OVHcloud has announced a public share buyback offer worth 350 million euros, equating to 20.41% of its capital at 9 euros per share, leading to an 11.40% surge in share price. The company reported a net loss reduction for fiscal 2024, with revenues of 993 million euros and an adjusted EBITDA margin increase. New CEO Benjamin Revcolevschi is set to lead OVHcloud into a growth phase, targeting 10% growth and over 40% EBITDA margins by 2026.
(AOF) – OVHcloud made a significant impact with the release of its annual results, highlighting notable developments for investors. A key announcement was the filing of a public share buyback offer with the Autorité des Marchés Financiers, totaling 350 million euros. This offer targets up to 20.41% of the company’s shares at a price of 9 euros each. Following this news, the share price of the European cloud leader surged by 11.40%, reaching 8.75 euros.
Attractive Premium for Investors
The proposed offer presents a premium of 14.6% compared to the closing price on October 23, and an impressive 32% relative to the volume-weighted average from the last month of trading.
Funding for the share buyback initiative will be sourced from three available lines of credit.
The Klaba family intends to contribute approximately 7.1 million shares, slightly below their total holding. This move underscores their long-term confidence in the company, with their stake projected to increase from 68% to as much as 81% post-operation, according to OVHcloud.
In the fiscal year 2024, OVHCloud reported a net loss of 10.3 million euros, a significant improvement compared to a loss of 40.3 million euros the previous year. The adjusted EBITDA margin rose by 2.1 percentage points to 38.4%, and sales amounted to 993 million euros, reflecting an organic growth rate of 10.3%. Additionally, the Group generated 25 million euros in unlevered free cash flow.
New Leadership and Growth Trajectory
OVHcloud is transitioning into a new phase of development following a substantial investment period. Benjamin Revcolevschi has been appointed as the new CEO, taking over from Michel Paulin, who served in the role for six years.
Revcolevschi’s extensive experience includes roles at the Boston Consulting Group and executive positions at Neuf Cegetel/SFR, Fujitsu in France, and DXC Technology in France and Benelux.
Looking ahead, the Group anticipates steady growth beyond the current financial year, aiming for around 10% growth, a structurally adjusted EBITDA margin exceeding 40%, and positive levered free cash flow starting in the 2026 fiscal year.
For fiscal 2025, OVHcloud projects organic sales growth between 9% and 11%, an adjusted EBITDA margin of about 40%, along with an increase in unlevered free cash flow.