OVHcloud - FY25 Results

Core Insights - OVHcloud achieved a significant milestone by surpassing the €1 billion revenue mark in FY2025, with total revenue reaching €1,084.6 million, reflecting a year-on-year growth of 9.3% [2][5][3] - The company appointed Octave Klaba as Chairman and CEO to align its vision and strategy, with plans to present a new strategic plan for 2026-2030 [4][28] - The adjusted EBITDA margin improved to 40.4%, up 2.0 percentage points from the previous year, indicating strong operational efficiency [17][2] Financial Performance - Revenue for FY2025 was €1,084.6 million, up from €993.1 million in FY2024, marking a 9.2% increase [2][16] - Adjusted EBITDA rose to €437.8 million, with a margin of 40.4%, compared to €381.5 million and a margin of 38.4% in FY2024 [17][16] - Net income improved to €0.4 million in FY2025 from a net loss of €10.3 million in FY2024 [19][16] Revenue Breakdown - The Corporate segment generated over €200 million in revenue, while Public Cloud revenue exceeded €100 million [3][5] - Private Cloud accounted for 62% of total revenue, reaching €671.6 million, up 8.5% year-on-year [8][10] - Public Cloud revenue was €219.2 million, reflecting a 19.9% increase, and Web Cloud revenue was €193.8 million, up 3.8% [9][10] Customer Metrics - OVHcloud has nearly 1,200 customers, each generating more than €100,000 in Annual Recurring Revenue (ARR) [6] - The company leads the SecNumCloud market with an ARR of €24 million, a 63% increase year-on-year [6] - The net revenue retention rate was 105%, indicating growth among existing customers [6] Regional Performance - France accounted for 48% of total revenue, growing by 7.3% year-on-year, while the Rest of the World saw an increase of 14.3% [13][14] - Revenue from Europe (excluding France) grew by 9.7%, driven by strong performance in Central and Northern Europe [14][13] Capital Expenditure and Cash Flow - Total capex for FY2025 was €361.4 million, representing 33.3% of revenue, with unlevered free cash flow increasing to €57.6 million [23][24] - Gross cash flows from operating activities improved to €421.9 million, up from €377.6 million in FY2024 [20][22] Strategic Initiatives - The company plans to enhance its product offerings, including the launch of Managed Kubernetes Service and Public VCF as-a-Service [32][33] - OVHcloud aims to improve its support and performance/price positioning for Digital Starters and strengthen its Corporate segment in Italy and Germany [11][12]