Nagarro posts 23.7% YoY revenue growth in Q1 2023, 22.9% in constant currency

Nagarro continued to grow into Q1 2023 in constant currency terms, with constant currency QoQ growth of 2.6% over Q4 2022. Revenue grew to €229.5 million in Q1 2023 from €185.5 million in Q1 2022. Q1 revenue grew 23.7% YoY (22.9% in constant currency), while YoY organic revenue growth was 22.2% (21.4% in constant currency). Gross profit grew to €61.4 million in Q1 2023 from €50.4 million in Q1 2022. Gross margin slightly dropped, changing from 27.1% in Q1 2022 to 26.8% in Q1 2023. Adjusted EBITDA grew by €2.4 million from €29.0 million (15.6% of revenue) in Q1 2022 to €31.4 million (13.7% of revenue) in Q1 2023. EBITDA increased by €2.9 million from €27.9 million in Q1 2022 to €30.8 million in Q1 2023. EBIT increased by €2.6 million from €20.5 million in Q1 2022 to €23.1 million in Q1 2023. Net profit increased by €1.2 million to €15.1 million in Q1 2023 from €13.9 million in Q1 2022.

Operating cash inflow in Q1 2023 rose to €17.0 million from €2.9 million in Q1 2022. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, was 69 days on March 31, 2023, which was also its value on December 31, 2022.

The company added a net 696 professionals in Q1 2023, with most of the net additions being trainees rather than lateral hires.

“This is the first quarter for which we are sharing our Net Promoter Score or NPS. Our NPS of 65 shows that our clients love us as much as we love them,” said Vaibhav Gadodia, Managing Director and CTO. “Our clients and we are both eager for the economy to start moving again, so that we can accelerate the use of technology to drive their growth and ours.”