OVHcloud Poised to Exceed €1B Revenue in FY2025 – HostingJournalist.com

OVHcloud is set to surpass €1 billion in revenue for its fiscal year 2025, following a robust third quarter with 9.3% organic growth. For the first nine months, the French cloud provider reported 9.9% organic growth, driven by international demand, expanding public cloud adoption, and rising interest in sovereign cloud solutions.

For the quarter ending May 31, 2025, OVHcloud generated €271.9 million in revenue, largely due to strong performance in its Public Cloud offering and increased demand in the US and Asia-Pacific. CEO Benjamin Revcolevschi noted that restructuring and repositioning core offerings, particularly in Bare Metal Cloud and Hosted Private Cloud, have improved client retention and attracted new customers.

Revcolevschi emphasized growing inquiries for sovereign cloud solutions, positioning OVHcloud as a key player in European digital autonomy. The company is refining offerings while maintaining operational discipline and a strong cash-generating model. “We reaffirm all of our annual objectives and remain disciplined in our execution to deliver profitable, resilient growth,” he stated.

Private Cloud remains the majority of OVHcloud’s business, accounting for €169.3 million (62.3%) of Q3 revenue, an 8.6% year-on-year increase. A 25% increase in new customers in Bare Metal Cloud was noted, benefiting from a restructured entry-level portfolio.

Hosted Private Cloud faced challenges due to rising Broadcom/VMware license costs since May 2024. OVHcloud introduced more competitively priced entry-level solutions to regain momentum.

Public Cloud revenue grew 17.2% to €53.6 million in Q3, comprising 19.7% of total revenue. New AI and data analytics offerings contributed to a 12% increase in customer acquisition. Web Cloud and Other revenue reached €49 million (18.0% of Q3 revenue), growing 3.8% year-on-year. Progress was also seen in the domain name segment and web presence services, which grew 6.8%.

Geographically, France remains OVHcloud’s largest market, contributing 48% of total revenue and growing 7.2% on a like-for-like basis. A private cloud contract for SecNumCloud-compliant solutions was secured with Arquus. Other European markets, accounting for 29% of total revenue, saw 8.1% growth, with a major public cloud contract signed with Visma in Norway. The Rest of the World segment, representing 23% of total revenue, posted the highest growth rate at 15.6%, driven by momentum in Asia-Pacific and North America. A regional contract was secured with Evolve Labs.

OVHcloud confirmed its FY2025 guidance, expecting 9% to 11% organic revenue growth, a targeted adjusted EBITDA margin of around 40%, and over €25 million in unlevered free cash flow. Capital expenditures are forecast to represent 30% to 34% of revenue, split between growth initiatives and recurring infrastructure needs.

In corporate governance, Bernard Gault stepped down as Lead Director and Chair of the Appointments, Compensation and Governance Committee. Pierre Barrial, former CEO of IDEMIA, was appointed to succeed him, pending shareholder approval. Christophe Karvelis-Senn, founder of CAPZA, joined the board as a non-voting director.

OVHcloud launched two notable cloud solutions. The new Data Platform, a self-service Public Cloud PaaS solution, allows businesses to integrate, store, process, and analyze data. AI Endpoints, part of OVHcloud’s Public Cloud portfolio, provide API access to over 40 pre-trained AI models, including LLaMA, Mistral, and Qwen, enabling enterprises to adopt AI capabilities without infrastructure expertise.

Looking ahead, OVHcloud will expand its European footprint with its first Italian data center in Milan by the end of 2025. The Milan site will comprise three adjacent data centers offering secure, high-performance public cloud infrastructure aimed at enhancing digital sovereignty for European clients.

With strong financials, new product innovation, and growing demand for European-aligned cloud services, OVHcloud is positioning itself as a credible alternative to hyperscale providers, particularly among enterprises prioritizing compliance, sovereignty, and operational control.