OVH Groupe (OVH) Q3 2024 TU earnings summary

Executive summary

• Q3 FY2024 revenue reached €251 million, up 10.1% year-over-year (9.0% like-for-like), with strong growth in Public and Private Cloud segments and robust U.S. performance despite macroeconomic challenges in Europe.

• Nine-month FY2024 revenue totaled €737 million, up 10.5% (10.1% like-for-like), driven by international expansion and AI/data sovereignty offerings.

• Net revenue retention rate stood at 106% like-for-like, reflecting successful customer acquisition and low churn.

• Continued investment in AI, including new NVIDIA GPUs and open-source LLMs, and international expansion with a new datacenter in Sydney and eight Local Zones.

• High confidence in meeting FY2024 guidance and midterm targets.

Financial highlights

• Q3 FY2024 revenue: €251 million, up 10.1% year-over-year (9.0% like-for-like).

• Nine-month FY2024 revenue: €737 million, up 10.5% (10.1% like-for-like).

• Adjusted EBITDA margin for FY2024 expected to exceed 37%.

• Net revenue retention rate at 106% like-for-like and 107% reported.

• Public Cloud Q3 revenue: €46.0 million (+16.6% reported, +11.9% like-for-like); Private Cloud Q3 revenue: €157.6 million (+11.0% reported, +10.7% like-for-like); Web Cloud & Other Q3 revenue: €47.3 million (+1.5% reported, +1.2% like-for-like).

Outlook and guidance

• FY2024 organic revenue growth guidance confirmed at 9–10%.

• Adjusted EBITDA margin expected above 37%, factoring in potential Broadcom license cost impacts.

• Recurring capex targeted at 12–14% of revenue; growth capex at 21–23%.

• Positive unlevered free cash flow expected for the full year.

• Medium-term targets for FY2025 and FY2026, including positive free cash flow, reaffirmed.