OVHcloud, one of the leading European cloud companies, has published its financial results for the third quarter of fiscal year 2024. The company reported significant revenue growth, continued international expansion, and the introduction of innovative technological solutions. Below is a detailed summary of these results, including year-over-year (Y-Y) comparisons and key achievements.
Financial results for the third quarter of 2024
Revenue
- Total Revenue: €251 million, an increase of 10.1% compared to the third quarter of 2023.
- Revenue for the first nine months of 2024: €737 million, an increase of 10.5%.
OVHcloud has seen revenue growth across all segments and regions, indicating the company’s strong market position and effective expansion strategy.
Revenue breakdown by product segments
| Segment | Q3 2023 (€ million) | Q3 2024 (€ million) | Change (%) | Change LFL (%) |
|---|---|---|---|---|
| Private Cloud | 141.9 | 157.6 | +11.0% | +10.7% |
| Public Cloud | 39.4 | 46.0 | +16.6% | +11.9% |
| Webcloud & Other | 46.6 | 47.3 | +1.5% | +1.2% |
| Total | 227.9 | 250.8 | +10.1% | +9.0% |
Results by product segments
- Private Cloud: The Private Cloud segment, including Bare Metal Cloud and Hosted Private Cloud, generated €157.6 million in revenue, representing an 11.0% increase. This growth was primarily driven by an increase in ARPAC, thanks to the introduction of new generations of servers.
- Public Cloud: The Public Cloud segment achieved €46.0 million in revenue, a 16.6% increase. The customer acquisition strategy resulted in a rise in new customers and low churn rates.
- Webcloud & Other: The Webcloud & Other segment generated €47.3 million in revenue, a 1.5% increase. This growth was mainly driven by positive trends in domain names and the success of new hosting offers.
Revenue breakdown by geographic regions
| Region | Q3 2023 (€ million) | Q3 2024 (€ million) | Change (%) | Change LFL (%) |
|---|---|---|---|---|
| France | 112.7 | 121.6 | +7.9% | +7.9% |
| Europe (excl. France) | 65.1 | 73.2 | +12.4% | +8.6% |
| Rest of the World | 50.1 | 56.0 | +11.9% | +11.9% |
| Total | 227.9 | 250.8 | +10.1% | +9.0% |
Results by geographic regions
- France: Revenue in France reached €121.6 million, an increase of 7.9%. The Private Cloud and Public Cloud segments saw double-digit growth, despite the Webcloud segment being weighed down by historical sub-segments Telephony and Connectivity.
- Europe (excluding France): Revenue in other European countries was €73.2 million, an increase of 12.4%. Germany and Eastern Europe were key growth drivers in this region.
- Rest of the World: Revenue in the rest of the world was €56.0 million, an increase of 11.9%. The United States confirmed its recovery, particularly in the Private Cloud segment.
Future plans
OVHcloud is optimistic about the future, confirming its annual targets for fiscal year 2024 and focusing on long-term growth and profitability strategies. Below is a detailed plan for the coming year:
Organic revenue growth of 9-10%
OVHcloud aims to achieve organic revenue growth in the range of 9-10%. This growth will be driven by several key factors:
- Expanding Customer Base: An aggressive customer acquisition strategy, particularly in the Public Cloud segment, will help OVHcloud increase its customer numbers.
- Introduction of New Products and Services: The company plans to launch new products and services, including advanced cloud and AI solutions, to attract new customers and increase revenue from existing ones.
- Geographic Expansion: Continued expansion into international markets, including opening new data centers in strategic locations such as Sydney, will help the company meet growing global demand for cloud services.
EBITDA margin above 37%
The company aims to maintain an EBITDA margin above 37%, achieved through effective cost management and operational optimization. Key actions include:
- Operational Cost Optimization: Improving operational efficiency through process automation and the implementation of new technologies to reduce operating costs.
- Strategic Partnerships: Collaborating with industry leaders such as Broadcom and NVIDIA to offer high-quality solutions while maintaining competitive pricing.
- Scaling Infrastructure: Investing in modern infrastructure to scale services and lower unit costs.
Generating unlevered free cash flow throughout the year
OVHcloud plans to maintain a steady cash flow throughout the year, crucial for further investments and company growth. This goal will be achieved through:
- Efficient Working Capital Management: Improving the cash conversion cycle through effective management of receivables, payables, and inventory.
- Capital Expenditure Control: Maintaining financial discipline in capital investments, focusing on projects with the highest value-added.
- Sustainable Development: Investing in sustainable and energy-efficient technologies to lower operating costs and contribute to better long-term cost control.
Strategic development investments
OVHcloud intends to continue investing in key areas driving future growth. These include:
- Infrastructure Development: Investments in new data centers and upgrading existing infrastructure to meet growing customer demands.
- Technological Innovations: Implementing the latest technologies in cloud, artificial intelligence, and data security to offer customers the most advanced and efficient solutions.
- Talent Development: Investing in employee development and recruiting top industry talent to ensure high service quality and innovation.
Conclusion
Analyzing OVHcloud’s financial results for the third quarter of 2024, it is evident that the company is on a growth trajectory. Revenues are increasing across all segments and regions, demonstrating the effectiveness of its expansion strategy and the innovativeness of its offerings. Therefore, it can be anticipated that OVHcloud will continue this growth trend in the coming quarters. The company has not only achieved impressive results but also has clearly defined goals for the future, which include further development and profit growth.
