OVHcloud trims 2023 target following H1 results
The Pan-European cloud provider saw solid growth in H1 but downgraded its full-year outlook amid continued macroeconomic conditions
OVHcloud has cut its FY2023 forecast despite posting strong growth in its H1 results for the six months to 28 February 2023.
The cloud provider saw revenues grow 15 per cent to €439m. Within that private cloud brought in €273m, up 17.4 per cent.
Meanwhile, public cloud logged revenues of €74m, representing a spike of 24.1 per cent.
EBITDA climbed 18 per cent to €152m.
However, the group recorded a net income loss of €26.6m which includes a net foreign exchange loss of €7m.
The cloud provider claims these results illustrate its potential to gain new customers in key sectors, such as insurance, healthcare, defence and finance.
"OVHcloud once again shows its ability to deliver strong and constantly accelerating growth amid a volatile macroeconomic environment," said OVHcloud CEO Michel Paulin.
"Our competitive advantages are more than ever determining factors in supporting the inevitable digital transformation of our companies, institutions and society in general.
"As the European leader in the fast-growing cloud market, OVHcloud is ideally positioned at the forefront of an open and reversible cloud that guarantees users' data sovereignty, offers the best performance/price ratios and is respectful of the environment.
"This enables us to successfully roll out a high-performing, competitive offering to our ever-growing number of increasingly loyal customers."
Its H1 performance also highlights OVHcloud's prowess in growing revenue generated by its existing customers, it added, thanks to a steady increase in ARPAC and an organic net revenue retention rate of 111 per cent over the first six months of the year.
The French group also continued to record double-digit sales growth with its partners, which now exceeds 1,250.
Read on to find out more about why OVHcloud has shrunk its full-year prediction...
OVHcloud trims 2023 target following H1 results
The Pan-European cloud provider saw solid growth in H1 but downgraded its full-year outlook amid continued macroeconomic conditions
Outlook for FY2023
For FY2023, OVHcloud is targeting organic revenue growth of 13-14 per cent, a revision of its previous outlook of expected growth in the range of 14-16 per cent.
Shares in the French company fell on Wednesday this downgrade, according to Reuters.
This growth target includes the solid first-half performance and recent developments in demand which in the short term reflect a delay in certain migration projects to the cloud or the extension of existing infrastructures, the group explained.
OVHcloud gives an update on price increases on the next page...
OVHcloud trims 2023 target following H1 results
The Pan-European cloud provider saw solid growth in H1 but downgraded its full-year outlook amid continued macroeconomic conditions
Price increase update
In September OVHcloud made the move to raise prices for existing services by ten per cent, in line with industry wide increases which aimed to mitigate inflation on overall cost.
The group said these price adjustments did not affect churn or customer acquisition dynamics and will continue in the second semester.
Paulin told CRN in January he doesn't possess the gift of foresight which would allow him to gauge how the global economy may impact OVHcloud in 2023.
"I still do believe that inflation will stay in 2023 and potentially we might have some adjustments," he said.
In these latest results, OVHcloud expects to benefit from the full effect of these price increases from the fourth quarter of 2023.
OVHcloud trims 2023 target following H1 results
The Pan-European cloud provider saw solid growth in H1 but downgraded its full-year outlook amid continued macroeconomic conditions
Revenue by geography - France leads to way
Sales in OVHcloud's home turf reached €216m over the first half of the year, up 14 per cent with double-digit growth in the private and public cloud segments.
The Enterprise channel continued to show strong growth in all segments, and once again accelerated during Q2.
Across the rest of Europe OVHcloud raked in a total of €124m, swelling 13.6 per cent.
Private cloud revenue continued to grow strongly while public cloud saw a particularly marked acceleration during Q2. Germany and Eastern Europe accelerated strongly during this first half year.