Trump announces trade deal with EU following months of negotiations
Introduction & Market Context
OVHcloud (EPA:OVH) released its Q3 FY25 revenue presentation on June 24, 2025, reporting revenue of €271.9 million, representing a 9.3% like-for-like (LFL) increase year-over-year. Despite the solid growth figures, the company’s stock fell 10.7% on the day of the announcement, suggesting investors may have expected even stronger performance or were concerned about other factors not highlighted in the presentation.
The cloud service provider maintained its full-year guidance, emphasizing its focus on data sovereignty solutions and public cloud products to drive future growth, while continuing to prioritize cost discipline and profitability.
Quarterly Performance Highlights
OVHcloud reported Q3 FY25 revenue of €271.9 million, up 9.3% on a like-for-like basis compared to the same period last year. For the first nine months of FY25, revenue reached €807.9 million, representing a 9.9% LFL increase. The company also maintained a healthy customer retention rate with a 104% Net Revenue Retention Rate for Q3.
As shown in the following chart breaking down revenue growth contributions:
The Private Cloud segment remained OVHcloud’s largest revenue contributor at €169.3 million in Q3 (62.3% of total revenue), growing 8.6% LFL. The company highlighted a successful strategic repositioning for entry-range servers, which resulted in a 25% year-over-year increase in customer acquisition compared to Q3 FY24.
Public Cloud continued to be the company’s fastest-growing segment, with Q3 revenue of €53.6 million (19.7% of total revenue), increasing 17.2% LFL. This strong performance was driven by both existing products and new customer acquisition, which accelerated 12% year-over-year.
The Webcloud & Others segment generated €49.0 million in Q3 (18.0% of total revenue), growing 3.8% LFL. Within this segment, the Web Presence category showed stronger growth at 6.8% LFL, driven particularly by market share gains in Domain Names.
Geographic Performance
OVHcloud’s revenue growth varied significantly across regions, with the strongest momentum coming from markets outside Europe.
The company’s geographic revenue breakdown shows continued strong performance in international markets:
France remained OVHcloud’s largest market, accounting for 48% of Q3 FY25 revenue with 7.2% LFL growth. The rest of Europe contributed 29% of revenue, growing 8.1% LFL, with the company highlighting strong performance in Northern and Central Europe.
The Rest of World segment showed the strongest growth at 15.6% LFL, representing 23% of total revenue. The company specifically noted double-digit growth in both Asia-Pacific and the United States, indicating successful international expansion.
Strategic Initiatives
During Q3, OVHcloud continued to expand its product portfolio with several key launches. The company introduced Dataplatform, a unified platform for data integration and analytics, and AI Endpoints, which provide secure and easy-to-integrate generative AI APIs.
On the infrastructure front, OVHcloud announced that its Milan datacenter is scheduled for commercial launch before the end of calendar year 2025. The company also successfully launched its Public Cloud offering in the Paris 3-AZ (availability zone) region, with additional product launches planned for this location.
The company highlighted new customer wins and partnerships including Arquus, Visma, Sagemcom, and Equans, reinforcing its position in the European cloud market.
Forward-Looking Statements
OVHcloud confirmed its financial guidance for FY25, maintaining confidence in its growth trajectory:
The company expects like-for-like revenue growth of 9-11% for the full fiscal year, with an adjusted EBITDA margin of approximately 40%. Capital expenditure is projected to be between 30-34% of revenue, split between recurring (11-13%) and growth (19-21%) investments.
OVHcloud also forecasts unlevered free cash flow to exceed €25 million, representing an improvement compared to FY24.
Executive Summary
OVHcloud’s Q3 FY25 results demonstrate the company’s continued execution of its strategic vision, focusing on two main pillars: core business fundamentals (predictable and profitable growth with higher cash generation) and future revenue growth levers (data sovereignty solutions and public cloud products).
The key takeaways from the quarter highlight both achievements and ongoing strategic focus:
Despite the positive operational results, the 10.7% drop in OVHcloud’s stock price on the day of the announcement suggests investors may have been looking for even stronger growth or had concerns about competitive pressures in the European cloud market. As the company continues to expand its product portfolio and geographic footprint, its ability to maintain growth momentum while improving profitability and cash flow will be crucial for investor confidence in the coming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.