Nagarro, a global digital engineering leader, today presented
its unaudited financial numbers for Q2 2023 and
released its half-yearly report.
MUNICH, Aug. 14,
2023 /PRNewswire/ -- Nagarro's superior client
experience and its strategic diversification continued to deliver
resilient growth in the face of global economic uncertainties. In
Q2 2023, revenue grew to €226.8 million, up 8.0% YoY from
€210.0 million in Q2 2022. Constant currency YoY revenue
growth for Q2 2023 was 10.7%. Organic YoY revenue growth for
the quarter was 8.7% in constant currency, which translated to 6.1%
organic YoY revenue growth in Euro terms. Gross profit declined to
€57.5 million in Q2 2023 from
€60.2 million in Q2 2022. Due to excess production
capacity which is reflected in the cost of revenues, gross margin
dropped to 25.3% in Q2 2023 from 28.7% in Q2 2022.
Adjusted EBITDA declined to €28.9 million (12.8% of
revenue) in Q2 2023, from €40.2 million (19.1% of
revenue) in Q2 2022.
EBITDA declined to €27.3 million in Q2 2023, from €39.4 million in
Q2 2022. The main EBITDA adjustments were on account of the share
payment expenses of €0.9 million and acquisition expenses of €0.7
million. EBIT declined to €19.5 million in Q2 2023, from €31.1
million in Q2 2022. Net profit declined to €11.5 million in Q2 2023
against €22.4 million in Q2 2022.
The company added net 736 professionals in Q2 2023, 642 of which
were via the acquired entities.
H1 results
Nagarro released its half-yearly report. Revenue grew to
€456.4 million in H1 2023, up 15.4 % YoY from
€395.6 million in H1 2022. Constant currency revenue
growth for H1 2023 was 16.5%. Organic YoY revenue growth for
H1 2023 was 14.9% in constant currency, which translated to
14.2% organic YoY revenue growth in Euro terms. Gross profit
increased to €118.9 million in H1 2023 from
€110.5 million in H1 2022. Gross margin dropped to
26.1% in H1 2023 from 27.9% in H1 2022. Adjusted
EBITDA declined to €60.3 million (13.2 % of
revenue) in H1 2023, from €69.1 million (17.5% of
revenue) in H1 2022. EBITDA decreased to €58.1 million in
H1 2023, from €67.2 million in H1 2022. EBIT declined to
€42.6 million in H1 2023, from €51.6 million in
H1 2022. Net profit declined to €26.6 million in H1 2023
against €36.3 million in H1 2022. The cash balance
decreased by €10.8 million from December 31, 2022 to €99.3 million,
mainly on account of buyback of shares.
Manas Human, co-founder, said,
"Nagarro has continued to grow and expand in H1, even as a digital
engineering company in a business environment that has not been
very conducive to discretionary spending. Though a few of our
client projects had to scale back, fully 168 clients generated over
1 million Euro in revenue in the
trailing twelve months to June 30,
2023, compared to just 131 for the same period a year ago.
This reflects the growth dynamism that is present in most of
Nagarro's business. Our long-term investments in diversifying
across geographies and industries have paid off. So has our
long-term focus on superior client experience, exemplified by a Net
Promoter Score of over 60, which drives client stickiness and
loyalty in difficult times. Nagarro is taking strong steps to trim
its cost base, but our strategy remains to prioritize long-term
growth."
Nagarro will hold its analyst meeting as a video call to discuss
half-yearly report 2023 on August 14,
2023, at 01:00 pm CEST
(04:00 am PT / 06:00 am CT / 07:00 am
ET / 12:00 pm BST /
03:00 pm GST / 04:30 pm IST /07:00pm SGT/08:00pm
JST).To attend, please register in advance:
https://web.lumiconnect.com/#/m/134797148.
About Nagarro
Nagarro, a global digital engineering leader, helps clients
become innovative, digital-first companies and thus win in their
markets. The company is distinguished by its entrepreneurial,
agile, and global character, its CARING mindset, and its approach
of thinking breakthroughs. Nagarro employs around 19,500 people in
35 countries. For more information,
visit, www.nagarro.com.
FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220)
For inquiries, please contact press@nagarro.com.
Media Contact:
Gagan Bakshi
gagan.bakshi@nagarro.com
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