OVH Groupe (OVH) H2 2024 earnings summary

Executive summary

• FY2024 revenue reached €993 million, up 10.7% year-over-year, with organic growth of 10.3% and strong net revenue retention of 107% like-for-like.

• Adjusted EBITDA margin improved to 38.4%, with adjusted EBITDA of €381.5 million, a 17.2% increase year-over-year, and unlevered free cash flow of €25 million.

• Net operating income was €25.7 million, a turnaround from a €12 million loss in FY2023; net loss narrowed to €10.3 million from €40.3 million.

• Benjamin Revcolevschi appointed CEO, marking a new phase focused on predictable, cash-generative growth and margin improvement.

• Announced a €350 million share buyback offer at €9 per share, a 14.6% premium, with Klaba family ownership to rise up to 81%.

Financial highlights

• Private Cloud revenue grew 11.3% to €624 million; Public Cloud up 18.3% to €183 million; Web Cloud & Other up 2.3% to €187 million.

• France revenue €483 million (+9.4%), Europe (excl. France) €289 million (+14.2%), Rest of World €222 million (+11.4%).

• Adjusted EBITDA margin rose to 38.4% from 36.3% in FY2023, driven by improved gross margin and lower indirect costs.

• Unlevered free cash flow improved to €25 million, up from -€28 million in FY2023, driven by reduced capital intensity.

• Capex totaled €343 million (35% of revenue), with recurring capex at 13% and growth capex at 22% of revenue.

Outlook and guidance

• FY2025 targets: organic revenue growth of 9–11%, adjusted EBITDA margin around 40%, recurring capex 11–13%, growth capex 19–21% of revenue.

• Unlevered free cash flow expected to grow in FY2025; positive levered free cash flow targeted for FY2026.

• Management aims for sustainable ~10% growth and structurally above 40% EBITDA margin long-term.