Nagarro Stock Price, News & Analysis

Nagarro, a global digital engineering leader, reported strong preliminary unaudited financial results for Q4 and FY 2022. Q4 revenue reached €231.0 million, marking a 42.6% YoY increase from €162.0 million in Q4 2021. For the full year, revenue grew to €856.4 million, a 56.8% increase. Gross profit in Q4 2022 was €66.8 million, with a gross margin of 28.9%. Adjusted EBITDA rose to €30.5 million, 13.2% of revenue. The company also maintains a 2023 revenue guidance of approximately €1,020 million, excluding acquisitions, with anticipated gross and adjusted EBITDA margins of 28% and 15%, respectively.

Nagarro reported its Q3 2022 financial results, showcasing a remarkable 63.0% year-over-year revenue growth, reaching €229.8 million. The company also saw a 9.4% quarter-over-quarter increase from Q2 2022. Nine-month revenue surged to €625.4 million, reflecting a 62.9% increase YoY. Key metrics included an adjusted EBITDA of €48.4 million and net profit of €25.7 million. Nagarro revised its 2022 revenue guidance to €850 million and gross margin expectations to 28%.

Nagarro reported strong Q2 2022 results with revenue reaching €210.0 million, a 65.0% increase YoY. Constant currency revenue growth stood at 55.7%. Gross profit rose to €60.2 million, though gross margin slightly declined to 28.7%. Adjusted EBITDA surged 111.9% YoY to €40.2 million, while net profit skyrocketed 296.3% YoY to €22.3 million. In H1 2022, revenue totaled €395.6 million, marking a 62.8% YoY growth. The company added a net of 872 professionals in Q2 2022.

Nagarro has partnered with Soravia and Google Cloud to drive digital transformation in the real estate sector. This collaboration aims to create energy-neutral cities and enhance customer experience through advanced technologies like AI and machine learning. Initially, the focus will be on developing new digital interfaces for property management and investment. The partnership leverages Soravia's expertise in sustainable project development and Nagarro's technological prowess, backed by Google Cloud’s capabilities in data analytics and IoT.

Nagarro reported strong financial performance for Q1 2022, achieving a 60.3% year-over-year revenue growth, rising to €185.5 million. Sequential revenue growth was 14.5%. Adjusted EBITDA also saw a significant increase of 56.1%, reaching €29.0 million. The company added 2,263 professionals in the quarter, maintaining a stable outlook for 2022. Despite a reduction in gross margin from 29.4% to 27.1%, net profit soared 81.6% to €13.9 million. Cash reserves saw a decrease due to acquisition liabilities.

Nagarro reported significant financial growth for 2021, with revenues increasing by 28.6% year-over-year in constant currency, reaching €546.0 million. Adjusted EBITDA was 14.6% of revenue, totaling €79.7 million. The company added over 5,000 employees and gained inclusion in the SDAX and TecDAX. However, gross margin decreased to 28.3% from 32.6%. Net profit rose to €30.0 million, reflecting a growth of 22.9% from €24.4 million in 2020.

Nagarro has announced its agreement to acquire RipeConcepts, enhancing its digital creative capabilities. Headquartered in Salt Lake City, RipeConcepts specializes in high-quality, multi-channel creative services such as design, illustration, and 3D modeling, boasting revenues of approximately 10 million Euro in 2021. This acquisition will facilitate Nagarro's strategy to innovate in the evolving metaverse landscape and leverage the skilled workforce in the Philippines. The deal is expected to strengthen Nagarro's offerings for its Fortune 500 and unicorn clients.

Nagarro has finalized an agreement with Techmill Global Pte Ltd, enhancing its position in the fintech sector. Established in 2008, Techmill, which employs over 180 staff, primarily serves banks and partners with Temenos, a leader in financial tech. In 2021, Techmill reported revenue in the high single-digit million Euro range. This acquisition will bolster Nagarro's Banking and Financial Services capabilities and expand its presence in Australia.

Nagarro has been added to the Frankfurt Stock Exchange's TecDAX index, which tracks the 30 most significant technology stocks. This inclusion comes nearly one year after its listing and six months post its addition to the SDAX index. Driven by a strong share price performance, Nagarro's stock has increased more than 2.5 times since its initial listing in December 2020. Managing Director Anurag Sahay expressed pride in joining the TecDAX, viewing this as a milestone in the company's growth journey.