OVHCloud closes up 6.5% on its first day of trading


From 18.50 euros at the time of its introduction on Friday, October 15, the OVH share rose to 20 euros in the 4 hours following the opening of Euronext Paris to settle at 19.70 euros at the close.


[Updated on Friday, October 15, 2021 at 5:46 p.m.] On its first day of trading on Euronext Paris this Friday, October 15, OVHCloud saw its share price rise to €20.5 by mid-afternoon (+8%). From €18.50 at the opening, the share finally reached €19.7 at the close, an increase of 6.5%. The OVH share has thus risen to the level of the indicative high range communicated by OVH at the beginning of the subscription period. The group issued 18.9 million new shares. In addition, 2.7 million shares were sold by existing shareholders. The whole representing a valuation of 3.5 billion euros. In total, the French supplier should raise between 400 and 460 million euros via an over-allotment option for 3.2 million shares sold by the funds KKR and TowerBrook. The deal was well received by retail investors, with the over-allotment representing 17% of the offering, or 3.6 million shares, well above the minimum envelope of at least 10% of the shares offered.

70% of revenue outside the cloud

What does OVHcloud promise to future shareholders? To increase the organic growth of its turnover to around 25% per year for the next four years. This should enable it to reach an annual revenue of €1.6 billion in 2025. To meet this challenge, OVH is counting on growth in the public cloud and hosted private cloud markets. Two niches in which it achieves less than 30% of its revenue in 2020, which amounts to 632 million euros. The majority of its revenues are derived from its historical business of hosting on dedicated and shared servers. Conclusion: it is difficult to call OVHCloud a cloud giant today.

In addition to these financial results, the document submitted to the AMF by OVHCloud in view of its IPO provides its share of information. Out of about 1.6 million customers, “the 50 largest account for about 8% of the business, and the top 500 about 20%,” the company says. What aboutadjusted ebitda (or earnings before interest, taxes, depreciation and amortization)? It came in at 263 million euros. As for operating profit and cash flow, they amount to 30.6 million and 139 million euros respectively over the period. This flow will be supplemented by the funds from the IPO, which should take place by the end of the year. For the occasion, OVH is counting on raising 400 million euros.

OVHCloud turnover in millions of euros
2020 revenues (fiscal year ending 31 August 2020) Share of 2020 revenue Overall annual growth between 2017 and 2020 Growth in France between 2017 and 2020
Dedicated server 287,6 46% 12% 9%
Hosted Private Cloud 101,1 16% 22% 30%
Public Cloud 82,2 13% 37% 47%
Shared server and others 158,0 25% 11% 10%
Total 632,1

In terms of results, OVH derives 16% of its revenue from private cloud and 13% from public cloud. 46% of revenue is still generated by dedicated server hosting, and 25% by shared server hosting and other activities (including domain name registration and telephony).

Interestingly, over 80% of the revenue comes from customers who initially signed up for services prior to FY2018, obviously excluding US entities.

33 data centers worldwide

52% of revenues are realizedq from customers located in France, 28% in another European country, and 20% in the rest of the world. After opening its first data center outside of France in 2012, in Canada, OVHCloud has built twelve data centers since 2017, eight of which are abroad. This brings the number of its data centers worldwide to 33.


OVHCloud clôture à +6,5% pour son premier jour de cotation
ipo.ovhcloud.com/sites/default/files/2021-09/OVH%20Group%20-%20Document%20registration%20-%20vdef.pdf” data-legend=”Map of OVHCloud’s data centers and network points of presence worldwide.”>Map of OVHCloud’s data centers and network points of presence worldwide.

At the end of the first half of 2021 (ending 31 May), the group estimates revenue at €495.1 million, up 4.9% year-on-year. For the full year, OVHCloud anticipates revenue of between €655 million and €665 million. “A revenue impacted to the tune of 28.1 million euros by the fire in Strasbourg, including 5.2 million euros of assets, 2.9 million euros of lost earnings for interrupted services not billed to customers and 20 million euros of vouchers for free services used as of August 31, 2021,” says the document. The company nevertheless intends to keep the adjusted ebitba margin between 38 and 40%, in line with that of 2020.

OVHCloud revenues in millions of euros
1st quarter 2O21 2nd quarter 2O21 3rd quarter 2O21 First 9 months of 2021 Change 9 months 2020-2021
Dedicated server 75,9 78,4 75,3 229,6 7,40%
Hosted Private Cloud 23 23,6 19,2 65,8 -14,30%
Public cloud 23,2 24,7 21,8 69,7 14,80%
Shared server and others 42,3 43,4 44,3 130 7,70%
Total 164,4 170,1 160,6 495,1 4,90%

Also in the document submitted to the AMF, OVHCloud states that it has obtained a commitment from its insurers to pay it a one-off lump-sum indemnity of 58 million euros in September 2021 following the fire that hit its data centres in Strasbourg last March.

Axa imposes a rapid upgrade to standards

In other news, the company has renewed its property and casualty insurance policy with Axa and seven co-insurers on September1, 2021. With a maximum indemnity of 140 million euros per claim, it sets the deductible at 3 million euros. For the Roubaix, Gravelines and Strasbourg sites, it nevertheless raises it to 15 million euros pending “the completion of an investment programme agreed with the insurers”. Similarly, OVH will have to finalise “in the coming days and/or maintain in place” on these sites “three measures related to fire prevention, guarding, fire permits and means of intervention on the premises”. Otherwise, the deductible would rise to 30 million euros in the event of a claim. Axa is determined that OVH should comply with the standards. In the meantime, OVHcloud estimates that the fire in Strasbourg has delayed the growth of its turnover by three to four quarters, mainly in France.


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