French Cloud Services Provider OVHcloud Reports Strong Third Quarter Revenue Amidst Challenging Economic Environment

French cloud services provider OVHcloud has exceeded market expectations with its third-quarter revenue, driven by robust demand from U.S. tech companies. Despite facing challenges in the European market due to economic conditions affecting cloud spending, OVHcloud is strategically positioned to gain global market share by offering a competitive price-to-performance ratio compared to larger U.S.-based hyperscalers.

The company’s shares surged by as much as 15.9% in early trading, marking their biggest daily rise on record if gains hold. This growth was propelled by strong demand for high-performance Bare Metal servers from tech companies in the U.S. However, OVHcloud noted a slowdown in Monthly Average Revenue per Active Customer growth in Europe, attributed to project delays by businesses.

In light of weaker demand in key European markets like France and Germany, OVHcloud had previously revised its 2024 targets. Nonetheless, the company reported a 10.1% year-on-year revenue increase to 251 million euros in the third quarter, surpassing analyst consensus estimates. For the fiscal year so far, revenue has reached 737 million euros.

Despite these challenges, OVHcloud remains optimistic about its annual and medium-term outlook. As it continues to navigate market dynamics and evolve its offerings, the company is poised to maintain its growth trajectory and compete with global cloud service providers.

Published on Jun 28, 2024 at 07:53 AM IST, this news highlights OVHcloud’s resilience and adaptability in the competitive cloud services landscape. Stay tuned for more updates on this evolving story.