Ionos stock drops following Q4 revenue beat but cautious outlook

Published 27/03/2025, 10:26
Ionos stock drops following Q4 revenue beat but cautious outlook

Investing.com -- Shares of Ionos fell by 2% today as the company reported fourth-quarter revenues that slightly exceeded expectations, but provided a cautious outlook for the future.

The results showed a robust performance in the core Web Presence & Partners (WP&P) and Aftermarket segments, with revenues up 12.1% and 23.5% respectively compared to the same period last year.

Ionos achieved a roughly 5% and 3% beat on adjusted EBITDA versus consensus, reporting €452 million for the full year, which aligned with the company’s guidance of approximately €450 million. Free cash flow (FCF) for the quarter was better than expected due to improvements in working capital.

Despite these strong quarterly results, the company’s forecast for the future seems to have tempered investor enthusiasm.

For 2025, Ionos expects its newly defined Digital Solutions & Cloud segment to grow at approximately 8% on a constant currency basis, and its redefined Aftermarket segment, now known as Adtech, to show higher year-on-year (YoY) figures. However, the forecasted FY25 adjusted EBITDA of around €510 million, indicating a 13% increase YoY, is about 1% below the consensus.

Morgan Stanley (NYSE:MS) commented on the company’s outlook, saying, "Revenue outlook is likely weaker than consensus, but 2025 EBITDA is broadly defended. We would expect the stock to underperform low/mid-single digit %."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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