OVHcloud reported a strong start to the year with revenue for the first quarter (ending 30 November 2022) of €216 million, up 15.4 percent compared to the first quarter of 2022.
The French group said its strategic focus on data sovereignty, responsible cloud and innovation accelerated growth in the first quarter, continuing a trend seen in previous quarters.
Alongside its strong results, the group has also appointed Stephanie Besnier as Chief Financial Officer and a member of its Executive Committee.
She will join OVHcloud during the first quarter of 2023 and is currently the Executive Vice President of the French Participation Agency (a French entity managing large shares of the French state), where she worked as Interim Director between June and September 2022.
OVHcloud CEO Michel said: “In the ever-growing cloud market, our position as a leading company in Europe, which has been validated by industry analysts such as IDC, enables us to continue to successfully expand our offering of sovereign products and services, with environmental responsibility even stronger than Ever”. Pauline.
“This very good start to the year, the strong commitment of our people and the very positive cloud market fundamentals enable us to look forward to 2023 with fresh ambition, despite the still volatile macroeconomic context. This enables us to confidently affirm our 2023 and mid-term goals.”
Private cloud revenue was €133 million in the first quarter of 2023, up 17.4 percent as reported, and up 12.8 percent on a comparative basis.
This segment has been driven by double-digit growth across all regions and across both the distribution segments, both institutional and digital.
Meanwhile, public cloud reported revenue of €35.7 million for the quarter, up 22.9 percent as announced, and up 18 percent year-on-comparable, also supported by strong uptake across all regions.
Revenue by geography
OVHcloud has once again seen colors fly across the board.
The company’s European business – which includes the UK – rose by double digits in both arms of the cloud, swelling 12.4 per cent to a total of €60.1m.
France’s main turf rose 15 percent, generating 107.1 million euros in revenue.
OVH said the region performed well in every segment with double-digit growth in public and private cloud, driven particularly by the enterprise channel, which includes sales generated with OVHcloud partners.
In the rest of the OVH countries, growth continued with the success of the public and private cloud segments, which posted double-digit growth during the first three months of the year, despite a strong comparison base in 2022 in the US.
Regional performance has also diminished due to the influence of Russia, which experienced a significant slowdown during this period.
Updated price hike forecasts for 2023
After a very good start to the year, OVHcloud has confirmed that it is targeting organic revenue growth of 14-16 percent for fiscal year 2023, compared to fiscal year 2022.
The cost of electricity, particularly in Europe, remains one of the most important drivers of inflation.
Thanks to an active electricity hedging policy and a geographic footprint in areas where prices are tightly controlled, the group said it already knows the cost of more than 90 percent of its electricity consumption for fiscal 2023.
With this insight, OVHcloud expects electricity costs in 2023 to be between five percent and ten percent of revenue, compared to 2022.
OVH has made incremental price increases for its products and services since December 2022, in line with global cloud industry-wide increases, which it said will enable the company to maintain its 2023 EBITDA margin in line with 2022.
With the full impact of these price increases starting to take effect from the second half onwards, the first quarter of 2023 did not benefit from the price increases, the group expects to see a seasonal pattern in margin-adjusted EBITDA margin in the second half.
As of today, OVHcloud said it has not observed any changes in customer sales momentum as a result of the incremental price increases that began since early December 2022. With respect to its existing customers, OVHcloud has not seen any increase in the number of requests for customer support. related to price hikes.