Revenue growth guidance raised for
FY2022
- Strong Q3 revenue growth compared to last year, which had
been impacted by the Strasbourg incident
- Strong reported Public Cloud growth +50.3% and Private Cloud
growth +32.5%
- Sustained international growth, notably in the United States
and Asia, with reported revenue up +91.4% and +63.5%
respectively
- 2022 revenue growth guidance raised to 16-18%, adjusted
EBITDA margin1 target close to 40%
Regulatory News:
OVHcloud (Paris:OVH) today announces its
revenue for the period ended 31 May 2022. This press release
concerns the consolidated revenue of OVH Groupe.
OVHcloud CEO Michel Paulin said:
“With growth of 25.9% in Q3, OVHcloud continues to demonstrate
the effectiveness of its strategic plan. This good performance
reflects the Group’s ability to gain new customers, primarily in
Public Cloud and Private Cloud, as well as the success of its
international development. Thanks to our teams and an ever more
engaged ecosystem, and despite a deteriorating macro-economic
context, we look forward to the fourth quarter of our financial
year with confidence and are raising our annual revenue growth
target to a 16%-18% bracket.”
Q3 2022 revenue of €202 million, up 25.9%
OVHcloud posted consolidated revenue of €202 million for the
third quarter of FY22, up 25.9% compared to last year as reported
and up 11.7% like-for-like2, excluding the direct impacts of the
Strasbourg incident and at constant exchange rates and
consolidation scope. The good third quarter performance reflects a
positive commercial momentum, with growth driven by ARPAC progress
and an accelerating Enterprise segment.
OVHcloud’s ability to grow with its customers is reflected in a
net revenue retention rate of 120% over the period (vs 100% in
FY21). Excluding vouchers and credit notes issued following the
Strasbourg incident, the rate came to 107% (vs 103% in FY21).
Throughout this quarter, OVHcloud continued to gain new
customers such as the French Marine Nationale and KS2 with
SecNumCloud offers along with Cegid in France, TBS-Education in
Spain or Tatum in Eastern Europe. This excellent sales performance
was primarily driven by sales achieved through partners, whose
number nearly reached 900 at the end of the third quarter and who
posted double-digit revenue growth for the period.
The momentum of this third quarter is also reflected in the
shift of the business mix towards Public Cloud and Private Cloud,
and the growing share of international business in the Group’s
revenue, reaching 51% over the quarter.
With 80 IaaS and PaaS solutions at the end of Q3, OVHcloud has
reached its target one quarter early. OVHcloud continues to enrich
its solutions portfolio in close interaction with its customers in
order to best meet their needs. The sales momentum on these
products has begun to show results with a continuous increase in
revenue generated by these new PaaS solutions.
Revenue by segment
(in € million)
3rd quarter 2021
3rd quarter 2022
Change (%)
Change (%) like-for-like
Private Cloud
94.6
125.3
+32.5%
+14.6%
Public Cloud
21.8
32.8
+50.3%
+19.4%
Webcloud & Other
44.4
44.4
+0.0%
(0.2)%
Total revenue
160.8
202.4
+25.9%
+11.7%
Private Cloud, which includes Bare Metal and Hosted
Private Cloud, achieved revenue of €125 million, up +32.5% on a
reported basis and +14.6% on a like-for-like basis. After strong
growth in the first half year, the segment continued this momentum
in Asia and the United States, particularly in the Digital channel
and worldwide thanks to significant growth in ARPAC. Reported
revenue includes a positive forex impact of €2.4 million and a
negative impact of €0.3 million in respect of commercial gestures
relating to the Strasbourg incident.
Public Cloud saw strong growth over the quarter,
achieving revenue of €33 million, reflecting growth of +50.3% on a
reported basis and +19.4% on a like-for-like basis. The growth was
notably driven by the strong increase in the Enterprise segment and
in ARPAC, reflecting the success of the upsell and cross-sell
efforts. PaaS services, including Beta and recently marketed
solutions, continued to show encouraging signs of customer
adoption. Reported revenue includes a positive forex impact of €0.3
million and a negative impact of €0.2 million in respect of
commercial gestures relating to the Strasbourg incident.
The Web Cloud & Other segment is stable on a reported
basis and down by (0.2)% on a like-for-like basis compared to the
previous year. This performance reflects the ongoing working at the
telephony and connectivity sub-segment offerings to better adapt
them to their respective markets and offer a more competitive
positioning. The Enterprise segment, which includes partners and
resellers, continued its positive momentum of the start of the
year. On a reported basis revenue includes a stable forex impact
and an impact of €0.1 million in respect of commercial gestures
relating to the Strasbourg incident.
Revenue by geography
(in € million)
3rd quarter 2021
3rd quarter 2022
Change (%)
Change (%) like-for-like
France
82.1
99.6
+21.4%
+8.3%
Europe (excluding France)
46.1
57.3
+24.2%
+9.6%
Rest of the world
32.6
45.5
+39.6%
+23.1%
Total revenue
160.8
202.4
+25.9%
+11.7%
Revenue growth in France was mainly driven by the
Enterprise customer segment and the growth in Public Cloud. Revenue
growth also reflects the impact of the Strasbourg fire, to which
France was more exposed than the other regions.
In Europe (excluding France), revenue growth was the
result of the positive overall performance, notably driven by
Public Cloud. The Group continues to benefit from positive effects
of the recent implementation of dedicated regional sales teams,
with the ramp-up of the digital channels and the Enterprise segment
in this region.
In the Rest of the world, revenue continued to grow
strongly during Q3, at +39.6% on a reported basis and +23.1% on a
like-for-like basis. The performance remains excellent in the
United States (+72.2% on a like-for-like basis and +91.4% on a
reported basis) and in Asia (+47.3% on a like-for-like basis and
+63.5% on a reported basis) notably via the digital channel in the
United States (+62.6% on a like-for-like basis and +80.6% on a
reported basis).
Outlook
In line with the first half-year, this third quarter
demonstrates the Group’s ability to implement its strategic growth
acceleration plan.
FY22 outlook
On the basis of the growth recorded over the first nine months,
the commercial momentum over the first weeks of the fourth quarter
and despite a deteriorating macro-economic environment, OVHcloud is
raising its revenue growth target and now anticipates growth
between 16% and 18%, compared to the range of 15% to 17% reported
previously.
The Group is maintaining its other targets, namely:
- adjusted EBITDA margin3 close to 40%
- recurring Capex between 16% and 20% of revenue and growth Capex
between 30% and 34%4 of revenue
FY22 targets assume no material change in today’s macroeconomic
environment.
Medium-term outlook confirmed
The Group reiterates its medium-term financial guidance and aims
to achieve the following by 2025:
- organic revenue growth accelerating toward mid-twenties by FY25
driven by a shift in business mix, the deployment of the “Move to
PaaS” strategy, international expansion, the market shift to
hybrid- and multi-cloud and the focus on data sovereignty
- adjusted EBITDA margin in line with FY 2020, by partly
reinvesting economies of scale savings mainly achieved through
better absorption of fixed costs over the period
- similarly, growth capital expenditure as a percentage of
revenue is expected to remain between 30% to 34%, while recurring
capital expenditure as a percentage of revenue should decrease to
14% to 16% thanks to productivity improvements.
CALENDAR
October 26, 2022: FY2022 annual results
About OVHcloud
OVHcloud is a global player and Europe’s leading cloud provider
operating over 400,000 servers within 33 data centres across four
continents. For over 20 years, the Group has relied on an
integrated model that provides complete control of its value chain:
from the design of its servers to the construction and management
of its data centres, including the orchestration of its fibre-optic
network. This unique approach allows it to independently cover all
the uses of its 1.6 million customers in more than 140 countries.
OVHcloud now offers latest generation solutions combining
performance, price predictability and total sovereignty over their
data to support their growth in complete freedom.
Disclaimers
This press release contains forward-looking statements that
involve risks and uncertainties, including references, concerning
the Group’s expected growth and profitability in the future which
may significantly impact the expected performance indicated in the
forward-looking statements. These risks and uncertainties are
linked to factors out of the control of the Company and not
precisely estimated, such as market conditions or competitors’
behaviours. Any forward-looking statements made in this press
release are statements about OVHcloud’s beliefs and expectations
and should be evaluated as such.
Forward-looking statements include statements that may relate to
OVHcloud’s plans, objectives, strategies, goals, future events,
future revenues or performance, and other information that is not
historical information. Actual events or results may differ from
those described in this press release due to a number of risks and
uncertainties that are described within the 2021 Universal
Registration Document, filed with the French Financial Markets
Authority (Autorité des marchés financiers – AMF) on December 16,
2021 under the number R.21-067.
All amounts are presented in € million. This may in certain
circumstances lead to non-material differences between the sum of
the figures and the subtotals that appear in the tables. OVHcloud
does not undertake, and specifically disclaims, any obligation or
responsibility to update or amend any of the information above
except as otherwise required by law.
This press release is disseminated for information purposes only
and does not constitute an offer to purchase or sell, or a
solicitation of an offer to sell or to purchase, any
securities.
APPENDIX
Glossary
Like-for-like is calculated at constant exchange rates,
constant perimeter and excluding Strasbourg direct impacts.
Perimeter adjustments correspond to M&A.
The net revenue retention rate for any period is equal to
the percentage calculated by dividing (i) the revenue generated in
such period from customers that were present during the same period
of the previous year, by (ii) the revenue generated from all
customers in that previous year period. When the revenue retention
rate exceeds 100%, it means that revenues from the relevant
customers increased from the relevant period in the previous year
to the same period in the current year, in excess of the revenue
lost due to churn.
ARPAC (Average revenues per active customer) represents
the revenues recorded in a given period from a given customer
group, divided by the average number of customers from that group
in that period (the average number of customers is determined on
the same basis as in determining net customer acquisitions). ARPAC
increases as customers in a given group spend more on OVHcloud
services. It can also increase due to a change in mix, as an
increase (or decrease) in the proportion of high-spending customers
would increase (or decrease) ARPAC, irrespective of whether total
revenues from the relevant customer group increase.
Current EBITDA is equal to revenues less the sum
of personnel costs and other operating expenses (and excluding
depreciation and amortisation charges, as well as items that are
classified as “other non-current operating income and
expenses”).
Adjusted EBITDA is equal to current EBITDA
excluding share-based compensation and expenses resulting from the
payment of earn-outs from its adjusted EBITDA.
Recurring Capital Expenditures (Capex) reflects the
capital expenditures needed to maintain the revenues generated
during a given period for the following period.
Growth Capital Expenditures (Capex) represents all
capital expenditures other than recurring capital expenditures.
Revenue by segment and geography
In € million – by segment
Q1 FY2021 Reported
Q2 FY2021 Reported
Q3 FY2021 Reported
9M FY2021 Reported
Q1 FY2022 Reported
Q2 FY2022 Reported
Q3 FY2022 Reported
9M FY2022 Reported
Private cloud
98.8
102.0
94.6
295.4
113.3
119.3
125.3
357.8
Public cloud
23.2
24.7
21.8
69.7
29.0
30.6
32.8
92.4
Webcloud & Other
42.3
43.3
44.4
130.0
44.9
44.9
44.4
134.2
Total Revenue
164.3
170.0
160.8
495.1
187.2
194.8
202.4
584.5
Growth in % – by segment
Q1 FY2022 LFL
Q2 FY2022 LFL
Q3 FY2022 LFL
9M FY2022 LFL
Q1 FY2022 Reported
Q2 FY2022 Reported
Q3 FY2022 Reported
9M FY2022 Reported
Private cloud
+14.3%
+15.0%
+14.6%
+14.7%
+14.6%
+17.0%
+32.5%
+21.2%
Public cloud
+22.4%
+20.0%
+19.4%
+20.1%
+24.9%
+23.9%
+50.3%
+32.5%
Webcloud & Other
+6.6%
+3.9%
(0.2
)%
+3.4%
+6.1%
+3.6%
+0.0%
+3.3%
Total Revenue
+13.5%
+13.0%
+11.7%
+12.7%
+13.9%
+14.6%
+25.9%
+18.1%
In € million – by geography
Q1 FY2021 Reported
Q2 FY2021 Reported
Q3 FY2021 Reported
9M FY2021 Reported
Q1 FY2022 Reported
Q2 FY2022 Reported
Q3 FY2022 Reported
9M FY2022 Reported
France
86.8
89.3
82.1
258.0
93.2
96.6
99.6
289.5
Europe (excl. France)
47.8
50.2
46.1
144.2
53.5
55.9
57.3
166.7
Rest of the World
29.7
30.6
32.6
92.9
40.5
42.3
45.5
128.3
Total Revenue
164.3
170.0
160.8
495.1
187.2
194.8
202.4
584.5
Growth in % – by geography
Q1 FY2022 LFL
Q2 FY2022 LFL
Q3 FY2022 LFL
9M FY2022 LFL
Q1 FY2022 Reported
Q2 FY2022 Reported
Q3 FY2022 Reported
9M FY2022 Reported
France
+8.7%
+8.8%
+8.3%
+8.5%
+7.4%
+8.3%
+21.4%
+12.2%
Europe (excl. France)
+12.7%
+10.7%
+9.6%
+10.9%
+11.9%
+11.3%
+24.2%
+15.6%
Rest of the World
+28.2%
+27.7%
+23.1%
+26.1%
+36.2%
+38.5%
+39.6%
+38.2%
Total Revenue
+13.5%
+13.0%
+11.7%
+12.7%
+13.9%
+14.6%
+25.9%
+18.1%
Reconciliation of like-for-like and reported growth
In € million – by segment
Q3 FY21 Reported
FX impacts
Perimeter impacts
Strasbourg impacts
Q3 FY21 LFL
Private cloud
94.6
2.4
0.0
12.6
109.6
Public cloud
21.8
0.3
0.9
4.8
27.8
Webcloud & Other
44.4
-0.0
0.0
0.2
44.6
Total Revenue
160.8
2.7
0.9
17.6
181.9
In € million – by segment
Q3 FY22 Reported
Perimeter impacts
Strasbourg impacts
Q3 FY22 LFL
Private cloud
125.3
0.0
0.3
125.6
Public cloud
32.8
0.1
0.2
33.2
Webcloud & Other
44.4
0.0
0.1
44.5
Total Revenue
202.4
0.1
0.6
203.2
In € million – by geography
Q3 FY21 Reported
FX impacts
Perimeter impacts
Strasbourg impacts
Q3 FY21 LFL
France
82.1
0.0
0.3
10.1
92.4
Europe (excl. France)
46.1
0.2
0.0
6.1
52.5
Rest of the World
32.6
2.4
0.6
1.4
37.0
Total Revenue
160.8
2.7
0.9
17.6
181.9
In € million – by geography
Q3 FY22 Reported
Perimeter impacts
Strasbourg impacts
Q3 FY22 LFL
France
99.6
0.1
0.4
100.1
Europe (excl. France)
57.3
0.0
0.2
57.5
Rest of the World
45.5
0.0
0.0
45.6
Total Revenue
202.4
0.1
0.6
203.2
1 Adjusted EBITDA is equal to current EBITDA excluding
share-based compensation and expenses arising from earn-out
payments. 2 Like-for-like (LFL): at constant FX, constant scope of
consolidation and excluding direct impacts related to the
Strasbourg incident vs FY2021. 3 Adjusted EBITDA is equal to
current EBITDA excluding share-based compensation and expenses
arising from earn-out payments. 4 Excluding the acquisition of
additional IPv4 addresses.
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version on businesswire.com: https://www.businesswire.com/news/home/20220629006044/en/
Media relations Marie Vaillaud Communications and
PR Manager media@ovhcloud.com + 33 (0)6 49 32 74 02
Investor relations Benjamin Mennesson Head of
Financial Communication investor.relations@ovhcloud.com + 33 (0)6
99 72 73 17
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