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Nagarro SE posts 33.7% YoY revenue growth in Q3 2021

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DGAP-News: Nagarro SE / Key word(s): 9 Month figures
12.11.2021 / 08:13
The issuer is solely responsible for the content of this announcement.

November 12, 2021 - Nagarro, a global leader in digital engineering and technology solutions, today stated its unaudited financial numbers for Q3 2021 and released its nine-month statement.

Reflecting strong demand, revenue grew to €141.0 million in Q3 2021, up 33.7% YoY from €105.4 million in Q3 2020, and up 10.7% QoQ from € 127.3 million in Q2 2021. Constant currency YoY revenue growth for Q3 2021 was 33.6%. Gross profit grew to €40.0 million in Q3 2021 from €34.9 million in Q3 2020. Gross margin dropped, changing from 33.1% in Q3 2020 to 28.4% in Q3 2021. Adjusted EBITDA grew by €1.3 million from €20.4 million (19.4% of revenue) in Q3 2020 to €21.7 million (15.4% of revenue) in Q3 2021. It may be noted that Q3 2020 also included the effect of salary cuts in response to the onset of the Covid-19 pandemic. In addition, wage inflation and the carrying of a large number of trainees weighed on the gross margin and on the Adjusted EBITDA in Q3 2021 despite some relief from reduced travel and reduced utility bills.

EBITDA increased by €1.6 million from €17.6 million in Q3 2020 to €19.2 million in Q3 2021. Our most significant adjustments to EBITDA in Q3 2021 are the expense on stock option of €1.6 million and expenses of €0.5 million related to the rollover of non-controlling interest. EBIT increased by €1.1 million from €12.4 million in Q3 2020 to €13.4 million in Q3 2021. Net profit decreased by €0.7 million to €8.4 million in Q3 2021 from €9.1 million in Q3 2020.

Nine-month results

Nagarro's 9M 2021 revenues grew to €384.0 million, up from €321.4 million for the same period in 2020, a growth of 19.5%. In constant currency, the revenue growth was 22.1%. Gross profit grew to €112.1 million in 9M 2021 from €105.9 million in 9M 2020. Gross margin dropped, changing from 32.9% in 9M 2020 to 29.2% in 9M 2021. Adjusted EBITDA grew 5.5% from €56.1 million (17.5% of revenue) in 9M 2020 to €59.2 million (15.4% of revenue) in 9M 2021.

EBITDA decreased by €1.4 million from €53.3 million in 9M 2020 to €51.9 million in 9M 2021. EBIT decreased by €2.5 million from €37.3 million in 9M 2020 to €34.8 million in 9M 2021. Net profit decreased by €2.5 million to €21.7 million in 9M 2021against €24.2 million in 9M 2020.

"Nagarro's revenue growth continued, despite an overheated job market", said Vaibhav Gadodia, Managing Director. "We again added over 1,100 professionals in this quarter, including fresh graduates, net of attrition. The company has raised its revenue guidance for 2021 to €525 million, while it retains its gross margin and Adjusted EBITDA margin guidance." The company will offer an earnings video call (webcast) on November 12 at 10 am Central European Time, which is 4 am in New York City and 5 pm in Singapore. To participate in the earnings video call, participants can register here for the webcast.


Key figures - Quarterly

 

 

Q3

 

Q3

 

 

 

Q2

 

 

 

 

2021

 

2020

 

Change

 

2021

 

Change

 

 

kEUR

 

kEUR

 

%

 

kEUR

 

%

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

140,954

 

105,394

 

33.7%

 

127,322

 

10.7%

Cost of revenues

 

100,991

 

70,532

 

43.2%

 

89,328

 

13.1%

Gross profit

 

40,008

 

34,926

 

14.5%

 

38,038

 

5.2%

Adjusted EBITDA

 

21,709

 

20,442

 

6.2%

 

18,960

 

14.5%

 

 

 

 

 

 

 

 

 

 

 

Revenue by country

 

 

 

 

 

 

 

 

 

 

Germany

 

32,229

 

27,353

 

17.8%

 

30,754

 

4.8%

US

 

50,623

 

36,600

 

38.3%

 

45,413

 

11.5%

 

 

 

 

 

 

 

 

 

 

 

Revenue by industry

 

 

 

 

 

 

 

 

 

 

Automotive, Manufacturing and Industrial

 

24,882

 

15,776

 

57.7%

 

21,123

 

17.8%

Energy, Utilities and Building Automation

 

11,852

 

9,159

 

29.4%

 

10,875

 

9.0%

Financial Services and Insurance

 

17,503

 

13,918

 

25.8%

 

14,687

 

19.2%

Horizontal Tech

 

13,883

 

8,496

 

63.4%

 

12,020

 

15.5%

Life Sciences and Healthcare

 

9,607

 

6,902

 

39.2%

 

9,149

 

5.0%

Management Consulting and Business Information

 

8,539

 

9,666

 

-11.7%

 

7,889

 

8.2%

Public, Non-profit and Education

 

10,355

 

6,746

 

53.5%

 

11,107

 

-6.8%

Retail and CPG

 

19,324

 

13,549

 

42.6%

 

17,715

 

9.1%

Telecom, Media and Entertainment

 

10,517

 

9,792

 

7.4%

 

9,483

 

10.9%

Travel and Logistics

 

14,491

 

11,390

 

27.2%

 

13,273

 

9.2%

 

 

 

 

 

 

 

 

 

 

 

 

Key figures - Nine months

Nine-month period ended September 30

 

2021

 

2020

 

Change

 

 

kEUR

 

kEUR

 

%

 

 

 

 

 

 

 

Revenue

 

384,001

 

321,433

 

19.5%

Cost of revenues

 

272,034

 

215,728

 

26.1%

Gross profit

 

112,100

 

105,858

 

5.9%

Adjusted EBITDA

 

59,228

 

56,134

 

5.5%

 

 

 

 

 

 

 

Revenue by country

 

 

 

 

 

 

Germany

 

93,538

 

85,709

 

9.1%

US

 

135,307

 

111,674

 

21.2%

 

 

 

 

 

 

 

Revenue by industry

 

 

 

 

 

 

Automotive, Manufacturing and Industrial

 

64,865

 

45,310

 

43.2%

Energy, Utilities and Building Automation

 

32,139

 

27,750

 

15.8%

Financial Services and Insurance

 

45,245

 

40,681

 

11.2%

Horizontal Tech

 

37,868

 

26,919

 

40.7%

Life Sciences and Healthcare

 

27,622

 

23,223

 

18.9%

Management Consulting and Business Information

 

24,331

 

25,530

 

-4.7%

Public, Non-profit and Education

 

30,785

 

24,643

 

24.9%

Retail and CPG

 

53,106

 

38,751

 

37.0%

Telecom, Media and Entertainment

 

29,113

 

30,893

 

-5.8%

Travel and Logistics

 

38,925

 

37,732

 

3.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine-month period ended September 30

 

2021

 

2020

 

 

%

 

%

Revenue concentration (by customer)

 

 

 

 

Top 5

 

14.3%

 

13.8%

Top 6-10

 

11.0%

 

10.1%

Outside of Top 10

 

74.7%

 

76.1%

 

 

 

 

 

 

Segment information

Nine-month period ended September 30

 

2021

 

2020

 

Change

 

 

kEUR

 

kEUR

 

%

Central Europe

 

 

 

 

 

 

Revenue

 

129,607

 

119,639

 

8.3%

Cost of revenues

 

92,332

 

83,398

 

10.7%

Gross profit

 

37,276

 

36,240

 

2.9%

 

 

 

 

 

 

 

North America

 

 

 

 

 

 

Revenue

 

135,636

 

111,674

 

21.5%

Cost of revenues

 

96,892

 

72,121

 

34.3%

Gross profit

 

38,743

 

39,553

 

-2.0%

 

 

 

 

 

 

 

Rest of Europe

 

 

 

 

 

 

Revenue

 

56,934

 

47,866

 

18.9%

Cost of revenues

 

40,635

 

32,827

 

23.8%

Gross profit

 

16,432

 

15,192

 

8.2%

 

 

 

 

 

 

 

Rest of World

 

 

 

 

 

 

Revenue

 

61,824

 

42,254

 

46.3%

Cost of revenues

 

42,175

 

27,382

 

54.0%

Gross profit

 

19,649

 

14,872

 

32.1%

 

 

 

 

 

 

 

 

Gross profit, gross margin and Adjusted EBITDA are neither required by, nor presented in accordance with, IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.
Gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized.
Rounding differences may arise when individual amounts or percentages are added together.


12.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

Nagarro SE

Einsteinstraße 172

81677 München

Germany

Phone:

089 9984210

Internet:

www.nagarro.com

ISIN:

DE000A3H2200

WKN:

A3H220

Indices:

SDAX

Listed:

Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange

EQS News ID:

1248561


 

End of News

DGAP News Service

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