Nagarro Announces Audited Financial Results for FY 2024
Nagarro, a noted global leader in digital engineering, has shared its financial performance for the full year ended December 31, 2024. With revenue reaching €972 million, the company has shown solid growth compared to €912.1 million in the previous year, marking a year-over-year increase of 6.6%. Adjusted for constant currency, revenue growth stands at 7.2%, illustrating Nagarro's resilience and adaptability in a dynamic market.
The gross profit has also seen encouraging results, growing to €295.8 million from €235.7 million, reflecting a strategic focus on enhancing service delivery and customer satisfaction. The company reported a gross margin of 30.4%, a slight improvement over the previous year's margin of 25.8%. Nagarro's adjusted EBITDA also saw a rise, climbing to €147.5 million from €126.1 million the prior year, demonstrating effective cost management and operational efficiency.
The total number of clients whose annual revenue exceeds €1 million has increased from 181 to 186, indicating a solid retention rate and an expanding client base. Furthermore, there was a notable increase in operating cash flow, which rose to €86.5 million, supporting Nagarro's investment in growth initiatives and innovation.
Commitment to Shareholders
Nagarro's Management Board plans to propose a dividend of €1 per share at the upcoming Annual General Meeting. This marks a significant milestone in the company’s strategy for long-term value creation, reflecting its commitment to rewarding shareholders while continuing to invest in growth.
As part of its governance practices, Nagarro aims to expand its Supervisory Board. The addition of experienced candidates, including experts in digital transformation and finance, will bolster the company's leadership, enhancing its capacity to navigate the fast-evolving tech landscape.
Q1 2025 Financial Overview
Turning to the first quarter of 2025, Nagarro reported revenue of €246.9 million, up 3.6% from €238.3 million in the same quarter of the previous year. Gross profit also saw an increase, reaching €75.5 million. While the gross margin saw a minor decline to 30.6%, the overall performance remained robust even amid market challenges.
However, adjusted EBITDA declined to €30.2 million due to increased investment in research and development, highlighting Nagarro's commitment to innovation. Although EBITDA dipped to €33.0 million from €36.0 million, it reflects the company's strategy of prioritizing long-term advancements over short-term gains.
Looking Ahead with Optimism
Nagarro's cash position at the end of Q1 2025 was €162.2 million, down from €192.6 million at year's end. This slight reduction is in line with its strategic investments aimed at fueling future growth. The company continues to report a stable workforce of approximately 17,496 professionals, prepared to meet the demands of its expanding client portfolio.
On May 15, 2025, Nagarro will host an analyst and investor meeting via video call to discuss its recent performance and future strategies. This open dialogue embraces shareholder transparency, providing insights into the company's direction and growth trajectory.
Nagarro’s commitment to excellence continues to resonate through its operations, as the firm seeks to foster digital innovation within various industries. The company's entrepreneurial spirit, combined with its CARING mindset, positions it well for navigating future challenges in the technological arena.
Frequently Asked Questions
What are Nagarro's key financial highlights for FY 2024?
Nagarro reported a revenue of €972 million, a net profit of €49.2 million, and an adjusted EBITDA of €147.5 million for FY 2024.
What dividend proposal is Nagarro making for its shareholders?
The company plans to propose a dividend of €1 per share at the upcoming Annual General Meeting.
How did Nagarro perform in Q1 2025?
Nagarro's revenue for Q1 2025 was €246.9 million, with a gross profit of €75.5 million, reflecting a 3.6% increase year-over-year.
What initiatives is Nagarro pursuing for growth?
Nagarro is focusing on digital transformation and innovation as part of its broader growth and maturity initiatives.
How is Nagarro positioning itself for the future?
Nagarro aims to enhance its leadership through board expansion and remains committed to fostering digital-first solutions for its clients.
