Asia FX muted, dollar weakens slightly ahead of Fed rate decision
Investing.com -- Shares of Nagarro (ETR:NA9) climbed 2.7% today after the company released its audited financial figures for the fiscal year 2024 and the first quarter of 2025.
The results, which had been delayed by two weeks, showed a mixed performance with revenues growing but margins and profitability experiencing a decline.
For the first quarter of 2025, Nagarro reported revenue of €247 million, marking a 4% increase year-over-year (YoY) and a 3% organic growth. While no consensus estimates were available for the quarter, the revenue growth indicates a positive trend.
However, adjusted EBITDA fell 23% YoY to €30.2 million, with the margin dropping to 12.2% from 16.4% in the same quarter the previous year. Operating cash flow was up slightly to €29.8 million compared to €25.9 million in the prior year, with cash conversion remaining strong at 99%. Free cash flow was slightly down at €27.1 million compared to €28.9 million YoY. The company also reported a 4% decrease in full-time equivalent employees, totaling 17,496.
Looking ahead, Nagarro provided guidance for fiscal year 2025, expecting revenues to be in the range of €1,020-1,080 million, which represents a 5%-11% increase YoY and is roughly in line with consensus estimates of €1,042 million. The company also anticipates a gross margin of around 30% and an adjusted EBITDA margin between 14.5% and 15.5%, which is slightly higher than the consensus of 14.0%.
Jefferies reflected on the quarter’s performance: "The performance in Q1 was still lacklustre with organic constant currency growth of only +1.7% and adj. EBITDA was down 23% YoY, however, against very tough prior year comps."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.