OVHcloud, has kicked off 2025 with a strong financial performance, affirming its annual growth targets. The company’s Q1 FY2025 results highlight solid organic revenue growth, a strong international presence, and significant momentum in both the Private and Public Cloud sectors. Let’s unpack the key takeaways.

Impressive financial growth

OVHcloud reported revenue of €264 million in the first quarter, marking a 10.1% organic growth compared to the same period last year. This growth stems from strong customer loyalty, reflected in a robust net revenue retention rate of 109%.

Revenue growth by segment:

  • Private Cloud: €164.5 million (+10.2% like-for-like)
  • Public Cloud: €50.3 million (+15.8% like-for-like)
  • Web Cloud & Other: €48.8 million (+4.4% like-for-like)

The company’s Private Cloud segment benefitted from sustained demand in the U.S. and Europe, despite some workload optimization challenges in the latter. Public Cloud’s growth was driven by increased customer commitments and expanding artificial intelligence (AI) offerings.

Geographic expansion and international presence

International sales accounted for 52% of total revenue in Q1, emphasizing OVHcloud’s growing global footprint. Key regional highlights:

  • France: Revenue reached €127.1 million (+8.9%), with notable growth in both Private and Public Cloud activities.
  • Europe (excluding France): Revenue of €76.7 million (+8.9%), with Central Europe standing out due to contracts in sectors like healthcare.
  • Rest of the World: The most dynamic region, with a 14.2% growth rate. Strong momentum was seen in the U.S., Asia-Pacific, and the Middle East.

Innovations and future plans

OVHcloud continues to invest in new technologies and expand its product portfolio:

  • AI Solutions: The company extended its range of AI products, catering to increasing customer demands for inference capabilities. Collaborations, such as with Sopra Steria, highlight its role in enabling advanced digital solutions.
  • Local Zones: By the end of 2024, Local Zones were available in 17 cities worldwide, enhancing proximity and reducing latency for customers.
  • New 3-AZ Region in Milan: Scheduled for late 2025, this new European region will bolster high-resilience and low-latency solutions for businesses.
  • Managed Rancher Service: Introduced as part of the Public Cloud portfolio, this service facilitates container management in multi-cloud environments.

2025 financial guidance

OVHcloud remains confident in achieving its FY2025 targets:

  • Organic revenue growth between 9% and 11%
  • Adjusted EBITDA margin of approximately 40%
  • Capex between 30% and 34% of revenue
  • Unlevered free cash flow exceeding €25 million

These projections underscore a predictable and cash-generating growth model.

OVHcloud’s performance in Q1 FY2025 reflects its ability to navigate a competitive market while fostering innovation and expanding its global reach. The company’s strategic investments in AI, Local Zones, and resilient cloud regions demonstrate a clear commitment to meeting evolving customer needs. With strong initial results and reaffirmed guidance, OVHcloud is well-positioned for sustained growth throughout 2025.