Nagarro's preliminary numbers for FY 2023 show consistent performance and 6.5% revenue growth

Rhea-AI Summary

Nagarro, a global digital engineering leader, reported its financial results for 2023, with revenue reaching €912.0 million, a 6.5% YoY growth. However, gross profit and Adjusted EBITDA decreased due to excess capacity, impacting margins. The company remains optimistic about future growth.

Positive

• Revenue increased to €912.0 million in 2023, a 6.5% YoY growth.
• Gross profit was €235.5 million, down from €247.1 million in 2022.
• Adjusted EBITDA decreased to €125.9 million in 2023.
• Nagarro reported 18,413 professionals as of December 31, 2023.
• The company plans to publish its audited annual report on April 16, 2024.

Negative

• Gross margin decreased to 25.8% in 2023 from 28.9% in 2022.
• Adjusted EBITDA margin decreased to 13.8% in 2023 from 17.3% in 2022.
• EBITDA decreased to €123.2 million in 2023.
• Cash balance decreased to €109.0 million at the end of 2023.

MUNICH, March 13, 2024 /PRNewswire/ -- Nagarro, a global digital engineering leader, today announced its preliminary unaudited financial numbers for its full year ended December 31, 2023. Revenue grew to €912.0 million in 2023 against guidance of €915 million and up from €856.3 million in 2022, a YoY growth of 6.5%. Gross profit and Adjusted EBITDA were affected by excess capacity throughout the year because of the moderation in growth. Gross profit was €235.5 million in 2023, down from €247.1 million in 2022. Gross margin was 25.8% in 2023 against the guidance of 26%, and down from 28.9% in 2022. Adjusted EBITDA was €125.9 million in 2023, down from €148.5 million in 2022. Adjusted EBITDA margin was 13.8% in 2023 against guidance of 13% and down from 17.3% in 2022. EBITDA was €123.2 million in 2023, down from €145.6 million in 2022.

Nagarro's cash balance at the end of 2023 was €109.0 million as against €110.2 million at the end of 2022. The company reported 18,413 professionals as of December 31, 2023.

Manas Human, co-founder, said, "The year ended with a more stable demand environment than we have seen recently. The final results were affected by fewer working days in the last quarter and year-end effects. We also continued our efforts to trim off excess capacity gradually. As a company, we feel very well prepared to capitalize on improving economic conditions as and when they happen. We are excited that we continue to enjoy the loyalty and patronage of our esteemed clients."

Nagarro plans to publish its audited annual report for 2023 on April 16, 2024.

Legal notice

The information contained in this document is provided as of the date of its publication and is subject to change without notice. It contains preliminary unaudited figures and forward-looking statements based on the current views, expectations, assumptions, and information of the management of Nagarro. Gross profit, gross margin, Adjusted EBITDA, and Adjusted EBITDA margin are non-IFRS/non-GAAP financial measures. These and other non-IFRS/non-GAAP financial measures may not be comparable to similarly titled measures presented by other companies, nor should they be construed as an alternative to other financial measures determined in accordance with IFRS or other GAAP.

About Nagarro

Nagarro, a global digital engineering leader, helps clients become fluidic, 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 Fluidic Enterprise vision. Nagarro employs over 18,000 people in 36 countries. For more information, please visit www.nagarro.com.

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

For inquiries, please contact press@nagarro.com.

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SOURCE Nagarro

FAQ

What was Nagarro's revenue for 2023?

Nagarro reported revenue of €912.0 million in 2023.

How did Nagarro's gross profit change in 2023 compared to 2022?

Nagarro's gross profit decreased to €235.5 million in 2023 from €247.1 million in 2022.

What is the Adjusted EBITDA margin for Nagarro in 2023?

Nagarro's Adjusted EBITDA margin was 13.8% in 2023.

How many professionals did Nagarro report as of December 31, 2023?

Nagarro reported 18,413 professionals as of December 31, 2023.

When does Nagarro plan to publish its audited annual report for 2023?

Nagarro plans to publish its audited annual report on April 16, 2024.