Ovh Groupe Sas · EURONEXT:OVH
Ovh Groupe Sas — Ovh Groupe — Q3 2023 Earnings Presentation
32 slides from Ovh Groupe Sas's earnings presentation, Jun 29, 2023
Slide 1: Q3 FY23 revenue
Q3 FY23 revenue June 29th, 2023
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT IMPORTANT NOTICE - YOU MUST READ THE FOLLOWING BEFORE CONTINUING The following applies to this document, the oral presentation of the information contained in this document made by OVHcloud (the “Company”) or any person on behalf of the Company and any question-and-answer s
Slide 3: Q3 FY23 growth in Public and Private cloud
Q3 FY23 >20% growth in Public cloud and mid-teens growth in Private Cloud Continuous acceleration in Europe €228m Revenue Strong traction from sovereign solutions +13.2% LFL revenue growth Successful product innovation +12.6% Reported revenue growth Strong financial discipline on Opex & Capex 3
Slide 4: Confirmed targets for FY23
13% 14% LFL revenue growth to Confirmed >36% Adj. EBITDA margin targets for FY23 16-20% Recurring Capex as a % of revenue1 28-32% Growth Capex as a % of revenue1 1. Based on FY22 average forex rates and excluding M&A. 4
Slide 5: Q3 FY23 strategic highlights
Q3 FY23 strategic highlights 5
Slide 6: Double digit growth in Public & Private cloud
Double digit growth in Public & Private cloud Public Cloud Private Cloud Web Cloud & Other Group €39m €142m €47m €228m Q3 FY23 Revenue Q3 FY23 Revenue Q3 FY23 Revenue Q3 FY23 Revenue +20.1% +14.5% +4.7% +13.2% Q3 FY23 LFL growth Q3 FY23 LFL growth Q3 FY23 LFL growth Q3 FY23 LFL growth Cloud business
Slide 7: Growth driven by existing and new customers
Growth driven by existing and new customers High customer loyalty Good new business momentum +20k New Public & Private Cloud 109% customers in FY23 Net Retention Rate in Q3 FY23 Double-digit YoY ARPAC growth YTD FY23 1. Like-for-like. As reported Q3 FY23 Net Revenue Retention Rate is 109%. 7
Slide 8: Launching new PaaS products to address customer demand
Launching new PaaS products to address customer demand Database as a Service x4 Storage x4 Containers x3 Set up, operate and scale databases without Store, access and maintain data without managing Create, deploy and run all components of an setting up physical hardware or installing software and co
Slide 9: Building a European generative AI, respectful of data privacy
Building a European generative AI, respective of data privacy Rolling out new GPU & CPU to run the most intensive workloads Working on offering the most Implementing new CPU (“Genoa”) advanced GPU designed for AI, such with best-in-class performance as V100 (available), A100, or H100 with high energ
Slide 10: OVHcloud, the European cloud for Quantum Computing
OVHcloud, the European cloud for Quantum Computing Customers are already using OVHcloud’s A European Quantum ecosystem is Quantum as a Service offering emerging, supported by OVHcloud Live - 15 qubits (emulation) Upcoming – 38 qubits (emulation) Live – Emulation R&D – Quantum Computing Live - New em
Slide 11: Targeted investments to expand OVHcloud's footprint
Targeted investments to expand OVHcloud’s footprint ➔ New datacenter in India opened in Q2 FY23 ➔ New Cold Storage datacenters opened in France in Q3 FY23 ➔ Secured new sites in North America ➔ Potential additional new locations based on business demand 11
Slide 12: Strengthening European leadership in a dynamic cloud market
Strengthening European leadership in a dynamic cloud market 12
Slide 13: Global cloud market growth dynamics remain strong
Global cloud market growth dynamics remain strong Global IaaS + PaaS global market size Digitalisation of the world generating data Demand for cost efficiency >20% CAGR and flexibility 2022 – 2026e Multi-cloud & hybrid cloud irresistible trends €190bn Artificial Intelligence 2022 accelerating demand
Slide 14: OVHcloud recognised as the European cloud leader
OVHcloud recognised as the European cloud leader > Sustainable Cloud OVHcloud named Major Player for > Data Sovereignty Public Cloud by IDC > Open & Reversible “OVHcloud’s roots as a European service > Predictable & Transparent pricing provider puts it in the catbird seat for conversations about sov
Slide 15: A clear go-to-market strategy with dedicated channels and programs
A clear go-to-market strategy with dedicated channels and programs Direct Indirect Digital 55% enterprise 45% digital Q3 FY23 revenue Q3 FY23 revenue Successful dedicated 1,350+ partners of which 400+ Advanced, with dedicated program with strong trainings and certifications revenue growth with partn
Slide 16: OVHcloud is the European leader in data sovereignty
OVHcloud is the European leader in data sovereignty Increasingly favorable Continued traction for legal framework sovereign solutions Political agreement on Data Act Confirmed dynamism for sovereign expected in the coming months solutions with successful sales through partners and direct sales force
Slide 17: Helping customers to benefit from sustainable solutions
Helping customers to benefit from OVHcloud sustainable solutions Improving public recognition by Implementing carbon calculator for customers joining new Code of Conduct Allow customers to assess their carbon footprint for scopes 1, 2 and 3 Search Add a service My account My carbon footprint OVHclou
Slide 18: A leading pioneer in sustainable cloud: 20 years of watercooling
A leading pioneer in sustainable cloud: Celebrating 20 years of watercooling innovation Cost-effective solution to cool servers’, Efficient way of cooling, with the high heat- fully integrated in the industrial model carrying capacity of water (3.3x higher than air) Sustainable approach with no Scal
Slide 19: Q3 FY23 Financials
Q3 FY23 Financials Wa OVHcloud
Slide 20: Strong growth fuelled by Public and Private cloud
Strong growth fuelled by Public and Private cloud Q3 FY23 Q3 FY23 reported growth +12.6% Q3 FY23 LFL growth +13.2% +7 +2 +18 226 228 (1) 219 202 201 201 201 +14.5% +20.1% +4.7% Private cloud Public cloud Webcloud & LFL growth LFL growth Others LFL growth Q3 FY22 Perimeter, Forex and Strasbourg Q3 FY
Slide 21: Continued mix evolution towards Public and Private cloud
A continued mix evolution towards fast growing segments, Public and Private cloud +13.2% +13.9% YoY LFL growth +11.7% €223m €228m Q3 share FY23 LFL revenue vs. FY22 LFL figures €216m €196m €201m 39 17% €193m 36 38 +1pt Public Cloud 30 31 33 ✓ Good customer acquisition in Q3 FY23, especially in Cloud
Slide 22: Continued traction in Europe
Continued traction in Europe France Reported +13.4% Double-digit growth in Public 50% LFL +12.9% Cloud and Private Cloud Q3 FY23 Europe (excl. France) Another strong growth Reported +16.2% 29% acceleration in Q3, driven by LFL +16.7% Germany and Eastern Europe Q3 FY23 Rest of the World Good start of
Slide 23: Successful price increases confirm OVHcloud pricing power
Successful price increases confirm OVHcloud pricing power Unchanged customer behaviour Price increase contribution to after price increase revenue growth +2-3% +2-3% ✓ Unchanged customer churn +1-2% ✓ Good customer acquisition ✓ High RRR H1 FY23 9M FY23 FY23e 23
Slide 24: Continued strong financial discipline on Opex & Capex
Continued strong financial discipline on Opex & Capex Operating Expenses control Capital Expenditures discipline ➔Limitation on new hirings ➔Improving productivity of Capex ➔Reduction of external resources ➔Tracking efficiency gains ➔Frugality at all levels of the ➔Reinforcing historical culture com
Slide 25: Outlook
Outlook Wa OVHcloud
Slide 26: Confirmed financial targets for FY2023
Confirmed financial targets for FY2023 Key levers for FY23 Revenue growth FY2023E Mid-Term (2025 Target) H2 drivers LFL revenue growth 13%-14% Accelerating to mid twenties Full effect of price increases (YoY growth) PaaS solutions Adjusted EBITDA margin >36% Close to 42% Sovereign products Adj. EBIT
Slide 27: Key takeaways
Key takeaways Sustained growth Executing growth Confirmed FY23 in Q3 FY23 strategy financial targets €228M Fast-growing cloud market LFL revenue growth Revenue between 13%-14% +12.6% Reported Strong demand for Adj. EBITDA sovereign and +13.2% LFL sustainable solutions margin >36 % 109% Enhanced PaaS
Slide 28: Wa OVHcloud
Wa OVHcloud
Slide 29: Appendices
Appendices 29
Slide 30: Glossary
Glossary Like-for-like is calculated at constant exchange rates, constant perimeter and excluding Strasbourg (SBG) 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 suc
Slide 31: Revenue by segment and geography
Revenue by segment and geography Q1 FY2022 Q2 FY2022 Q3 FY2022 9M FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 9M FY2023 In € million – by segment Reported Reported Reported Reported Reported Reported Reported Reported Private cloud 113.3 119.3 125.3 357.8 133.0 139.9 141.9 415.2 Public cloud 29.0 30.6 32.8
Slide 32: Reconciliation reported & like-for-like
Reconciliation reported & like-for-like Q3 FY22 FX Perimeter Strasbourg Q3 FY22 FX Perimeter Strasbourg In € million Q3 FY22 LFL In € million Q3 FY22 LFL Reported impacts impacts impacts Reported impacts impacts impacts Private cloud 125.2 -1.5 0.0 0.3 124.0 France 99.6 -0.0 0.1 0.4 100.1 Public clo