Esker (ALESK) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 sales revenue reached €51.0M, up 17% year-over-year at constant exchange rates.

• Nine-month 2024 sales totaled €150.2M, a 14% increase year-over-year.

• SaaS activities drove growth, accounting for 82% of total revenue.

Financial highlights

• SaaS subscription revenue rose 26% year-over-year in Q3, making up 59% of SaaS business.

• SaaS transaction revenue grew 3% in Q3; implementation services up 32%.

• Legacy products declined 56% in Q3.

• Bookings (ARR) for Q3 increased 5% to €5.3M; nine-month bookings up 34% to €18.3M.

Outlook and guidance

• Sales growth target for 2024 maintained at +12-14% (excluding acquisitions and currency effects).

• Operating margin expected between 12-13% of sales for full year 2024.

• Q4 faces a demanding base effect in France due to prior e-invoicing reforms.