Esker Inc reported Q222 revenue growth of 19% y-o-y (12% in constant currency), driven by 23% growth in SaaS revenues. Despite the worsening economic environment, management maintained its outlook for FY22. A diverse customer base, the high level of recurring revenue, inflation-linked contracts and a strong balance sheet should mitigate the impact of rising inflation and interest rates. The share price has declined 62% year to date and is down 30% since the company reported FY21 results in March. Based on P/E ratios for FY22 and FY23, the stock continues to trade at a premium to French software peers and at a discount to US SaaS peers. Esker provides end-to-end SaaS-based document automation solutions supporting order-to-cash and procure-to-pay processes.
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