NAGARRO SE
DGAP-News: Nagarro SE / Key word(s): Half Year Results/Half Year Report
Nagarro SE posts 21.1% YoY revenue growth in Q2, 24.7% in constant currency
2021-08-13 / 11:21
The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
August 13, 2021 - Nagarro, a global leader in digital engineering and technology solutions, today stated its unaudited
financial numbers for Q2 2021 (April 1, 2021 - June 30, 2021) and released its half-yearly report. Demand continued to
be strong for Nagarro's services, while supply was significantly constrained by hiring challenges and Covid-19
disruptions. Revenue grew to ?127.3 million in Q2 2021, up 21.1% YoY from ?105.1 million in Q2 2020, and up 10.0% QoQ
from ? 115.7 million in Q1 2021. Constant currency YoY revenue growth for Q2 2021 was 24.7%. Gross profit increased to
?38.0 million in Q2 2021 from ?36.0 million in Q2 2020. Gross margin dropped to 29.9% in Q2 2021 from 34.2% in Q2 2020.
Adjusted EBITDA decreased by 9.8% YoY to ?19.0 million (14.9% of revenue) in Q2 2021, from ?21.0 million (20.0% of
revenue) in Q2 2020. It should be noted here that Q2 2020 results had included the effect of temporary salary cuts in
response to the pandemic.
EBITDA dropped by 26.9% YoY to ?15.4 million, from ?21.0 million in Q2 2020. The main EBITDA adjustments were on
account of stock option expense of ?2.9 million and expenses of ?1.8 million related to the rollover of non-controlling
interest. EBIT decreased by 38.9% YoY to ?9.6 million, from ?15.7 million in Q2 2020. Net profit decreased by 38.2% YoY
to ?5.6 million against ?9.1 million in Q2 2020. The cash balance decreased by ?5.8 million from December 31, 2020 to
?101.9 million.
H1 results
Nagarro also released its very first half-year report. Revenue grew to ?243.0 million in H1 2021 (January 01, 2021 -
June 30, 2021), up 12.5 % YoY from ?216.0 million in H1 2020. Constant currency revenue growth for H1 2021 was 16.3%.
Gross profit increased to ?72.1 million in H1 2021 from ?70.9 million in H1 2020. Gross margin dropped to 29.7% in H1
2021 from 32.8% in H1 2020. Adjusted EBITDA grew 5.1 % YoY to ?37.5 million (15.4% of revenue) in H1 2021, up from
?35.7 million (16.5% of revenue) in H1 2020. EBITDA dropped by 8.4 % YoY to ?32.7 million, down from ?35.7 million in
H1 2020. EBIT decreased by 14.3 % YoY to ?21.4 million, from ?24.9 million in H1 2020. Net profit decreased by 12.1 %
YoY to ?13.3 million against ?15.1 million in H1 2020.
"Nagarro's revenue growth continued, despite an overheated job market and the afflictions of the second wave of
Covid-19 in India", said Manas Fuloria, co-founder. "We again added over 1000 professionals in this quarter, including
fresh graduates, net of attrition. The company retains its revenue and Adjusted EBITDA guidance for 2021. However, we
are reducing our gross margin guidance from 32% to 29% because of unprecedented wage inflation, while the effect of our
remedial steps will lag the increase in wages. We have other operational levers to still feel comfortable about our
Adjusted EBITDA guidance for 2021."
The company will offer an earnings call (analyst meeting) on August 13 at 2 pm Central European Summer Time, 8 am in
New York City and 8 pm in Singapore. The telephone dial-in numbers for audio and the URL for the online presentation
can be found below and here.
Key figures - Quarterly
Q2 2021 Q2 2020 Q1 2021
kEUR kEUR Change in percent kEUR Change in percent
Revenue 127,322 105,131 21.1% 115,724 10.0%
Cost of revenues 89,328 69,198 29.1% 81,715 9.3%
Gross profit 38,038 35,977 5.7% 34,054 11.7%
Adjusted EBITDA 18,960 21,014 -9.8% 18,559 2.2%
Revenue by country
Germany 30,754 27,106 13.5% 30,554 0.7%
US 45,413 37,936 19.7% 39,271 15.6%
Revenue by industry
Automotive, Manufacturing and Industrial 21,123 14,144 49.3% 18,860 12.0%
Energy, Utilities and Building Automation 10,875 8,407 29.4% 9,412 15.6%
Financial Services and Insurance 14,687 14,067 4.4% 13,055 12.5%
Horizontal Tech 12,020 9,332 28.8% 11,965 0.5%
Life Sciences and Healthcare 9,149 8,057 13.5% 8,866 3.2%
Management Consulting and Business Information 7,889 7,874 0.2% 7,904 -0.2%
Public, Non-profit and Education 11,107 8,558 29.8% 9,323 19.1%
Retail and CPG 17,715 12,262 44.5% 16,067 10.3%
Telecom, Media and Entertainment 9,483 10,123 -6.3% 9,113 4.1%
Travel and Logistics 13,273 12,306 7.9% 11,161 18.9%
Key figures - Half yearly
H1 2021 H1 2020
kEUR kEUR Change in percent
Revenue 243,046 216,039 12.5%
Cost of revenues 171,043 145,196 17.8%
Gross profit 72,092 70,932 1.6%
Adjusted EBITDA 37,519 35,692 5.1%
Revenue by country
Germany 61,309 58,356 5.1%
US 84,684 75,075 12.8%
Revenue by industry
Automotive, Manufacturing and Industrial 39,983 29,535 35.4%
Energy, Utilities and Building Automation 20,287 18,590 9.1%
Financial Services and Insurance 27,742 26,764 3.7%
Horizontal Tech 23,985 18,423 30.2%
Life Sciences and Healthcare 18,015 16,322 10.4%
Management Consulting and Business Information 15,792 15,864 -0.5%
Public, Non-profit and Education 20,429 17,897 14.2%
Retail and CPG 33,782 25,202 34.0%
Telecom, Media and Entertainment 18,596 21,101 -11.9%
Travel and Logistics 24,435 26,341 -7.2%
H1 2021 H1 2020
Percent Percent
Revenue concentration (by customer)
Top 5 13.9% 13.9%
Top 6-10 10.8% 10.4%
Outside of Top 10 75.3% 75.6%
Segment information
H1 2021 H1 2020
kEUR kEUR Change in percent
Central Europe
Revenue 84,822 80,633 5.2%
Cost of revenues 59,882 55,781 7.4%
Gross profit 24,939 24,852 0.4%
North America
Revenue 84,698 75,276 12.5%
Cost of revenues 59,691 49,167 21.4%
Gross profit 25,007 26,108 -4.2%
Rest of Europe
Revenue 37,001 32,487 13.9%
Cost of revenues 26,775 22,518 18.9%
Gross profit 10,315 10,057 2.6%
Rest of World
Revenue 36,525 27,644 32.1%
Cost of revenues 24,694 17,730 39.3%
Gross profit 11,831 9,914 19.3%
Gross profit, gross margin and Adjusted EBITDA are neither required by, nor presented in accordance with, IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.
Gross profit is calculated on the basis of total performance which is sum of revenue and own work capitalized.
Rounding differences may arise when individual amounts or percentages are added together.
Earnings call (analyst meeting) information The earnings call will involve a telephone dial-in for audio plus an online presentation. Dial-in numbers: +43 1 3865461 Austria local +358 9 42720657 Finland local +33 4 82 98 62 47 France local +49 69 247471834 Germany local (English) +91 11 7127 9191 India local +39 02 6006 3140 Italy local +47 815 03 466 Norway local +48 12 200 52 45 Poland local +34 912 66 19 31 Spain local +46 40 688 75 30 Sweden local +44 20 3872 0880 United Kingdom local +1 516-269-8980 United States local Online presentation login: https://webcast.meetyoo.de/index.html?e=W0ggs1O1p826
About Nagarro
Nagarro, a global digital engineering leader, helps clients become 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 approach of "Thinking Breakthroughs". Nagarro employs over 10,000 people in 26 countries. For more information, visit www.nagarro.com.
FRA: NA9 (SDAX, ISIN DE000A3H2200, WKN A3H220) -----------------------------------------------------------------------------------------------------------------------
(MORE TO FOLLOW) Dow Jones Newswires
August 13, 2021 05:21 ET (09:21 GMT)
