The Klaba family has announced its intention to tender approximately 7.1 million shares to the Share Buyback Offer, which is less than its percentage shareholding in the Company's share capital.
 
Indicative timetable (subject to review by the AMF)

24 October 2024 - Filing of the draft Share Buyback Offer and the draft offer document with the AMF
3 December 2024 - AMF compliance decision
4 December 2024 - Shareholders’ Meeting held to consider the proposed share capital reduction
10-30 December 2024 - Opening of the Share Buyback Offer
January 2025 - Settlement-delivery of the shares tendered to the Share Buyback Offer, cancellation of shares bought back
 
Disclaimers

This press release does not constitute an offer to buy or the solicitation of an offer to sell any securities or any solicitation with a view to such an offer, directly or indirectly. The documentation relating to the share buyback offer, which, if filed, will include its terms and conditions, will be subject to review by the French Financial Markets Authority (Autorité des marchés financiers – AMF).
 

The dissemination, publication or distribution of this press release in certain countries may constitute a violation of applicable laws and regulations. Consequently, persons physically present in these countries and in which this press release is disseminated, published or distributed must inform themselves about and comply with these laws and regulations. OVH Groupe declines all responsibility for any violation of these restrictions by any person whatsoever.

In the event that the number of shares tendered by shareholders to the share buyback offer (OPRA) exceeds the number of shares targeted by the OPRA, the reduction rules specific to the simplified public tender offer will apply, and a proportional reduction will be made for each selling shareholder based on the number of shares they can prove ownership of or entitlement to. The shares that are not accepted under the OPRA due to this reduction mechanism will be returned to the shareholders.

FY2024 key figures

Revenue of €993 million in FY2024, up 10.7% year on year as reported and up 10.3% like for like[2]

OVHcloud’s consolidated revenue came to €993.1 million in FY2024, up 10.7% compared to FY2023 and up 10.3% like for like. This momentum reflects in particular a solid net revenue retention rate of 107% on a like-for-like basis and 108% on a reported basis, and a churn rate that remained stable at 2% over the period.
 
Fourth-quarter FY2024 revenue came in at €256.2 million, up 10.6% like for like and higher than the previous two quarters, thanks to robust growth in the Private Cloud business and a slight recovery in Public Cloud momentum.

Revenue by product segment

The Private Cloud segment, which includes the Bare Metal Cloud and Hosted Private Cloud businesses, posted revenue of €623.6 million in FY2024, representing growth of 11.3% as reported and 11.8% like for like. In the fourth quarter, growth came to 12.5% as reported and 12.6% like for like.
 
This performance is the result of substantial growth in Private Cloud ARPAC, fuelled by a widespread adoption of high-performance Bare Metal Cloud servers. In Europe, the Bare Metal Cloud sub-segment proved resilient in an environment still marked by the optimisation of workloads. In the United States, business continued to grow strongly answering a sustained demand from American technology companies seeking the best performance/price ratio for their specific needs.
 
The Hosted Private Cloud segment, which accounts for around 13% of the Group's revenue, has seen solid growth, particularly since Broadcom introduced the new pricing scheme for VMware licences in May 2024. Thanks to our status as Broadcom “Pinnacle” partner (the highest status among partners) and the successful adaptation of its offerings, OVHcloud recorded lower-than-expected customer churn. The change of pricing scheme had a positive price effect of €4 million on FY2024 revenue.
 
Public Cloud posted revenue of €182.8 million for FY2024, up 18.3% as reported and up 14.2% like for like. This segment saw an increase in the number of new customers, resulting from the acquisition strategy deployed in FY2024. The ramp-up of certain customers, particularly in Europe, was weaker than anticipated, penalising ARPAC growth in this segment.
 
Lastly, throughout FY2024, the Group continued to develop its artificial intelligence offering, bringing on stream a full range of NVIDIA Tensor Core GPUs (H100, A100, L4, L40S) accessible in the Public Cloud and cutting-edge AI models with the integration of the latest open-source LLMs, such as Mixtral 8x22B or Llama3, which are notably available off-the-shelf via the OVHcloud AI Endpoints serverless solution.
 
In FY2024, the Web Cloud & Other segment posted revenue of €186.7 million, up 2.3% as reported and 2.1% on a like-for-like basis. This growth continues to be driven by positive momentum in domain names, supported by improvements in the user experience and the success of new web hosting offerings. In contrast, the Connectivity and Telephony sub-segments, the Group's historic activities, continued to weigh on the overall segment's growth, which came in at 6.0% on a like-for-like basis excluding these two activities.

Revenue by region

Revenue in France reached €482.6 million in FY2024, accounting for 49% of the Group’s overall revenue, with double-digit growth throughout the year for the Private Cloud and Public Cloud segments. Representing 30% of the region's business, Web Cloud momentum was stable compared to FY2023, penalised by the decline in the historical Telephony and Connectivity sub-segments.
 
In other European countries, which accounted for 29% of the Group's total revenue, Germany, Poland and the United Kingdom were the region's main growth drivers. At the same time, the Group is continuing to roll out gridscale technology, with 16 Local Zones now open.
 
In the Rest of the World, which accounts for 22% of the Group's total revenue, growth remained solid at 11.4% compared to FY2023. Momentum has gathered pace in the last few quarters, driven by ongoing sustained demand in the United States, particularly in the Private Cloud segment for Bare Metal Cloud products.
 
Adjusted EBITDA of €381.5 million in FY2024, representing a margin of 38.4%, a 2.1‑point rise over FY2023

A new, more precise methodology for calculating margins by segment was introduced as from FY2024. The methodology is detailed in the section entitled “Change in the method for breaking down costs by business segment” at the end of this press release.

Adjusted EBITDA reached €381.5 million, representing a margin of 38.4%

During FY2024, adjusted EBITDA rose by 17.2% as reported and 17.8% like for like compared to FY2023. Adjusted EBITDA reached €381.5 million, representing an adjusted EBITDA margin of 38.4% compared to 36.3% in FY2023.

This 2.1-point improvement in the adjusted EBITDA margin can be attributed to a 1.2-point increase in gross margin and a 0.9-point decrease in indirect costs. The increase in gross margin is linked to a decrease in the portion of Web Cloud direct costs in relation to revenue, due to the reduced weight of the segment, a further improvement in operating leverage, particularly in datacenters, and the reduced weight of electricity costs. Indirect costs are decreasing as a % of revenue as a result of an improved productivity of administrative teams.

In FY2024, electricity costs represented almost 6% of Group revenue, down slightly compared to FY2023. For the 2025 calendar year, nearly 95% of OVHcloud’s electricity consumption has been hedged at a better price per MWh than in 2024.
 
FY2024 net operating income of €25.7 million

The Group posted net operating income of €25.7 million in FY2024, a strong improvement of €37.7 million compared to the €12.0 million operating loss reported in FY2023. Net operating income includes a contained increase in depreciation, amortisation and impairment expense of €23.9 million, down by more than 1 point in relation to revenue. The increase includes write-downs of internal software and old inventories, as well as an increase in the commissioning of capitalised development projects and right-of-use assets relating to datacenter leases. It also includes non-recurring items for a negative €3.2 million, primarily made up of acquisition costs and non-recurring insurance charges.

Consolidated net income (loss)

Consolidated net loss came to €32.1 million, mainly reflecting €30.1 million in interest expenses, an increase of €9.2 million linked to the rise in debt and interest rates over the period.

After factoring in a €3.9 million income tax expense, OVHcloud ended FY2024 with a net loss of €10.3 million, a €30 million improvement compared to the €40.3 million net loss recorded for FY2023.
 
Cash-flow – Unlevered free cash-flow of €25 million generated in FY2024