Esker (ALESK) H2 2023 earnings summary

Executive summary

• FY 2023 revenue grew 12% to €178.6m (14% at constant exchange rates), while operating income fell 16% to €17.9m amid accelerated bookings, inflation and other cost pressures.

• New-contract ARR rose 23% at constant exchange rates; record Q4 bookings and strong cash generation supported confidence in FY 2024 guidance.

Financial highlights

• Revenue was €178.6m, up 12%; gross margin was €129.3m, up 13%; operating income was €17.9m, down 16%.

• Net income fell 17% to €14.9m; current income before taxes declined 15% to €18.5m.

• Operating cash flow rose 35% to €31.5m; free cash flow increased 57% to €15.5m.

Outlook and guidance

• FY 2024 revenue growth guidance is 12–14%, excluding acquisitions and currency effects; operating profitability is expected at 12–13% of sales.

• Signed contracts are expected to support growth over coming years, while cost-control measures and a more cautious hiring policy are expected to support margin recovery in 2024.