OVHcloud Q3 revenue rises 9.3% on public cloud growth, global demand

Published 24/06/2025, 06:24
© Reuters.

Investing.com -- OVHcloud (EPA:OVH) on Tuesday reported third-quarter fiscal 2025 revenue of €271.9 million, a 9.3% like-for-like increase, driven by strong Public Cloud performance and demand in the United States and Asia-Pacific.

Organic growth for the first nine months of the fiscal year reached 9.9%. CEO Benjamin Revcolevschi said OVHcloud is on track to exceed €1 billion in annual revenue. 

He cited the repositioning of offerings to support customer needs and noted increased interest in sovereign cloud solutions, calling it a “structural change.”

The company maintained operating discipline in the quarter, particularly in general and administrative expenses. Net revenue retention for existing customers was 104% on a like-for-like basis.

Private Cloud generated €169.3 million in revenue, or 62.3% of the total, up 8.6% like-for-like. Growth was supported by repositioned offerings, with Bare Metal Cloud new customer numbers rising over 25% from the prior-year period. 

Hosted Private Cloud was affected by increased license costs since May 2024. A new entry-level offer was launched to restore momentum. 

OVHcloud also signed a Private Cloud contract with Arquus for SecNumCloud-certified services.

Public Cloud revenue totaled €53.6 million, representing 19.7% of revenue and up 17.2% like-for-like. 

New customer acquisition rose more than 12% from the previous year. The company expanded its AI and data analytics offerings and plans to open a three-availability-zone (3-AZ) region in Milan in 2025, following its existing region in Paris.

Web Cloud and Other revenue reached €49 million, or 18% of total revenue, up 3.8% like-for-like. Domain name services gained market share in several countries, while “Web presence” solutions grew 6.8%.

France contributed 48% of total revenue, with Private and Public Cloud growing 6.6% and 16.9% respectively. 

Other European countries made up 29% of revenue, growing 8.1%, led by Central and Northern Europe. OVHcloud signed a Private Cloud contract with Norway-based Visma.

The Rest of the World accounted for 23% of revenue and rose 15.6% like-for-like, with continued momentum in the U.S. and Asia-Pacific, including a new contract with Evolve Labs.

The French cloud computing company reaffirmed full-year guidance of 9% to 11% organic revenue growth, an adjusted EBITDA margin around 40%, and capital expenditures between 30% and 34% of revenue. 

Recurring and growth Capex are expected to account for 11%–13% and 19%–21% of revenue, respectively. Unlevered free cash flow is projected to exceed €25 million, up from fiscal 2024.

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