The Spanish multinational specialized in convergent telecommunications services, cybersecurityCybersecurity solutions are essential in today… and cloud for businesses, Gigas, has released its results for the first half of the 2024 fiscal year, revealing significant growth mainly driven by its cloud services division.
Solid revenue and EBITDA growth
Gigas’ net revenues reached €37.4 million in the first six months of the year, representing a 12.2% increase compared to the same period in 2023. This growth has exceeded the company’s initial forecasts, with the performance of the cloud services area standing out, experiencing a 22.6% increase compared to the previous year.
The group’s adjusted EBITDA stood at €8.6 million, a 6.4% increase from the first half of 2023. Despite this growth, the adjusted EBITDA margin on net revenues slightly decreased, from 24.3% to 23.0%, mainly due to an increase in personnel costs associated with investments in strategic areas.
Cloud services: growth engine
Cloud services have become the main driver of Gigas’ growth, representing 41.2% of total revenues, a significant increase from the 37.7% recorded in 2023. The company has focused its efforts on two key strategic lines:
- Cloud hosting for ERPs (enterprise management software)
- Growth in Public Cloud services and managed services
These efforts have resulted in the acquisition of approximately 500 new non-SAP clients in the semester, as well as strengthening strategic agreements with Google and Microsoft.
Challenges and outlook
Despite revenue growth, Gigas reported a negative result of €2.8 million, compared to €1.97 million negative in the same period of the previous year. This increase in losses is mainly attributed to higher depreciations and financial costs due to the rise in interest rates.
However, the company maintains an optimistic forecast for the end of the 2024 fiscal year, estimating that net revenues will range between €74 and €75 million, surpassing the initially budgeted €70 million. Regarding adjusted EBITDA, Gigas expects to finish the year in line with or slightly above budget, despite the necessary investments to drive growth in strategic areas.