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, |
||||||
|
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. |
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SOURCE Nagarro
