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OVHcloud posts 12% organic revenue growth in fiscal Q1

OVHcloud today announces its revenue for the quarter ended 30 November 2022. This press release concerns the consolidated revenue of OVH Groupe.

OVHcloud CEO Michel Paulin said:
“This very good start to 2023 once again shows OVHcloud’s ability to deliver on its strong, sustainable growth acceleration strategy. In a continuously growing cloud market, our positioning as European leader, validated by industrial analysts such as IDC, enables us to continue to successfully expand our offering of sovereign products and services, with an ever stronger environmental responsibility.

This very good start to the year, the strong commitment of our employees and the very positive cloud market fundamentals enable us to look forward to 2023 with a reaffirmed ambition, despite the still volatile macro- economic context. This enables us to confidently confirm our 2023 and medium-term targets.”

Q1 2023 revenue of €216 million, up 15.4% as reported and up 11.7% like-for-like1
During the first quarter of 2023 OVHcloud was notably recognised as one of the “Major Players” by the IDC MarketScape survey: Worldwide Public Cloud Infrastructure as a Service 2022 Vendor Assessment. This ranking confirms OVHcloud’s positioning at the forefront of the trusted cloud, and also as a pioneer of the sustainable cloud.

Over the first three months of 2023, in a continuously growing cloud market, the demand for sovereign cloud offerings remained on a constant growth trajectory. OVHcloud was able to meet this demand with, amongst other factors, strong growth in its sovereign solutions such as SecNumCloud certified offering. In this particularly dynamic market, OVHcloud benefits from its position as a pioneer and European leader. In order to continue to accelerate in this segment, the Group intends to expand SecNumCloud certification to its Public Cloud and Bare Metal cloud offerings.

With strong demand for a responsible cloud from customers and users, OVHcloud has positioned itself as the pioneer of the sustainable cloud and is recognised as such by the Group’s partners and customers. This is reflected in its strong eligibility for the European Green Taxonomy with 86% of eligible revenue in 2022 and ambitious medium- term targets.

Throughout this first quarter 2023, OVHcloud continued to enrich its portfolio of PaaS solutions in response to customer needs and to successfully expand the marketing of recently launched offerings. The Group notably developed the “Cold Archive” (storage), “AI Deploy” (artificial intelligence) and “Tanzu Kubernetes” (containerisation) offerings.

These developments have led to new customer gains and workload extensions with existing customers. Over this first quarter 2023, OVHcloud notably recorded successes with Mercedes-Benz innovation subsidiary AMBition, Klee Group, the Institut de Radioprotection et de Sureté Nucléaire and Egerie, a company specialising in cyber risks.

During Q1 2023, the Enterprise and Digital acquisition channel strategy continued to show results. This development is fed by dedicated programmes such as the “Partner Programme” and “Startup Programme”, which continue to be strengthened:

  • The “Partner Program” was reinforced with over 1,150 partners, including over 300 Advanced, which benefit from dedicated training and certifications;
  • The “Start-up Program” continued to develop both geographically, with the internationalisation of the programme, qualitatively, with the implementation of dedicated mentoring sessions, and quantitatively, with over 210 new start-ups integrated into the programme during the first quarter.

Revenue by product segment

(in € million) Q1 2022 Q1 2023 Change (%) Change (%) LFL
Private Cloud 113.3 133.0 +17.4% +12.8%
Public Cloud 29.0 35.7 +22.9% +18.0%
Web Cloud & Other 44.9 47.3 +5.4% +4.6%
Total revenue 187.2 216.0 +15.4% +11.7%

Private Cloud, which includes Bare Metal Cloud and Hosted Private Cloud, achieved revenue of €133 million in Q1 2023, up 17.4% as reported and up 12.8% like-for-like. The segment’s strong growth is driven by double-digit growth in all regions and across the two distribution segments, Enterprise and Digital, reflecting a high degree of customer loyalty.

Public Cloud posted revenue of €35.7 million for the quarter, up 22.9% as reported and up 18.0% like-for-like. Public Cloud was notably driven by double-digit growth across all regions.

During Q1 2023, the Web Cloud & Other segment posted revenue up 5.4% as reported and up 4.6% like-for-like compared to the previous financial year. This performance includes good performance in France, notably in the Enterprise segment, which includes partners and resellers and a good Black Friday campaign. Some of the offerings for the Web Cloud & Other sub-segments were recently updated to better meet customer needs.

Revenue by geography

(in € million) Q1 2022 Q1 2023 Change (%) Change (%) LFL
France 93.2 107.1 +14.9% +13.2%
Europe (excluding France) 53.5 60.1 +12.4% +10.8%
Rest of the World 40.5 48.8 +20.6% +9.4%
Total revenue 187.2 216.0 +15.4% +11.7%

The increase in revenue in France includes strong growth in each of the segments with double-digit growth in Public Cloud and Private Cloud, notably driven by the Enterprise channel, which includes sales generated with OVHcloud’s partners. Revenue was up 13.2% like-for-like in France.

In Europe (excluding France), revenue for Private and Public Cloud also saw double-digit growth, with the same trends as those observed in France, in line with FY2022.

In the Rest of the World, growth continued with the continuous success of the Public Cloud and Private Cloud segments, which recorded double-digit growth over the first three months of the year, despite a strong comparison base in 2022 in the United States. Regional performance was also curtailed by the impact of Russia, which saw a significant slowdown during the period.

Situation in Ukraine
With regard to the current geopolitical situation between Russia and Ukraine, the Group is constantly monitoring its domestic customers in Russia, Belarus and Ukraine. In this context, the Group is rigorously complying with all regulations in force.

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