OVHcloud announced on Wednesday that it expected growth to slow in the current financial year, causing the share price to fall sharply in early trading on the Paris Bourse.

This morning, the cloud specialist reported sales of 897 million euros for its 2022/2023 fiscal year, which ended in September, representing an increase of 13.4% on a like-for-like basis.

For the 2023/2024 fiscal year, OVH says it is targeting organic sales growth of between 11% and 13%, i.e. a deceleration year-on-year.

Over the past financial year, its adjusted Ebitda increased by almost 6% compared to 2022, to reach 325.5 million euros, representing a margin of 36.3%.

But its net loss increased to 40.3 million over the full financial year, compared to a net loss of 28.6 million euros in 2021/2022.

For the new financial year, the group says it anticipates an adjusted Ebitda margin of over 37%.

For the coming 2024/2025 financial year, it expects organic sales growth to improve on 2023/2024, with an adjusted Ebitda margin higher than in 2023/2024.

Following these announcements, the share price fell by more than 9% early Wednesday morning on Euronext Paris. The share has lost over 66% since its October 2021 IPO, marked by an opening price of 18.5 euros.

Copyright (c) 2023 CercleFinance.com. All rights reserved.