Nagarro posts 6.3% YoY revenue growth in constant currency in H1 2024 despite global macroeconomic challenges
MUNICH, Aug. 14, 2024 /PRNewswire/ -- Today, Nagarro, a global digital engineering leader, presented its unaudited financial numbers for Q2 2024 and released its half-yearly financial report.
In Q2 2024, revenue grew to €244.1 million, up 7.6% YoY from €226.8 million in Q2 2023. Constant currency YoY revenue growth for Q2 2024 was also 7.6%. Organic YoY revenue growth for the quarter was 3.6% in constant currency, which translated to 4.0% organic YoY revenue growth in Euro terms. Nagarro has revised the definition of cost of revenues from Q1 2024 onwards to align it better with that of other IT services companies. Gross profit in Q2 2024 was €73.3 million as per the current method and €62.4 million as per the previous method, as compared to €57.5 million in Q2 2023 as per the previous method. Gross margin in Q2 2024 was 25.6% compared to 25.3% in Q2 2023, both as per the previous method. Gross margin was 30.0% in Q2 2024 as per the current method. Adjusted EBITDA grew to €35.5 million (14.5% of revenue) in Q2 2024 from €28.9 million (12.8% of revenue) in Q2 2023.
EBITDA grew to €32.8 million in Q2 2024 from €27.3 million in Q2 2023. The main EBITDA adjustments in Q2 2024 were on account of the expense on earnouts of €1.3 million and retention bonus of €0.7 million from past acquisitions, and the expense on employee stock options and the Employee Share Purchase Program of €0.7 million. EBIT grew to €23.1 million in Q2 2024 from €19.5 million in Q2 2023. Net profit grew to €12.0 million in Q2 2024 against €11.5 million in Q2 2023.
The company added a net of 33 professionals in Q2 2024.
H1 results
Nagarro released its half-yearly financial report. Revenue grew to €482.4 million in H1 2024, up 5.7% YoY from €456.4 million in H1 2023. Constant currency revenue growth for H1 2024 was 6.3%. Organic YoY revenue growth for H1 2024 was 1.7% in constant currency, which translated to 1.3% organic YoY revenue growth in Euro terms. Gross profit in H1 2024 was €146.9 million as per the current method and €126.3 million as per the previous method, as compared to €118.9 million in H1 2023 as per the previous method. Gross margin in H1 2024 was 26.2% as per the previous method compared to 26.1% in H1 2023 as per the previous method. Gross margin was 30.5% in H1 2024 as per the current method. Adjusted EBITDA grew to €74.7 million (15.5% of revenue) in H1 2024 from €60.3 million (13.2% of revenue) in H1 2023. EBITDA grew to €68.8 million in H1 2024 from €58.1 million in H1 2023. EBIT grew to €49.7 million in H1 2024 from €42.6 million in H1 2023. Net profit grew to €28.6 million in H1 2024 against €26.6 million in H1 2023.
The cash balance increased by €11.3 million from December 31, 2023, to €121.4 million on June 30, 2024.
Operating cash inflow in H1 2024 rose to €27.6 million from €15.4 million in H1 2023. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, increased from 84 days on December 31, 2023, to 87 days on June 30, 2024.
The Net Promoter Score from the customer satisfaction survey conducted in Q1 2024 was 66, and in Q2 2024, 62, resulting in a score of 64 for H1 2024. The company reduced the net of 112 professionals in H1 2024 to 18,301.
Kanchan Ray, CTO of Nagarro, said, "Nagarro's resilient H1 2024 performance highlights the strength of our strategic vision. We must also applaud our hardworking teams, whose efforts continue to create value for our clients around the globe."
Nagarro SE will hold its analyst and investors meeting as a video call to discuss the half-yearly report 2024 on August 14, 2024, at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST / 07:00 pm SGT / 08:00 pm JST).
Nagarro SE will hold its retail investors call to discuss the half-yearly report 2024 on August 14, 2024, at 02:30 pm CEST (05:30 am PT / 07:30 am CT / 08:30 am ET / 01:30 pm BST / 04:30 pm GST / 06:00 pm IST / 08:30 pm SGT / 09:30 pm JST).
To attend, please register in advance at https://www.nagarro.com/en/investor-relations/half-yearly-q2-statements-call-2024.
About Nagarro
Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus, win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Enterprise vision. Nagarro employs around 18,300 people in 37 countries. For more information, visit www.nagarro.com.
FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220)
For inquiries, please contact press@nagarro.com.
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