Esker (ALESK) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached €99.2 million, up 13% year-over-year, driven by cloud and SaaS solutions.

• Net income rose to €9.3 million, a 25% increase, representing a net margin of 9.4%.

• Operating income before depreciation and amortization was €18.5 million, up from €15.3 million year-over-year.

• Operating income rose 30% to €12.7 million, with operating margin returning to 12.8%.

• Record new bookings up 51%, especially strong in the U.S. (+95%) and Asia-Pacific (+52%).

Financial highlights

• Gross margin remained strong, with cost of sales at 1% of revenue.

• SaaS revenue up 12%, now 82% of total sales; subscription sales up 30%, 51% of SaaS business.

• Implementation services grew 25%, now 17% of revenue; legacy products declined 57%, now 1% of sales.

• Cash and marketable securities increased to €52.2 million from €48.8 million at year-end 2023.

• Net cash provided by operating activities was €15.9 million, up from €14.1 million in H1 2023.

Outlook and guidance

• Revenue growth target for FY 2024 confirmed at 12-14%, excluding acquisitions and currency effects.

• Operating margin target set at 12-13% of revenue for FY 2024.

• A proposed public tender offer by Bridgepoint and General Atlantic at €262 per share aims to accelerate strategic development.

• The Supervisory Board unanimously welcomed the offer and established an independent committee to review terms.

• Strong bookings in H1 2024 expected to drive further sales growth and profitability improvements in H2.