Esker - Moderating growth expectations for FY20

Esker reported FY19 revenue growth of 20%; higher than expected investment in headcount limited the increase in normalised EBIT to 7% y o y. High recurring revenues (80%) and strong order intake in FY19 (+47%) provide good visibility for FY20 and beyond. During the COVID-19 crisis, the business is providing services remotely, and while Q1 transaction volumes have not been materially affected we expect this to change in Q2. Reflecting weaker SaaS volumes and delays in signing new business in Q2, we have reduced our FY20 revenue and EPS forecasts.