OVH Groupe (OVH) Q3 2024 TU earnings summary

Executive summary

• Q3 FY2024 revenue reached €251 million, up 10.1% year-over-year, with nine-month revenue at €737 million, reflecting strong U.S. growth and resilience in Europe despite macroeconomic challenges.

• Double-digit like-for-like growth in Public Cloud (+11.9%) and Private Cloud (+10.7%) segments, with overall Q3 like-for-like revenue growth at 9%.

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

• Continued traction from AI and data sovereignty offerings, with new datacenter in Sydney and eight Local Zones supporting global expansion.

• Sovereign cloud offerings, especially SecNumCloud, gained traction in the public sector, with €13 million ARR at quarter-end.

Financial highlights

• Q3 FY2024 revenue: €251 million, up 10.1% year-over-year (9.0% like-for-like); nine-month revenue: €737 million, up 10.5% (10.1% like-for-like).

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

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

• Net revenue retention rate at 106% for Q3 FY24.

• ARR for Public Cloud PaaS offerings at €19 million; SecNumCloud sovereign offerings at €13 million ARR.

Outlook and guidance

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

• Adjusted EBITDA margin expected above 37%.

• 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.