Esker

Esker (PAR: ALESK)

Currency in EUR

Last close As at 29/09/2023

EUR125.70

▲ −1.70 (−1.33%)

Market capitalisation

EUR780m

Overview
Price performance
Financials
Research
Sector insights
Thematics

Esker provides end-to-end SaaS-based document automation solutions supporting order-to-cash and procure-to-pay processes. In FY21, the business generated 55% of revenues from Europe, 39% from the United States and the remainder from Asia and Australia.

Esker’s document process automation (DPA) software operates across five areas: document delivery, accounts payable, accounts receivable, procurement and sales order processing. Competitors are different for each business process and consist of business process outsourcers and specialist DPA software companies. Customers move to using DPA software to reduce paper-related costs and errors in processing, to speed up the cash conversion cycle, to improve process visibility within the enterprise and to improve customer service.

Latest Insights

TMT |
Update

18.09.23

Esker — Working to balance investment and profitability

TMT |
Update

20.07.23

Esker — Growth momentum maintained in Q223

TMT |
Update

19.04.23

Esker — Better outlook for FY23

TMT |
Update

28.03.23

Esker — Sticking with tried and tested growth strategy

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Sector

TMT

Equity Analyst

Katherine Thompson

Director

Key Management

Emmanuel Olivier

COO
Jean-Michel Bérard

CEO

Balance Sheet

Forecast net cash (€m)

38.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(15.9)	(11.0)	10.1
Relative	(13.3)	(8.7)	(9.7)
52 week high/low	€168.1/€110.8

Financials

In H123 Esker reported strong growth in revenue (+16% y-o-y in constant currency (cc)) and bookings (+18% y-o-y cc) but this was outweighed by increases in costs, resulting in an operating margin decline. The company is taking measures to counter this, both in its contract pricing and by slowing the pace of hiring. While FY23 revenue outlook is unchanged, management reduced the mid-point of operating margin guidance by 1% to 12%. We have conservatively reduced our operating profit forecasts, which for FY23 were at the upper end of the new guidance range.