Esker provides end-to-end SaaS-based document automation solutions supporting order-to-cash and procure-to-pay processes. In H123, the business generated 53% of revenues from Europe, 41% from North America 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.
TMT |
Update
TMT |
Update
TMT |
Update
TMT |
Outlook
Emmanuel Olivier
COO
Jean-Michel Bérard
CEO
Forecast net cash (€m)
52
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 11.2 | 11.8 | 39.7 |
Relative | 14.4 | 20.3 | 40.3 |
52 week high/low | €201.8/€111.7 |
Esker reported Q224 year-on-year constant currency (cc) revenue growth of 14% and bookings annual recurring revenue (ARR) cc growth of 65%. Bookings more than doubled in the Americas, helped by a large upsell to an existing customer, and had double-digit growth in every other region. On the back of the strong order intake year-to-date, management confirmed that its expectations for FY24 were unchanged. We have made small upgrades to our forecasts to reflect the strong Q2 performance.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 159.0 | 31.8 | 23.4 | 304.35 | 65.3 | 51.2 |
2023A | 178.6 | 29.6 | 19.8 | 247.76 | 80.2 | 32.2 |
2024E | 201.5 | 38.7 | 26.7 | 329.45 | 60.3 | 32.1 |
2025E | 228.8 | 45.5 | 32.2 | 391.44 | 50.8 | 27.8 |