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Investing.com -- IONOS Group SE (F:IOSn) shares jumped 6.9% on Thursday after the web hosting and cloud services provider reported better-than-expected second quarter results and raised its full-year profit guidance, despite trimming growth expectations for its cloud business.
The company reported second quarter revenue of €449 million, up 18.5% YoY and exceeding analyst estimates of 14.6% growth. Adjusted EBITDA rose 22.7% to €138 million, beating consensus expectations of €133 million, with margins improving to 30.7%. For the first half of 2025, revenue increased 19.1% to €895 million compared to €751.6 million in the same period last year.
IONOS added 70,000 new customers in the quarter, significantly above analyst expectations of 39,000 additions, bringing its total customer base to 6.47 million as of June 30, up from 6.32 million at the end of 2024.
"Our continued focus on operational efficiency and cost discipline has allowed us to deliver strong profit growth while still investing in customer acquisition," said a company executive. "The improved EBITDA margin demonstrates the scalability of our business model."
The company raised its 2025 adjusted EBITDA forecast to approximately €530 million, up from its previous guidance of €520 million, representing 17% growth over 2024.
However, IONOS trimmed its cloud revenue growth expectations to 10% from the previous 15-17% forecast, while maintaining its overall Digital Solutions and Cloud segment revenue growth target of approximately 8%.
The AdTech segment showed particularly strong performance with revenue surging 72.7% to €239 million in the first half, though the company expects growth to moderate in the second half as Google (NASDAQ:GOOGL) accelerates migration to its new RSOC product.
IONOS has begun implementing mid-single-digit price increases in the second half of the year and expects continued robust average revenue per user (ARPU) growth despite slower progress in the second quarter due to introductory discounts for new customers.