Esker U.S. reported FY23 revenue growth of 12%, or 14% in constant currency (cc), at the lower end of its guidance range. New contract wins in Q423 were 38% higher cc than in the prior quarter and 58% higher cc y-o-y, 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 Edison Group expected, they have reduced their FY24 forecasts, resulting in a normalised EPS cut of 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.
17 January 2024
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