OVH Groupe S.A. (OVH) Earnings Call Transcript & Summary

Ladies and gentlemen, welcome to the OVHcloud H1 Full Year 2025 Results Conference Call. Today's speakers will be Benjamin Revcolevschi, CEO; and Stephanie Besnier, CFO. I'll now hand over to the OVH team to begin today's conference.

Thank you. Hello, everyone. I'm Benjamin Revcolevschi, CEO of OVHcloud. So we published our H1 FY '25 results this morning, and we thank you for being with us on this call. So let's start with Slide 3 for the key highlights of our solid set of results. As you can see, H1 FY '25 was a solid semester. We generated EUR 536 million in revenue and grew by 10.2% like-for-like compared to the same period last year. This growth was fueled by continued demand for Public Cloud and also data sovereignty offers. We also saw a high revenue retention rate of 107% of our customers and also a solid international growth, as we will highlight in the next slide. So looking at our profitability, our discipline was unchanged, and we have demonstrated in this semester a strong operating leverage with our adjusted EBITDA reaching EUR 214.6 million, which is corresponding to a 40% margin. This operating leverage also led to a strong improvement of our cash generation with an unlevered free cash flow that reached EUR 36.8 million. H1 FY '25 was also marked by the success of our refinancing with an inaugural bond of EUR 500 million maturing in FY '31 and also the setting up of a EUR 450 million green loan maturing in FY '30. Looking ahead, we are confident to deliver our guidance for the full year. We expect indeed demand for data sovereignty, Public Cloud and artificial intelligence to continue to drive growth, and we will also maintain our cost discipline for the rest of the year. Let's move now to the Slide 4 and our strategic pillars. In this rapidly evolving geopolitical environment, where we see public entities and private companies that are looking to preserve their strategic autonomy, I would like to remind that our vision for OVHcloud is remains the same, and I want to also how -- show you how we answer to our customer needs. OVHcloud has succeeded indeed in building up strong core business fundamentals, and we'll continue to leverage them to deliver our 2 priorities on the left of this slide. First, we are focusing on operational efficiency of our fundamentals to grow up our revenue and also leverage productivity. This will help us to deliver a more predictable and more profitable growth. Our second focus is to improve structurally our cash generation. It's critical to our long-term success as it ensures our capacity to continue to invest and to innovate. Then, as you see on the right of this slide, we are strengthening 2 of our future revenue growth upsides. First, we'll continue to reinforce our position as leader in data sovereignty solutions. Indeed, strategic autonomy in key sectors such as cloud is becoming critical. And our customers are looking for alternatives, and we're committed to provide them with trusted cloud solutions. Our second upside is about enhancing our Public Cloud product offering to answer customers' growing needs. As an example, we'll continue to strengthen our artificial intelligence solutions and to roll out new products in our 3 Availability Zones, 3-AZ regions. These 2 core business fundamentals and these 2 growth upsides are the pillars of our vision for OVHcloud to deliver our ambition and financial targets. Let's move now to the next slide to highlight the business achievements of the period. I wanted to share some business highlights for H1. First, we worked on delivering new products. And we were able to get the SecNumCloud qualification for our ultra-secure private cloud solution called Bare Metal Pod, which is now the second product being qualified with SecNumCloud. We are now working to get the qualification for our Public Cloud in the next months to come. We also released a new cloud offering, which can be delivered on our customers' premises called On-Prem Cloud Platform or OPCP. Plus, we made available new important Public Cloud products for our customers. They can now use compute, network, Block Storage, Object Storage in our 3-AZ, 3 Availability Zone regions in Paris, which provides higher resilience and availability. Regarding customers, in the middle of this slide, you can see that we signed several high-profile contracts such as our first On-Prem Cloud Platform with DEEP, which is part of the POST Group, which is the leading provider of telecom, ICT, postal and financial services in Luxembourg, who will leverage this product to build a sovereign cloud for the Luxembourg market. We also signed with Commerzbank in Germany for a migration project from their on-premises infrastructure. In Public Cloud, we also won a contract with Serco and the European Space Agency to improve earth climate change monitoring as part of a European initiative. When looking at our data centers on the right, you can see that as we have said, we are currently focused on improving the occupation rate of our data centers that reached circa 65% in H1. We also have been active in opening new Local Zones, with now 23 large cities available around the globe at the end of H1. Additionally, in Italy, the infrastructure works in our future data center in Milan are on track with an opening plan before the end of calendar 2025. Finally, we are very proud to have significantly improved our Corporate Sustainability Assessment by Standard & Poor's Global to 51%, which is a 10-point improvement compared to last year and which ranks us in the top 16% of the industry. Let's now have a look at our performance by segment, starting on Slide 6 with Private Cloud. So looking at Private Cloud, which includes, as you know, Bare Metal Cloud and Hosted Private Cloud, in H1, we delivered EUR 334.2 million in revenue, representing 62.4% of the group's total revenue and achieved a like-for-like growth of plus 10.4%. In Q2, we delivered EUR 169.8 million in revenue, representing 62.3% of the group total revenue and achieved a like-for-like growth of 10.5%. As highlighted on the right-hand side of the slide, in Bare Metal Cloud, our average revenue per active customer, which is called ARPAC, increased, thanks to a positive mix effect from the ramp-up of our recently launched mid-range servers with latest generation hardware. And we also benefited from continued strong demand in the United States and Asia Pacific. Now looking at Hosted Private Cloud. Demand for sovereign offerings such as SecNumCloud certified solutions remained strong. Since May last year, we have also benefited from a positive price effect following Broadcom's new licensing model for VMware. This contributed to around 1.7 points of the Private Cloud segment growth. Let's move now to the next slide about Public Cloud. In H1 FY '25, the Public Cloud segment reached EUR 103.8 million in revenue, representing 19.4% of the group's total revenue, and we also achieved a like-for-like growth of plus 17.3%. In Q2, we delivered EUR 53.5 million in revenue, representing 19.6% of the group's total revenue, and we achieved a like-for-like growth of plus 18.7%. As you know, in recent years, we have been investing in our product offerings for Public Cloud, and there is a strong demand for these newly launched Public Cloud products. You can see on the right-hand side of this slide that we are seeing an acceleration growth across all geographies. This is fueled by the increased availability of our products across these geographies, notably compute and Object Storage. And this is strengthened by the recent launch of Public Cloud in our 3-AZ region in Paris. We are also benefiting from growing demand for AI, for artificial intelligence, which contributed for around 2 points of the Public Cloud growth in H1 with hardware GPUs from NVIDIA and also AI software solutions. And thanks to our broad range of AI offerings, we are able to address an ever-increasing number of customer use cases in the inference market. Finally, we're seeing continued success with our Savings Plan offers, which encourage customers to commit to longer-term engagements and which have also contributed to the increase in our ARPAC. Now moving to the Web Cloud segment on Slide 8. In H1 FY '25, you can see that the Web Cloud segment reached EUR 98 million in revenue, representing 18.3% of the group's revenue and grew by plus 2.8% like-for-like. In Q2, the Web Cloud segment reached EUR 49.2 million in revenue, representing 18% of the group's total revenue. The segment grew by plus 1.3% like-for-like, knowing that it faced a complicated comparison basis with a strong performance in Q2 FY '24. In H1, if we exclude our Telephony and Connectivity legacy subsegment, growth reached plus 6.3%. Growth is mostly driven by strong performance in domain names, thanks to the successful rollout of new features such as multiyear renewal in several of our geographies and also an improved customer experience. We are currently working on a repositioning of our legacy subsegments in the coming months. We streamlined the operations and launched selected new offers with limited investment. I now hand over to Stephanie Besnier for a deep dive on the financials.

Thank you, Benjamin. Hello, everyone. I am Stephanie Besnier, CFO of OVHcloud. Thanks for being with us this morning. So let's begin this financial section with our key financial figures of H1 '25. So in line with our new development phases, we delivered a profitable and cash-generative growth this semester with a solid revenue growth of 10.2% like-for-like and adjusted EBITDA margin of 40%, up 220 bps compared with H1 '24, CapEx reaching 36% of our revenues and an unlevered free cash flow of EUR 36.8 million, up sharply compared with the same period in '24. The increase in our CapEx is linked to seasonal investments and a proactive push on components, the supply, so as to prevent shortage. We expect our CapEx to decrease in H2 and to be in line with our guidance for the full year 2025. Moving to the next slide. So regarding top line, as Benjamin said earlier, we delivered a solid growth of 10.2% like-for-like and 10.3% as reported during this first semester of FY 2025, in line with our annual guidance. This was driven by a resilient Private Cloud performance, up 10.4% like-for-like and an accelerating Public Cloud growth in Q2 '25, which was 290 bps higher than in Q1 '25. Moving to the next slide now, we look at the business dynamics by geography. So first, in France, revenue grew by 8.1%. Knowing that Web Cloud represents 30% of our business, France delivered robust growth on the cloud segments. Public Cloud delivered an accelerating like-for-like growth of 18.6%, fueled by the new products. And Private Cloud increased by 8.7% with a steady demand for data sovereignty, tempered by some customers optimizing their workloads after Broadcom-related price increases. Now let's look at our international sales, which account for 50% of our revenues. So first, in the Rest of Europe, growth reached 9.7% like-for-like in H1. In this region, Central Europe remained the most dynamic region, as shown by the recent signing of a contract with the German bank, Commerzbank Group. In the Rest of the World, the growth kept accelerating with H1 like-for-like growth of 15.4%. In Private Cloud, we continue to experience a strong momentum in the United States, thanks to our development strategy focused on technology companies. In addition, we witnessed encouraging traction in Public Cloud following recent rollout of some product availability in Asia Pacific and in Middle East. Moving to the next slide, we will look on how we managed to increase our profitability. So as you can see, in H1 '25, our profitability significantly increased with an adjusted EBITDA of EUR 214.6 million, representing a margin of 40%. The significant 220 bps improvement in our EBITDA margin is coming from: first, a reduced electricity costs as a percentage of revenue compared to FY '24 at less than 6% of our revenue in this semester; a strong operating leverage, thanks to the high volume of servers produced with contained operating costs in our data centers; and a better absorption of our administrative, sales and marketing team costs. This cost discipline led to a strong improvement in EBIT, which increased to EUR 42.4 million, representing a margin of 7.9%, up 670 basis points compared to the same period last year. Our EBIT includes D&A expenses of EUR 170.5 million, down compared with H1 '24, which included last year an exceptional one-off linked to legacy COVID stocks. It also includes some nonrecurring expenses or income such as the sale of a legacy data center in Paris, which was mostly used for internal workloads. Below EBIT, our financial result reached EUR 29.4 million and includes an acceleration of unamortized fees of previous term loan for EUR 7.5 million, an increase in interest rates over the period and a higher net debt. After including a tax expense of EUR 5.8 million, we recorded a net profit of EUR 7.2 million for H1 '25, a significant improvement compared with a net loss of EUR 17.2 million for H1 '24. Let's now look at how this increase in profitability translates into cash generation. So the strong growth in our profitability is reflected in our gross cash flow from operating activities, which rose to EUR 211 million in H1 '25 from EUR 180 million 1 year earlier. Change in operating working capital requirement was higher than usual and amounted to EUR 21.3 million in H1 '25 compared with EUR 4 million in H1 '24. It includes phasing effects due to late orders in February and some delayed suppliers' payment. Our CapEx now, excluding M&A, amounted to EUR 193 million in H1 '25, representing 36% of our revenue. We invested 24.6% of our revenue in growth CapEx, some of them in anticipation of H2, and we invested 11.4% of our revenue in recurring CapEx. All in all, thanks to our increase in profitability, we are generating an unlevered free cash flow of EUR 36.8 million in this H1 '25, improving strongly our cash generation. Let me give you on the next slide a reminder of how flexible our model is with the split of our CapEx. During this semester, we reduced our infrastructure CapEx, and we decided to do a seasonal push on hardware CapEx. Indeed, as you can see, hardware CapEx represented 24% (sic) [ 27% ] of our revenue, 10 points higher than H1 '24. This increase is linked to our proactive push on supply to prevent shortage. We expect then lower hardware CapEx in H2. For infrastructure and network CapEx now, they are 4 points below last year, and we reduced it as planned. In early '25, we almost finished our significant data centers opening program. And this semester, we just continued with some usual infrastructure and network work to prepare for the next phases of growth. Then product and software development CapEx slightly decreased in absolute value, representing more than 6% of our revenue. We continue to develop and enhance our products, notably our Public Cloud offering and new sovereign offers. Finally, other CapEx declined in H1 '25 compared to last year. It includes mainly the cost to open new Local Zones and, on the other hand, the proceeds of the sale of a legacy data center in Paris, which was mostly used for internal workload, as I said. On the next slide, let's see in detail our new financial structure. So as you know, H1 '25 was marked by the success of our refinancing with a first bond issuance and the implementation of the first EU Taxonomy-aligned Green Loan by a European cloud provider. We have a solid debt profile with a net debt of just over EUR 1 billion, available liquidity of EUR 307 million and a controlled leverage of 2.7x, in line with our group debt policy. At the end of February '25, all of the group's debt was hedged and had an average interest rate of 4.4%, including margins and commissions. This successful refinancing was also marked by a diversification of funding sources with no major debt repayment before FY 2030. Our main sources of financing now are: a EUR 500 million in senior unsecured bond at a fixed rate of 4.75% maturing in 2030. This inaugural bond has refinanced part of the group's existing debt. It has been rated BB- by S&P Global Ratings and Ba3 by Moody's. Second, a EUR 450 million green bank loan maturing at the end of 2029. Third, a multipurpose drawable credit facility for EUR 200 million, not yet drawn, maturing at the end of 2029. And last, a loan of EUR 200 million from the European Investment Bank. I will now hand over to Benjamin to talk about our outlook.

Thank you, Stephanie. Before we move to the Q&A session, so let me reconfirm our guidance for FY 2025. After a solid H1, so which was in line with our expectations, we reconfirm our FY 2025 guidance. So we expect FY 2025 like-for-like revenue growth between 9% and 11%. We expect, on a full year basis, an adjusted EBITDA of circa 40%. On CapEx for fiscal year 2025, we anticipate total CapEx to be between 30% to 34% of our revenue with a split between recurring CapEx expected between 11% to 13% and growth CapEx expected between 19% to 21% of our revenue. Finally, we expect an unlevered free cash flow to be above EUR 25 million on a full year basis, improving compared to FY 2024. And we can now open the floor to your questions.

[Operator Instructions] Our first question this morning will be from George Webb calling from Morgan Stanley.

I've got 3 questions, please. Firstly, it looks like a good second quarter. Can you talk a bit about how you're thinking about the second half and what you've seen so far in March and early April? I guess, when we look more broadly, any signs of emerging weakness? We've seen some parts of software and IT services complex start to talk about that. And I guess, within that question, the context of your reiterated 9% to 11% guidance, the low end of that guidance could mean that you could still get away with an 8%-ish number in the second half. So anything you've seen in March and April and how you think about the second half will be useful. Second question, just with regards to tariffs and supply chains at present, how are you managing the manufacturer of servers out of Canada into your U.S. operations? And lastly, with regards to the topic of generative AI workloads, how big or small are your ambitions in that space? We've seen, over the years, an increasing number of neoclouds out there that are rapidly investing into GPUs to create pure-play data centers. Are you kind of -- are you interested in doing anything at larger scale on that GenAI side? And how do you think about the potential ROI from some of those GPU workloads and the useful life of those chipsets?

Okay. Thank you for these 3 questions. So I'll take the first question on the March and April and on GenAI, and I'll let Stephanie answer on the tariffs. So the momentum that we see for H2, as you saw, we confirm our guidance. And indeed, we see that the trends you're asking for March and April are in line with our expectations. So we don't see in the latest number a change to our annual trajectory. We see that all our growth engines are working well, meaning Public Cloud, meaning AI, meaning sovereignty, of course, even if there is always some uncertainties due to the current macro situation. On -- and that's why we maintain the guidance for the full year. For the question on GenAI, so indeed, we have, as you know, different offerings. We have hardware offerings with GPUs. We have also the inference software tools. So you saw that the contribution to Public Cloud growth in H1 is around 2%, so for -- coming from AI. And as we are positioned in the inference market rather than the training market, we are able to respond to an ever-increasing number of customer use cases in this very specific inference market. And thanks to -- we have indeed an extensive range. So we will continue as part of our CapEx plan to add on the hardware side the new GPUs on a regular basis to tackle this inference market. Also developing our software toolbox, which we call AI Endpoints, and this is coming to general availability in the next weeks. It was in beta. Now it's coming to GA. And this will continue to fuel the growth of AI and so of Public Cloud in the coming quarters, and that's about it. Then Stephanie, on the tariffs.

Yes. George, so to answer your question on the tariff, I'll start with the revenue, then I get back to the CapEx. First, one thing very important to mention is that we're a multi-local company. What it means is that basically, we sell through our U.S. subsidiary, the U.S. customers, and we deliver servers to our U.S. customer in our U.S. data centers. So, so far, we've done the assessment on the revenue, and our revenue are not impacted by the tariffs. Obviously, we monitor very closely the situation, but what we can tell you is that we don't see an impact so far. Now turning to the CapEx, which was your question, I mean, yes, we are manufacturing our servers in Canada. From what we have analyzed so far, I mean, the servers are not impacted by the tariffs. So in total, the impact on our CapEx would be marginal. And yes, again, here, I mean, the -- this is a moving situation. So we keep monitoring this -- the evolution. No impact on so far and minimal expected on the CapEx.

Our next question will be coming from Toby Ogg calling from JPMorgan.

Yes. You mentioned there at the beginning a shift in some of the concerns of private and public organizations in Europe in the context of the geopolitical environment. Could you talk about whether you're seeing that dynamic being reflected in any notable increases in the pipeline or whether you're seeing this actually translating into growth across any of your product lines? And if you're not currently seeing this, could you talk about the pathway from here and when you would expect to start seeing that dynamic translate into pipeline growth or revenue growth?

Yes, a very good question. Indeed, the geopolitical context has truly evolved in the past month. That said, we have been positioned in this data sovereignty market since our creation. So it's been 25 years that we are positioned on this -- on the segments. And meaning that we provide every day our customers with open, responsible and trusted stuff. So it's not for us a shift into our positioning. Indeed, we provide immunity to territorial -- extraterritorial laws, the data possibility. And this is -- this commitment that we have for data privacy to open source has always given an edge and also served us for these H1 results. So short term, what do we see? We see that, indeed, in our customer discussions, we see more and more that this has come from a tech debate to more a strategic debate. So definitely, this is in our customer discussions more on the CEO agenda today. And we definitely are the natural partner. Thanks to our strategic positioning, we are the natural partner as a European cloud leader to answer to these growing needs. That said, the projects, the contracts, migration, the migration project takes time for customers. So our strategy is to remain focused on enhancing our product offering, so -- and continue to build our long-term relationship with the public organization mentioned, the private. So they know we are ready to answer their needs. And of course, midterm, we are perfectly positioned to answer customer needs when this increase will come.

[Operator Instructions] We'll now move to Ines Mao calling from BNP Paribas.

Can you hear me?

Yes, we do.

Congrats for the great results. I just have 2 questions. So I see the Rest of the World revenue growth accelerated to the high teens in Q2. Any sense as to how much U.S. contributed to it? In general, U.S. is growing more than this, I suspect. Do you see this as sustainable for the rest of 2025? And my second question is on the seasonal push you made on hardware CapEx. Are you expecting some uptick in demand? And if it is, for which specific products? Or is it more to avoid any potential headwind from tariff playing on servers?

Okay. So I suggest Stephanie, you take the first one on the CapEx, and I'll answer the second on the U.S. contribution.

Yes. So thank you for your question. So as we said, I mean, we -- indeed, we have some seasonality on our CapEx. We decided to do some proactive acquisition and purchase of components to anticipate, first, the supply shortage, also to be ready to provide the -- to answer to the demand. As of today, like we said, I mean, we are confirming our guidance. So we are ready in any case for H2, and we anticipate the CapEx to reduce in H2. But as for the revenue, like we explained, I mean, we do see a surge in the concerns, in the discussions that we have with the customers, but it's too soon to factor any specific impact from -- on the top line.

Thanks, Stephanie. And indeed, on the growth of the U.S. business, so we don't disclose the U.S. growth specifically. So it's indeed included in the Rest of the World growth. But as you saw, we had a very, very strong growth during the last quarters, and we have confidence about the perspective for the next quarters. In the U.S., most of our business is coming from Private Cloud universe, as I mentioned, coming from the tech segment, thanks to a very good performance price ratio. And it also has to do with some big companies. So as mentioned like Five Guys, the hamburger company in the U.S. that uses OVHcloud. So yes, we see it sustainable considering the performance of the last quarters.

We'll now move to Derric Marcon of Bernstein.

Yes. I hope you can hear me well.

Yes, yes.

Cool, cool. I've got 4 questions, if I may. The first one is on the Availability Zone and the Local Zone. Can you give us or share with us some metrics that will help us to understand the dynamics of these new offerings, so the AZ and the Local Zones? My second question is about Telephony and Connectivity. Can you update us on what's the weight of this business today and the outlook for this business? And what can you do to mitigate the revenue decline there? My third question is on recurring CapEx. So 11.4% of sales in H1 2025, so -- and you guide for 11% to 13% for the full year. So should we expect you to be at the upper end of this range? Or any possibility for you to beat that guidance? And my fourth question, last question, is about the recent announcement of a large contract around -- in France around the data hub for health care sector. And Microsoft, I think, won a second tranche of this contract. And the message from the customer was that there was no -- or there were no other player capable to bid Microsoft -- or to compete with Microsoft on this type of RFP. Have you participated to this RFP? And what was missing to -- for OVHcloud to get this deal?

Okay. Thank you for the question, Derric Marcon. So I'll take the first on the AZ and Local Zones and on the large contract, Microsoft, and Stephanie will answer the Telephony and the CapEx H1 and guidance. So on the Availability Zones and the Local Zones. So first, maybe on the Local Zones. Indeed, we have 23 Local Zones so far, and we are on track to open more than 15 new Local Zones in FY '25. So that should make close to 40 Local Zones. The Local Zones, as you know, allow us to grow in new geos with lower capital intensity with our colocation model to offer Public Cloud products. We don't disclose our revenue so far for the Local Zones. We are currently focusing on rolling out, on opening the new zones in line with our deployment plan to accelerate both the geography deployment and the product deployment. And it's a phase of testing the market, testing the customers on the product as usually when we launch, I would say, data centers, and we are typically for the Local Zones in this phase. As for the Availability Zone, so the AZ, indeed, so this is contributing to our Public Cloud growth, which is strong, as you saw in H1. Again, it's about also technology deployment. We have deployed it in Paris, as you know. It's about enriching the products for the Availability Zone. So we have Object Storage launch. Now we are launching -- we have been launching also compute, network and Block Storage. And we'll continue to enrich the rhythm of products availability into the Availability Zone section of our Public Cloud. So the main data I'd say today is truly the momentum of delivering the product, and this fits into the Public Cloud growth and the ARPAC growth of our Public Cloud segment.

And Benjamin, any metric on the number of customers that you can share with us or the ramp-up of customers?

This is not a data that we disclose, Derric.

Okay.

Derric, this is Stephanie. So I'll take the next question. So on Telephony and Connectivity, I mean, you're right, it's still a challenge for us. It's decreasing activities, even if they are smaller and smaller over time. It impacts mostly our French business. This being said, it remains for us an opportunity to do cross-sell and to offer to our customers some opportunities to move within the Web Cloud, but also to Public and Private Cloud. So what we are doing is that we are doing some tactical investments on these segments to renew the offers, to strengthen the support and to keep the benefit of having this pool of customers for the rest of activities. I saw that your last question was on the CapEx. I mean, like we said, we have -- I mean, you know well the business. You know that we have also some seasonality on the CapEx. Traditionally, it's also linked to the innovation cycle of our suppliers. This year, it's accentuated and increased by this push that we've decided to do. But what we can tell you as of today is that we see a sort of reversal in H2, so as to remain in the guidance and be in a position as of today to confirm the guidance. And so as a reminder, the -- for the maintenance, it's going to be between 11% and 13%. And for the growth CapEx, we estimate it to be between 19% and 21%. So that's how we see it as of today for the full year.

And regarding the Health Data Hub in France, the contract related to the Health Data Hub?

Yes, you're right. So on the -- your last question on Health Data Hub. So indeed, the government has just announced and again in France on Monday that they will reissue the Health Data Hub call for tender. It has not happened yet. So we will closely monitor that and see what's in the request. As always, we have enriched our offerings. And as we did last time, we'll study carefully what's requested and how to answer to that. But this has not been issued yet.

[Operator Instructions] We do not appear to have any further questions at this time. I'd like to turn the call back over to the speakers for any additional or closing remarks.

So thank you for these questions and I -- and attending for this call. And I'd like to wrap up to this strong semester. So we delivered indeed solid like-for-like revenue growth, combined with strong operating leverage, driving an improvement in the adjusted EBITDA margin and the cash flow generation. So we remain focused on executing our cash generation trajectory. And from a business perspective, we indeed benefited from a continued strong demand for our data sovereignty offerings, and we continue to roll out new products across both Public and Private Cloud. We also demonstrated our best-in-class positioning in sustainability with a strong ESG score. Finally, we successfully completed our refinancing with the implementation of first EU Taxonomy-aligned Green Loan by a European cloud player and the issuance of an inaugural bond. So with this solid semester, we confirm our FY '25 target, like-for-like growth between 9% to 11% and adjusted EBITDA margin of circa 40%, CapEx between 30% to 34% of our revenue and an unlevered free cash flow above EUR 25 million improved compared to last year. So thank you very much again, and we wish you a great day. Bye.

Ladies and gentlemen, that will conclude today's presentation. We thank you for your attendance. You may now disconnect. Have a good day, and goodbye.