Nagarro SE posts 21.1% YoY revenue growth in Q2, 24.7% in constant currency
DGAP-News: Nagarro SE
/ Key word(s): Half Year Results/Half Year Report
August 13, 2021 - Nagarro, a global leader in digital engineering and technology solutions, today stated its unaudited financial numbers for Q2 2021 (April 1, 2021 - June 30, 2021) and released its half-yearly report. Demand continued to be strong for Nagarro's services, while supply was significantly constrained by hiring challenges and Covid-19 disruptions. Revenue grew to €127.3 million in Q2 2021, up 21.1% YoY from €105.1 million in Q2 2020, and up 10.0% QoQ from € 115.7 million in Q1 2021. Constant currency YoY revenue growth for Q2 2021 was 24.7%. Gross profit increased to €38.0 million in Q2 2021 from €36.0 million in Q2 2020. Gross margin dropped to 29.9% in Q2 2021 from 34.2% in Q2 2020. Adjusted EBITDA decreased by 9.8% YoY to €19.0 million (14.9% of revenue) in Q2 2021, from €21.0 million (20.0% of revenue) in Q2 2020. It should be noted here that Q2 2020 results had included the effect of temporary salary cuts in response to the pandemic. H1 results Nagarro also released its very first half-year report. Revenue grew to €243.0 million in H1 2021 (January 01, 2021 - June 30, 2021), up 12.5 % YoY from €216.0 million in H1 2020. Constant currency revenue growth for H1 2021 was 16.3%. Gross profit increased to €72.1 million in H1 2021 from €70.9 million in H1 2020. Gross margin dropped to 29.7% in H1 2021 from 32.8% in H1 2020. Adjusted EBITDA grew 5.1 % YoY to €37.5 million (15.4% of revenue) in H1 2021, up from €35.7 million (16.5% of revenue) in H1 2020. EBITDA dropped by 8.4 % YoY to €32.7 million, down from €35.7 million in H1 2020. EBIT decreased by 14.3 % YoY to €21.4 million, from €24.9 million in H1 2020. Net profit decreased by 12.1 % YoY to €13.3 million against €15.1 million in H1 2020. "Nagarro's revenue growth continued, despite an overheated job market and the afflictions of the second wave of Covid-19 in India", said Manas Fuloria, co-founder. "We again added over 1000 professionals in this quarter, including fresh graduates, net of attrition. The company retains its revenue and Adjusted EBITDA guidance for 2021. However, we are reducing our gross margin guidance from 32% to 29% because of unprecedented wage inflation, while the effect of our remedial steps will lag the increase in wages. We have other operational levers to still feel comfortable about our Adjusted EBITDA guidance for 2021." The company will offer an earnings call (analyst meeting) on August 13 at 2 pm Central European Summer Time, 8 am in New York City and 8 pm in Singapore. The telephone dial-in numbers for audio and the URL for the online presentation can be found below and here. Key figures - Quarterly
Key figures - Half yearly
Segment information
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.
Earnings call (analyst meeting) information
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 over 10,000 people in 26 countries. For more information, visit www.nagarro.com. FRA: NA9 (SDAX, ISIN DE000A3H2200, WKN A3H220)
13.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Nagarro SE |
Einsteinstraße 172 | |
81677 München | |
Germany | |
Phone: | 089 9984210 |
Internet: | www.nagarro.com |
ISIN: | DE000A3H2200 |
WKN: | A3H220 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1226379 |
End of News | DGAP News Service |
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1226379 13.08.2021