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.
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Emmanuel Olivier
COO
Jean-Michel Bérard
CEO
Forecast net cash (€m)
39.8
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 13.1 | 14.4 | 37.9 |
Relative | 9.6 | 6.3 | 19.5 |
52 week high/low | €186.1/€111.7 |
Esker reported FY23 revenue growth of 12% (14% in constant currency (cc)), at the lower end of its guidance range. New contract wins in Q423 were 38% higher cc than in Q323 and 58% higher cc year-on-year, reflecting strong demand in France and the rest of Europe. FY23 operating profitability will take a hit as sales commission for better-than-expected new business is recognised in Q423. As FY24 guidance is more conservative than we expected, we have reduced FY24e normalised EPS by 7.6%. While current economic conditions are weighing on the volume of transactions processed by Esker’s platform, the strength of new contract wins provides good support for medium-term growth.
Y/E Dec | Revenue (€m) | EBITDA (€m) | PBT (€m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 133.6 | 25.7 | 18.0 | 236.68 | 77.7 | 37.1 |
2022A | 159.0 | 31.8 | 23.4 | 304.35 | 60.5 | 48.5 |
2023E | 178.6 | 29.7 | 19.7 | 245.61 | 74.9 | 33.9 |
2024E | 201.6 | 37.1 | 25.9 | 317.66 | 57.9 | 32.3 |