(Reuters) – OVHcloud expects to generate weighted average annual organic revenue growth of 11% to 13% and an adjusted core profit margin (EBITDA) of nearly 39% in 2026, the group said on Wednesday.

These forecasts take into account a temporary slowdown in the growth of the cloud market, OVHcloud said in a press release published ahead of its first investor day which will be held later today.

Some cloud companies are struggling with slowing sales, and OVHcloud released lower-than-expected guidance for 2024 in October.

“Despite this context, OVHcloud’s revenue growth was robust in this period, particularly compared to its peers,” said the group, estimating that structural growth levers remained valid in the medium and long term.

Last week, the group reported a 12% increase in revenue in the first quarter, roughly in line with expectations and largely driven by Europe, and confirmed its targets for 2024 and 2025.

OVHcloud also confirmed its objectives for the year 2024, namely organic revenue growth of 11% to 13% this year, and an adjusted basic profit margin (EBITDA) of more than 37%.

(Reporting Dagmarah Mackos; Lina Golovnya)

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