Nagarro SE

  • WKN: A3H220
  • ISIN: DE000A3H2200
  • Land: Deutschland

Nachricht vom 12.11.2021 | 08:13

Nagarro SE posts 33.7% YoY revenue growth in Q3 2021

DGAP-News: Nagarro SE / Key word(s): 9 Month figures
12.11.2021 / 08:13
The issuer is solely responsible for the content of this announcement.

November 12, 2021 - Nagarro, a global leader in digital engineering and technology solutions, today stated its unaudited financial numbers for Q3 2021 and released its nine-month statement.

Reflecting strong demand, revenue grew to €141.0 million in Q3 2021, up 33.7% YoY from €105.4 million in Q3 2020, and up 10.7% QoQ from € 127.3 million in Q2 2021. Constant currency YoY revenue growth for Q3 2021 was 33.6%. Gross profit grew to €40.0 million in Q3 2021 from €34.9 million in Q3 2020. Gross margin dropped, changing from 33.1% in Q3 2020 to 28.4% in Q3 2021. Adjusted EBITDA grew by €1.3 million from €20.4 million (19.4% of revenue) in Q3 2020 to €21.7 million (15.4% of revenue) in Q3 2021. It may be noted that Q3 2020 also included the effect of salary cuts in response to the onset of the Covid-19 pandemic. In addition, wage inflation and the carrying of a large number of trainees weighed on the gross margin and on the Adjusted EBITDA in Q3 2021 despite some relief from reduced travel and reduced utility bills.

EBITDA increased by €1.6 million from €17.6 million in Q3 2020 to €19.2 million in Q3 2021. Our most significant adjustments to EBITDA in Q3 2021 are the expense on stock option of €1.6 million and expenses of €0.5 million related to the rollover of non-controlling interest. EBIT increased by €1.1 million from €12.4 million in Q3 2020 to €13.4 million in Q3 2021. Net profit decreased by €0.7 million to €8.4 million in Q3 2021 from €9.1 million in Q3 2020.

Nine-month results

Nagarro's 9M 2021 revenues grew to €384.0 million, up from €321.4 million for the same period in 2020, a growth of 19.5%. In constant currency, the revenue growth was 22.1%. Gross profit grew to €112.1 million in 9M 2021 from €105.9 million in 9M 2020. Gross margin dropped, changing from 32.9% in 9M 2020 to 29.2% in 9M 2021. Adjusted EBITDA grew 5.5% from €56.1 million (17.5% of revenue) in 9M 2020 to €59.2 million (15.4% of revenue) in 9M 2021.

EBITDA decreased by €1.4 million from €53.3 million in 9M 2020 to €51.9 million in 9M 2021. EBIT decreased by €2.5 million from €37.3 million in 9M 2020 to €34.8 million in 9M 2021. Net profit decreased by €2.5 million to €21.7 million in 9M 2021against €24.2 million in 9M 2020.

"Nagarro's revenue growth continued, despite an overheated job market", said Vaibhav Gadodia, Managing Director. "We again added over 1,100 professionals in this quarter, including fresh graduates, net of attrition. The company has raised its revenue guidance for 2021 to €525 million, while it retains its gross margin and Adjusted EBITDA margin guidance." The company will offer an earnings video call (webcast) on November 12 at 10 am Central European Time, which is 4 am in New York City and 5 pm in Singapore. To participate in the earnings video call, participants can register here for the webcast.


Key figures - Quarterly

    Q3   Q3       Q2    
    2021   2020   Change   2021   Change
    kEUR   kEUR   %   kEUR   %
                     
Revenue   140,954   105,394   33.7%   127,322   10.7%
Cost of revenues   100,991   70,532   43.2%   89,328   13.1%
Gross profit   40,008   34,926   14.5%   38,038   5.2%
Adjusted EBITDA   21,709   20,442   6.2%   18,960   14.5%
                     
Revenue by country                    
Germany   32,229   27,353   17.8%   30,754   4.8%
US   50,623   36,600   38.3%   45,413   11.5%
                     
Revenue by industry                    
Automotive, Manufacturing and Industrial   24,882   15,776   57.7%   21,123   17.8%
Energy, Utilities and Building Automation   11,852   9,159   29.4%   10,875   9.0%
Financial Services and Insurance   17,503   13,918   25.8%   14,687   19.2%
Horizontal Tech   13,883   8,496   63.4%   12,020   15.5%
Life Sciences and Healthcare   9,607   6,902   39.2%   9,149   5.0%
Management Consulting and Business Information   8,539   9,666   -11.7%   7,889   8.2%
Public, Non-profit and Education   10,355   6,746   53.5%   11,107   -6.8%
Retail and CPG   19,324   13,549   42.6%   17,715   9.1%
Telecom, Media and Entertainment   10,517   9,792   7.4%   9,483   10.9%
Travel and Logistics   14,491   11,390   27.2%   13,273   9.2%
                     
 

Key figures - Nine months

Nine-month period ended September 30   2021   2020   Change
    kEUR   kEUR   %
             
Revenue   384,001   321,433   19.5%
Cost of revenues   272,034   215,728   26.1%
Gross profit   112,100   105,858   5.9%
Adjusted EBITDA   59,228   56,134   5.5%
             
Revenue by country            
Germany   93,538   85,709   9.1%
US   135,307   111,674   21.2%
             
Revenue by industry            
Automotive, Manufacturing and Industrial   64,865   45,310   43.2%
Energy, Utilities and Building Automation   32,139   27,750   15.8%
Financial Services and Insurance   45,245   40,681   11.2%
Horizontal Tech   37,868   26,919   40.7%
Life Sciences and Healthcare   27,622   23,223   18.9%
Management Consulting and Business Information   24,331   25,530   -4.7%
Public, Non-profit and Education   30,785   24,643   24.9%
Retail and CPG   53,106   38,751   37.0%
Telecom, Media and Entertainment   29,113   30,893   -5.8%
Travel and Logistics   38,925   37,732   3.2%
             
 
         
Nine-month period ended September 30   2021   2020
    %   %
Revenue concentration (by customer)        
Top 5   14.3%   13.8%
Top 6-10   11.0%   10.1%
Outside of Top 10   74.7%   76.1%
         
 

Segment information

Nine-month period ended September 30   2021   2020   Change
    kEUR   kEUR   %
Central Europe            
Revenue   129,607   119,639   8.3%
Cost of revenues   92,332   83,398   10.7%
Gross profit   37,276   36,240   2.9%
             
North America            
Revenue   135,636   111,674   21.5%
Cost of revenues   96,892   72,121   34.3%
Gross profit   38,743   39,553   -2.0%
             
Rest of Europe            
Revenue   56,934   47,866   18.9%
Cost of revenues   40,635   32,827   23.8%
Gross profit   16,432   15,192   8.2%
             
Rest of World            
Revenue   61,824   42,254   46.3%
Cost of revenues   42,175   27,382   54.0%
Gross profit   19,649   14,872   32.1%
             
 

Gross profit, gross margin and Adjusted EBITDA are neither required by, nor presented in accordance with, IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.
Gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized.
Rounding differences may arise when individual amounts or percentages are added together.



12.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de



show this

GBC im Fokus

Virtuelle Konferenz: International Investment Forum am 19.05.2022

Das International Investment Forum (IIF) bietet als rein digitales Live-Event Zugang zu börsennotierten Unternehmen aus den Small- und Midcap-Segmenten aus aller Welt. Speaker am 19. Mai 2022 ab 9:55 sind Vorstände börsennotierter Gesellschaften aus den Sektoren Rohstoffe, Immobilien, Energie, Chiptechnik, Biotechnologie, Crypto und Raumfahrt. Die präsentierenden Vorstände bieten einmalige Einblicke und stehen live für Fragen aller Investorengruppen zur Verfügung.

News im Fokus

Allianz SE verkündet Abschluss der Ermittlungen der US-Behörden zu Structured Alpha mit Schuldeingeständnis der AGI US. Allianz SE meldet weiter Abschluss von MoU für neue langfristige Partnerschaft

17. Mai 2022, 16:29

Aktueller Webcast

DFV Deutsche Familienversicherung AG

Webcast/Telefonkonferenz (Presse) zu Q1 2022

18. Mai 2022

Aktuelle Research-Studie

Original-Research: GBC Insider Focus Index (von GBC AG): GBC Insider Focus Index

18. Mai 2022