Business

Nagarro Reports Robust Financial Performance in Q1 2024, Maintains Strong Growth Trajectory

In the ever-evolving sphere of digital engineering and technological advancement, Nagarro has positioned itself as a global frontrunner, consistently delivering exceptional financial results. As of May 14, 2024, the company has proudly unveiled its unaudited financial figures for the first quarter of the year and presented its meticulously prepared three-month statement to the public and stakeholders alike.

Impressive Revenue Growth

Nagarro commenced 2024 on an elevated note, achieving a significant 7.6% quarter-over-quarter (QoQ) increase in revenue, surging to €238.3 million from the €221.4 million milestone set in the final quarter of 2023. The company reported an exceptional 8.7% QoQ revenue growth in constant currency terms. Remarkably, the organic revenue growth was also on an upward trend, recording 7.4% in Euro terms and an impressive 8.6% in constant currency.

Year-over-year (YoY) revenue figures also painted a sterling picture. Nagarro's revenue swelled by 3.8%, up from €229.5 million in the first quarter of the preceding year. When evaluated using constant currency metrics, the YoY revenue growth registered at 5.0%, highlighting the firm’s remarkable consistency. Despite mixed signals, organic growth retained a positive 2.9% YoY in Euro terms, though it depicted a slight contraction of 0.4% YoY in constant currency.

Steady Gross Profit and Margins

The company’s gross profit witnessed an ascent, reaching €63.9 million and €73.6 million as per the previous and current methods, respectively, in Q1 2024, escalating from a previous figure of €61.4 million in Q1 2023. In tandem with financial growth, margin levels held firm. The gross margin remained at a stalwart 26.8% when assessed by the previous method and exhibited a positive leap to 30.9% according to the current standard.

Enhanced Profitability Metrics

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a substantial increase, hiking by €7.8 million, ascending from €31.4 million (representing 13.7% of revenue) in Q1 2023 to stand at €39.2 million (16.4% of revenue) in the recent quarter. EBITDA itself rose by €5.2 million, while earnings before interest and taxes (EBIT) climbed by €3.6 million, from €23.1 million the previous year to €26.6 million. Most notably, the net profit soared by €1.4 million to €16.6 million in comparison with the €15.1 million figure marked in Q1 2023, denoting the firm's enhanced profitability and efficient management.

Operating Cash Influx and Financial Efficiency

The company’s operational cash inflow witnessed a marked elevation, surging from €17.0 million in the first quarter of the previous year to a robust €25.9 million in Q1 2024. Furthermore, days of sales outstanding, an important indicator of financial agility and efficiency, showed modest improvement, dropping from 84 days at the close of the previous year to an efficient 80 days by March 31, 2024.

Customer Satisfaction and Workforce Management

Nagarro's commitment to customer satisfaction was reflected by an impressive Net Promoter Score (NPS) of 66 during the customer satisfaction survey conducted in the first quarter. On the workforce front, the company underwent a restructuring that saw a net reduction of 145 professionals, bringing its total workforce to 18,268 highly skilled individuals. This can be indicative of strategic realignments aimed at optimizing operations to better serve its clientele.

A Predictive Outlook

Monika Gupta, Managing Director of Nagarro, expressed confidence in the company's current trajectory, stating, "Nagarro continues to be the digital transformation partner of choice for our clients. We anticipate that as confidence grows in the economy, there will be an upsurge in opportunities for digital transformation work with our clients, facilitating them to become human-centric, digital-first organizations.” This optimistic outlook underscores Nagarro's pre-eminence in the field and highlights the expected increase of opportunities for expansion in the tech sector.

Proactive Engagement with Investors and Analysts

Nagarro SE has arranged interactive video conferences to connect with its investors and industry analysts. The first meeting aimed at analysts and investors is scheduled for May 14, 2024, at an extensive range of times to accommodate global participation, demonstrating the company's proactive engagement strategy with its investor community. In a similar vein, a separate session tailored explicitly for retail investors will be conducted on the same day. These forthcoming discussions will provide an in-depth appraisal of Nagarro’s Q1 2024 report.

Instructions for Participation

For individuals keen on attending these sessions, pre-registration is essential. Registrations can be submitted through Nagarro’s official investor relations page at Nagarro's Quarterly Statement Call Q1 2024 registration. This initiative highlights the company's dedication to transparency and its inclination towards fostering open dialogue with stakeholders.

Realignment with Industry Benchmarks

Nagarro has also stated that as of Q1 2024, it has revamped its cost of revenue computation methodology to better correspond with the prevalent practices among other IT services corporations. This move underscores Nagarro’s commitment to maintaining financial reporting that aligns with standard industry benchmarks, thereby facilitating clearer and more transparent comparisons for analysts and investors alike.

About Nagarro

Nagarro stands out as a global digital engineering leader, with a firm commitment to aiding clients become agile, pioneering, digital-centric organizations, thereby ensuring their competitive advantage in their respective markets. Renowned for its entrepreneurial spirit, agile methodology, and global footprint, the company fosters a CARING mindset and champions the vision of a Fluidic Enterprise. With approximately 18,250 dedicated employees across 36 countries, Nagarro's global presence is both impressive and influential. Further information is accessible via the official website at www.nagarro.com.

Listing and Contact Information

Nagarro is listed on the Frankfurt Stock Exchange with the ticker symbol NA9, which is part of both the SDAX and TecDAX indices (ISIN DE000A3H2200, WKN A3H220). For any inquiries, correspondences can be addressed via email to .

Brand Recognition

As testament to its brand strength and corporate identity, the Nagarro logo is available for viewing at Nagarro Logo, showcasing the visual embodiment of the company's vibrant and forward-looking business essence.

In conclusion, this detailed compilation of financials and facets of Nagarro's Q1 2024 performance paints a picture of a robustly thriving enterprise. With strong growth, sound strategies, and an unwavering focus on customer satisfaction and innovative solutions, Nagarro is confidently steering towards a future where it continues to redefine industry standards and deliver outstanding value to clients and shareholders alike.

Source Credit

The financial information and statements issued by Nagarro are attributed to the original source, Nagarro SE.

Please note that all financial figures mentioned are unaudited and subject to final adjustments.

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