Growth exceeds 21%
Esker Q3 2019 consolidated sales revenue amounted to 25.4 million euros, an 18% increase over Q3 2018 based on a constant exchange rate (21% based on current rates). Esker benefitted from a favourable exchange rate of the U.S. dollar against the euro in Q3. The average euro/dollar rate improved by 6% compared to the same quarter in the previous year.
Q3 2019 marks an acceleration in Esker’s growth, both for cloud-based solutions and the company’s global business. Driven by the dynamic quarter, the cumulative sales revenue for the year amounted to 75.5 million euros, a 16% increase based at constant exchange rates (+19% based on current rates). Even more significant was the growth of the company’s cloud-based activities in Q3 to exceed 22% based on constant exchange rates (25% based on current rates) — the best performance of the year. Cloud-based solutions represent over 90% of Esker’s business and remain the cornerstone of the company’s development.
Strengthened financial structure for future growth
As of September 30, 2019, company cash rests at 24.8 million euros. With 19 million euros in net cash (15 million euros on June 30, 2019) and 140,000 treasury shares immediately available (representing close to 10.8 million euros at closing price on October 14, 2019), Esker has the financial resources necessary to pursue its strategy relying mainly on organic growth.
Trends confirmed for 2019
Esker can expect to announce sales revenue of over 100 million euros for 2019 thanks to the recurring nature of its business model combined with a dynamic sales performance. It does not appear that currencies will vary significantly to jeopardise the company’s outlook for 2019. This amount is symbolic to the success of Esker’s strategy, and 2020 should benefit from the same trends.