European Cloud Champion OVHcloud Eyes €1 Billion Milestone
The Paris‑listed cloud provider attributed the Q3 gains to sustained demand for its Public Cloud arm, which grew 17.2% year‑on‑year to €53.6 million, and a revival in Private Cloud, with new customer intake climbing over 25% in its bare‑metal offering. Web Cloud & Other services also nudged up 3.8%.
CEO Benjamin Revcolevschi underlined that the business 'demonstrated its resilience' and reiterated that OVHcloud remains 'on track to exceed €1 billion in revenue this year'. The company confirmed its guidance for full‑year organic revenue growth of between 9% and 11%, an adjusted EBITDA margin around 40%, capital expenditure at 30–34% of revenue, and unlevered free cash flow of at least €25 million.
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Revenue at a glance
In the quarter ended 31 May, Private Cloud generated €169.3 million, up 8.6%, and remains the bulk of activity at 62.3% of total revenues. Public Cloud now accounts for nearly 20%, buoyed by new AI and data analytics products and growth in major regions. Web Cloud & Other includes domains and hosting, which saw modest expansion.
Geographically, OVHcloud continues to strengthen beyond its domestic market. France contributed 48% of total revenues, growing 7.2%; ex‑France Europe grew 8.1%; and Rest of World—encompassing North America and Asia–Pacific—surged 15.6%.
Drivers of the surge include sovereign cloud interest within Europe, a trend prompted by concerns over data sovereignty and geopolitical tensions over hyperscalers. Revcolevschi stressed that choosing a cloud provider 'is no longer just a technical matter, but also a strategic issue'. OVHcloud is positioning itself as a 'sovereign cloud reference,' responding with new offerings like a '3‑AZ Region' in Milan and expanding its first data‑centre footprint in Italy.
The United States continues to be a growth pole, where OVHcloud is rolling out Local Zones in cities such as Boston and Seattle, now totalling ten across the country. The Asia‑Pacific region also showed robust uptake of both public and private cloud services.
OVHcloud's inclusion in France's SBF 120 index this June follows a more than 170% increase in the company's stock price this year. Management aimed to ensure fiscal discipline alongside growth, maintaining cost control and a net revenue retention rate of 104%, indicating that existing customers are expanding their usage.
Key product and infrastructure milestones were outlined in the company's Q3 investor presentation. Its new Data Platform PaaS, a unified solution for data integration and analytics, and AI Endpoints, which provides easy API access to models including LLaMA, Mistral and Qwen, signify its commitment to AI and data services. The forthcoming Milan region, scheduled for late 2025, fulfils the promise of a European triple‑zone site; a key strategic move for corporations needing multi‑AZ frameworks.
Boardroom changes were also noted: Bernard Gault stepped down as lead director on 23 June, succeeded by Pierre Barrial, a former IDEMIA CEO; and Christophe Karvelis‑Senn joined as a non‑voting director, bringing extensive private equity experience.
OVHcloud's Q3 results add to a broader continental shift. In an environment where cloud sovereignty is increasingly viewed through a political and regulatory lens, European enterprises and governments are seeking to diversify away from US hyperscalers. OVHcloud, with its integrated model—from server design to data‑centre operations—bets on delivering competitive pricing, full data control, and a lower carbon footprint.
Investors have responded positively. The SBF 120 listing recognises not only OVHcloud's growth but also its liquidity and free float standing. With capital expenditures making up just under a third of revenues, the firm retains flexibility to expand capacity without straining cash flow.
As public cloud accelerates—boosted by AI, analytics and sovereign demand—OVHcloud positions itself as the front‑runner among Europe‑based providers. With disciplined financial management, new products in AI and a growing global footprint, its progress toward the €1 billion mark reflects a strategic blend of growth and resilience.
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