Nagarro, a global digital engineering leader, presented its unaudited key financial numbers for Q2 2022 (April 1 to June 30, 2022) as part of its half-yearly financial report 2022. Nagarro carried over its revenue momentum from Q1 2022 into Q2 2022. Demand continued to be strong and appeared unaffected by the looming possibility of a slowdown in the economy. Revenue grew to €210.0 million in Q2 2022, up 65.0% YoY from €127.3 million in Q2 2021, and up 13.2% QoQ from €185.5 million in Q1 2022.
Constant currency YoY revenue growth for Q2 2022 was 55.7%. Gross profit increased to €60.2 million in Q2 2022 from €38.0 million in Q2 2021. The gross margin dropped to 28.7% in Q2 2022 from 29.9% in Q2 2021. Adjusted EBITDA grew by 111.9% YoY to €40.2 million (19.1% of revenue) in Q2 2022, from €19.0 million (14.9% of revenue) in Q2 2021.
EBITDA in Q2 2022 grew by 156.2% YoY to €39.4 million, from €15.4 million in Q2 2021. The main EBITDA adjustment was on account of a stock option expense of €0.8 million. EBIT increased by 224.0% YoY to €31.1 million, from €9.6 million in Q2 2021. Net profit increased by 296.3% YoY to €22.3 million against €5.6 million in Q2 2021.
The company added a net 872 professionals in Q2 2022 – a number that includes trainees and lateral hires.
Dipika Srivastava, a Nagarrian in Lucknow, India, who works on cloud, web APIs, and Microservices, said: “Each and every Nagarrian is thrilled at the growth we have been able to achieve. Nagarro is clearly making its mark as the world’s leading provider of agile technology services.”
H1 results
Nagarro released its half-yearly financial report. Revenue grew to €395.6 million in H1 2022 (January 1 to June 30, 2022), up 62.8 % YoY from €243.0 million in H1 2021. Constant currency revenue growth for H1 2022 was 55.6%. Gross profit increased to €110.5 million in H1 2022 from €72.1 million in H1 2021. The gross margin dropped to 27.9% in H1 2022 from 29.7% in H1 2021. Adjusted EBITDA grew 84.3 % YoY to €69.1 million (17.5 % of revenue) in H1 2022, up from €37.5 million (15.4% of revenue) in H1 2021. EBITDA increased by 105.7 % YoY to €67.2 million, from €32.7 million in H1 2021. EBIT increased by 141.2 % YoY to €51.6 million, from €21.4 million in H1 2021. Net profit increased by 172.4 % YoY to €36.2 million against €13.3 million in H1 2021. The cash balance decreased by €34.5 million from December 31, 2021, to €72.1 million, mainly on account of expenses related to various acquisitions.
Nagarro will hold its analyst meeting as a video call to discuss the half-yearly financial report 2022 on August 12, 2022, 1:30 pm CEST (Berlin), which corresponds to 12:30 pm BST (London), 7:30 am EDT (New York City), 4:30 am PDT (San Francisco), 7:30 pm SGT (Singapore), 8:30 pm JST (Tokyo) and 5:00 pm IST (New Delhi). Please feel free to register here for our earnings video call.