Nagarro Se

Good afternoon to everyone. Welcome to Nagaro's SE's Retail Investor Call following today's earning release for Q2 2024. You should have received a copy of the earnings release for Nagaro's second quarter 2024 results. If you have not received the press release, a copy of the release as well as this presentation is available on nagaro.com in the investor relations section. Representing Nagaro on today's call are Manas Heumann, co-founder and custodian of entrepreneurship in the organization, and Gagan Bakshi, custodian of strategic finance. Before I pass you over to Manas, I would like to remind those listening that some of the comments made on today's call may contain forward-looking statements. These statements are subject to risk and uncertainties as described in the company's earnings release. Additionally, please also refer to the earnings release for the notice on reported results that are non-GAAP measures. As in our previous retail call, we will have a short presentation at the beginning and then move on to a Q&A session where you can ask your questions. Nagara is happy to partner with Netrojo for today's call again. Let me briefly explain how to raise your questions. If you would like to ask a question, please press the raise hand icon or Q&A box found on your screen if you have joined the call via Zoom. If you have joined us on the phone, please press star one on your telephone keypad. We would kindly ask you stick to two questions. However, you may re-enter the queue. And if there is time, we will come back to you or follow up on any unanswered question after this call. With that, it's my pleasure to hand over to Manas Heumann.

Thank you, Ilyas, and thank you, everyone, for joining this call, this call that is specifically meant for retail investors to ask their questions. We shall have a short, short presentation because many of you have also joined the analyst call, so I will not spend too much time on the presentation today. I'll just show a couple of slides and go straight to Q&A. I'm sure you all have many questions. The headline news is that Nagarov had a fairly good quarter under the circumstances, but we're still waiting for a proper recovery in the demand environment. In Q2, we had the feeling that the demand recovery was around the corner. Again, we have hope from Q2 results. In Q1, we had this... I'm sorry, I maybe misspoke. In Q1, we had this... sense that the recovery was around the corner. In Q2, again, we have hope, but the recovery is not here yet. And all indications are that this is imminent, but when exactly it will arrive is difficult to predict. And in the meantime, we are using this downtime that we have or slow period that we have in the company to improve quantitatively and qualitatively across various dimensions. We are delivering very high levels of customer satisfaction. We are continuing to expand our influence at clients and our footprint at clients. And we feel well-positioned to take advantage of the data-led and AI-led transformation that we are quite sure will be coming and will take place across various industries in the coming years. The next slide, please. So just a few, a quick look at the numbers. I'm sure you've looked at the numbers already, but just a quick look at the headline numbers. Revenue for the quarter was 244 million Euro. It grew 2.1% quarter and quarter in constant currency and grew 7.6% year on year in constant currency. And the gross margin as per the new method of calculation was 30.0%. And as per the previous method that we had used in 2023, the gross margin was 25.6%. Adjusted EBITDA was 35.5 million Euro. And in terms of regions, the rest of the world grew fastest year-on-year at 11%, while the rest of Europe was in last place and deep grew by 2.5%. We ended the quarter with a cash balance of 121.4 million. The number of accounts that generated over 1 million euro in revenue over the trailing 12 months was 184 at the end of June, which is up significantly from 168 a year ago. Meanwhile, our net promoter score in the Q2 customer satisfaction survey was 62. Our last guidance for 2024, which was issued on the 20th of February, was for approximately 1 billion euro revenue and 14% adjusted EBITDA margin, and we have no guidance update at this time. With this quick summary of the quarter, for those who did not join the analyst call, I would just go straight to Q&A and hand it back to Ilyas to guide us to the Q&A.

Thank you. As a reminder, if you would like to ask a question, please press the raise hand icon or Q&A box found on your screen if you have joined the call via Zoom. If you have joined us on the phone, please press star 1 on your telephone keypad. When preparing to ask your question, please ensure your line is unmuted locally. We have a text question submitted. Hi, Manas. Thank you very much for taking my questions. I think the organic year-on-year and UOQ growth has been good compared to peers and a sector situation. And I appreciate that you are cautious with the guidance and tone of the call. But I wonder, would you consider this Q2 better or worse versus Q1 and why? Lastly, in the previous call, you said you have increased the number of employees in countries that are considered a bit more risky for geopolitical reasons. Could you elaborate a bit more on that?