Financial Results (2024 01 11 ovhcloud q1 fy24 presentation vdef)

Strong Q1 FY24 in Public & Private Cloud

€240m

Total Group

+12.0%

Q1 LFL revenue growth

110%

+18.9%

Public cloud

Q1 LFL revenue growth

+14.9%

Private cloud

Q1 LFL revenue growth

Net Revenue Retention Rate

High growth in Public & Private Cloud

Good performance in Europe

Continued demand for Sovereign products Ramp-up of PaaS with still early-stage Products

Q1 FY24

key highlights

Continued strong growth in Public & Private cloud with increasing contributions from PaaS and Sovereign Products

Public & Private Cloud

SecNumCloud

PaaS

200

€193m

Q1 FY24 Revenue

+15.8%

Q1 FY24 LFL growth

€17m +75%

Q1 FY24

Nov. 2023 ARR

YoY growth

€9m x4

Q1 FY24

Nov. 2023 ARR

YoY growth

20,0%

180

160

16,0%

12,0%

Customer acquisition in all verticals

140

120

100

Q1

FY22

Q2

FY22

Q3

FY22

Q4

FY22

Q1

FY23

Q2

FY23

Q3

FY23

Q4

FY23

Q1

FY24

8,0%

4,0%

0,0%

Cybersecurity Public Sector

Public & Private Cloud in €m LFL Revenue growth

Software Defense

Development of new AI solutions to answer customer needs

A complete data management solution

• Unified and low-code solution accelerating journey from data collection to business decisions

  ML

  Manager

  Data Projects

API & Apps

Analytics

Manager

Lakehouse

Manager

Data

Lakehouse

Data Processing Engine

Data

Catalog

• The first cloud data platform to store, transform, analyse and visualise all customer-critical data flows

  Deploy production-ready generative AI application in minutes

  
  
  

  • Build customized AI generative apps and chatbots

  • Use market standard foundation models

  • Input your private dataset into a sovereign

    environment

  • Select your desired LLM with just a single click

<5 mins

Deploy Gen-AI app based trained on your private datasets in less than 5 minutes

High cross-sell opportunity to existing Database & Storage customers

Leading the way for a Sustainable Cloud 2%

Alignment

64%

Alignment

15%

Eligibility

88%

+2pts vs FY22

Eligibility

Benchmark1

3%

Alignment

49%

Alignment

15%

Eligibility

88%

(1)pt vs FY22

Eligibility

Benchmark1

2%

Alignment

40%

Alignment

22%

Eligibility

99%

+1pt vs FY22

Eligibility

Benchmark1

FY23 figures

EU Green Taxonomy is a green classification scheme to help evaluate companies' environmental performance.

Green Taxonomy focuses on 6 environmental objectives: Climate change mitigation, Climate change adaptation, Sustainable use and protection of water and marine resources, Transition to a circular economy, Pollution prevention and control, and Protection and restoration of biodiversity and ecosystems.

6

1. EY EU Taxonomy Barometer 2023, based on Fiscal Year 2022 figures for Technology, media and telecommunication companies. https://www.ey.com/en_gl/assurance/eu-taxonomy-report

Growth fuelled by Private & Public Cloud

Q1 FY24 reported growth

Q1 FY24 LFL growth

+7 (1)

+18.9% (1.4)%

Webcloud &

+11.0%

(2)

+14.9%

Private cloud LFL growth

Public cloud LFL growth

Others LFL growth

Q1 FY23

214

Perimeter, Forex and Strasbourg impacts

Q1 FY23 Q1 FY24

Reported data LFL data

Growth driven by Public & Private cloud

Public cloud

+18.9% 18%

Q1 FY24 LFL growth % of Group revenue

• Strong growth in Europe and in France, even if slightly below previous quarter, as customers continue to be cautious on their spendings

• Good customer acquisition in volume in Rest of World

• PaaS reached €17m of ARR in November 2023 (end of Q1 FY24)

  
  
  

  Private cloud

• Market share gain, outperforming the Private Cloud market

  +14.9%

  Q1 FY24 LFL growth

  63%

  % of Group revenue

• Acceleration of Hosted Private Cloud in all geographies, driven by Sovereign

  products in France

• Good quarter of Bare metal Cloud with an acceleration in Rest of World

  
  
  

  Webcloud & Others

  • Good traction in Web Hosting thanks to recently revamped offerings

    (1.4)%

    Q1 FY24 LFL growth

    19%

    % of Group revenue

• High comparison basis with good Black Friday campaign in Q1 FY23

• Webcloud & Others LFL growth of +2.5% in Q1, excluding Telephony & Connectivity

  Strong growth in all geographies, especially in Rest of Europe
  
  

  France

  Reported LFL1

  +9.3%

  +9.3%

  Q1 FY24

  49%

  • Double digit growth in Public and Private Cloud

  • Negative impact from Web Cloud

    Europe (excl. France)

    Reported +18.9%

    29%

  • Continued high growth in all segments

  • Strong performance in Central Europe

    LFL

    +16.3%

    Q1 FY24

    • Significant contract win in Healthcare in Germany in end-Q1

      Rest of the World

      Reported +5.4%

      22%

  • Good quarter in Private cloud

  • Double-digit growth in Public cloud

    LFL

    +12.6%

    Q1 FY24

    • Opening of a new datacenter in Singapore

      
      
      

      1. Like-for-like: at constant FX and perimeter and excluding Strasbourg incident's direct impacts.

% of Q1 FY24 Group revenue

x%

9

Continued traction in Enterprise channel

45%

of Q1 FY24 revenue

✔ High level of growth in Public Cloud in France, while Bare Metal cloud has been slowing in Q1

✔ Continued high growth in Rest of World in both Public and Private Cloud

55%

of Q1 FY24 revenue

✔ Continued traction from sales via partners

✔ Acceleration in Private Cloud, compared to FY23, driven by France

✔ Strong growth in Public Cloud in Rest of Europe

11

Outlook

FY2024 targets FY2025 targets

Confirmed targets for FY24 and FY25

Investor day in London on January 17th, 2024

WHERE?

Museum of London Docklands

& Live webcast

WHEN?

January 17th, 2024 10:00am BT (11:00am CET)

REGISTER!

Direct link to register

14

Key takeaways

Launch of new AI solutions to answer customer needs

Leading the way in Sustainable Cloud

Strong growth in Public & Private cloud

15

Appendices

16

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 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.

Recurring 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-recurring operating income and expenses").

Adjusted EBITDA is equal to recurring 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.

Return on Growth Capital Expenditures (Capex) is calculated by dividing the difference between operating free cash flow less recurring capital expenditures for the current year and the previous year, by growth capital expenditures of the previous year.

Unlevered free cash-flow represents cash flows from operating activities minus cash flows used in investing activities.

Revenue by segment and geography

By segment By geography

Reconciliation reported & like-for-like