OVH Groupe (OVH) Q1 2025 TU earnings summary

Executive summary

• Q1 FY2025 revenue reached €264 million, up 10.1% like-for-like year-over-year, with strong international presence and robust performance across all segments and geographies.

• Growth was driven by strong U.S. private cloud demand, robust public cloud performance, new product ranges, sovereign offerings, and AI solutions.

• Net revenue retention rate stood at 109%, reflecting strong client stickiness and customer loyalty.

• International expansion continued, with 17 Local Zones operational and a new 3-AZ region in Milan announced for end-2025.

• Successful €350 million share buyback realigned the shareholder base, with Klaba family retaining over 81% ownership and free float at 17%.

Financial highlights

• Public Cloud revenue: €50.3 million (19% of group), up 15.8% like-for-like, driven by higher ARPAC and AI demand.

• Private Cloud revenue: €164.5 million (62% of group), up 10.2% like-for-like, with strong U.S. demand.

• Web Cloud & Other revenue: €48.8 million (19% of group), up 4.4% like-for-like, led by domain names and multi-year commitments.

• Rest of the World region posted 14.2% like-for-like growth, with France and Europe (excl. France) both at 8.9% like-for-like.

• International sales accounted for 52% of total revenue.

Outlook and guidance

• FY2025 revenue growth expected between 9%-11% like-for-like, with adjusted EBITDA margin targeted at approximately 40%.

• CapEx anticipated at 30%-34% of revenue (recurring: 11%-13%, growth: 19%-21%).

• Unlevered free cash flow expected above €25 million for FY2025, improving versus FY2024.

• Guidance reconfirmed despite cautious European environment and limited macroeconomic visibility.