MUNICH, Nov. 14, 2022 /PRNewswire/ — Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q3 2022 and released its nine-month statement. Revenue grew to €229.8 million in Q3 2022, up 63.0% YoY from €141.0 million in Q3 2021, and up 9.4% QoQ from €210.0 million in Q2 2022. 9M YoY revenue growth was 62.9%, of which 51.9% was organic.
Constant currency YoY revenue growth for Q3 2022 was 50.9%. Gross profit grew to €69.8 million in Q3 2022 from €40.0 million in Q3 2021. Gross margin increased to 30.4% in Q3 2022 from 28.4% in Q3 2021. Adjusted EBITDA grew by €26.7 million from €21.7 million (15.4% of revenue) in Q3 2021 to €48.4 million (21.1% of revenue) in Q3 2022. The main EBITDA adjustment was on account of stock option expense of €0.8 million in Q3 2022.
EBITDA grew by €28.4 million from €19.2 million in Q3 2021 to €47.6 million in Q3 2022. EBIT increased by €25.8 million from €13.4 million in Q3 2021 to €39.2 million in Q3 2022. Net profit increased by €17.4 million to €25.7 million in Q3 2022 from €8.4 million in Q3 2021.
The company added a net 1,268 professionals in Q3 2022 – a number that includes trainees and lateral hires.
Today, the company also announced a further increase in its guidance for financial year 2022. Nagarro revised its estimate for 2022 revenue upwards from €830 million to €850 million. The estimate for gross margin was raised from 27% to 28%, while the estimate for Adjusted EBITDA margin was lifted from 15% to 16%.
Nine-month results
Nagarro’s 9M 2022 revenue grew to €625.4 million, up from €384.0 million for the same period in 2021, a growth of 62.9%. In constant currency, the revenue growth was 54.1%. Organic revenue growth for 9M 2022 was 51.9%. Gross profit grew to €180.3 million in 9M 2022 from €112.1 million in 9M 2021. Gross margin dropped slightly, changing from 29.2% in 9M 2021 to 28.8% in 9M 2022. Adjusted EBITDA grew 98.5% from €59.2 million (15.4% of revenue) in 9M 2021 to €117.6 million (18.8% of revenue) in 9M 2022. EBITDA increased by €63.0 million from €51.9 million in 9M 2021 to €114.9 million in 9M 2022. EBIT increased by €56.0 million from €34.8 million in 9M 2021 to €90.7 million in 9M 2022. Net profit increased by €40.3 million to €61.9 million in 9M 2022 against €21.7 million in 9M 2021.
Nitin Arora, Director M&A, said, “While most of our growth is organic, our strong numbers also reflect the inherent strengths of Nagarro’s M&A model. Our acquisitions add new capabilities, client access, new talent and, especially, great entrepreneurs. Meanwhile, our global organizational design and flat, collaborative culture mean that all these assets can be truly leveraged.”
About Nagarro
Nagarro, a global digital engineering leader, helps clients become innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its approach of thinking breakthroughs. Nagarro employs over 18,000 people in 33 countries. For more information, www.nagarro.com.
FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220)
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SOURCE Nagarro
