Esker - Edison Group

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 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.

Latest Insights

View More

TMT |
Update

17.01.24

Esker — Another record quarter for new business

TMT |
Outlook

30.10.23

Esker — Strong new business supports growth outlook

TMT |
Update

18.09.23

Esker — Working to balance investment and profitability

TMT |
Update

20.07.23

Esker — Growth momentum maintained in Q223

Esker_resized

Sector

TMT

Equity Analyst

Katherine Thompson

Katherine Thompson

Director

Key Management

Emmanuel Olivier

COO
Jean-Michel Bérard

CEO

Balance Sheet

Forecast net cash (€m)

39.8

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	0.8	20.2	47.8
Relative	2.8	10.6	40.0
52 week high/low	€189.0/€111.7

Financials

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	77.3	36.9
2022A	159.0	31.8	23.4	304.35	60.1	48.2
2023E	178.6	29.7	19.7	245.61	74.5	33.7
2024E	201.6	37.1	25.9	317.66	57.6	32.1

Research

Update

TMT

18.07.22

Esker — Maintaining outlook for FY22

Update

TMT

21.04.22

Esker — Q1 revenue in line, outlook maintained

TMT

Update

Esker — Better profitability in FY22

Update

TMT

29.03.22

Esker — Favouring growth over short-term margin boost

Update

TMT

18.01.22

Esker — Positive outlook

Update

TMT

14.10.21

Esker — Q3 update confirms FY21 outlook

Outlook

TMT

20.09.21

Esker — Returning to pre-COVID-19 growth path

edison tv

TMT

16.08.21

Esker – AI report interview

Update

TMT

16.07.21

Esker — Order intake drives upgrades

Update

TMT

16.04.21

Esker — Q1 order intake supports more confident outlook

Update

TMT

29.03.21

Esker — Signalling a return to double-digit growth

Update

TMT

13.01.21

Esker — Strong order intake supports growth outlook

Update

TMT

14.10.20

Esker — Rebound in SaaS-based business

Outlook

TMT

15.09.20

Esker — Robust H1; continuing to invest for growth

Update

TMT

20.07.20

Esker — Proving resilient despite COVID-19 pressures

Update

TMT

16.04.20

Esker — Strong Q1 growth; FY20 outlook maintained

Update

TMT

31.03.20

Esker — Moderating growth expectations for FY20

Update

TMT

20.01.20

Esker — Strong guidance for FY20

Update

TMT

17.10.19

Esker — Accelerating SaaS growth

Outlook

TMT

19.09.19

Esker — Setting its sights higher

Update

TMT

18.07.19

Esker — Another record quarter

Flash note

TMT

17.04.19

Esker — Strong Q1 revenues and orders

Update

TMT

28.03.19

Esker — Accelerating growth in new contracts

Update

TMT

22.01.19

Esker — FY18 revenue growth of 14% confirmed

Outlook

TMT

28.09.18

Esker — Combining growth with profitability

research

TMT

27.07.18

Esker — Upgrading on strong Q2 performance

Update

TMT

10.04.18

Esker — Investing for sustained growth

Flash note

TMT

17.01.18

Esker — Double-digit growth to continue

Flash note

TMT

18.10.17

Esker — On track to meet FY17 organic growth target

Update

TMT

20.07.17

Esker — On track; outlook maintained

Update

TMT

21.04.17

Esker — Investing for sustainable growth

Flash note

TMT

19.01.17

Esker — Update 19 January 2017

Update

TMT

31.10.16

Esker — Update 31 October 2016

Update

TMT

21.10.16

Esker — Update 21 October 2016

Update

TMT

23.09.16

Esker — Update 23 September 2016

Flash note

TMT

20.07.16

Esker — Update 20 July 2016

Outlook

TMT

04.05.16

Esker — Update 4 May 2016

Update

TMT

27.01.16

Esker — Update 26 January 2016

Further insights

insight

05.08.21

ENTERPRISE ADOPTION OF AI – CUTTING THROUGH THE HYPE

Analyst of the week

Katherine Thompson

Katherine Thompson

Director

kthompson@edisongroup.com 020 3077 5730

Read latest

thematic

TMT

28.07.23

MediaWatch – Targeting the opportunities

thematic

TMT

25.04.23

MediaWatch – Vision On

Digital Marketing and Internet Media Technology Platform

thematic

TMT

31.01.23

MediaWatch – Screening well

thematic

Consumer

05.10.22

IPO apocalypse

thematic

TMT

10.08.22

ESG, moving beyond the box tick

thematic

TMT

11.05.22

Direct tech investors

thematic

Consumer

24.03.22

Circular economy business models

thematic

TMT

29.09.21

Quantum dots – all the colours of the rainbow

thematic

TMT

09.09.21

Micro-LEDs – small is beautiful

thematic

TMT

16.08.20

Semiconductor winners – European companies with strong positions

thematic

TMT

24.06.20

The small satellite market – Small is beautiful

thematic

TMT

08.04.20

European video games: A safe haven in troubled times

thematic

TMT

27.02.20

Blockchain adoption: Implications for the financial services sector

thematic

Consumer

14.08.19

Illuminator: August Update

thematic

TMT

05.08.19

European video games

thematic

TMT

10.07.19

Diversification and scale for online success

thematic

TMT

08.05.19

5G – Strategic importance, but lacking a near-term commercial driver

thematic

TMT

26.02.19

UK video games – Heterogeneous not homogeneous

thematic

TMT

24.02.17

Mobile ecosystems

thematic

TMT

08.02.17

Mobile ecosystems

thematic

TMT

13.10.15

Mobile ecosystems

thematic

TMT

23.03.15

NZ – Edison talks tech

thematic

TMT

23.03.15

AUS – Edison talks tech

thematic

TMT

18.03.15

Mobile ecosystems

thematic

Consumer

11.11.14

Deutsche Börse Eigenkapitalforum 2014 Research Guide

thematic

TMT

15.10.14

Mobile ecosystems

thematic

Energy & Resources

04.03.14

ASX Spotlight Conference – London, 6 March 2014

thematic

Energy & Resources

01.03.13

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

TMT

24.09.10

The third pillar

thematic

TMT

10.09.10

The real disruptor

thematic

TMT

27.08.10

Merger mania is back