OVHcloud is on observe to exceed €1 billion in income for its fiscal 12 months 2025, following a powerful third quarter marked by 9.3% natural development. For the primary 9 months of the fiscal 12 months, the French cloud service supplier reported 9.9% natural development, pushed by worldwide demand, increasing public cloud adoption, and rising curiosity in sovereign cloud options.
For the quarter ending Could 31, 2025, OVHcloud generated €271.9 million in income. This development was largely attributed to sturdy efficiency in its Public Cloud providing and heightened demand from markets in the US and Asia-Pacific. In accordance with CEO Benjamin Revcolevschi, the corporate’s technique of restructuring and repositioning a number of core choices – particularly in Naked Steel Cloud and Hosted Non-public Cloud – has each improved shopper retention and pushed new buyer acquisition.
Mr. Revcolevschi emphasised that inquiries for sovereign cloud options are accelerating, positioning OVHcloud as a key participant within the rising European demand for digital autonomy. He famous that the corporate is assembly the second by refining its choices whereas sustaining operational self-discipline and a powerful cash-generating mannequin. “We reaffirm all of our annual aims and stay disciplined in our execution to ship worthwhile, resilient development,” he mentioned.
Inside product segments, Non-public Cloud continues to signify nearly all of OVHcloud’s enterprise, accounting for €169.3 million (62.3%) of Q3 income – an 8.6% enhance year-on-year on a like-for-like foundation. The corporate highlighted a notable 25% enhance in new prospects in Naked Steel Cloud, which benefited from a restructured entry-level portfolio.
Hosted Non-public Cloud, nevertheless, skilled headwinds because of rising Broadcom/VMware license prices since Could 2024. OVHcloud responded by introducing extra competitively priced entry-level options to regain momentum.
Public Cloud income grew 17.2% to €53.6 million within the third quarter, comprising 19.7% of the corporate’s whole. New choices in AI and knowledge analytics contributed to a 12% enhance in buyer acquisition in comparison with the identical interval final 12 months. Net Cloud and Different income reached €49 million (18.0% of Q3 income), rising 3.8% year-on-year. OVHcloud additionally noticed progress within the area identify phase and launched initiatives to revitalize its internet presence providers, which grew 6.8%.
International Cloud Markets
Geographically, France stays OVHcloud’s largest market, contributing 48% of whole income and rising 7.2% on a like-for-like foundation. Notably, the corporate secured a personal cloud contract for SecNumCloud-compliant options with Arquus. In different European markets, which account for 29% of whole income, development reached 8.1%, with a serious public cloud contract signed with Visma in Norway. The Remainder of the World phase, representing 23% of whole income, posted the best development fee at 15.6%, fueled by continued momentum within the Asia-Pacific and North American markets. OVHcloud additionally secured a regional contract with Evolve Labs.
The corporate has confirmed its FY2025 steering, together with anticipated natural income development of 9% to 11%, a focused adjusted EBITDA margin of round 40%, and over €25 million in unlevered free money circulate – a rise over FY2024. Capital expenditures are forecast to signify 30% to 34% of income, with investments break up between development initiatives and recurring infrastructure wants.
When it comes to company governance, OVHcloud has undergone board adjustments. Bernard Gault, who served for eight years, has stepped down as Lead Director and Chair of the Appointments, Compensation and Governance Committee. Pierre Barrial, former CEO of biometric safety agency IDEMIA, was appointed to succeed him, pending shareholder approval. Christophe Karvelis-Senn, founder of personal fairness agency CAPZA, has additionally joined the board as a non-voting director.
European-aligned Cloud Providers
The corporate has additionally launched two notable cloud options. The brand new Knowledge Platform, a totally self-service Public Cloud PaaS resolution, permits companies to combine, retailer, course of, and analyze knowledge extra simply. Moreover, AI Endpoints – a part of OVHcloud’s Public Cloud portfolio – present fast API entry to greater than 40 pre-trained AI fashions, together with LLaMA, Mistral, and Qwen, providing enterprises a solution to undertake AI capabilities without having infrastructure experience.
Wanting forward, OVHcloud will additional increase its European footprint with the opening of its first Italian knowledge middle in Milan by the tip of 2025. Designed as a “3-AZ Area,” the Milan web site will comprise three adjoining knowledge facilities providing safe, high-performance public cloud infrastructure geared toward enhancing digital sovereignty for European shoppers.
With sturdy financials, new product innovation, and rising demand for European-aligned cloud providers, OVHcloud is positioning itself as a reputable various to hyperscale suppliers, significantly amongst enterprises prioritizing compliance, sovereignty, and operational management.
