OVHcloud sets higher annual revenue target after Q3 boost

FILE PHOTO: The logo of French cloud computing company OVHcloud is seen on a data-center building in Strasbourg, France, October 13, 2021. REUTERS/Christian Hartmann

(Reuters) -French cloud services provider OVHcloud on Thursday raised its full-year revenue growth objective, as commercial momentum in its private and public cloud segments boosted third-quarter sales.

Europe's leading cloud provider now expects its revenue to grow between 16% and 18% in the twelve months to Aug. 31, compared with its earlier estimate of 15% to 17%.

Cloud computing services have seen their demand soar in recent years, becoming a major driver of growth for big tech companies such as Amazon, Microsoft and Alphabet's Google.

OVHcloud, which made its market debut in October in one of Paris' biggest new listings of 2021, saw its third-quarter revenue increase by 25% to 202 million euros ($211 million), or 11.7% on a like-for-like basis.

The figure excludes direct impacts of the fire that in March last year took down four of its data centres in Strasbourg, the group said.

"This good performance reflects the group's ability to gain new customers, primarily in Public Cloud and Private Cloud, as well as the success of its international development," Chief Executive Officer Michel Paulin said in a statement.

Revenues of OVHcloud's private and public cloud segments reported like-for-like growth of 14.6% and 19.4%, respectively, both showing gains in average revenues per active customer.

The group maintained its full-year core profit (EBITDA) margin target of close to 40%, as well as its 2025 guidance.

($1 = 0.9563 euros)

(Reporting by Dagmarah Mackos; editing by Milla Nissi)

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