For the fiscal year ending in 2024, OVHcloud reported revenue of €993 million, a 10.7% increase over the previous year. Much of this growth came from OVHcloud’s Private Cloud services, generating €623.6 million, a gain of 11.8%. Public Cloud revenue grew even faster, up 14.2% to €182.8 million, thanks to successful efforts to bring in new clients. These numbers underscore the continued expansion of the low-end cloud market as more businesses, developers, and individuals turn to affordable solutions for their hosting needs.

In terms of profitability, OVHcloud showed strength, with adjusted EBITDA rising to €381.5 million—a 17.2% increase from the previous year. Efficiency improvements and cost management pushed their adjusted EBITDA margin to 38.4%, while their unlevered free cash flow hit €25 million. A significant €350 million share buyback plan further demonstrates the company’s confidence in its growth trajectory, with shares offered at a premium price of €9. If fully subscribed, this buyback would raise the Klaba family’s ownership to around 81%, reflecting strong founder confidence in OVHcloud’s long-term success.

According to industry veteran, Jon Biloh:

“OVHcloud’s 38.4% adjusted EBITDA margin is an impressive figure, especially in the competitive cloud and VPS hosting industry where maintaining high profitability can be challenging. This margin not only reflects OVHcloud’s efficient cost management and operational practices but also highlights the company’s ability to scale profitably while meeting the diverse needs of its customers.

For context, many companies in the cloud industry typically face significant costs related to infrastructure, energy, and continuous technological upgrades, which can compress margins.

OVHcloud’s ability to maintain such a strong margin underscores its resilience and operational discipline, making it a standout performer in the industry. This robust profitability is a positive indicator for investors and sets a high benchmark for competitors in the low-end VPS and broader cloud markets.”

Beyond financial results, OVHcloud made exciting advancements in its product lineup, including AI and secure cloud solutions, showcasing offerings that are becoming increasingly important to both enterprise and budget-conscious customers. The company launched Bare Metal Pods, a secure platform with rigorous compliance standards that has already piqued interest from institutional clients such as the French Ministry of Economy. By integrating NVIDIA GPUs and large language models into their public cloud infrastructure, OVHcloud is addressing a growing market for AI-focused, high-performance yet affordable solutions, making low-end VPS hosting more versatile than ever.

The company also announced the appointment of Benjamin Revcolevschi as the new CEO, succeeding Michel Paulin, whose six-year leadership saw OVHcloud’s revenue double. Revcolevschi’s experience in telecommunications and IT signals OVHcloud’s commitment to sustained growth and profitability. For 2025, the company aims for a 9-11% increase in organic revenue and a nearly 40% adjusted EBITDA margin, with plans to strengthen its Private Cloud while also enhancing Public Cloud services.

OVHcloud’s recent partnership with Bouygues Telecom Enterprises to develop hybrid cloud solutions for midsize businesses is another indication of the company’s expanding influence. It was also recently recognized as a “Major Player” in IDC’s European Public Cloud Infrastructure report, further underscoring its status among Europe’s top providers. These achievements highlight OVHcloud’s growing importance in the industry and reflect a broader trend: the low-end VPS and cloud hosting market is accelerating, with no signs of slowing down, as affordable and high-performance solutions continue to gain traction across user bases worldwide. For budget-conscious VPS fans, OVHcloud’s ongoing success is a clear sign that the low-end cloud market will remain competitive and full of opportunities for years to come.

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