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Nagarro's Financial Results Overview for FY 2024 and Q1 2025

Nagarro, a prominent player in global digital engineering, has disclosed its financial results for the fiscal year ending December 31, 2024, alongside preliminary figures for the first quarter of 2025. This announcement highlights Nagarro's commitment to transparency and potential for continued growth.

FY 2024 Highlights

For the full year 2024, Nagarro reported a substantial increase in revenue, reaching €972.0 million, a 6.6% growth compared to €912.1 million in 2023. This reflects a consistent upward trend, with the constant currency growth even higher at 7.2%. Key financial indicators such as gross profit also demonstrated impressive performance, climbing to €295.8 million, while the adjusted EBITDA grew to €147.5 million, marking a 16.9% year-over-year increase.

The gross margin for the year stood at 30.4%, reflecting a slight increase from the previous year’s margin of 26.1%. Additionally, the number of customers generating over €1 million in annual revenue with Nagarro rose from 181 to 186, indicating a growing client base.

Despite facing challenges, such as increasing days sales outstanding — which rose from 84 to 88 days — Nagarro's operational cash flow increased to €86.5 million from €79.7 million. The cash balance at the end of the year was €192.6 million, a significant leap from €110.1 million at the end of 2023. Nagarro's proactive management of loans and borrowings, which totaled €329.6 million at year-end, is a testament to its financial discipline.

Q1 2025 Financial Highlights

In the first quarter of 2025, Nagarro reported revenue of €246.9 million, representing a 3.6% year-over-year growth. Gross profit for this quarter was €75.5 million, alongside an adjusted EBITDA of €30.2 million. Although this represented a decline compared to the prior year, the margins remain robust, with a gross margin of 30.6%.

Net profit for Q1 2025 was recorded at €11.2 million, down from €16.6 million in Q1 2024, while the company also reduced its factoring utilization under the non-recourse program by €6.7 million. Nagarro's cash reserves diminished to €162.2 million by March 31, 2025, reflecting necessary adjustments in financial strategy and operations as the company navigates its growth trajectory.

Future Outlook

Nagarro's management expressed confidence in its growth and operational plans moving forward, suggesting that various initiatives aimed at digital transformation and client engagement are in progress. Manas Human, Co-founder of Nagarro, emphasized the company's readiness to embrace new challenges and opportunities ahead. A dividend proposal of €1 per share to be presented at the Annual General Meeting is indicative of Nagarro’s commitment to shareholder value and long-term growth.

Nagarro also announced plans to expand its Supervisory Board with experts in digital transformation and finance, further underscoring its strategic growth trajectory. Amid a changing market landscape, Nagarro's focus on maintaining robust governance and innovative solutions positions the company favorably for future endeavors.

Conclusion

Overall, Nagarro's financial outcomes and strategic initiatives from 2024 into 2025 showcase its resilience amid market fluctuations and a steadfast approach to digital transformation. As the company continues to leverage technology and innovation, it stands prepared to elevate its market presence and financial performance in the coming years.