organic growth, complemented by targeted acquisitions to integrate adjacent markets and enhance value delivered to customers.
Outlook for 2022
Given the strong Q3 2022 performance and despite continuing economic uncertainties, Esker confirms its objective of organic revenue growth between 12-14% and its profitability objective between 13-15%.
