Q1 2024 revenues
The pipeline continues to grow and the demand for large-scale digital transformation projects remains strong. Client focus remains on operational and cost efficiency programs, however we also see good traction for our high-added value services in Intelligent industry as well as for our sustainability offerings.
In generative AI, we launched a new platform to enable clients to experiment with industry-specific use cases, and to industrialize them, at a controlled cost.
In that context, we reiterate all our objectives for the full year.'
Revenues
(in millions of euros)
Change
2023
2024
Reported
At constant exchange rates*
Q1
5,729
5,527
3.5%
3.3%
In line with the Group's expectations,
In a macro environment which remains soft, large corporations and organizations are still prioritizing operational agility and cost efficiency programs with fast payback, at the expense of non-strategic and discretionary deals. In that context,
OPERATIONS BY REGION
At constant exchange rates, revenues in the
Revenues in the
Activity in
Revenues in the Rest of
Finally, revenues in the
OPERATIONS BY BUSINESS
At constant exchange rates, total revenues* of Strategy & Transformation services (9% of the Group's total revenues in Q1 2024) were up +1.6% year-on-year at constant exchange rates. This growth reflects client focus on strategic initiatives to transform, optimize and adapt their business and operations to a challenging economic environment, as well as investment in Gen AI.
Total revenues of Applications & Technology services (62% of the Group's total revenues and
Lastly, Operations & Engineering (29% of the Group's total revenues) total revenues contracted by -3.0%.
HEADCOUNT
The Group's total headcount stood at 337,200 as at
BOOKINGS
Bookings totaled
OUTLOOK
The Group's financial targets for 2024 are:
Revenue growth of +0% to +3% at constant currency;
Operating margin of 13.3% to 13.6%;
Organic free cash flow of around
The inorganic contribution to growth should be marginal at the lower end of the target range, and up to 1 point at the upper end.
CONFERENCE CALL
All documents relating to this publication will be posted on the
PROVISIONAL CALENDAR
The dividend payment schedule to be submitted to the Shareholders' Meeting for approval would be:
DISCLAIMER
This press release may contain forward-looking statements. Such statements may include projections, estimates, assumptions, statements regarding plans, objectives, intentions and/or expectations with respect to future financial results, events, operations and services and product development, as well as statements, regarding future performance or events. Forward-looking statements are generally identified by the words 'expects', 'anticipates', 'believes', 'intends', 'estimates', 'plans', 'projects', 'may', 'would', 'should' or the negatives of these terms and similar expressions. Although
This press release does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in
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APPENDIX [1]
BUSINESS CLASSIFICATION
Strategy & Transformation includes all strategy, innovation and transformation consulting services.
Applications & Technology brings together 'Application Services' and related activities and notably local technology services.
Operations & Engineering encompasses all other Group businesses. These comprise Business Services (including Business Process Outsourcing and transaction services), all Infrastructure and Cloud services, and R&D and Engineering services.
DEFINITIONS
Organic growth or like-for-like growth in revenues is the growth rate calculated at constant Group scope and exchange rates. The Group scope and exchange rates used are those for the reported period. Exchange rates for the reported period are also used to calculate growth at constant exchange rates.
Reconcillation of growth rates
Q1 2024
Organic growth
3.6%
Changes in Group scope
+0.3 pts
Growth at constant exchange rates
3.3%
Exchange rate fluctuations
0.2 pts
Reported growth
3.5%
When determining activity trends by business and in accordance with internal operating performance measures, growth at constant exchange rates is calculated based on total revenues, i.e., before elimination of inter-business billing. The Group considers this to be more representative of activity levels by business. As its businesses change, an increasing number of contracts require a range of business expertise for delivery, leading to a rise in inter-business flows.
Operating margin is one of the Group's key performance indicators. It is defined as the difference between revenues and operating costs. It is calculated before 'Other operating income and expense' which include amortization of intangible assets recognized in business combinations, expenses relative to share-based compensation (including social security contributions and employer contributions) and employee share ownership plan, and non-recurring revenues and expenses, notably impairment of goodwill, negative goodwill, capital gains or losses on disposals of consolidated companies or businesses, restructuring costs incurred under a detailed formal plan approved by the Group's management, the cost of acquiring and integrating companies acquired by the Group, including earn-outs comprising conditions of presence, and the effects of curtailments, settlements and transfers of defined benefit pension plans.
Normalized net profit is equal to profit for the year (Group share) adjusted for the impact of items recognized in 'Other operating income and expense', net of tax calculated using the effective tax rate. Normalized earnings per share is computed like basic earnings per share, i.e., excluding dilution.
Organic free cash flow is equal to cash flow from operations less acquisitions of property, plant, equipment and intangible assets (net of disposals) and repayments of lease liabilities, adjusted for cash out relating to the net interest cost.
Net debt (or net cash) comprises (i) cash and cash equivalents, as presented in the Consolidated Statement of Cash Flows (consisting of short-term investments and cash at bank) less bank overdrafts, and also including (ii) cash management assets (assets presented separately in the Consolidated Statement of Financial Position due to their characteristics), less (iii) short- and long-term borrowings. Account is also taken of (iv) the impact of hedging instruments when these relate to borrowings, intercompany loans, and own shares.
RESULTS BY REGION
Revenues
(in millions of euros)
Year-on-year-growth
Q1 2023
Q1 2024
Reported
At constant exchange rates
1,663
1,527
8.2%
7.1%
686
684
0.4%
3.2%
1,163
1,131
2.8%
2.8%
Rest of
1,739
1,729
0.6%
0.5%
478
456
4.5%
1.7%
TOTAL
5,729
5,527
3.5%
3.3%
RESULTS BY BUSINESS
Total revenues*
(% of Group revenues)
Year-on-year-growth
at constant exchange rates
in total revenues of the business
Add New
Q1 2023
Q1 2024
Stategy & Transformation
9%
9%
+1.6%
Applications & Technology
62%
62%
4.0%
Operations & Engineering
29%
29%
3.0%
The terms and Alternative Performance Measures marked with an (*) are defined and/or reconciled in the appendix to this press release.
[1] Note that in the appendix, certain totals may not equal the sum of amounts due to rounding adjustments.
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