Business
OVH Groupe : Financial Results (2024 01 11 ovhcloud q1 fy24 presentation vdef )
OVH Groupe : Financial Results (2024 01 11 ovhcloud q1 fy24 presentation vdef
About this update from Ovh Groupe Sas
Q1 FY24 Revenue January 11 th , 2024 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 Data Platform AI App Builder 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 OVHcloud is way above its peers in terms of level of eligibility and alignment to EU Green Taxonomy 2% Alignment 64% Alignment 15% Eligibility 88% +2pts vs FY22 Eligibility Benchmark 1 Revenue 3% Alignment 49% Alignment 15% Eligibility 88% (1)pt vs FY22 Eligibility Benchmark 1 Opex 2% Alignment 40% Alignment 22% Eligibility 99% +1pt vs FY22 Eligibility Benchmark 1 Capex 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 214 216 240 +19 +12.0% 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 LFL 1 +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 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 Digital 100% Digital 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 Enterprise Corporate & Indirect Tech 11 Outlook FY2024 targets FY2025 targets LFL revenue growth 11%-13% Improved versus FY24 Adjusted EBITDA margin >37% Improved versus FY24 Capex as a % of revenue Recurring ~16% Decreasing compared to FY24 Growth ~24% Unlevered FCF Positive in H2 Positive on full-year basis Confirmed targets for FY24 and FY25 Investor day in London on January 17 th , 2024 WHERE? Museum of London Docklands & Live webcast WHEN? January 17 th , 2024 10:00am BT (11:00am CET) REGISTER! Direct link to register 14 Key takeaways Sustainable growth in Q1 FY24 €240M Revenue +12.0% LFL +15.8% LFL In Public & Private Cloud 110% Net Revenue Retention Rate Q1 FY24 highlights Launch of new AI solutions to answer customer needs Leading the way in Sustainable Cloud Strong growth in Public & Private cloud Confirmed targets LFL Revenue growth between 11% - 13% Adj. EBITDA margin >37% Growth & Recurring Capex around 24% and 16% of Group's revenue Positive unlevered FCF in H2 FY24 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 repr esents cash flows from operating activities minus cash flows used in investing activities. Revenue by segment and geography By segment By geography In € million - by segment Q1 FY2023 Reported Q1 FY2024 Reported In € million - by geography Q1 FY2023 Reported Q1 FY2024 Reported Private cloud 133.0 149.6 France 106.8 116.7 Public cloud 35.7 43.5 Europe (excl. France) 58.7 69.9 Webcloud & Other 47.3 46.7 Rest of the World 50.5 53.2 Total Revenue 216.0 239.8 Total Revenue 216.0 239.8 Growth in % - by segment Q1 FY2024 LFL Q1 FY2024 Reported Growth in % - by geography Q1 FY2024 LFL Q1 FY2024 Reported Private cloud +14.9% +12.5% France +9.3% +9.3% Public cloud +18.9% +21.9% Europe (excl. France) +16.3% +18.9% Webcloud & Other (1.4)% (1.4)% Rest of the World +12.6% +5.4% Total Revenue +12.0% +11.0% Total Revenue +12.0% +11.0% Reconciliation reported & like-for-like In € million Q1 FY23 Reported FX impacts Perimeter impacts Strasbourg impacts Q1 FY23 LFL In € million Q1 FY23 Reported FX impacts Perimeter impacts Strasbourg impacts Q1 FY23 LFL Private cloud 133.0 -2.8 0.0 0.0 130.2 France 106.8 0.0 0.0 0.0 106.8 Public cloud 35.7 -0.4 1.3 0.0 36.6 Europe (excl. France) 58.7 0.0 1.3 0.0 60.1 Webcloud & Other 47.3 0.0 0.0 0.0 47.3 Rest of the World 50.5 -3.2 0.0 0.0 47.2 Total Revenue 216.0 -3.2 1.3 0.1 214.1 Total Revenue 216.0 -3.2 1.3 0.1 214.1 In € million Q1 FY24 Reported Perimeter impacts Strasbourg impacts Q1 FY24 LFL Private cloud 149.6 0.0 0.0 149.6 Public cloud 43.5 0.0 0.0 43.5 Webcloud & Other 46.7 0.0 0.0 46.7 Total Revenue 239.8 0.0 0.0 239.8 In € million Q1 FY24 Reported Perimeter impacts Strasbourg impacts Q1 FY24 LFL France 116.7 0.0 0.0 116.7 Europe (excl. France) 69.9 0.0 0.0 69.9 Rest of the World 53.2 0.0 0.0 53.2 Total Revenue 239.8 0.0 0.0 239.8 Attention : This is an excerpt of the original content. To continue reading it, access the original document here .