OVHcloud has reported solid financial results for fiscal year 2024, with an organic growth of 10.3% and annual revenue of 993 million euros. The company, a European leader in the cloud sector, reported an improvement in its adjusted EBITDA margin, reaching 38.4%, representing an increase of 2.1 points. The company generated unleveraged free cash flow of 25 million euros, solidifying its financial position after a period of significant investments.
To further its expansion, OVHcloud has appointed Benjamin Revcolevschi as the new CEO, who has outlined ambitious goals including sustainable annual growth of around 10% and an EBITDA margin above 40% for fiscal year 2026. Revcolevschi, who took over following the resignation of Michel Paulin, aims to lead OVHcloud towards a phase of profitable and cash-generating growth.
Share buyback offer
OVHcloud has launched a share buyback offer of up to 350 million euros, at a price of 9 euros per share, representing a premium of 14.6% over the closing price on October 23, 2024. This offer, approved by the Board of Directors, gives shareholders the option to continue supporting the company’s growth or to realize their value. The Klaba family, founders of OVHcloud, has confirmed their intention to increase their stake, potentially reaching up to 81% of the share capital after the buyback.
Business performance
OVHcloud has experienced strong growth in key segments, especially in the private cloud, which represents 63% of the group’s revenue, with an increase of 11.3% from the previous year. The public cloud also showed solid performance, with an 18.3% growth in revenue, while the Web Cloud & Other segment, although only growing by 2.3%, continues to provide stability.
By regions, France remains OVHcloud’s main market, accounting for 49% of its revenue, followed by Europe, excluding France, and the rest of the world, with notable growth in the demand for high-performance services in the United States.
Outlook for fiscal year 2025
OVHcloud aims for organic growth between 9% and 11% in fiscal year 2025, with an adjusted EBITDA margin close to 40%. Additionally, it plans to maintain its investment in Capex to drive revenue recurrence and growth in new markets. The company continues to position itself as a sustainable and sovereign cloud provider, with a strong commitment to operational efficiency and reducing its carbon footprint.
With these results and a share buyback strategy, OVHcloud is poised to consolidate its leadership in the European cloud market, with a solid financial structure and a strategy focused on attracting more customers in the competitive cloud technology sector.