OVH GROUPE

Latest Results (07.08.2024):

Revenue Growth

OVH GROUPE reported a revenue of €251 million for Q3 FY2024, marking a 10.1% increase compared to the same quarter in the previous year. On a like-for-like basis, the revenue growth was 9.0%. This growth was driven by strong performance in both the Public Cloud and Private Cloud segments, which saw like-for-like growth rates of 11.9% and 10.7%, respectively.

Segment Performance

The Private Cloud segment, which includes Bare Metal Cloud and Hosted Private Cloud, posted a revenue of €157.6 million in Q3 FY2024, up 11.0% as reported and 10.7% like-for-like. The Public Cloud segment also showed robust growth, with revenue increasing by 16.6% as reported and 11.9% like-for-like, reaching €46.0 million. The Web Cloud & Other segment saw a modest increase of 1.5% as reported and 1.2% like-for-like, totaling €47.3 million.

Geographical Revenue

Revenue in France reached €121.6 million in Q3 FY2024, accounting for 49% of OVH GROUPE's total revenue. Other European countries contributed €73.2 million, representing 29% of the total revenue, with Germany and Eastern Europe being key growth drivers. The Rest of the World segment, which includes the United States, posted a revenue of €56.0 million, showing an 11.9% increase compared to the same quarter last year.

Annual and Medium-Term Outlook

OVH GROUPE has confirmed its annual targets for FY2024, expecting organic revenue growth between 9% and 10% and an adjusted EBITDA margin of over 37%. The company also anticipates recurring capex to be between 12% and 14% of revenue, and growth capex between 21% and 23% of revenue. The medium-term outlook remains positive, with expectations of achieving positive Free Cash-Flow by FY2026.

International Expansion

OVH GROUPE continues its international expansion with the opening of a new datacenter in Sydney, aimed at meeting the growing demand in the Asia-Pacific region. This new facility is part of a broader strategy to deploy Local Zones in various locations, including Brussels, Madrid, and Milan, to support growth in new geographies with reduced capital intensity. The company also reported strong growth in the United States, driven by its cloud migration strategy for tech companies.