Nagarro Stock Price, News & Analysis

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.

Nagarro has announced a strategic partnership with BioT Medical, aimed at enhancing medical device connectivity. This collaboration allows device manufacturers to swiftly transform their products into connected care platforms, enabling personalized patient care systems integrated with existing workflows. According to Daniel Adler, CEO of BioT Medical, this partnership will foster innovation and growth for both companies, delivering enhanced value for medical device manufacturers and patients. Nagarro's expertise in digital health solutions will complement BioT's no-code platform for a more streamlined healthcare ecosystem.

Nagarro reported a strong Q3 2021, with revenue reaching €141.0 million, a 33.7% increase year-over-year. The nine-month revenue grew 19.5% to €384.0 million. Despite the growth, gross margin fell from 33.1% to 28.4% in Q3 due to wage inflation and trainee costs. Adjusted EBITDA grew to €21.7 million, but net profit decreased by €0.7 million, totaling €8.4 million. The company has revised its 2021 revenue guidance to €525 million while maintaining margin expectations.

Nagarro, a leader in digital engineering, has successfully completed its merger with Nagarro Holding GmbH, following its spin-off from Allgeier SE in December 2020. This merger, approved on August 31, 2021, streamlines the organization and eliminates minority interests below Nagarro SE. A 19% capital increase was executed to issue new shares to former minority shareholders. Co-founder Vikram Sehgal expressed optimism about future growth and improved alignment between management and investor goals.

Nagarro has reached an agreement to merge with US-based Advanced Technology Consulting Service (ATCS), focusing on expanding access to key markets, particularly in the US and Germany. ATCS, recognized as one of the fastest-growing private companies, specializes in digital, data, and analytics. This merger will enhance ATCS's service offerings by leveraging Nagarro's extensive talent pool and resources. Both companies share a commitment to a strong corporate culture, aiming to create a dynamic workplace for their teams. Nagarro employs over 10,000 people globally.

Nagarro has successfully partnered with Norwegian start-up Flyr in establishing a digital-first airline, marking a significant milestone as Flyr began flight operations on June 30, 2021. The partnership, initiated in September 2020, involved the rapid integration of Flyr's IT systems, enabling a seamless booking experience. Nagarro provided comprehensive consulting and engineering support, facilitating the airline's launch in under ten months with plans for further digital enhancements. Flyr aims to grow its workforce to around 300 by the end of 2021 and expand its fleet significantly by 2025.