Nagarro posts 16.5% YoY revenue growth in constant currency in H1 2023 despite global macroeconomic challenges

Nagarro,a global digital engineering leader,today presented its unaudited financial numbers for Q2 2023and released its half-yearly report.

MUNICH,Aug. 14,2023 -- Nagarro's superior client experience and its strategic diversification continued to deliver resilient growth in the face of global economic uncertainties. In Q2 2023,revenue grew to €226.8million,up 8.0% YoY from €210.0millionin Q2 2022. Constant currency YoY revenue growth for Q2 2023was 10.7%. Organic YoY revenue growth for the quarter was 8.7% in constant currency,which translated to 6.1% organic YoY revenue growth in Euro terms. Gross profit declined to €57.5millionin Q2 2023from €60.2millionin Q2 2022. Due to excess production capacity which is reflected in the cost of revenues,gross margin dropped to 25.3%in Q2 2023from 28.7%in Q2 2022. Adjusted EBITDA declined to €28.9million(12.8%of revenue) in Q2 2023,from €40.2million(19.1%of revenue) in Q2 2022.

EBITDA declined to €27.3 million in Q2 2023,from €39.4 million in Q2 2022. The main EBITDA adjustments were on account of the share payment expenses of €0.9 million and acquisition expenses of €0.7 million.EBIT declined to €19.5 million in Q2 2023,from €31.1 million in Q2 2022. Net profit declined to €11.5 million in Q2 2023 against €22.4 million in Q2 2022.

The company added net 736 professionals in Q2 2023,642 of which were via the acquired entities.

H1 results

Nagarro released its half-yearly report. Revenue grew to €456.4millionin H1 2023,up 15.4%YoY from €395.6millionin H1 2022. Constant currency revenue growth for H1 2023was 16.5%. Organic YoY revenue growth for H1 2023was 14.9% in constant currency,which translated to 14.2% organic YoY revenue growth in Euro terms. Gross profit increased to €118.9millionin H1 2023from €110.5millionin H1 2022. Gross margin dropped to 26.1%in H1 2023from 27.9%in H1 2022. Adjusted EBITDA declined to €60.3million(13.2%of revenue) in H1 2023,from €69.1million(17.5%of revenue) in H1 2022. EBITDA decreased to €58.1millionin H1 2023,from €67.2millionin H1 2022. EBIT declined to €42.6millionin H1 2023,from €51.6millionin H1 2022. Net profit declined to €26.6millionin H1 2023 against €36.3millionin H1 2022. The cash balance decreased by €10.8millionfrom December 31,2022to €99.3million,mainly on account of buyback of shares.

Manas Human,co-founder,said,"Nagarro has continued to grow and expand in H1,even as a digital engineering company in a business environment that has not been very conducive to discretionary spending. Though a few of our client projects had to scale back,fully 168 clients generated over 1 million Euro in revenue in the trailing twelve months to June 30,2023,compared to just 131 for the same period a year ago. This reflects the growth dynamism that is present in most of Nagarro's business. Our long-term investments in diversifying across geographies and industries have paid off. So has our long-term focus on superior client experience,exemplified by a Net Promoter Score of over 60,which drives client stickiness and loyalty in difficult times. Nagarro is taking strong steps to trim its cost base,but our strategy remains to prioritize long-term growth."

Nagarro will hold its analyst meeting as a video call to discuss half-yearly report 2023 on August 14,at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST /07:00pm SGT/08:00pm JST).To attend,please register in advance: https://web.lumiconnect.com/#/m/134797148.

About Nagarro

Nagarro,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 around 19,500 people in 35 countries. For more information,visit,www.nagarro.com.

FRA: NA9 (SDAX/TecDAX,ISIN DE000A3H2200,WKN A3H220)

For inquiries,please contact press@nagarro.com.

Media Contact:

Gagan Bakshi

gagan.bakshi@nagarro.com