OVHcloud confirms its 2025 financial guidance, driven by a good start to the year, with organic growth of 
+10.1% in the first quarter

Revenue of €264 million in Q1 FY2025, including 52% from international sales, representing organic growth of 10.1%

• Acceleration of organic growth in the Public Cloud segment to 15.8%, driven by an increase in average revenue per active customer (ARPAC)
• Organic growth of 10.2% in the Private Cloud segment, driven by sustained demand in the United States
• Reaffirmed customer loyalty, with a 109% net revenue retention rate

A stronger international presence and continued roll out of our AI offerings

• Continued development of the Local Zones offering, available in 17 major cities around the world by the end of November 2024
• Announcement of the opening of a new European 3-AZ region in Milan by the end of 2025, to meet customer demand for high resilience and low latency
• Extension of the range of AI solutions and products to meet growing customer needs in terms of inference

FY2025 annual guidance confirmed

• Organic revenue growth of between 9% and 11% compared to FY2024
• Adjusted EBITDA margin of approximately 40%
• Capex of between 30% and 34% of revenue, with recurring and growth capex representing between 11%-13%, and 19%-21% of revenue, respectively
• Unlevered free cash-flow in excess of €25 million, up on FY2024

Result of the share buyback offer

• 47.6 million shares were tendered to the offer, out of a total of 38.9 million shares offered for repurchase
• The composition of the shareholder base will be updated on the OVHcloud website once the declarations of threshold crossing have been published

Benjamin Revcolevschi, CEO of OVHcloud, stated:
“We are pleased with our good start to the year with a first quarter testifying to the loyalty and trust our customers place in us. Our double-digit growth in the Private Cloud and Public Cloud segments is being driven by our new product ranges, our sovereign offerings and our artificial intelligence solutions. We are also continuing to strengthen our international presence with the deployment of Local Zones in new cities and the opening of a 3-AZ region in Milan by the end of 2025 to meet the demands of customers seeking high resilience and low latency.
The strength of this first quarter has enabled us to confirm our financial guidance for 2025. As announced in October, we remain fully committed to rolling out OVHcloud’s new development phase, which is part of a predictable, cash-generating growth model.”  

Q1 FY2025 revenue of €264 million, up 10.1% like for like and up 9.9% as reported[1]

OVHcloud's consolidated revenue for Q1 FY2025 reached €263.5 million, up 10.1% like for like compared to Q1 FY2024 and up 9.9% as reported. This momentum is the result of excellent customer loyalty, reflected in a high net revenue retention rate of 109% both on a like-for-like basis and as reported.
 

Revenue by product segment

 
Private Cloud, which includes Bare Metal Cloud and Hosted Private Cloud, achieved revenue of €164.5 million in Q1 FY2025, up 9.9% as reported and up 10.2% like for like.
 
The Bare Metal Cloud business is driven primarily by continued high demand from technology companies in the United States. In Europe, some customers continued to optimise their workloads, leading to a slowdown in ARPAC growth. However, the customer acquisition trend remained strong, thanks to the ramp-up of a new range of servers launched in Q1 FY2025 and the success of the digital Black Friday campaign.
 
The Hosted Private Cloud business continued to post solid growth and to benefit from price effects related to the new pricing scheme for VMware licences introduced by Broadcom in May 2024, as well as from the good momentum of highly secure and sovereign offerings in Europe, particularly SecNumCloud in France.
 
Public Cloud posted revenue of €50.3 million for Q1 FY2025, up 15.7% as reported and up 15.8% like for like. This double-digit growth is underpinned by an improvement in ARPAC growth compared with previous quarters, linked to the continued roll-out of the new product offering, the success of the Savings Plan offerings encouraging customers to commit for longer periods, and the momentum of the artificial intelligence offering.
 
Thanks to its extensive range of Artificial Intelligence offerings, OVHcloud is able to respond to an ever-increasing number of customer use cases in the inference market. For example, OVHcloud has supported the Digital Services Company (ESN) Sopra Steria, strategic partner, in the deployment of its Engineering Platform by providing GPUs and PaaS solutions, including AI Deploy.
 
Finally, we are continuing to develop our Local Zones offering, available in 17 major cities around the world at the end of November 2024.
 
The Web Cloud & Other segment posted revenue of €48.8 million in Q1 FY2025, up by 4.5% as reported and 4.4% like for like. This growth is driven by very strong momentum in domain names, underpinned by the introduction of multi-year commitments in new geographies. Excluding the Connectivity and Telephony sub-segments, the Group's historic activities, the Web Cloud segment achieved growth of 7.4% on a like-for-like basis.
 
Revenue by region

Revenue in France amounted to €127.1 million in Q1 FY2025, i.e., 48% of the Group total. Private Cloud and Public Cloud activities in France grew by 9.9% and 15.6% respectively on a like-for-like basis. Representing 30% of the region's business, Web Cloud & Other activities were up slightly on Q1 FY2024.
 
In other European countries, which account for 29% of the Group total, Central Europe is the most dynamic area, with the ramp-up of a contract signed with a healthcare company during FY2024.
 
In the Rest of the World, which accounts for 23% of the Group's total revenue, like-for-like growth was sustained at 14.2% compared with Q1 FY2024. This region benefits from very strong momentum in the Public Cloud and Private Cloud businesses, particularly in the United States, but also in Asia Pacific and the Middle East.
 
Outlook – Confirmation of all guidance
OVHcloud confirms the following financial guidance for FY2025:

• Organic revenue growth of between 9% and 11% compared to FY2024
• FY2025 adjusted EBITDA margin of approximately 40%
• Capex of between 30% and 34% of revenue, with recurring and growth capex representing between 11%-13% and 19%-21% of revenue, respectively
• Unlevered free cash-flow in excess of €25 million, up on FY2024

 
Q1 FY2025 results are consistent with expectations, with a usual seasonality on Capex, thereby confirming our expectations for FY2025.
 
Recent highlights
 
Announcement of the opening of a new 3-AZ region in Milan in 2025
 
OVHcloud is continuing its international expansion with the opening of the 3-AZ region in Milan by the end of 2025. This region will offer businesses and organisations a presence in three geographically close datacenters (AZ or Availability Zones) so that they can benefit from high resilience and low latency between the three datacenters.
 
Launch of the OVHcloud Managed Rancher Service: solutions for managing containers in a multi-cloud environment
 
Available as part of the Public Cloud portfolio for container solutions, the OVHcloud Managed Rancher Service is based on full private deployment of the Rancher solution, which ensures the management and organisation of Kubernetes clusters in a multi-cloud environment.

 
Conference call
On Thursday 9 January 2025 at 10 a.m. (CET – Paris), OVHcloud’s management will hold a conference call in English.
 
The conference call can be accessed via:

• webcast using the following link :
  • https://channel.royalcast.com/ovhcloud-eng/#!/ovhcloud-eng/20250109_1

• telephone using the following numbers:

o   Paris: +33 (0) 1 7037 7166
o   UK-Wide: +44 (0) 33 0551 0200
o   USA: +1 786 697 3501
o   Code: “OVHcloud”
 
After the conference call, a replay of the webcast will be available in the Investor relations section of the OVHcloud website: https://corporate.ovhcloud.com/en-au/investor-relations/financial-results/
 
Agenda
6 February 2025: Combined Annual General Meeting
18 April 2025: H1 FY2025 Results

[1] Like-for-like (LFL): based on constant exchange rates and scope of consolidation compared to FY2024.