French hyperscaler OVHcloud has posted its first quarter fiscal 2022 results for the period ended 30 November 2021.
Its Q1 revenues managed to beat market expectations, growing 13.9 per cent to €187.2m.
“With a 13.9 per cent 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 OVHcloud CEO, Michel Paulin.
“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 US and in Asia.
“All of these factors allow us to confidently carry out our strategy in order to assert our European leadership, capitalise on the exponential growth of the Cloud market and achieve our objectives throughout 2022”.
The group said its continued signings of new customers such as EDF Renewables and HarfangLab demonstrate the relevance of its position as a “trusted alternative” in the global cloud industry.
Moreover, the Paris-based company, which made its market debut in October, said its acquisition channels als played a hand in growth acceleration.
Public and private cloud grow
OVH’s public cloud arm saw the biggest year on year growth out of all its segments, climbing 24.9 per cent to €29m.
The group said both Beta and recently released PaaS services are showing encouraging signs of adoption by customers.
While on a reported basis, revenue includes €0.6m Strasbourg incident-related commercial gestures.
On the other side, it was private cloud sales that made up the bulk of the revenue, rising 14.6 per cent to €113m, owing to strong figures in the US via the digital channel, and globally thanks to significant average turnover per active customer (ARPAC).
Home run for OVHcloud
OVHcloud’s domestic market of France captured the lion’s share of revenues regionally.
The country grew 7.4 per cent to €93.2m driven by the enterprise customer segment and public cloud.
For the rest of Europe, revenues came in at €53.5m, an increase of 11.9 per cent.
FY2022 outlook
For the full year 2022 OVHcloud expects revenue growth in the upper half of the target range of 10 per cent to 15 per cent initially set in the IPO documentation, with an adjusted EBITDA margin of around 40 per cent, assuming inflation remains at levels consistent with FY2021.