Nagarro Reports Positive Financial Growth for Fiscal Year 2024
Nagarro's Financial Highlights for FY 2024
Nagarro, a leading global digital engineering firm, has unveiled its preliminary financial results for the fiscal year 2024. For the year, the company reported a revenue of €972 million, positioning itself strongly in the competitive landscape. This revenue marks a significant increase from €912.1 million in 2023, reflecting a year-over-year growth rate of 6.6%, with a constant currency growth figure of 7.2%. The evolution of Nagarro's revenue showcases its resilience and ability to adapt in a rapidly changing digital market.
Profitability Metrics
In alignment with Nagarro’s growth trajectory, the gross profit for FY 2024 stood at €295.8 million, achieving a gross margin of 30.4%. This figure is noteworthy as it allows various comparisons in terms of profitability relative to industry benchmarks. Additionally, the adjusted EBITDA saw an upward trend, reaching €146.5 million, up from €126.1 million in the previous year. The adjusted EBITDA margin also displayed positive movement, climbing to 15.1%, an increase from 13.8% in 2023, highlighting Nagarro's effective management and operational efficiency.
Revised Revenue Definitions
In an effort to better align with common practices across the sector, Nagarro has revised its definition of cost of revenues starting from Q1 2024. This adjustment ensures more clarity for stakeholders regarding profitability and the structure of Nagarro's financials. Through this strategy, Nagarro aims to present a more transparent picture of its financial performance, appealing to investors and market analysts alike.
Cash Position and Investments
At the close of FY 2024, Nagarro reported a solid cash balance of €192.6 million, compared to €110.1 million at the end of the previous year. This substantial cash position places the company in a favorable position to support ongoing projects and future investments. However, Nagarro’s loans and borrowings increased to €329.6 million, up from €274.7 million in 2023. The increase reflects strategic investments made during the period aimed at bolstering customer offerings and expanding market reach.
Employee Growth
The human capital at Nagarro continues to grow as well. The company reported employing approximately 17,695 professionals by the end of FY 2024. This workforce is dedicated to enhancing client engagements and pushing innovative solutions to the forefront of digital engineering services. Nagarro's commitment to nurturing talent is evident in its growth and performance.
Leadership Insights
Vikram Sehgal, the COO and co-founder of Nagarro, expressed satisfaction with the company’s performance despite facing several macroeconomic challenges. He commented, "We are pleased to have delivered a robust 2024, despite the macro headwinds, and we have had a sound start into 2025. We are also excited about the many changes we are making to deliver profitable growth reliably in the years to come." Such insights from leadership reflect a proactive approach towards sustaining growth and navigating market fluctuations.
Looking Ahead
Nagarro plans to publish its detailed audited annual report for FY 2024, alongside the unaudited quarterly financials for Q1 2025 on an upcoming date. This transparency fosters trust and keeps stakeholders informed about the company's performance and strategic direction.
About Nagarro
Nagarro stands as a beacon in digital transformation, assisting clients in achieving a fluidic and innovative posture in their respective markets. The company is renowned for its agile framework and a global approach, fostering a CARING mindset. Currently, Nagarro employs around 17,700 individuals across 38 different countries, enhancing collaboration and driving innovation. For additional information, please visit www.nagarro.com.
Frequently Asked Questions
What were Nagarro's total revenues for FY 2024?
Nagarro reported total revenues of €972 million for fiscal year 2024.
How much did Nagarro's gross profit grow in FY 2024?
The gross profit grew to €295.8 million, reflecting a gross margin of 30.4%.
What changes were made to Nagarro's financial reporting?
Nagarro revised the definition of cost of revenues to better align with common practices in the IT services industry.
What is Nagarro's adjusted EBITDA for FY 2024?
The adjusted EBITDA for FY 2024 was €146.5 million.
How many employees does Nagarro currently have?
Nagarro employs approximately 17,695 professionals worldwide as of the end of FY 2024.
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