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Nagarro Reports Positive Financial Outcomes for FY 2024 and Q1 2025

Nagarro, a global leader in digital engineering, announced its audited financial results for the fiscal year ending December 31, 2024, alongside preliminary results for the first quarter of 2025. The company confirmed its previously stated outlook for 2025, which continues to bolster investor confidence.

Fiscal Year 2024 Financial Performance

During the fiscal year 2024, Nagarro experienced substantial growth, with revenues increasing from €912.1 million in 2023 to €972.0 million in 2024, marking a healthy growth rate of 6.6%. When adjusted for currency fluctuations, this growth stands at 7.2%. The gross profit also exhibited an upward trend, rising from €235.7 million in 2023 to €295.8 million in 2024, reflecting improvements in operational efficiency.

Key Financial Metrics

• - Gross Margin: The gross margin increased slightly, from 25.8% in 2023 to 26.1% in 2024.
• - Adjusted EBITDA: This metric rose from €126.1 million to €147.5 million, corresponding to a margin increase from 13.8% to 15.2%.
• - Net Income: Remarkably, the net income remained stable at €49.2 million in both years, showcasing robust profitability amidst a growing revenue landscape.

The number of clients generating annual revenues exceeding €1 million also grew from 181 to 186, indicating Nagarro's strong market presence and customer loyalty.

Operational Cash Flow and Other Financials

From an operational standpoint, Nagarro's cash flow improved, moving from €79.7 million in 2023 to €86.5 million in 2024. Notably, the company reduced its reliance on factoring programs, enhancing its financial health. Cash reserves at the end of 2024 stood at €192.6 million, a substantial increase from €110.1 million recorded at the end of 2023.

First Quarter 2025 Insights

For the first quarter of 2025, Nagarro reported a revenue of €246.9 million, showcasing a year-on-year growth of 3.6%. Despite the positive growth trajectory, gross profit saw a slight decrease from €73.6 million a year prior to €75.5 million this quarter.

Summary of Q1 Financial Highlights

• - Gross Margin: The gross margin dipped slightly to 30.6% compared to 30.9% in Q1 2024.
• - Adjusted EBITDA: In this quarter, adjusted EBITDA dropped to €30.2 million, declining from €39.2 million in the same quarter last year.
• - Net Income: The net income also saw a decline, reducing from €16.6 million in Q1 2024 to €11.2 million this year.

The company reported a decrease in cash on hand to €162.2 million by the end of March 2025, down from €192.6 million at the end of 2024. However, total financial liabilities reduced significantly from €329.6 million at year-end 2024 to €302.5 million by March 2025.

Looking Ahead

Nagarro’s management expressed optimism about future growth prospects, citing ongoing efforts to enhance operational efficiency and customer engagement. The upcoming shareholders' meeting highlights plans to propose a dividend of €1.00 per share, emphasizing Nagarro's commitment to returning value to its investors.

Corporate Governance and Leadership Updates

Alongside financial disclosures, Nagarro announced plans to expand its Supervisory Board with new candidates possessing extensive knowledge in areas critical to the company's growth and digital transformation objectives. This step is anticipated to further reinforce the company's strategic direction and market adaptability.

As Nagarro prepares for its shareholder meetings and discussion forums scheduled for May 15, 2025, the company's unwavering focus remains on driving sustainable growth and delivering customer-centric solutions across the digital engineering landscape. For detailed information on participating in these discussions, interested parties can visit Nagarro's investor relations webpage.

Nagarro continues to embody a forward-thinking approach, striving to transform its clients into innovative, fluidic enterprises dedicated to achieving remarkable success in their respective markets. With a global workforce of approximately 17,500, the company maintains a presence in 39 countries, solidifying its status as an influential player in digital engineering.