MUNICH, Nov. 14, 2024 /PRNewswire/ -- Today, Nagarro, a global digital engineering leader, presented its unaudited financial numbers for Q3 2024 and released its nine-month statement.
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In Q3 2024, revenue grew to EUR242.9 million, up 3.7% YoY from EUR234.3 million in Q3 2023 and up 5.6% YoY in constant currency. Organic YoY revenue growth for Q3 2024 was 5.0% in constant currency, which translated to 3.0% organic YoY revenue growth in Euro terms. Nagarro has revised the definition of cost of revenues from Q1 2024 onwards to align it better with that of other IT services companies. Gross profit in Q3 2024 was EUR76.5 million as per the current method and EUR66.6 million as per the previous method, as compared to EUR56.1 million in Q3 2023 as per the previous method. Gross margin in Q3 2024 was 27.4% compared to 23.9% in Q3 2023, both as per the previous method. Gross margin was 31.5% in Q3 2024 as per the current method. Adjusted EBITDA grew to EUR34.6 million (14.3% of revenue) in Q3 2024 from EUR32.0 million (13.7% of revenue) in Q3 2023.
EBITDA grew to EUR31.9 million in Q3 2024 from EUR30.6 million in Q3 2023. The main EBITDA adjustments in Q3 2024 were on account of the expense on earnouts of EUR0.9 million and retention bonus of EUR0.7 million from past acquisitions, as well as the expense on employee stock options and the Employee Share Participation Program of EUR0.6 million. EBIT grew to EUR22.6 million in Q3 2024 from EUR22.1 million in Q3 2023. Net profit grew to EUR12.8 million in Q3 2024 from EUR12.6 million in Q3 2023.
The company's headcount was trimmed by 363 during Q3 2024.
Nine-month results
Revenue grew to EUR725.4 million in 9M 2024, up 5.0% YoY from EUR690.6 million in 9M 2023. Constant currency revenue growth for 9M 2024 was 6.1%. Organic YoY revenue growth for 9M 2024 was 2.6% in constant currency, which translated to 2.0% organic YoY revenue growth in Euro terms. Gross profit in 9M 2024 was EUR223.5 million as per the current method and EUR192.9 million as per the previous method, as compared to EUR175.0 million in 9M 2023 as per the previous method. The gross margin in 9M 2024 was 26.6% as per the previous method compared to 25.3% in 9M 2023 as per the previous method. Gross margin was 30.8% in 9M 2024 as per the current method. Adjusted EBITDA grew to EUR109.3 million (15.1% of revenue) in 9M 2024, from EUR92.4 million (13.4% of revenue) in 9M 2023. EBITDA grew to EUR100.7 million in 9M 2024 from EUR88.7 million in 9M 2023. EBIT grew to EUR72.3 million in 9M 2024 from EUR64.7 million in 9M 2023. Net profit grew to EUR41.3 million in 9M 2024 against EUR39.1 million in 9M 2023.
Cash balance increased by EUR30.9 million from December 31, 2023, to EUR141.0 million on September 30, 2024.
Operating cash inflow in 9M 2024 rose to EUR64.9 million from EUR41.4 million in 9M 2023. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, increased from 84 days on December 31, 2023, to 86 days on September 30, 2024.
The Net Promoter Score from the customer satisfaction survey conducted in Q1 2024 was 66; in Q2 2024, 62; and in Q3 2024, 59, resulting in a score of 62 for 9M 2024. The company reduced net 475 professionals in 9M 2024 to 17,938.
"Nagarro continues to grow in spite of challenging market conditions, with yet another satisfactory quarterly performance. We are excited about our latest acquisition and partnerships, which are in sync with our strategic vision and will help us grow and succeed", said Gagan Bakshi, Managing Director of Nagarro.
Nagarro SE will hold its analyst and investors meeting as a video call to discuss the Q3 statement 2024 on November 14, 2024, at 01:00 pm CET (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm GMT / 04:00 pm GST / 05:30 pm IST / 08:00 pm SGT / 09:00 pm JST).
Nagarro SE will hold its retail investors call to discuss the Q3 statement 2024 on November 14, 2024, at 02:30 pm CET (05:30 am PT / 07:30 am CT / 08:30 am ET / 01:30 pm GMT / 05:30 pm GST / 07:00 pm IST / 09:30 pm SGT / 10:30 pm JST).
To attend, please register in advance at https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q3-2024 [https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q3-2024].
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 around 17,900 people in 37 countries. For more information, visit www.nagarro.com [https://www.nagarro.com/en].
FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220)
For inquiries, please contact press@nagarro.com [mailto:press@nagarro.com].
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Photo: https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg NagarroCONTACT: Media Contact: Gagan Bakshi, gagan.bakshi@nagarro.com, +91 997
185 5664
