Annual Report 2021: A year of acceleration for digital engineering leader Nagarro

Rhea-AI Summary

Nagarro reported significant financial growth for 2021, with revenues increasing by 28.6% year-over-year in constant currency, reaching €546.0 million. Adjusted EBITDA was 14.6% of revenue, totaling €79.7 million. The company added over 5,000 employees and gained inclusion in the SDAX and TecDAX. However, gross margin decreased to 28.3% from 32.6%. Net profit rose to €30.0 million, reflecting a growth of 22.9% from €24.4 million in 2020.

Positive

• Revenues grew by 28.6% YoY in constant currency.
• Net profit increased to €30.0 million, up 22.9% from 2020.
• Addition of over 5,000 employees enhances workforce capacity.
• Inclusion in SDAX and TecDAX marks significant milestone.

Negative

• Gross margin decreased from 32.6% in 2020 to 28.3% in 2021.
• Adjusted EBITDA as a percentage of revenue declined from 17.7% in 2020 to 14.6% in 2021.

• Revenues grew 28.6% in constant currency YoY; Adjusted EBITDA is 14.6% of revenue
• Net addition of over 5,000 employees
• Inclusion in SDAX and TecDAX among milestones in 2021

MUNICH, April 29, 2022 /PRNewswire/ -- Nagarro, a global leader in digital engineering, today presented its audited financial numbers for 2021, its first full year as an independent company. In addition to the strong growth, the inclusion in the SDAX and the TecDAX of Deutsche Börse were particular highlights of the 2021 financial year. Demand was strong for Nagarro's services, while the supply of talent remained constrained. Revenues grew to €546.0 million in 2021 from €430.4 million in 2020, a growth of 26.9%. In constant currency, 2021 YoY revenue growth was 28.6%. Gross profit grew in 2021 to €154.4 million from €140.2 million in 2020. Gross margin dropped, changing from 32.6% in 2020 to 28.3% in 2021. Adjusted EBITDA grew 4.6% from €76.2 million (17.7% of revenue) in 2020 to €79.7 million (14.6% of revenue) in 2021. It may be noted that 2020 included the effect of salary cuts in response to the onset of the Covid-19 pandemic.

EBITDA increased by €4.1 million from €66.2 million in 2020 to €70.3 million in 2021. EBIT increased by €1.2 million from €44.5 million in 2020 to €45.7 million in 2021. Net profit increased by €5.6 million to €30.0 million in 2021 against €24.4 million in 2020.

The annual report also carried results for Q4 2021. Notably, Q4 2021 revenues grew YoY by 48.7% over Q4 2020 and grew QoQ by 15.0% over Q3 2021.

Sandeep Anand, Managing Director, said, "Nagarro continues to benefit from the surge in demand for digital engineering services. At the same time, this rapid growth demonstrates the inherent resilience and agility of Nagarro's organizational design and culture."

Download Nagarro's 2021 Annual Report at https://annualreport.nagarro.com

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 15,000 people in 28 countries. For more information, visit www.nagarro.com. 

FRA: NA9 (SDAX, ISIN DE000A3H2200, WKN A3H220)
For inquiries, please contact press@nagarro.com 

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SOURCE Nagarro

FAQ

What were Nagarro's revenue figures for 2021?

Nagarro's revenues for 2021 were €546.0 million, a 28.6% increase in constant currency.

How much did Nagarro's net profit increase in 2021?

Nagarro's net profit rose to €30.0 million in 2021, an increase of 22.9% from €24.4 million in 2020.

What is Nagarro's adjusted EBITDA for 2021?

Nagarro's adjusted EBITDA for 2021 was €79.7 million, representing 14.6% of revenue.

What were the significant milestones achieved by Nagarro in 2021?

Nagarro achieved inclusion in the SDAX and TecDAX, and added over 5,000 employees.

How did the gross margin change for Nagarro in 2021?

Nagarro's gross margin decreased from 32.6% in 2020 to 28.3% in 2021.