Nagarro (NA9) Q2 2024 earnings summary

Executive summary

• Q2 and H1 2024 showed solid performance and steady demand despite a challenging macro environment, with high client satisfaction and a growing client base generating over €1 million in revenue.

• The company continues to expand its client footprint, maintains workforce stability with attrition near historical averages, and is positioned for future data- and AI-led industry transformations.

• Recognized as a leader in Life Sciences and Healthcare digital services by Everest Group, ranking second among 26 companies for vision and capability.

• Strong operating cash flows and a healthy cash balance were maintained.

• Net profit increased to €28.6 million in H1 2024, up from €26.6 million in H1 2023.

Financial highlights

• Q2 2024 revenue was €244.1 million, up 2.1% quarter-over-quarter and 7.6% year-over-year in constant currency.

• H1 2024 revenue reached €482.4 million, with 5.7% year-over-year growth and 6.3% in constant currency.

• Adjusted EBITDA for Q2 was €35.5 million, with a margin of 14.5%; H1 Adjusted EBITDA was €74.7 million, up 23.7%.

• Gross margin for Q2 was 30.0% (new method); H1 gross margin was 30.5%.

• Cash balance at quarter-end was €121.4 million.

Outlook and guidance

• 2024 revenue guidance remains at approximately €1 billion (constant currency), with a targeted adjusted EBITDA margin of 14%.

• No update to guidance; management expects seasonally weaker Q4 but gradual quarter-to-quarter base growth.

• CSAT score expected to remain near 92% for 2024.