Continued growth in cloud activities

Esker Q3 2023 sales revenue amounted to 43.8 million euros, a 13% increase over Q3 2022 based on constant exchange rates (+8% based on current exchange rates). For the first nine months of 2023, Esker sales were 131.6 million euros, up 15% based on constant exchange rates (+13% based on current rates).

Over Q3, Esker’s cloud activities continued to drive growth (+15% based on constant rates and +11% based on current rates) to represent 82% of the company’s overall revenue. This excellent performance, resulting from the many customer contracts signed in previous quarters, slightly decelerated on account of lower volumes processed during the summer. 

Implementation services grew by 10% based on constant rates and 6% based on current rates, representing 15% of the company’s total revenue. The performance of legacy products continued its downward trend, equating to 2% of sales, as is typical in extended periods of market uncertainty.

A record quarter for new bookings

Esker recorded the best quarter in its history in terms of bookings. The annual recurring value (ARR) of new contracts signed during Q3 2023 increased by 11% (based on constant rates) compared to Q3 2022, to reach 5.3 million euros. This performance is all the more remarkable, as the previous record was held by Q3 2022. The ARR of new contracts signed in the first nine months of the year reached 14.3 million euros, an increase of 14%.

The pace of signed contracts was extremely dynamic in France (+508% over Q3, +46% over nine months), due to a favourable base effect as well as a clarification of the national e-invoicing regulations in the first half of the year. As a result of these clarifications, several major customers signed contracts with Esker to overhaul their invoicing processes. This trend is set to continue until at least mid-2024.

Performance in Europe (excluding France) improved sharply (+23%) with large contracts won in Italy, Spain and the U.K, bringing the overall growth in bookings to over 105% for the first nine months of the year for the region. The Americas achieved their best quarter of the year, with 2.4 million euros in bookings (ARR), representing 45% of the company’s bookings for the quarter. This performance was down 30% from the same quarter last year, due to an extremely unfavourable base effect. This same region had set a record in Q3 2022, with more than 3.4 million euros in ARR of new contracts. Signings in the Americas are expected to increase in Q4.

A solid financial position

As of September 30, 2023, company cash rests at 45.8 million euros (including 4.8 million euros classified as financial fixed assets) versus 47.1 million euros on September 30, 2022. Net cash amounts to 34.1 million euros as of September 30, 2023, compared with 31.5 million euros the previous year. Given the low financial debt (11.7 million euros as of September 30, 2023) and 134,373 in treasury shares (representing 15.9 million euros based on the closing share price on October 16, 2023), Esker has the financial autonomy to pursue its strategy based on accelerating organic growth.

Outlook for the end of 2023

Given the very good performance of the first nine months of 2023, Esker continues to forecast organic sales growth of between 14-15% (excluding currency variations). The accelerated pace of signed contracts linked to the e-invoicing mandate in France could, if maintained between now and the end of the year, result in higher-than-expected acquisition costs (essentially commissions on sales accrued at contract signature), without contributing to revenue in 2023 (revenue spread out in SaaS mode). Consequently, a rapid acceleration in bookings could impact the expected operating margin of 11.5-12.5% for 2023 by 1 or 2 points.

An English webcast with Esker’s Jean-Michel Bérard (CEO) and Emmanuel Olivier (COO) will take place October 17, 2023, at 6:30 p.m. Central European Time. To participate, please join call here.

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Dynamic sales revenue growth driven by cloud solutions

Esker’s 2023 half-year sales revenue grew 16% based on constant exchange rates and 15% based on current rates. Cloud revenue increased 20%, representing 83% of the company’s business. Implementation services grew 11%, representing 15% of the company’s overall revenue. Traditional licensed and legacy products decreased by 39% to represent only 2% of sales.

The growth in cloud revenue comes from sales success achieved in 2022 and 2023 (representing 12% of half-year cloud revenue) and the continued strong use of Esker’s platform by its customers. Half-year cloud revenue is comprised of 48% subscription-based revenue (+28% compared to first-half 2022) and 52% variable revenue based on user activity on the platform (+11%).

At the geographic level, Europe and the U.S. grew at a similar pace (+16%). Asia-Pacific, slightly affected by a number of late signings, grew 8%, driven by performances in Australia and New Zealand.

Bookings remain strong

Bookings increased by 18% in the first half of the year driven by strong performances in Europe, excluding France, (+65%) with very large contracts won in Germany and the U.K.

The momentum of signed contracts in France slowed down at the beginning of the year due to uncertainties concerning the technical specifications of the new national e-invoicing mandate. Despite an improved performance in Q2 (+6%), bookings in France declined 9% over the first half-year. However, the postponement of the new e-invoicing regulations should not affect investment decisions, and bookings in France are expected to grow strongly in the second half of the year.

After a long series of high-growth quarters, bookings in the U.S. remain solid, up 6% for the half-year. Despite a demanding base effect in Q3, the trend for 2023 remains very positive in this key market for the company. Bookings in Asia-Pacific increased 9% with a rebound in the Asian markets.

Profitability impacted by base effects, growth investments and inflation

Half-year current income decreased by 24% compared to the first half of 2022. This change is largely due to the reversal in 2022 of the provision for tax on share-based compensation in France (employer contribution), initially booked in 2021. Changes in this provision stem from annual share distributions and, most importantly, variations in Esker’s share price.

Adjusting for this non-recurring impact, half-year current income declined 4%, representing 11.6% of sales for the period, compared with 13.9% for the first half of 2022 and 12.6% for the full year. This result is mainly due to the following factors.

Acquired in May 2022, Market Dojo’s inclusion in the scope of consolidation, represents a growth investment of 0.7 profitability points in 2023 (0.6 million euros). The company’s annual growth trend of 30% should continue over the coming years with more moderate investments.

The sharp rise in inflation in all regions where Esker operates had a negative impact on half-year profitability. For employee cost alone, the net effect of rising costs and the revaluation of customer contracts resulted in a negative balance of around 1.2 profitability points. Changes in other expenses accentuated the trend to bring it to two points of sales revenue. This discrepancy is due to a delay in the reflection of inflation in prices charged to customers as contracts are traditionally revalued only at their renewal date.

Excluding scope effects, average employee numbers this half-year were up 10% to reach 966 employees, compared to an increase of close to 12% in 2022. Without ceasing to invest in the development of its solutions and the future growth of its business, Esker has started to temper its recruitment efforts to improve its structural profitability. The effects of this policy should bear fruit in the second half of 2023 and even more so in 2024.

Considering a stable effective tax rate, the net income is in line with current income, with a profit of 7.5 million euros (8.5% of sales), down 26%.

Solid financial structure and growth in operating cashflow

After deducting financial debt, the company’s net cash remains solid and increased to 33.5 million euros, an increase of 0.9 million euros, despite a 27% increase in payment of dividend to shareholders. The change in cash level is the result of the very good operating cashflow performance over the half-year, up by almost 4 million euros, or +43% compared to the first half of 2022.

Outlook for 2023

Despite ongoing economic uncertainties, Esker continues to forecast organic sales growth between 14-15% (excluding currency variations). At this level of revenue and given the current inflationary context, profitability is expected of between 11.5-12.5% of sales revenue, compared to 11.2% in the first half of the year. Esker expects an improvement in profitability in the second half of the year due to the decrease of non-recurring events and the impact of moderated recruitment efforts.

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Record quarter, record half year

Esker Q2 2023 sales revenue amounted to 45.1 million euros, a 15% increase over Q2 2022 based on constant exchange rates (+13% based on current rates). Half-year sales revenue grew 16% based on constant exchange rates (+15% based on current rates) to 87.9 million euros. Once again, Esker has experienced its best quarter and half year in company history.

Cloud revenue (+20% based on constant rates and +18% based on current rates) continued to drive growth, representing 82% of the company’s business. This excellent performance is the result of the many customer contracts signed in previous quarters that are now progressively entering production. Additionally, transaction volumes have shown good resilience since the beginning of the year.

Implementation services grew more gradually (+12% based on constant rates and +11% based on current rates), representing 16% of the company’s business. The performance of legacy products continues its downward trend, representing less than 2% of sales revenue.

A record quarter for new bookings

Esker recorded the second-best quarter and the best half year in its history in terms of bookings. The annual recurring value (ARR) of new contracts signed during Q2 2023 increased by 14% (based on constant exchange rates) compared to Q2 2022, to reach 4.6 million euros. The ARR of new contracts signed in the first half of the year reached 9.0 million euros, an increase of 18%.

The pace of new bookings was extremely dynamic in Europe (+104%), excluding France, with a very large contract won in the U.K. Performance in France improved sharply (+6%) over Q1 thanks to the first signed contracts linked to the change in electronic invoicing regulations. This reform has created several excellent opportunities that will fuel French performance over the coming quarters. Esker is one of the first companies to finalise its application to become a Partner Dematerialization Platform (PDP) with France’s General Directorate of Public Finances (DGFiP). The company also set up a group of volunteer companies of all sizes and from all sectors, with the goal of taking part in the pilot program organised by the DGFiP to carry out the first exchanges with the government’s public invoicing platform (PPF) at the beginning of 2024.

A solid financial position

As of June 30, 2023, company cash rests at 45.2 million euros (including 5 million euros classified as financial fixed assets) versus 43.1 million euros on June 30, 2022, after payment of dividend and employee profit-sharing. Given the low financial debt (12.7 million euros as of June 30, 2023) and more than 130,000 in treasury shares (representing 18.2 million euros based on the closing share price on July 13, 2023), Esker has the financial autonomy to pursue its strategy based on accelerating organic growth, complemented by targeted acquisitions to integrate adjacent solutions and technologies that will increase the value delivered to customers. 

Outlook for 2023

Given the strong booking performance in H1 2023, Esker raises its organic revenue forecast for 2023 to between 14-15% (against an initial target of +12% to +14% raised to +13% to +15% in April 2023), with a profitability (operating margin) of between 12-14% of sales revenue.

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A record quarter

Esker Q1 2023 sales revenue amounted to 42.8 million euros, a 17% increase over Q1 2022 based on current exchange rates (+15% based on constant rates and excluding Market Dojo acquired in 2022). Once again, Esker has achieved its best quarter in company history.

Cloud activities (+21% based on current rates and +18% based on constant rates and company structure) are driving growth, representing 83% of the company’s business. This excellent performance is the result of the many customer contracts signed during 2022 that are now progressively entering production. Additionally, transaction volumes, which had decreased at the end of 2022, have shown good resilience in this first quarter.

Implementation services grew more gradually (+8% based on current rates and +7% on constant rates), representing 15% of the company’s business. This trend illustrates Esker’s willingness to develop the use of its partners to carry out the implementation of its solutions.

The performance of legacy products continues its downward trend and represents less than 3% of sales revenue.

An excellent quarter for new bookings

Esker recorded the third-best quarter in its history in terms of bookings. The annual recurring value (ARR) of new contracts signed during Q1 2023 increased by 19% (at constant exchange rates) compared to Q1 2022, reaching 4.12 million euros (16.2 million euros over the total duration of the contracts).

The pace of new bookings was extremely dynamic in Europe (+191%), excluding France, with a very large contract won in Germany. The U.S. (+29%) outperformed once again, as it has for several years. Performance in France (-36%) was disrupted by the macroeconomic environment and the uncertainties linked to the upcoming change in electronic invoicing regulations. However, this e-invoicing mandate will create a strong momentum of opportunities that should fuel French performance in the coming quarters and years.

A solid financial position

As of March 31, 2023, company cash rests at 49.1 million euros (including 4.7 million euros classified as financial fixed assets) versus 47.5 million euros on December 31, 2022. Given very low financial debt amount (13.7 million euros as of March 31, 2023) and more than 130,000 in 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 enhance value delivered to customers.

Outlook for 2023

Given the strong booking performance in Q1 2023, Esker raises its organic revenue forecast for 2023 to between 13-15%, while aiming for profitability between 12-14% of sales revenue.

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Accelerated growth driven by cloud solutions and the Americas

Esker’s sales revenue for FY 2022 amounted to 159 million euros, a 19% increase over 2021 (13% based on constant exchange rates and consolidation scope). These results are marked by the ongoing success of the company’s cloud automation solutions, which represent 128 million euros in revenue, a 23% increase over 2021 (17% based on constant exchange rates) and account for 80% of consolidated revenue. Driven by strong sales performance in 2021 and 2022, Esker maintained strong cloud revenue growth despite an uncertain economic environment for most of 2022.

Revenue generated by the professional implementation services grew 12% (7% based on constant exchange rates), representing 16% of total revenue. This revenue line benefitted from the dynamic sales of SaaS solutions and supports the growth of the developing partner network. The performance of traditional licence products and legacy products continue their downward trend and represent less than 4% of total revenue in 2022 (-21% based on constant exchange rates).

Breaking it down by geographic location, the Americas and Asia Pacific regions were the most dynamic, with growth exceeding 14% (at constant exchange rates). Europe held up well given the macroeconomic context and grew by more than 11% at constant exchange rates and scope.

Strong sales momentum

The annual recurring value (ARR) of new contracts signed in 2022 increased by 26% (19% at constant exchange rates). After a traditionally weaker first quarter, the pace of new signed contracts picked up from one quarter to the next, with the last two quarters of the year setting historic records. The pace of new bookings was particularly dynamic in the Asia-Pacific region (over 45%) and in the Americas (+23%), which alone accounted for close to 57% of the company’s total bookings and confirms a long history of sales success in this leading technology market. Europe remained stable with a 3% increase in bookings, representing 33% of the global volume. This stability reflects a certain wait-and-see attitude on the part of companies regarding the economic and geopolitical situation on the continent.

These bookings consist of multi-year contracts with end-customers or partners. They have a marginal impact on revenue in the year they are signed but fuel company growth in subsequent years. According to a consistently applied accounting policy, the acquisition, marketing and sales costs of these bookings are charged in full to the year of signature. 

Continued growth investments

In 2022, Esker’s workforce increased by more than 13% to 972 full-time equivalents at the end of December. Recruitment efforts were equally distributed across all geographic locations, with a particular focus on the Americas (+14%). Recruitment mainly concerned sales and marketing functions (+17%) as well as consulting (+13%) and customer support (+14).

Increased operating profitability

Esker’s operating income increased by 29%, reaching 21.4 million euros in 2022, as compared to 16.6 million euros in 2021. Operating profitability increased from 12.4% to 13.5% in 2022. These results were achieved thanks to a significant increase in gross margin (+25%), reaching 72% of sales revenue. Controlled platform and production costs, partly offset by a slight decline in the services margin — mainly due to investments made to develop the company’s partner network — contributed to these results. The controlled increase of general expenses also helped grow profitability and allowed investments in sales (+38%) and marketing (+23%) development. In 2022, Esker benefitted also from favourable exchange rates, primarily related to the U.S. dollar, amounting to 2.2 million euros or 10% of the year’s operating income.

Growth in net income

Given the increase in financial income, a stable effective tax rate of 23% and a good contribution from equity-accounted companies, Esker net income amounted to 17.9 million euros, a 25% increase over 2021, despite a small exceptional loss.

Market Dojo contribution

Esker acquired a 50.1% majority stake in Market Dojo, a U.K.-based eProcurement software startup in 2022. By integrating the management of supplier selection (e-sourcing) into its solution portfolio, the acquisition strengthens Esker’s position in the global source-to-pay market.

Market Dojo’s operations have been consolidated in Esker’s financial statements starting June 1, 2022. Over the year, the company brought in 0.8 million euros in revenue (+20% growth) and recorded an operating loss of 0.7 million euros, corresponding to investments made to accelerate the company’s growth, particularly in the U.S.

Outlook for 2023 and available cash

Esker’s performance in 2022, both in terms of revenue and bookings, allows the company to approach 2023 with confidence. Contracts signed in 2022 will progressively fuel 2023 revenue growth. Nevertheless, economic fluctuations linked to geopolitical tensions as well as the evolving economies in which Esker operates, are always likely to have a slight impact on the company’s performance in terms of sales volumes and bookings. Under these circumstances, and as communicated at the time of the Q4 2022 results release, Esker anticipates its full-year growth to be between 12-14% (excluding acquisitions and exchange rates) with stable profitability. These perspectives will be updated with each revenue performance release.

As of December 31, 2022, company cash rests at 42.9 million euros, to which 4.8 million euros must be added, classified as financial assets but available for short-term use. Esker contracted 17 million euros in new loans at very favourable terms in 2022. Combined with available cash, they will enable Esker to take advantage of external growth opportunities, if necessary, in line with its development strategy.

An English webcast will take place March 23, 2023, at 6:00 p.m. Central European Time. To participate, please join Microsoft Teams call here.

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A record quarter and year

Esker once again experienced its most successful quarter and year in company history in 2022, closely approaching the 160 million euros revenue mark. Esker 2022 sales revenue amounted to 159.3 million euros, a 19% increase over 2021 based on current exchange rates (+13% at constant exchange rates).

Esker Q4 2022 consolidated sales revenue amounted to 42.5 million euros, an 18% increase over Q4 2021 based on current exchange rates (+13% based on constant exchange rates). Despite a slight decrease in documents processed during the quarter due to the economic slowdown, cloud-based activities (+23% based on current exchange rates) continue to drive growth, representing 80% of total revenue (97% with implementation services). This strong momentum is spread across all geographical areas, all of which posted solid growth, benefiting from the sales successes achieved throughout the year.

An outstanding quarter and year for new bookings

Esker also recorded the second-best quarter in its history in terms of bookings. The annual recurring value (ARR) of new contracts signed during Q4 2022 increased by +21% (at constant exchange rates) compared to Q4 2021, reaching 4.5 million euros (15.3 million euros over the total duration of the contracts).

The ARR of new contracts signed in 2022 increased by 19% (at constant exchange rates) over 2021 to reach 16.6 million euros (61.1 million euros over the total duration of the contracts). The pace of new bookings was extremely dynamic in the U.S. (+27%) and in the Asia-Pacific region (+46%). In contrast, Europe only saw a slight increase of 3% in bookings due to concerns about the war in Ukraine and inflation in energy costs.

A solid structure

In December 2022, Esker’s workforce surpassed the mark of 1,000 active employees, which represents 972 full-time equivalents contributing to company growth.

As of December 31, 2022, company cash rests at 46.9 million euros (versus 39.2 million euros as of December 31, 2021). With 32.3 million euros in net cash (compared to 38.6 million euros on December 31, 2021) and more than 130,000 in 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 enhance value delivered to customers.

Outlook for 2023

Given the strong booking performance in 2022 and despite continuing economic uncertainties which could impact the number of transactions on the platform, Esker expects organic revenue growth between 12-14%. At this level of growth, profitability is expected to be between 12-15%.

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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%.

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Dynamic sales revenue growth driven by cloud solutions

Esker’s 2022 half-year sales revenue grew 13% based on constant exchange rates. Cloud-based revenue increased 17%, representing 80% of the company’s overall revenue. Implementation Services (Consulting) grew 9%, increasing in Q2 after the pandemic resurgence in Q1 and the resulting shortfalls of resources and personnel for both Esker’s teams and its customers. Traditional licensed and legacy products decreased by 26% to represent only 4% of company business.

The growth in cloud-based revenue comes from sales success achieved in 2021 and 2022 (representing 15% of half-year cloud-based revenue) and the continued strong use of Esker’s platform by its customers. Half-year cloud-based revenue is comprised of 45% subscription-based revenue (+33% compared to first-half 2021) and 55% variable revenue based on user activity on the platform (+9%).

At the geographic level, all regions achieved double-digit growth. The U.S. remains the most dynamic region with +15% growth (at constant rates), followed by Asia Pacific (+13%) and Europe (+12%).

The evolution of the rate of the euro compared to the other currencies used by Esker (mainly USD) reinforces the operational dynamics of the company’s business. At current exchange rates, revenue growth reached 23% for cloud-based revenue and 19% for all business combined.

Bookings remain strong with a record second quarter 

Bookings increased by 14% in the first half of the year (8% at constant rates) compared to a particularly dynamic first half of 2021. The Annual Recurring Value (ARR) of new contracts signed during Q2 2022 increased by 25% over Q2 2021 (17% at constant rates) to exceed 4.2 million euros.

The dynamic pace of signed contracts was particularly noted in Asia-Pacific (+62%) and Europe (+16). The U.S. saw a pause in booking growth due to an unfavourable base effect in the first half of the year, which should be reversed in Q4.

Strong increase in profitability and continued growth investments

Current operating income increased to 13.1 million euros (+42%). This performance is due to the combined effect of excellent operating performance, a favourable foreign exchange translation effect (+1.1 million euros) and the adjustment (based on Esker’s share price) of accruals booked in 2021 for taxes to be paid on share base compensation plans (+2.2 million euros).

To fuel future growth, Esker continues its recruitment efforts. Average employee numbers this half-year were up 12% (93 employees) to reach more than 900 employees as of June 30, 2022. Efforts focused particularly on Consulting teams (+15%), as well as Sales, Marketing and Customer Support departments (+13%). Additionally, sales and in-person marketing events (e.g., tradeshows) were up 24% this half-year.

Financial income essentially includes the impact of exchange rate variations on the company’s current operations (0.18 million euros). Exceptional income includes the adjustment in value of treasury shares used in the programme to ensure the liquidity of Esker shares on the markets.

Given a stable effective tax rate, net income increased significantly (34%) to reach 10.1 million euros.

Consolidation of Market Dojo

Esker has acquired a 50.1% majority stake in Market Dojo, a U.K.-based eProcurement software startup.  Market Dojo’s operations have been consolidated in Esker’s financial statements starting June 1, 2022, therefore not having a significant impact. Market Dojo’s current growth rate trend for 2022 is expected to be between 17-20%. In addition, Market Dojo’s acquisition led to the booking of a preliminary goodwill amount of 9.7 million euros. Its final computation and allocation will be made in the 2022 annual accounts.

Strengthened financial structure

The company’s net cash increased significantly to 39.9 million euros despite a 24% increase in the 2022 dividend.

Throughout this half-year, Esker took advantage of the favourable economic climate to take out new fixed-rate bank loans (BPI, BNP, Société Générale) for a total of 17 million euros. These loans have strengthened the company’s financial structure and will enable it to seize external growth opportunities to complete the company’s solution portfolio and accelerate growth if market conditions allow.

Positive outlook for 2022

Given the accumulation of economic uncertainties, Esker conservatively anticipates its full-year growth between 12-14% at constant scope and exchange rates. Without significant change in exchange rates over the rest of the year, published growth will be significantly higher. At this level of revenue, profitability is expected to stand at around 13-15% compared to an initial objective of 12-15%.

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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 unfavourable 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%.

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Record quarter
Esker Q1 2022 sales revenue amounted to 36.5 million euros, an 18% increase over Q1 2021 based on current exchange rates (+14% based on constant rates). Once again, Esker has achieved its best quarter ever.

Despite a slight decrease in volumes processed at the beginning of the year due to another pandemic wave, cloud activities (+23% based on current rates and +20% based on constant rates) are driving growth, representing 84% of the company’s business. This excellent performance is the result of the many customer contracts signed during 2021 that are now progressively entering production.

Implementation services grew more gradually (+8% based on current rates and +4% on constant rates). This moderate growth is mostly linked to a pandemic resurgence in early 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, which is common when economic conditions tighten or become uncertain. These products represent only 4% of company business.

Second best quarter in terms of bookings
Esker once again recorded a high number of signed projects in the beginning of the year. The Annual Recurring Value (ARR) of new contracts signed during Q1 2022 increased 11% over Q1 2021 to 3.64 million
euros (13.3 million euros or +23% over the total duration of the contracts). The dynamic pace of signed contracts in Q1, primarily in France, the United States and Australia, makes it the second best quarter in terms of bookings (after Q4 2020).

Strengthened financial structure for future growth
As of March 31, 2022, company cash rests at 46.2 million euros, after taking out a 5 million euro loan. With
41.2 million euros in net cash (versus 34.9 million euros on March 31, 2021) and close to 140,000 treasury
shares immediately available, Esker has the financial resources necessary to pursue a strategy that is focused primarily on accelerating organic growth. Targeted acquisitions could also be envisioned in order to accelerate coverage of adjacent markets and enhance value delivered to customers.

Outlook for 2022
Given the strong Q1 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%.

Read full press release here.

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