Esker reported another period of strong revenue and profit growth while continuing to invest in product development, consulting and sales & marketing resource. This policy of ongoing investment has fuelled double-digit revenue growth, 80% of which is recurring, over the last five years and supports the company’s premium rating.
Compared to companies with a similar SaaS business model, however, Esker trades at a discount on all multiples. As the company accelerates revenue growth towards its 20% target, we would expect the shares to re-rate. Esker has a strong balance sheet with €15m net cash at the end of H119, representing ample funds for growth via internal investment or selective M&A.
Author: Katherine Thompson