Nagarro Q1 2022 statement: Nagarro continues its rapid growth

Rhea-AI Summary

Nagarro reported strong financial performance for Q1 2022, achieving a 60.3% year-over-year revenue growth, rising to €185.5 million. Sequential revenue growth was 14.5%. Adjusted EBITDA also saw a significant increase of 56.1%, reaching €29.0 million. The company added 2,263 professionals in the quarter, maintaining a stable outlook for 2022. Despite a reduction in gross margin from 29.4% to 27.1%, net profit soared 81.6% to €13.9 million. Cash reserves saw a decrease due to acquisition liabilities.

Positive

• YoY revenue growth of 60.3%, reaching €185.5 million.
• Adjusted EBITDA climbed 56.1% to €29.0 million.
• Net addition of 2,263 professionals, including fresh graduates.

Negative

• Gross margin decreased from 29.4% to 27.1%.
• Cash balance reduced by €30.8 million to €75.8 million due to acquisition payments.

• YoY revenue growth of 60.3%, QoQ/sequential revenue growth of 14.5%
• YoY adjusted EBITDA growth of 56.1%
• Net addition of 2,263 professionals in this quarter, including fresh graduates
• 2022 guidance remains unchanged

MUNICH, May 13, 2022 /PRNewswire/ -- Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q1 2022. Nagarro carried over its revenue momentum from Q4 2021 into Q1 2022. YoY revenue growth figures were especially impressive, aided by a year of strong hiring, three acquisitions, and a relatively slow Q1 last year. Demand continued to be strong and appeared unaffected by the looming possibility of a slowdown in the economy. Despite a difficult hiring environment, the company added a net 2,263 professionals in Q1 2022 – a number that includes additions through acquisitions, trainees, and lateral hires.

Revenue grew to €185.5 million in Q1 2022 from €115.7 million in Q1 2021, a growth of 60.3%. In constant currency, Q1 2022 YoY revenue growth was 55.2%. Gross profit grew in Q1 2022 to €50.4 million from €34.1 million in Q1 2021. Gross margin dropped, changing from 29.4% in Q1 2021 to 27.1% in Q1 2022. Adjusted EBITDA grew 56.1% from €18.6 million (16.0% of revenue) in Q1 2021 to €29.0 million (15.6% of revenue) in Q1 2022.

EBITDA grew 60.9% YoY to €27.9 million, up from €17.3 million in Q1 2021. EBIT grew 73.8% YoY to €20.5 million, from €11.8 million in Q1 2021. Net profit increased by 81.6% YoY to €13.9 million against €7.7 million in Q1 2021. The cash balance reduced by €30.8 million from December 31, 2021, to €75.8 million at the end of the first quarter of 2022, primarily due to payment towards acquisition liabilities of €20.8 million.

Bachar Kassar, co-founder and Managing Director, said, "Nagarro's organizational design and culture and our engineering excellence continue to drive our strong growth. Right now, we may be one of the fastest growing IT services companies on the planet, and that is a great feeling."

Nagarro will hold its analyst meeting as a video call to discuss annual statements 2021 and Q1 2022 statement on May 13, 2022, 1:30 pm CEST (Berlin), which corresponds to 12:30 pm BST (London), 7:30 am EDT (New York City), 4:30 am PDT (San Francisco), 7:30 pm SGT (Singapore), 8:30 pm JST (Tokyo) and 5:00 pm IST (New Delhi). Please feel free to register  here for our earnings video call.

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 16,000 people in 30 countries. For more information, visit www.nagarro.com.

FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220)

Media Contact:
Christopher Grosse
christopher.grosse@nagarro.com  

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SOURCE Nagarro

FAQ

What were Nagarro's Q1 2022 revenue figures?

Nagarro reported Q1 2022 revenue of €185.5 million, reflecting a year-over-year growth of 60.3%.

How much did Nagarro's adjusted EBITDA grow in Q1 2022?

Nagarro's adjusted EBITDA grew by 56.1%, reaching €29.0 million in Q1 2022.

What is the current cash balance of Nagarro?

As of the end of Q1 2022, Nagarro's cash balance is €75.8 million, reduced by €30.8 million from December 31, 2021.

How many professionals did Nagarro add in Q1 2022?

Nagarro added a net total of 2,263 professionals in Q1 2022.

What is Nagarro's gross margin for Q1 2022?

Nagarro's gross margin in Q1 2022 decreased to 27.1%, down from 29.4% in Q1 2021.