What segment of OvHcloud's business has been driving growth recently?

The public cloud segment, which accounts for just under 23% of revenue, has been a key driver of growth.

Which regions contributed most to the growth of OvHcloud's public cloud segment?

The rest of Europe and the rest of the world outpaced domestic growth, with growth rates of 7.4% and 8.6% respectively.

What was the net revenue retention rate for OvHcloud in the reported period?

The net revenue retention rate reached 102%, indicating that OvHcloud is not only attracting new customers but also retaining its existing ones.

OvHcloud's Public Cloud Segment Drives Faster Revenue Growth

Q: How much did the public cloud segment grow in the third quarter compared to the prior quarter?

The public cloud segment grew by 20.2% like-for-like to €65.6 million, a sharp recovery from the 12.9% it managed in the prior quarter.

Europe's largest cloud company, OvHcloud, reports accelerated growth in its public cloud business, driven by new customer acquisition and expansion of regions. The net revenue retention rate reached 102%.

OvHcloud, Europe's largest cloud company, has reported faster revenue growth in its fiscal third quarter, driven by a public cloud business that has climbed back above 20% expansion. The company attributed the rebound to strong customer acquisition among its smaller "Starters" accounts, particularly for virtual private server products, alongside expansion of its three-availability-zone regions in Paris and Milan.

The acceleration was concentrated in one segment: Public Cloud, which accounts for just under 23% of revenue, grew 20.2% like-for-like to €65.6 million, a sharp recovery from the 12.9% it managed in the prior quarter. This growth was led by markets outside France, with the rest of Europe up 7.4% and the rest of the world up 8.6%, outpacing domestic growth of 5.8%. Revenue rose to €289.6 million ($329.28 million) in the three-month period ended May, up from €271.9 million a year earlier.

What Happened

OvHcloud's public cloud segment has been a key driver of growth for the company, and its recent acceleration is a positive sign for the industry. The company's ability to attract new customers and expand its regions in Paris and Milan suggests that it is well-positioned to continue growing in the market. Additionally, OvHcloud's focus on virtual private server products and other cloud services indicates that it is adapting to changing customer needs and preferences.

The company's revenue growth was also driven by strong performance from its Private Cloud segment, which grew 4.0% to €174.0 million, and Web Cloud, which edged up 2% to €50 million. The net revenue retention rate, a measure of how much existing customers are spending relative to the prior year, reached 102%. These results suggest that OvHcloud is not only attracting new customers but also retaining its existing ones.

Background and Context

OvHcloud has been making significant investments in its cloud infrastructure and services in recent years. The company has expanded its data centers and regions, and has developed a range of cloud services including virtual private servers, storage, and security solutions. OvHcloud's public cloud segment has been a key focus for the company, with a goal of achieving €2 billion in revenue by some point in the future.

The company's CEO, Octave Klaba, has stated that OvHcloud is working towards a "new target of €2 billion ($2.33bn) in revenue," but the timeline associated with this remains unclear. Klaba noted that part of this is understanding what that means: "How many data centers, how many servers, how many products, how many customers, and what is the right organization to reach this €2 billion revenue?"

Why it Matters to the Industry

OvHcloud's growth and expansion are significant for the adult industry because they indicate a growing demand for cloud services. The company's focus on public cloud, private cloud, and web cloud solutions suggests that it is well-positioned to meet the needs of adult industry platforms and operators. Additionally, OvHcloud's investments in its infrastructure and services will likely benefit the industry as a whole.

The growth of OvHcloud's public cloud segment is particularly significant for the industry because it indicates a growing demand for scalable and flexible cloud solutions. This trend is likely to continue as more adult industry platforms and operators move their operations to the cloud. OvHcloud's ability to attract new customers and expand its regions in Paris and Milan suggests that it is well-positioned to meet this demand.

What Comes Next

OvHcloud has confirmed all of its FY2026 objectives: organic revenue growth of between 5% and 7%, an adjusted EBITDA margin above the FY2025 level, and adjusted capital expenditure of 33% to 35% of revenue, excluding stock locked in for the following year under dedicated financing. The company will report its full-year results on October 20.

Key Facts

OvHcloud reported faster revenue growth in its fiscal third quarter, driven by a public cloud business that has climbed back above 20% expansion.
The Public Cloud segment grew 20.2% like-for-like to €65.6 million, a sharp recovery from the 12.9% it managed in the prior quarter.
Revenue rose to €289.6 million ($329.28 million) in the three-month period ended May, up from €271.9 million a year earlier.
OvHcloud's net revenue retention rate reached 102%, indicating strong customer loyalty and retention.
The company confirmed all of its FY2026 objectives: organic revenue growth of between 5% and 7%, an adjusted EBITDA margin above the FY2025 level, and adjusted capital expenditure of 33% to 35% of revenue.