OVHcloud’s consolidated revenue for the first quarter of 2022 was €187 million, up 13.9 percent compared to Q1 FY2021. The year-over-year increase in revenue in Q1 would represent a strong commercial performance. OVHcloud particularly reported strong growth for its public cloud and private cloud offerings. Geographically, the cloud hosting provider did commercially especially well in the United States and Asia.
The cloud provider’s numerous acquisition channels, whether digital or foreign partners, led to growth acceleration. OVHcloud has continued to establish and strengthen connections with European partners such as Sopra Steria, Atos, OCTO Technology (part of Accenture), Bechtle, and Inetum since the start of its fiscal year.
In addition to these achievements, OVHcloud has continued to develop and deploy PaaS services, allowing it to now offer sixty IaaS and PaaS options on its marketplace. MongoDB, a Database-as-a-Service solution, was used in particular by the cloud hosting provider, and its commercial debut in November would confirm the Beta version’s early success.
OVHcloud continued to recruit new clients in its various divisions and throughout its various countries during the first quarter, including EDF Renewables and HarfangLab.
“With a 13.9% increase in revenue compared to the previous fiscal year, this first quarter confirms the Group’s ability to implement an ambitious strategy, which allows us to accelerate our growth trajectory,” said Michel Paulin, Chief Executive Officer (CEO) at OVHcloud. “These results reflect the signature of large accounts, our ability to federate and extend our ecosystem of international partners, and the continued success of our international expansion, in Europe but also, in the United-States and in Asia. All of these factors allow us to confidently carry out our strategy in order to assert our European leadership, capitalize on the exponential growth of the Cloud market and achieve our objectives throughout 2022.”
Private Cloud, Public Cloud, PaaS
OVHcloud’s private cloud offering, which comprises bare metal and hosted private cloud, generated €113 million in sales, representing a reported growth of 14.6 percent and a like-for-like growth of 14.3 percent. The product category expanded rapidly in the United States and Asia, particularly through the digital channel, as well as globally. Revenue includes €1.4 million in commercial gestures tied to the Strasbourg disaster, according to OVHcloud.
Over the period, OVHcloud’s public cloud offering achieved tremendous growth, generating revenue of €29 million, representing a reported rise of more than 24.9 percent – partly due to the efficacy of upsell and cross-sell activities, according to OVHcloud. The company’s clients are also exhibiting positive indicators of uptake of both the beta and freshly published PaaS services.
U.S., Europe, Asia
The Enterprise client category and public cloud are driving revenue growth for OVHcloud in France. It includes a limited impact related to the Strasbourg incident, to which France was more exposed than the other regions.
Revenue growth in Europe, excluding France, is being driven by a strong overall performance, according to OVHcloud. The Group would continue to experience the benefits of a recent implementation of dedicated regional sales teams.
Revenues in the rest of the world grew strongly, according to OVHcloud, with more than 36.2 percent reported growth. OVHcloud saw a consistent strong performance globally, particularly in the U.S. (more than 55.4 percent), Asia more than 26 percent), as well as the U.S. digital channel (more than 109.1 percent).
OVHcloud forecasts the following for the year 2022. Revenue growth would be in the top half of the initial target range of 10 to 15 percent established in the recently published IPO documents. The cloud hosting provider’s commercial performance over the previous few months has been consistent with this goal. OVHcloud would expect an adjusted EBITDA margin of roughly 40 percent, assuming inflation stays at the same levels as in FY2021.
For the medium term, OVHcloud reaffirmed its financial goals, which include achieving the following by 2025. The company anticipates to maintain adjusted EBITDA margin in line with FY2020, with benefits from economies of scale reinvested to support the ambition to accelerate growth. Next to that, OVHcloud expects to maintain organic revenue growth in the mid-twenties by FY2025, driven by a shift in business mix, the deployment of the ‘Move to PaaS’ strategy, international expansion, a rising focus on data sovereignty, and the benefit from a market shift to hybrid- and multi-cloud.
Similarly, OVHcloud’s growth capital expenditures as a proportion of revenue are forecast to stay consistent with previous guidance, while recurring capital expenditures are expected to benefit from productivity gains and gradually fall as a percentage of revenue to a range of 14 to 16 percent.