Earnings Release • Jun 30, 2022
Earnings Release
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Roubaix, 30 June 2022 – OVHcloud today announces its revenue for the period ended 31 May 2022. This press release concerns the consolidated revenue of OVH Groupe.
OVHcloud CEO Michel Paulin said:
"With growth of 25.9% in Q3, OVHcloud continues to demonstrate the effectiveness of its strategic plan. This good performance reflects the Group's ability to gain new customers, primarily in Public Cloud and Private Cloud, as well as the success of its international development. Thanks to our teams and an ever more engaged ecosystem, and despite a deteriorating macro-economic context, we look forward to the fourth quarter of our financial year with confidence and are raising our annual revenue growth target to a 16%-18% bracket."
OVHcloud posted consolidated revenue of €202 million for the third quarter of FY22, up 25.9% compared to last year as reported and up 11.7% like-for-like2 , excluding the direct impacts of the Strasbourg incident and at constant exchange rates and consolidation scope. The good third quarter performance reflects a positive commercial momentum, with growth driven by ARPAC progress and an accelerating Enterprise segment.
OVHcloud's ability to grow with its customers is reflected in a net revenue retention rate of 120% over the period (vs 100% in FY21). Excluding vouchers and credit notes issued following the Strasbourg incident, the rate came to 107% (vs 103% in FY21).
Throughout this quarter, OVHcloud continued to gain new customers such as the French Marine Nationale and KS2 with SecNumCloud offers along with Cegid in France, TBS-Education in Spain or Tatum in Eastern Europe. This excellent sales performance was primarily driven by sales achieved through partners, whose number nearly reached 900 at the end of the third quarter and who posted double-digit revenue growth for the period.
2 Like-for-like (LFL): at constant FX, constant scope of consolidation and excluding direct impacts related to the Strasbourg incident vs FY2021.
1 Adjusted EBITDA is equal to current EBITDA excluding share-based compensation
and expenses arising from earn-out payments.
The momentum of this third quarter is also reflected in the shift of the business mix towards Public Cloud and Private Cloud, and the growing share of international business in the Group's revenue, reaching 51% over the quarter.
With 80 IaaS and PaaS solutions at the end of Q3, OVHcloud has reached its target one quarter early. OVHcloud continues to enrich its solutions portfolio in close interaction with its customers in order to best meet their needs. The sales momentum on these products has begun to show results with a continuous increase in revenue generated by these new PaaS solutions.
| Revenue by segment | |
|---|---|
| -------------------- | -- |
| (in € million) | 3 rd quarter 2021 |
3 rd quarter 2022 |
Change (%) | Change (%) like for-like |
|---|---|---|---|---|
| Private Cloud | 94.6 | 125.3 | +32.5% | +14.6% |
| Public Cloud | 21.8 | 32.8 | +50.3% | +19.4% |
| Webcloud & Other | 44.4 | 44.4 | +0.0% | (0.2)% |
| Total revenue | 160.8 | 202.4 | +25.9% | +11.7% |
Private Cloud, which includes Bare Metal and Hosted Private Cloud, achieved revenue of €125 million, up +32.5% on a reported basis and +14.6% on a like-for-like basis. After strong growth in the first half year, the segment continued this momentum in Asia and the United States, particularly in the Digital channel and worldwide thanks to significant growth in ARPAC. Reported revenue includes a positive forex impact of €2.4 million and a negative impact of €0.3 million in respect of commercial gestures relating to the Strasbourg incident.
Public Cloud saw strong growth over the quarter, achieving revenue of €33 million, reflecting growth of +50.3% on a reported basis and +19.4% on a like-for-like basis. The growth was notably driven by the strong increase in the Enterprise segment and in ARPAC, reflecting the success of the upsell and cross-sell efforts. PaaS services, including Beta and recently marketed solutions, continued to show encouraging signs of customer adoption. Reported revenue includes a positive forex impact of €0.3 million and a negative impact of €0.2 million in respect of commercial gestures relating to the Strasbourg incident.
The Web Cloud & Other segment is stable on a reported basis and down by (0.2)% on a like-for-like basis compared to the previous year. This performance reflects the ongoing working at the telephony and connectivity sub-segment offerings to better adapt them to their respective markets and offer a more competitive positioning. The Enterprise segment, which includes partners and resellers, continued its positive momentum of the start of the year. On a reported basis revenue includes a stable forex impact and an impact of €0.1 million in respect of commercial gestures relating to the Strasbourg incident.
| (in € million) | 3 rd quarter 2021 |
3 rd quarter 2022 |
Change (%) | Change (%) like for-like |
|---|---|---|---|---|
| France | 82.1 | 99.6 | +21.4% | +8.3% |
| Europe (excluding France) | 46.1 | 57.3 | +24.2% | +9.6% |
| Rest of the world | 32.6 | 45.5 | +39.6% | +23.1% |
| Total revenue | 160.8 | 202.4 | +25.9% | +11.7% |
Revenue growth in France was mainly driven by the Enterprise customer segment and the growth in Public Cloud. Revenue growth also reflects the impact of the Strasbourg fire, to which France was more exposed than the other regions.
In Europe (excluding France), revenue growth was the result of the positive overall performance, notably driven by Public Cloud. The Group continues to benefit from positive effects of the recent implementation of dedicated regional sales teams, with the ramp-up of the digital channels and the Enterprise segment in this region.
In the Rest of the world, revenue continued to grow strongly during Q3, at +39.6% on a reported basis and +23.1% on a like-for-like basis. The performance remains excellent in the United States (+72.2% on a like-forlike basis and +91.4% on a reported basis) and in Asia (+47.3% on a like-for-like basis and +63.5% on a reported basis) notably via the digital channel in the United States (+62.6% on a like-for-like basis and +80.6% on a reported basis).
In line with the first half-year, this third quarter demonstrates the Group's ability to implement its strategic growth acceleration plan.
On the basis of the growth recorded over the first nine months, the commercial momentum over the first weeks of the fourth quarter and despite a deteriorating macro-economic environment, OVHcloud is raising its revenue growth target and now anticipates growth between 16% and 18%, compared to the range of 15% to 17% reported previously.
The Group is maintaining its other targets, namely:
FY22 targets assume no material change in today's macroeconomic environment.
The Group reiterates its medium-term financial guidance and aims to achieve the following by 2025:
4 Excluding the acquisition of additional IPv4 addresses.
3 Adjusted EBITDA is equal to current EBITDA excluding share-based compensation and expenses arising from earn-out payments.
October 26, 2022: FY2022 annual results
OVHcloud is a global player and Europe's leading cloud provider operating over 400,000 servers within 33 data centres across four continents. For over 20 years, the Group has relied on an integrated model that provides complete control of its value chain: from the design of its servers to the construction and management of its data centres, including the orchestration of its fibre-optic network. This unique approach allows it to independently cover all the uses of its 1.6 million customers in more than 140 countries. OVHcloud now offers latest generation solutions combining performance, price predictability and total sovereignty over their data to support their growth in complete freedom.
Marie Vaillaud Benjamin Mennesson Communications and PR Manager Head of Financial Communication [email protected] [email protected] + 33 (0)6 49 32 74 02 + 33 (0)6 99 72 73 17
This press release contains forward-looking statements that involve risks and uncertainties, including references, concerning the Group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors' behaviours. Any forward-looking statements made in this press release are statements about OVHcloud's beliefs and expectations and should be evaluated as such.
Forward-looking statements include statements that may relate to OVHcloud's plans, objectives, strategies, goals, future events, future revenues or performance, and other information that is not historical information. Actual events or results may differ from those described in this press release due to a number of risks and uncertainties that are described within the 2021 Universal Registration Document, filed with the French Financial Markets Authority (Autorité des marchés financiers – AMF) on December 16, 2021 under the number R.21-067.
All amounts are presented in € million. This may in certain circumstances lead to non-material differences between the sum of the figures and the subtotals that appear in the tables. OVHcloud does not undertake, and specifically disclaims, any obligation or responsibility to update or amend any of the information above except as otherwise required by law.
This press release is disseminated for information purposes only and does not constitute an offer to purchase or sell, or a solicitation of an offer to sell or to purchase, any securities.
Like-for-like is calculated at constant exchange rates, constant perimeter and excluding Strasbourg direct impacts. Perimeter adjustments correspond to M&A.
The netrevenue retention rate for any period is equal to the percentage calculated by dividing (i) the revenue generated in such period from customers that were present during the same period of the previous year, by (ii) the revenue generated from all customers in that previous year period. When the revenue retention rate exceeds 100%, it means that revenues from the relevant customers increased from the relevant period in the previous year to the same period in the current year, in excess of the revenue lost due to churn.
ARPAC (Average revenues per active customer) represents the revenues recorded in a given period from a given customer group, divided by the average number of customers from that group in that period (the average number of customers is determined on the same basis as in determining net customer acquisitions). ARPAC increases as customers in a given group spend more on OVHcloud services. It can also increase due to a change in mix, as an increase (or decrease) in the proportion of high-spending customers would increase (or decrease) ARPAC, irrespective of whether total revenues from the relevant customer group increase.
Current EBITDA is equal to revenues less the sum of personnel costs and other operating expenses (and excluding depreciation and amortisation charges, as well as items that are classified as "other non-current operating income and expenses").
Adjusted EBITDA is equal to current EBITDA excluding share-based compensation and expenses resulting from the payment of earn-outs from its adjusted EBITDA.
Recurring Capital Expenditures (Capex) reflects the capital expenditures needed to maintain the revenues generated during a given period for the following period.
Growth Capital Expenditures (Capex) represents all capital expenditures other than recurring capital expenditures.
| In € million – by segment |
Q1 FY2021 Reported |
Q2 FY2021 Reported |
Q3 FY2021 Reported |
9M FY2021 Reported |
Q1 FY2022 Reported |
Q2 FY2022 Reported |
Q3 FY2022 Reported |
9M FY2022 Reported |
|---|---|---|---|---|---|---|---|---|
| Private cloud | 98.8 | 102.0 | 94.6 | 295.4 | 113.3 | 119.3 | 125.3 | 357.8 |
| Public cloud | 23.2 | 24.7 | 21.8 | 69.7 | 29.0 | 30.6 | 32.8 | 92.4 |
| Webcloud & Other | 42.3 | 43.3 | 44.4 | 130.0 | 44.9 | 44.9 | 44.4 | 134.2 |
| Total Revenue | 164.3 | 170.0 | 160.8 | 495.1 | 187.2 | 194.8 | 202.4 | 584.5 |
| Total Revenue | +13.5% | +13.0% | +11.7% | +12.7% | +13.9% | +14.6% | +25.9% | +18.1% |
|---|---|---|---|---|---|---|---|---|
| Webcloud & Other | +6.6% | +3.9% | (0.2)% | +3.4% | +6.1% | +3.6% | +0.0% | +3.3% |
| Public cloud | +22.4% | +20.0% | +19.4% | +20.1% | +24.9% | +23.9% | +50.3% | +32.5% |
| Private cloud | +14.3% | +15.0% | +14.6% | +14.7% | +14.6% | +17.0% | +32.5% | +21.2% |
| Growth in % – by segment |
Q1 FY2022 LFL |
Q2 FY2022 LFL |
Q3 FY2022 LFL |
9M FY2022 LFL |
Q1 FY2022 Reported |
Q2 FY2022 Reported |
Q3 FY2022 Reported |
9M FY2022 Reported |
| Q1 FY2022 Reported |
Q2 FY2022 Reported |
Q3 FY2022 Reported |
9M FY2022 Reported |
|---|---|---|---|
| In € million – by | Q1 FY2021 | Q2 FY2021 | Q3 FY2021 | 9M FY2021 | Q1 FY2022 | Q2 FY2022 | Q3 FY2022 | |
|---|---|---|---|---|---|---|---|---|
| geography | Reported | Reported | Reported | Reported | Reported | Reported | Reported | Reported |
| France | 86.8 | 89.3 | 82.1 | 258.0 | 93.2 | 96.6 | 99.6 | 289.5 |
| Europe (excl. France) | 47.8 | 50.2 | 46.1 | 144.2 | 53.5 | 55.9 | 57.3 | 166.7 |
| Rest of the World | 29.7 | 30.6 | 32.6 | 92.9 | 40.5 | 42.3 | 45.5 | 128.3 |
| Total Revenue | 164.3 | 170.0 | 160.8 | 495.1 | 187.2 | 194.8 | 202.4 | 584.5 |
| Q1 FY2022 | Q2 FY2022 | Q3 FY2022 | 9M FY2022 |
|---|---|---|---|
| Reported | Reported | Reported | Reported |
| Growth in % – by geography |
Q1 FY2022 LFL |
Q2 FY2022 LFL |
Q3 FY2022 LFL |
9M FY2022 LFL |
Q1 FY2022 Reported |
Q2 FY2022 Reported |
Q3 FY2022 Reported |
9M FY2022 Reported |
|---|---|---|---|---|---|---|---|---|
| France | +8.7% | +8.8% | +8.3% | +8.5% | +7.4% | +8.3% | +21.4% | +12.2% |
| Europe (excl. France) | +12.7% | +10.7% | +9.6% | +10.9% | +11.9% | +11.3% | +24.2% | +15.6% |
| Rest of the World | +28.2% | +27.7% | +23.1% | +26.1% | +36.2% | +38.5% | +39.6% | +38.2% |
| Total Revenue | +13.5% | +13.0% | +11.7% | +12.7% | +13.9% | +14.6% | +25.9% | +18.1% |
| In € million – by segment | Q3 FY21 Reported |
FX impacts |
Perimeter impacts |
Strasbourg impacts |
Q3 FY21 LFL | ||
|---|---|---|---|---|---|---|---|
| Private cloud | 94.6 | 2.4 | 0.0 | 12.6 | 109.6 | ||
| Public cloud | 21.8 | 0.3 | 0.9 | 4.8 | |||
| Webcloud & Other | 44.4 | -0.0 | 0.0 | 0.2 | 44.6 | ||
| Total Revenue | 160.8 | 2.7 | 0.9 | 17.6 | 181.9 | ||
| In € million – by segment | Q3 FY22 Reported |
Perimeter impacts |
Strasbourg impacts |
Q3 FY22 LFL | |||
| Private cloud | 125.3 | 0.0 | 0.3 | 125.6 | |||
| Public cloud | 32.8 | 0.1 | 0.2 | 33.2 | |||
| Webcloud & Other | 44.4 | 0.0 | 0.1 | 44.5 | |||
| Total Revenue | 202.4 | 0.1 | 0.6 | 203.2 | |||
| In € million – by geography | Q3 FY21 Reported |
FX impacts |
Perimeter impacts |
Strasbourg impacts |
Q3 FY21 LFL | ||
| France | 82.1 | 0.0 | 0.3 | 10.1 | 92.4 | ||
| Europe (excl. France) | 46.1 | 0.2 | 0.0 | 6.1 | 52.5 | ||
| Rest of the World | 32.6 | 2.4 | 0.6 | 1.4 | 37.0 | ||
| Total Revenue | 160.8 | 2.7 | 0.9 | 17.6 | 181.9 | ||
| In € million – by geography | Q3 FY22 Reported | Perimeter impacts |
Strasbourg impacts | Q3 FY22 LFL | |||
| France | 99.6 | 0.1 | 0.4 | 100.1 | |||
| Europe (excl. France) | 57.3 | 0.0 | 0.2 | 57.5 | |||
| Rest of the World | 45.5 | 0.0 | 0.0 | 45.6 |
Total Revenue 202.4 0.1 0.6 203.2
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