Nagarro posts 6.3% YoY revenue growth in constant currency in H1 2024 despite global macroeconomic challenges

EQS-News: Nagarro SE / Key word(s): Half Year Results/Half Year Report Nagarro posts 6.3% YoY revenue growth in constant currency in H1 2024 despite global macroeconomic challenges 14.08.2024 / 08:02 CET/CEST The issuer is solely responsible for the content of this announcement. August 14, 2024 – 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.