Nagarro Releases 2024 Audited Results and Q1 2025 Financial Performance

Nagarro's Financial Results Announcement

On May 16, 2025, Nagarro, a prominent player in digital engineering, unveiled its audited financial results for the fiscal year ending December 31, 2024, alongside the unaudited figures for the first quarter of 2025. In a notable development, the board proposed a dividend of €1 per share at the upcoming annual general meeting, highlighting the company's commitment to long-term value creation.

2024 Financial Performance

In 2024, Nagarro reported revenues of €972 million, reflecting a 6.6% year-on-year increase from the previous year’s €912.1 million. Notably, revenue growth at constant exchange rates was pegged at 7.2%. The gross margin for the year stood at €295.8 million using the current method, compared to €235.7 million for 2023 using the previous method, with the adjusted EBITDA edging up to €147.5 million from €126.1 million in 2023, marking a 16.9% improvement.

Despite the overall positive results, the net income remained steady at €49.2 million, maintaining the same level as in 2023. The number of clients generating over €1 million in annual revenue with Nagarro grew slightly, from 181 in 2023 to 186 in 2024, indicating a stable client base that could drive future growth.

Nagarro's operating cash flow rose to €86.5 million in 2024, an increase from €79.7 million the previous year, showcasing its strong operational efficiency. Furthermore, the company reported a reduction in its factoring utilisation by €3.5 million in the same period, signifying improved cash flow management practices.

Financial robustness is underscored by an increase in cash reserves to €192.6 million as of December 31, 2024, from €110.1 million at the close of 2023. However, debts also rose to €329.6 million, up from €274.7 million the previous year, indicating a significant investment in sustaining growth initiatives and operations.

First Quarter 2025 Results

For the first quarter of 2025, Nagarro achieved revenues of €246.9 million, a 3.6% increase from €238.3 million in the same quarter of the previous year. However, some parameters did not mirror this growth trajectory. The adjusted EBITDA for Q1 2025 fell to €30.2 million from €39.2 million in Q1 2024, a decline attributed to increased operational costs and market uncertainties.

The gross margin for the first quarter was recorded at €75.5 million, with a gross margin percentage slightly decreasing to 30.6% from 30.9% in 2024. The net profit also saw a downturn, dropping to €11.2 million from €16.6 million quarter-on-quarter.

Efficiency gains were reflected in an improvement in accounts receivable days, which shortened from 88 days to 81 days by the end of March 2025, indicating effective strategies for receivables management. Cash reserves decreased to €162.2 million by March 31, 2025, from €192.6 million at the end of December 2024, while total debt was reduced to €302.5 million, highlighting Nagarro's continued focus on maintaining a healthy financial position.

Strategic Steps Ahead

Nagarro’s co-founder, Manas Human, expressed optimism about the company’s trajectory, emphasizing the efficacy of newly initiated growth programs. The board aims to augment its supervisory council, introducing candidates with rich expertise in digital transformation and finance to boost its strategic endeavors.

Moving forward, Nagarro remains committed to its ‘fluid enterprise’ vision, aiming to empower clients in their digital journeys. The company’s workforce comprised 17,695 professionals as of December 31, 2024, and 17,496 by March 31, 2025, reflecting its ongoing efforts to build a robust team capable of supporting growth.

In summary, while Nagarro has demonstrated resilience in the face of market challenges, the upcoming year will be pivotal as it strives to leverage its results from 2024 and Q1 2025 into a successfully executed growth strategy heading into the latter part of 2025. Investors and analysts will have the opportunity to delve deeper into these results during the scheduled conference calls on May 15, 2025, providing valuable insights into Nagarro’s future direction and financial strategies.

For more details, explore Nagarro's investor relations page.

About Nagarro: Nagarro is a global leader in digital engineering, helping clients transform into agile and innovative businesses that excel in their markets. With a workforce of approximately 17,500 in 39 countries, Nagarro is recognized for its entrepreneurial spirit and commitment to excellence in digital transformations.

For further inquiries, visit Nagarro's website.