Nagarro Reports 33.7% YoY Revenue Growth in Q3 2021

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FRANKFURT, Germany, November 12, 2021 / PRNewswire / – Nagarro, a global leader in digital engineering and technology solutions, today announced its unaudited financial figures for the third quarter of 2021 and released its nine-month statement.

Reflecting strong demand, revenue reached € 141.0 million in the third quarter of 2021, up 33.7% year-on-year from € 105.4 million in the third quarter of 2020, and quarter-on-quarter compared to € 127.3 million in the second quarter of 2021. The constant currency year-over-year revenue growth for the third quarter of 2021 was 33.6%. The gross margin increased to 40.0 million euros in the third quarter of 2021 against 34.9 million euros in the third quarter of 2020. The gross margin decreased from 33.1% in the third quarter of 2020 to 28.4 % in the third quarter of 2021. Adjusted EBITDA increased by 1.3 million euros compared to 20.4 million euros (19.4%). of revenue) in Q3 2020 to € 21.7 million (15.4% of revenue) in Q3 2021. Note that Q3 2020 also included the effect of wage cuts in response to appearance of the Covid-19 pandemic. Additionally, salary inflation and the transportation of a large number of interns weighed on gross margin and Adjusted EBITDA in Q3 2021 despite some relief from reduced travel and utility bills.

EBITDA increased by 1.6 million euros, from 17.6 million euros in Q3 2020 to 19.2 million euros in Q3 2021. Our most significant adjustments to EBITDA in Q3 2021 are the charge on stock option of 1.6 million euros and the charges of 0.5 million euros related to the non-controlling interest rollover. EBIT increased by 1.1 million euros from 12.4 million euros in the third quarter of 2020 to 13.4 million euros in the third quarter 2021. Net profit decreased by 0.7 million euros to 8.4 million euros in the third quarter of 2021 compared to 9.1 million euros in the third quarter of 2020.

Results at nine months

Nagarro 9M The 2021 turnover amounted to 384.0 million euros, compared to 321.4 million euros for the same period in 2020, i.e. a growth of 19.5%. At constant exchange rates, revenue growth was 22.1%. The gross margin amounted to € 112.1 million in 9M 2021 compared to € 105.9 million in 9M 2020. The gross margin fell from 32.9% in 9M 2020 at 29.2% in 9M 2021. Adjusted EBITDA increased by 5.5% against 56.1 million euros (17.5% of sales) in 9M 2020 to € 59.2 million (15.4% of sales) in 9M 2021.

EBITDA decreased by 1.4 million euros compared to 53.3 million euros in 9M 2020 to € 51.9 million in 9M 2021. EBIT decreased by 2.5 million euros compared to 37.3 million euros in 9M 2020 to € 34.8 million in 9M 2021. Net income decreases from € 2.5 million to € 21.7 million in 9M 2021 compared to € 24.2 million in 9M 2020.

Nagarro’s revenue growth continued despite an overheating labor market,” noted Vaibhav Gadodia, General manager. “We added more than 1,100 professionals again this quarter, including new graduates, net of attrition. The company raised its revenue forecast for 2021 to 525 million euros, while maintaining its gross margin and adjusted EBITDA margin. The company will provide a results video call (webcast) on 12 november To 10:00 a.m. Central European Time, which is 4 a.m. in New York City and 5:00 p.m. in Singapore. To participate in the earnings video call, participants can register here for the webcast.

Key figures – Quarterly



T3


T3




T2





2021


2020


Switch


2021


Switch



kEUR


kEUR


%


kEUR


%












Returned


140 954


105,394


33.7%


127,322


10.7%

Cost of income


100,991


70,532


43.2%


89,328


13.1%

Gross profit


40,008


34 926


14.5%


38,038


5.2%

Adjusted EBITDA


21,709


20,442


6.2%


18 960


14.5%












Revenue by country











Germany


32 229


27 353


17.8%


30,754


4.8%

we


50 623


36,600


38.3%


45,413


11.5%












Turnover by sector











Automotive, manufacturing and industrial


24 882


15,776


57.7%


21 123


17.8%

Energy, utilities and building automation


11 852


9,159


29.4%


10 875


9.0%

Financial services and insurance


17,503


13 918


25.8%


14 687


19.2%

Horizontal technology


13 883


8,496


63.4%


12,020


15.5%

Life Sciences and Health


9,607


6,902


39.2%


9,149


5.0%

Management consulting and commercial information


8,539


9 666


-11.7%


7 889


8.2%

Public, non-profit and education


10 355


6,746


53.5%


11 107


-6.8%

Retail and GIC


19,324


13 549


42.6%


17 715


9.1%

Telecom, media and entertainment


10,517


9,792


7.4%


9 483


10.9%

Travel and Logistics


14,491


11,390


27.2%


13,273


9.2%












Key figures – Nine months

Nine month period ended September 30


2021


2020


Switch



kEUR


kEUR


%








Returned


384,001


321 433


19.5%

Cost of income


272,034


215,728


26.1%

Gross profit


112,100


105,858


5.9%

Adjusted EBITDA


59,228


56,134


5.5%








Revenue by country







Germany


93,538


85,709


9.1%

we


135,307


111,674


21.2%








Turnover by sector







Automotive, manufacturing and industrial


64,865


45 310


43.2%

Energy, utilities and building automation


32,139


27,750


15.8%

Financial services and insurance


45 245


40 681


11.2%

Horizontal technology


37,868


26 919


40.7%

Life Sciences and Health


27 622


23 223


18.9%

Management consulting and commercial information


24 331


25,530


-4.7%

Public, non-profit and education


30 785


24 643


24.9%

Retail and GIC


53 106


38,751


37.0%

Telecom, media and entertainment


29,113


30,893


-5.8%

Travel and Logistics


38 925


37 732


3.2%













Nine month period ended September 30


2021


2020



%


%

Revenue concentration (per customer)





Top 5


14.3%


13.8%

Top 6-10


11.0%


10.1%

Outside the Top 10


74.7%


76.1%






Segment information

Nine month period ended September 30


2021


2020


Switch



kEUR


kEUR


%

central Europe







Returned


129,607


119,639


8.3%

Cost of income


92 332


83,398


10.7%

Gross profit


37,276


36 240


2.9%








North America







Returned


135,636


111,674


21.5%

Cost of income


96,892


72 121


34.3%

Gross profit


38,743


39,553


-2.0%








The rest of europe







Returned


56 934


47,866


18.9%

Cost of income


40 635


32,827


23.8%

Gross profit


16,432


15 192


8.2%








Rest of the world







Returned


61 824


42,254


46.3%

Cost of income


42 175


27,382


54.0%

Gross profit


19 649


14 872


32.1%









Gross margin, gross margin and Adjusted EBITDA are neither required nor presented in accordance with,
IFRS. Non-IFRS measures should not be viewed in isolation or as a substitute for IFRS results.

The gross margin is calculated on the basis of the total performance which is the sum of the turnover and the capitalized own work.

Rounding differences may arise when individual amounts or percentages are added.

SOURCE Nagarro

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