Ovh Groupe

Ladies and gentlemen, welcome to OVHcloud Q3 FY2025 Revenue Conference Call. Today's speakers will be Benjamin Revkolevski, CEO, and Stéphanie Bisnier, CFO. I will now hand over to OVH Management to begin today's conference. Thank you.

Hello, everyone. I am Benjamin Revkolevski, CEO of OVHcloud, and I'm very glad to be with you today. for our Q3 FY25 revenue conference call. So let's start with slide three for the key highlights of this quarter. So our performance in Q3 was resilient. We generated 271.9 million euros in revenue and the like-for-like growth of 9.3%. meaning that on a nine month basis we generated 807.9 million euros and grew by 9.9% like for like. We have demonstrated quarter after quarter the stickiness of our customers and even in this context we had a net revenue retention rate of 104% in 2003 which was underpinned by a solid customer acquisition and also a well-performing FY25 Court of recently acquired customers. Also during this quarter, we had a strong confirmation that demand for sovereign alternatives has never been more vivid, with an acceleration of inquiries for sovereign solutions from customers. So we have an unchanged discipline on costs, a sustained focus on profitability, and cash levers. And finally, we confirm all our FY25 guidance. So let's move now to slide four and our strategic pillars. Indeed, in this rapidly evolving geopolitical environment where we see that public entities and private companies are looking to preserve their strategic autonomy, I would like to remind you of our vision at OVH Clouds and how we answer to our customer needs. Indeed, OVHLAB has succeeded in building up strong core business fundamentals, and we will continue to leverage them to deliver our two priorities. First, we are focusing on operational efficiency of our fundamentals to grow our revenue and leverage productivity. This will help us to deliver more predictable and profitable growth. Our second focus is to improve structurally our cash generation. And this is truly critical to our long-term success as it ensures our capacity to continue to invest, but also to innovate. Then on the right of this slide, you can see that we are also strengthening two of our future revenue growth upsides. First, we'll continue to reinforce our position as leader in data sovereignty solutions. Strategic autonomy in key sectors such as cloud is becoming critical in Europe 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 continue to strengthen our artificial intelligence solution and also to roll out new product in our three AZ regions. These two core business fundamentals on the left and these two growth upsides on the right are the pillars of our vision for OBS Cloud to deliver our ambition and our financial targets. So let's move now to the next slide to highlight the business achievements of Q3. First you see On the product side, we keep running out of new products, especially in AI. We launched Data Platform, which is a powerful unified solution to manage data and to facilitate our customers' data projects. We also released AI Endpoints, which is a unique API to connect our customers' apps to the best in-class generated AI models. And we have more than 40 LLMs, large language models, that are available today to be directly and easily connected and consumed by our customers. In the middle, you can see that this quarter was also highly dynamic in signing new deals that will ramp up progressively in the coming quarters. For instance, ARCUS in the defense sector is a strong illustration of the dynamism in the public sector defense vertical, particularly for sovereign offers. Looking at Visma, which is a leading provider of mission-critical business software, it's also a good highlight of our capacity to serve larger customers and software editors on our public cloud offerings. And finally, on the right, you can see that we continue to work on adding new data centers, and we will officially launch our first Italian data center in Milan, with offerings available for our customers in the very next week, after a year of work in the building. And we have rolled out our public cloud offerings also in our Paris 380 region, which was long awaited by our customers. But let's now have a look at our performance by segment, starting on slide six with private cloud. So when we look at Private Cloud, which includes, as you know, BarMetal Cloud and hosted Private Cloud, in Q3, we delivered 169.3 million euros in revenue, which represents 62.3% of the group's total revenue, and we achieved a lifeline growth of 8.6%. On a nine-month basis, we generated 503.5 million euros in revenue, and grew by plus 9.8% like for life. During the quarter in Barmetal, our customers responded to overall macroeconomic deterioration and uncertainty by looking for more entry-range servers. And thanks to the strategic repositioning that we have done on these type of servers, we have had a very successful customer acquisition dynamic up by plus 25% compared to Q3 last year. And when we look at hosted private clouds, which represent circa 20% of the private cloud segment, we had a continuous strong demand for sovereign offerings and for our most advanced certification, the SECNUM cloud certification, and which reached an ARR, annual recurring revenue, of 20 million euros in Q3, growing by more than 50% year on year. And as you know, we successfully passed through price increases to our customers with a limited churn from large accounts. In revenue terms, this was, however, partly offset by the ongoing optimization on the entry-range servers. But we've acted. We've launched a new offering, BCS as a service, to help our customers who are looking for entry-range options on VMware solutions. So all our action plans will bear fruit, and we target an improvement for this segment in the midterm. Let's move now to the next slide about public cloud. In Q3 FY25, the public cloud segment reached 53.6 million euros in revenue, representing 19.7% of the group's total revenue, and achieved a life-for-life growth of 17.2%. On a nine-month basis, we delivered 157.4 million euros in revenue, and we achieved a life-or-life growth of plus 17.3%. As you know, in recent years, we have been investing in our product offering, and there's a strong demand for our existing public cloud products, driven by artificial intelligence in particular, such as compute, but also storage and containers, databases. So we continue to grow strongly. And thanks to an improved customer experience and simplified billing, increased availability of these products in all our data centers, we have been able to accelerate customer acquisition by plus 12% versus Q3 last year. And this growth will continue as we continue to work on new features and new regions. We just released data platform and AI endpoints and we just launched our Paris 3AZ region that will be replicated in other cities with Milan, Italy to be the first next open. Now moving to the web cloud segment on slide eight. In Q3 of 2025, the web cloud segment reached 49 million euros in revenue representing 18% of the group's revenue and grew by plus 3.8% like for like. On the first nine month basis, The segment reached 147 million euros and grew by plus 3.2% like for like. In Q3, if we take just our web presence offers, meaning excluding our telephony and connectivity legacy sub-segment, growth trend is almost twice as much, up plus 6.8%. So growth is mostly driven by strong performance in domain names, driven by market share gains in several European countries. Our action plans and other sub-segments are being implemented to boost demand. And I'll now hand over to Stéphanie Besnier for a deep dive on the financials.

Thank you Benjamin, and hello everyone. I am Stéphanie Besnier, CFO of OVHcloud. Thanks for being with us this morning. So as Benjamin said at the beginning, During the third quarter, we managed to deliver the sound and resilient growth of 9.3% like-for-like. This was driven by, first, for the private cloud, 8.6% like-for-like growth, and this was supported until April by a positive pricing effect, following Broadcom's new licensing model for VMware. Second, we had a dynamic public cloud segment, up 17.2%, like for like, almost equivalent to our first nine months growth. And third, a solid web cloud and others performance up 3.8%, like for like, showing an improvement growth rate of 250 bps compared to Q2. Now moving to the next slide, we look at the business dynamics by region. So in France, Revenue grew by 7.2% life-for-life in Q3. We had a public cloud that delivered a strong life-for-life growth of 16.9%, driven by a good customer acquisition in Q3. Private cloud increased by 6.6% life-for-life, impacted by macroeconomic uncertainties weighing on tech customers. And representing 29% of the region's business, WebCloud and others delivered a slight growth driven by a good domain name dynamics. Let's now look at our international sales, which account for 15% of our revenue. So in the rest of Europe, Europe excluding France, growth reached 8.1% like for like in Q3. In this region, Central and Northern Europe are the most dynamic regions, as shown by the recent signing of a contract with the Nordic company Visma, a leading specialist in accounting, payroll, invoicing, and human resources software. Southern Europe on the other side faced a slowdown, but the momentum should be sustained by the opening of our new data center in Italy, in Milan. In the rest of the world, the growth kept being strong, with Q3 life-alike growth of 15.6%. We witnessed accelerating traction in public cloud, fueled by the recent rollout of products in the region. And in private cloud, we continued to deliver strong double-digit growth in the United States and in APAC, thanks to our development strategy focused on tech companies. So I will now hand over to Benjamin to look about our outlook.

Thank you, Stéphanie. Before we move to the Q&A, let me reconfirm our guidance for the full year 2025. After a solid performance in the first nine months of the year, we fully reconfirm our FY 2025 guidance. We expect FY 2025 life-for-life revenue growth between 9% and 11%. We expect on a full year basis an adjusted EBTA of circa 40% thanks to an unchanged operating discipline. In line with the efforts to improve the profitability that we have demonstrated in H1, the group continued its cost-discipline efforts, focusing especially on controlling G&A expenses. On capex for fiscal year 2025, we anticipate a 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. And finally, we expect an unlevered free cash flow to be above 25 million euros on a full year basis, improving compared to FY2024. We can now open the floor to your questions.

Thank you. Ladies and gentlemen, if you wish to ask a question at this time, please signal by pressing star 1. And please make sure the mute function on your phone is switched off to allow your signal to reach our equipment. If you find that your question has already been answered, you may remove yourself from the queue by pressing star 2. Again, it is star 1 to ask a question. And our first question is from George Webb from Morgan Stanley. Please go ahead.

Hi, Benjamin and Stephanie. I've got a few questions, please. Firstly, touching on the strategic repositioning on some of the bare metal cloud offerings, could you talk a little bit about whether that's implementation of a newer lower priced entry range of servers? Is it a price reduction of the existing range or is it something else? And secondly, as we think about the growth factors into the fourth quarter, the base comparables are a bit tougher year over year. Should we be expecting growth to remain around Q3 or potentially decelerate slightly? And therefore, should we really be thinking about the full year outcome on growth maybe being towards the lower half of the nine to 11% range in your view? And then just lastly, bigger picture on the sovereign demands inquiries that you called out. Could you talk a little bit about the breadth at which you're seeing that across Europe? Is it mostly France or is it quite pan Europe? Thank you.

Okay, thank you. So I'll let Stephanie answer on the bar metal and I'll take the two others. So maybe Stephanie on the bar metal.

Yes, thank you, George, for your question. So indeed, what we did on BarMetal is we actually did both. We launched a new offer, which is basically in the middle of our Second Life servers and our existing entry range, the so-called Rise, with a server that is positioned around 55 to 60 euros. So it's a very competitive offer. So that's for the support of the new offer. And we actually also lowered a little bit our prices a for the entry range server, the advanced range. That's what we usually do. I mean, you're familiar with the model. You know that we manage the lifecycle of our servers. So when we come close to the upgrade of one range, we tend to be a bit more aggressive on the prices. But at the end of the day, the ambition is clearly to accelerate and increase the customer acquisition. You saw the number compared to the Q3-24. We grew the number of new customers on our bar metal by 25%. So that's precisely the objective of this strategy. And we are also preparing for the upgrade of this entry range, the existing servers, on which we have made some adjustments on the pricing. At the end of the day, the focus remains the same. We are very focused and determined to deliver the objective in terms of profitability, so these measures do not come with a cost on our profitability.

Thanks, Stephanie. Yes, so on your question on Q3, Q4, as you've seen, we pointed out, I think, during our presentation, that indeed we experienced kind of a slight sequential deceleration in our private cloud growth at the end of the quarter. And this was linked to, at first, the infrastructure optimization from some of our tech customers in Europe who have faced this macroeconomics uncertainty. But it's also this mechanical end-of-price contribution from VMware Broadcom, which was expected. So I'd say that, firstly, we had, sooner in this quarter, we had anticipated this macro headwind landscape, even if it was not yet visible on the top line in March or April. And this is the reason why we have proactively launched action plans to reposition, as Stephanie just commented, our entry range prices in our environmental segment. This was meant to match the changing needs of our customers in these new macro contexts and also to boost new customer acquisitions. But I would say that secondly, also in response to this deceleration trend, we also took action by launching new hosted private cloud offering, which we call public VCF as a service. And this is meant to answer and match our customer needs for private cloud. So it's very important that you understand, that you feel that these action plans have been implemented with a clear focus to maintain our profitability trajectory. So indeed, in this, I would say, uncertain macro, we delivered a 9.9 LACRA-like growth in the first nine months of the year. So far, June showed stable trend versus May, which is still, yes, one week to go. So all in all, we'll be within our revenue guidance range of 9% to 11%. And that's why we indeed do reconfirm all of our FY25 financial guidance. And then to your third question on France, Europe, and sovereignty. As you know, we have at OBS Cloud a clear positioning strategically on sovereignty for many years. We are, I would say, sovereign by design. We are the cloud champion for sovereignty and sustainability. And indeed, in the past two months, we have seen and created engagement at sea level with companies or institutions, private, public, that we didn't meet before. And what's interesting is that now these discussions are happening, are ongoing at not only C-level, but now they're moving to self and tech levels so that we push on what we can do together. I can tell you that two-thirds of the top, for example, French integrators have approached us and we discussed in the past weeks at C-level. to engage and to accelerate the dynamics with sponsoring at both levels. Or another example, I was two months ago in Strasbourg with the top 100 CIOs of the biggest large French companies, and for two days it was all on top of sovereignty and how we move forward to have two European champions that respond to that. So, of course, still early to give you a precise figure for Q4, but I think the demand has significantly strengthened and the revenues are expected to materialize in the outer quarters. This is linked to the typical cycle of these projects and customer taking decisions and then migrating to the cloud or switching providers this next time. It's going to take a few more months, but we see the ramp-up of certain contracts. We just mentioned also in this presentation that ARCUS, for example, in the defense sector, is that we negotiated a few months ago. This illustrates that there is a fundamental dynamic, and it shows that it clearly positions itself as a solid and credible choice for a sovereign cloud in Europe. Hope it answers your questions.

Yeah, that's great. I appreciate the detail. Good luck for the final quarter.

Thank you.

Thank you. Thank you. We will now take our next question from Ines now from BNP Paribas. Please go ahead.

Hello, Benjamin and Stephanie. This is Ines from BNP. I just have two questions. It looks like there was good demand momentum in IPACs, particularly in the public cloud solutions. So are new co-location data centers on the potential roadmap in this region? or elsewhere, actually. And my second question is, I see that the growth in the rest of the world, which includes the U.S., is slightly decelerating in Q3, and that bare metal demand, especially for the higher range solutions, was kind of impacted in the U.S. So is the deceleration in the rest of the world reflecting the slowdown in the U.S., or is demand momentum sustaining there? Thank you.

I think the first, and Stephanie will answer the second, On the new collocation, so in APAC, indeed, so there is a high growth there. You know that we have the data centers in Mumbai, Singapore, and Sydney, Australia. So we don't intend to open new geographies. The two things that we do there is that first, As we have done in Paris with the 3AZ region, right, with the super resilience, we create that, you know, that the next one is Italy. And indeed, we plan to expand this 3AZ model in the rest of the world, including APAC. And the second dynamic is indeed our local zones. As you know, we expand our local zones all across the world, also in the largest regions cities of the world. We have deployed more than 30 of them, and we continue to deploy them also in APAC.

Thank you, Inès, for your question. So on the rest of the world growth, yes, indeed, it's marginally lower than Q2, but what we can say is that first, you have different base effects for Q2 and Q3. I mean, Q2 in 24 was quite low for our rest of the world regions. at 6.9%, so you have a strong base effect difference. Also, what we can say in the U.S., I mean, the growth come a little bit lower than Q2. This being said, it remains very high, and it's our fastest geography within the group, so it's still a very dynamic region.

Thank you.

Thank you. We will now move to our next question from Emmanuel Maton from Adore BHF. Please go ahead.

Good morning, Benjamin. Good morning, Stephanie. Three questions for me, please. First, you mentioned a contract with Arcus for your second cloud offer. Was this a contract that required many months of negotiations or was it done quickly, even in the new geopolitical context? Are you the only supplier also of this company for its cloud needs? Second, we are hearing a lot about hyperscalers promoting new sovereign cloud solutions. Are they really secure for European customers or is it just marketing in your opinion? And my last question, could you remind us your M&A strategy because a French newspaper mentioned last week that OVHcloud is well positioned to buy some assets from Worldline that are not traditional cloud services. Thank you very much.

Yes, so on your first question, indeed with Arcus, so indeed it's, you know, defense armored vehicles. These projects indeed take some months to discuss with the customers. As you know, these are Sectium Cloud, very secured solutions, so this requires indeed discussions with the customer to evaluate every time that you truly answer to the constraints of the customers. And indeed, we see that healthcare, defense, public sector are truly sectors, verticals, that we currently see the dynamics. As for the other supplies, usually, I mean, you know, our customers have different options. They still have sometimes some on-prem infrastructure, and they usually also use several suppliers to deliver their services. On your second question on the hyperscalers, indeed, we see that there is a change mindset since the beginning of the year, I would say, linked to the geopolitical tensions. and indeed we see some examples. Recently, even Denmark, a few days ago, decided to gradually replace hyperscaler solutions with European alternatives. So at OVHcloud, we have always embraced that's our motto, innovation for freedom, so giving the freedom of choice. So we commit to support open, responsible, reversible access to technologies for cloud, for AI. That's how we got also the second cloud qualification, this very high qualification in France with no offerings that we definitely issued. And I think that this is truly, I think, our difference on the market. And there's always a question whether the hyperscalers can guarantee, indeed, or not, the fact to be immune to extraterritorial laws, to extra-European laws. And we always call for transparency of all communication by the competitors on that so that customers understand truly what they are confronted to when they chose their supplier for sovereign offerings. And third, for the M&A strategy, indeed, you know that we have a very clear strategy, which is that we, and we proved it in the past years, we do M&A to accelerate our product roadmaps, very targeted. So we acquired five companies in the past years to accelerate our product Our strategy is also when we want to open new data centers, pastures, as you saw in Italy recently with an acquisition. And it can be also to expand our customers, portfolio of customers, to leverage the cross-sell opportunity. But I would say that the main focus is indeed the acceleration of our products.

Thank you very much. And our next question is from John Valentin Paul from Stifel. Please go ahead.

Hi, everyone. Do you hear me well?

Sorry?

Do you hear me well?

Sorry? Yes.

Yes. Perfect. Thank you. So thank you for taking my question. So on the growth trajectory, bearing in mind that you perceive a profound bargaining shift in 70, and you have a growing number of discussions with French public entities and parapublic entities at sea level. And finally, bearing in mind that you explicitly mentioned a marked acceleration in your customer acquisition dynamic, Should we conclude from this that growth is going to accelerate sharply in the coming quarters? And can we consider the 10% growth target for 2026 to be outdated and too cautious from now on? Or do you think this growth target for 2026 is still relevant? And if it is still relevant, why, given your narrative? Thank you.

I think, as I mentioned in my first answer, indeed, there is a dynamic indeed of more inquiries, as I mentioned, sea level. I could tell you that also I had in the past weeks many meetings also at the ministries level in Europe. I mentioned the integrators. We truly see this momentum. Despite of that, I think that, as I mentioned, it's going to take some months to come from discussions to projects, qualifications with the teams, and to see it at the strong revenue level. And I think to your question on the long-term growth, I think that this is, for us, a long-term growth guideline. and this Q3 publication for us is not the appropriate time for us to provide the guidance for next year. And as you may have understood during this presentation, I think we are implementing specific action plans that will be approved and mitigate this macroeconomic uncertain environment. But truly today, I mean, we are very much focusing on Q4 execution, and especially, by the way, we have a rigorous budget process that's ongoing for next year.

Thank you. We will now move to our next question from Danielle Chaffee from Citigroup. Please go ahead.

Hi. Thank you for taking the question. I just wanted to come back to the U.S. growth. So I understand U.S. growth is mainly driven by diversification efforts of companies to not only rely on U.S. data center players, especially after events like Liberation Day. So can we expect that U.S. growth will decelerate again into 2026 to some more normalized rate after kind of this year of those events passes?

Well, I think very early on,

say today what would be the outlook for 2026 as for U.S. growth. I think that we have been, you know, for many years in the U.S. now, more than 10 years. We have data centers east coast, west coast. We have 10 local zones that we also opened in 10 big cities in the U.S. And I think we continue to enrich the suite of solutions that's delivered in our data centers in the U.S.

It's mostly private cloud as of today in the U.S. and we're making some specific efforts to make the public cloud product also available but as of today it's only a minimum part of our business in the U.S. so that's also an area where we should see some acceleration of the growth and clearly our U.S. customers choose OVH for pricing positioning reasons in most cases and this remains very much valid. So, I mean, we are very confident on our US business.

Okay, perfect. And just to follow up on this, so can I, obviously it's a bit too early to mention 2026, but just to understand the growth dynamics, So in addition to kind of Europe, hopefully coming back a little bit more in 2026, there is also a point that US will continue to be resilient, right?

So this is fair to assume.

Yeah, well, I mean, when you look at what is communicated in terms of macro, in terms of IT directors making decisions, it's still very difficult to have a good visibility. So we remain, as of today, very cautious. We're working on 26 right now, so we're not guiding for 26 in our Q3 publication, but we're taking all these factors into consideration and we'll come back in October with your guidance.

I think we're very action-oriented today, truly on executing our delivering the offering, targeting the right project customers, and I think that we stick to our momentum and to growth and also platform generation. Perfect.

Thanks.

Thank you. As a reminder, to ask a question, please signal by pressing star 1. Now, our next question is from Derrick Marcon from Bernstein. Please go ahead.

Yeah, good morning, Benjamin and Stéphanie. I've got four questions. The first one, and it's often about top-line growth. So the first one, can you share with us any... data point or TPI that you are tracking to measure customer appetite for your solution. So qualified pipeline, non-qualified pipeline, anything that can help us to understand if customer demand is stable quarter or month after month, quarter after quarter, or you see an increasing appetite for your customer on existing solution or the new solution that you're Second question is about Q4. So sorry to come back on that, but you are talking about predictable growth. But if I take your guidance for a year, I think you had already the question during the call, but keeping 9% to 11% organic growth target for the year when you have already closed three quarters means that your guidance for Q4 imply a range of 6% at the low end of the range, 14% at the upper end of the range. So I was wondering if you can help us to narrow this range, which seems to me, for next quarter, a bit very wide, let's say. Third question is on the ramp-up of existing contracts. You mentioned some of them. Can you quantify that? And conversely, can you also quantify the headwind you face at the end of the Q3, so on your private cloud business? Was it meaningful in terms of revenue loss versus your budget? And should we interpret the fact that June is in line with May as something saying that if nothing is changed in Q4 versus the end of Q3, this miss will remain versus your budget? And my last question is about the level of net retention rate, so 104%. I was wondering if this number, which is quite low compared to historical level, comes from the fact that existing customers are not yet adopting new products or the churn rate is higher than what we have seen on average in recent years. Thank you.

Okay, so I'll start with the data points. on the top line. On the top line, you mentioned the data points. If I pick one for private cloud, indeed, as you saw, we have implemented a strategic repositioning, as we mentioned, of our entry range bar method servers. And indeed, we can already see the results. because in terms of customer acquisition, it's up 25% year on year, right? So we see indeed this impact in terms of customer acquisition. If I look at the retention rate, the NLR, indeed it's 104% Q3, right? It was 107% H1. So we don't get it. as you know, on NRR. In 2020 and 2021, I think we were around 103%, and we have been around 110% in the last year. So the evolution of NRR, I think, is mostly linked to what we have seen, what we've been seeing for the last month in our private cloud segment in Europe, especially in those private cloud, meaning that existing customers are optimizing I think the cloud infrastructure, and this is, to our understanding, connected to this uncertain macro environment. And as you see, we take action, right? We take action. We launch specific action plans to boost the acquisition of customers that are looking for these entry-range servers. We are indeed launching DCF as a service offering, and we don't see a change in the churn, right? So I think we stick to our action plan and we are not worried by these 104% on our arm. On the ramp up of the contract, I think that, of course, there is a different dynamics. We see some customers, like I mentioned, like Arcus in the defense sector, right, where you have indeed different phases into the project. So this is a Sectium Cloud project, and we see two, three phases where indeed these contracts, month after month, while enriching, not only consuming more, but also including more with a disaster recovery, with SAP offering, et cetera, these are bringing a true ramp-up into the contract. And then you have some new contracts, right, for also sovereign cloud. If I could take you an example, Derek, we have a public cloud or I would say para-public body that is currently calling for RFP, and we are talking typically of 1.5 million euros per year revenue over eight years, right? So this is typically, but this is new, but this is... the way customers also today are pitching for growing their sovereign offering. This is typically directed at a sovereign offering deal. And maybe Stephanie on the Q4.

Yes. Hi, Derek. So again, just to share with you what we do see as of today, I mean, We have some very strong drivers. I mean, you see that on public cloud, we have a strong growth. U.S. remains also very dynamic, also with some optimization, but all in a very dynamic sector. We have also good trend on the sovereign. We have good acceleration and growth of our S&T offer plus. Like we said, I mean, we have a good pipeline in terms of requests, RFPs. Those take a bit of time, but I mean, the trends are very good. Private cloud, it's a bit different. I mean, we have some sequential deceleration that we have observed in this Q3. We have the macro uncertainty, and our customers are asking for infrastructure optimization, like Benjamin said. We have also, you know, the end of the pricing effect at the end of April from Broadcom. So we are losing this driver starting in May. But as a result, we've made those adjustments to the offer that we've launched a new offer to be very competitive. We've revised slightly the pricing also to accelerate the customer acquisition and to offer also some competitive offer to our customers that are suffering, particularly in Europe. So all in, we are making a strong effort to answer to our customers. We have also the new offer in the private cloud. And at the end of the day, that's on the basis that we confer on full year guidance. What we do see in June as well, we have still one week to go, but we do a stabilization of the trend compared to May. So that's also a good element. So all in, yes, we confirm the full year guidance for our top line at 9 or 11%. That's what we can say. And we are also, very important for us, confirming our guidance for EBDA margin around 40% in this context. And we also confirm our cash guidance with an 11 free cash flow that we expect to be above 25%. So an improvement compared to FY24.

Yeah, very important that you understand that we continue our cost discipline that we have launched since October. And as you know, the focus is mostly on the cost and gross margin, but also on G&A. And definitely, we have profitability measures, especially focused on G&A, to ensure that we deliver on profit, on cash, and that's how we maintain the guidance for the career.

And I mentioned 25%, 25 million euros for the base, the 24 base for end of the cash flow.

Sorry about that.

Thank you.

Thank you. And it appears there are currently no further questions at this time. I'd like to hand the call back over to all OVH management team to conclude today's call. Thank you.

Okay.

Thank you for these questions and thank you for attending our Q3 25 call. I'll wrap up this call to tell you what. First, that Our performance in Q3 was indeed resilient. So we reached the 272 million, 272 million euros revenue, which is up plus 9.3% like for life growth compared to Q3 last year. In this uncertainty of the macro-connected environment, we have successfully adapted our positioning in private cloud to meet our customer needs. For example, as We have mentioned we repositioned our prices for entry-range service to boost customer acquisition. In parallel, in public cloud, we continue to deliver a solid growth to buy new products and customer acquisition. So from a business perspective, we benefited from a strengthening of inquiries for sovereign solutions with new deals that will ramp up in the coming quarters, as, for example, as mentioned, the artist in the defense vertical. In parallel, we have continued to roll out new products, across public cloud, especially in artificial intelligence with data platform and also with AI endpoints. We also continued our geographical expansion based on the 3AZ model for high resilience and availability with our new data center opening in Milan. Finally, as planned, we continued our effort to discipline costs. We sustained focus on profitability and cash leverage. So based on this trajectory, we confirm our FY25 targets, life-reliant growth between 9% to 11%, and a just BDA margin of circa 40%, a capex between 30% to 34% of our revenue, and an unlevered free cash flow above 25 million euros, improving compared to last year. Thank you very much again, and have a great day.

Thank you. This concludes today's conference call. Thank you for your participation, ladies and gentlemen. You may now disconnect.