OVHcloud recently released its annual results, showing a year of steady growth in line with its targets. Below is a summary of the main points that could be of interest to investors assessing the company’s recent performance and future potential.
For the fiscal year ending in 2024, OVHcloud reported a revenue of €993 million, up 10.7% from the previous year. This was fueled by robust growth across different service segments, notably with a significant rise in the Private Cloud segment, which alone brought in €623.6 million, representing an 11.8% increase. Meanwhile, the Public Cloud segment saw an even stronger gain of 14.2%, reaching €182.8 million, reflecting a successful client acquisition strategy.
One notable achievement was OVHcloud’s adjusted EBITDA, which reached €381.5 million, a 17.2% increase from the previous year. This improvement, coupled with enhanced operational efficiency, allowed the company to increase its adjusted EBITDA margin to 38.4%. By optimizing investments and reducing costs, the company also reported an unlevered free cash flow of €25 million.
Key strategic moves
In a notable step to strengthen shareholder value, OVHcloud announced a share buyback offer totaling €350 million, priced at €9 per share. This represents a premium over recent trading averages, offering shareholders an option to cash in on a strong year of growth. The buyback, if fully subscribed, could increase the Klaba family’s share in the company to as much as 81%, indicating long-term confidence from the founders.
OVHcloud’s growth was not limited to financial performance. The company also made strides in its product offerings, particularly within artificial intelligence (AI) and secure cloud solutions. It launched Bare Metal Pods, an ultra-secure platform designed to meet stringent security standards, which has already attracted institutional clients such as the French Ministry of Economy’s IT division. Moreover, OVHcloud broadened its AI capabilities by integrating cutting-edge NVIDIA GPUs and large language models into its public cloud infrastructure.
Future directions
As part of its transition to a new phase of growth, OVHcloud welcomed Benjamin Revcolevschi as its new CEO. Known for his leadership roles in the telecommunications and IT sectors, Revcolevschi takes over from Michel Paulin, who played a critical role in doubling OVHcloud’s revenue over the past six years. With this leadership change, the company signals its readiness for sustainable growth and profitability targets beyond 2025.
Looking forward, OVHcloud is setting ambitious goals for FY2025, aiming for a 9-11% increase in organic revenue and an adjusted EBITDA margin of around 40%. By 2026, it hopes to achieve positive levered free cash flow. The company plans to reinforce its position in the Private Cloud segment while expanding its Public Cloud offerings to further meet diverse customer needs in Europe and globally.
Expanding partnerships and market recognition
OVHcloud recently entered a partnership with Bouygues Telecom Enterprises to enable midsize businesses to access hybrid cloud solutions. It was also recognized as a “Major Player” in IDC’s latest European Public Cloud Infrastructure report, solidifying its standing among European cloud providers.
OVHcloud’s 2024 results underscore its resilience and potential for sustainable growth in the competitive cloud services market. With steady revenue increases, expanding product offerings, and strategic leadership changes, the company is positioning itself for a new chapter in its corporate journey. For investors, OVHcloud presents a case study of a European tech firm aiming for profitability while expanding its footprint in high-demand areas like AI and secure cloud solutions.
