Nagarro, presented its unaudited financial numbers for Q1 2022. Nagarro carried over its revenue momentum from Q4 2021 into Q1 2022. YoY revenue growth figures were especially impressive, aided by a year of strong hiring, three acquisitions, and a relatively slow Q1 last year. Demand continued to be strong and appeared unaffected by the looming possibility of a slowdown in the economy. Despite a difficult hiring environment, the company added a net 2,263 professionals in Q1 2022 – a number that includes additions through acquisitions, trainees, and lateral hires.
Revenue grew to €185.5 million in Q1 2022 from €115.7 million in Q1 2021, a growth of 60.3%. In constant currency, Q1 2022 YoY revenue growth was 55.2%. Gross profit grew in Q1 2022 to €50.4 million from €34.1 million in Q1 2021. Gross margin dropped, changing from 29.4% in Q1 2021 to 27.1% in Q1 2022. Adjusted EBITDA grew 56.1% from €18.6 million (16.0% of revenue) in Q1 2021 to €29.0 million (15.6% of revenue) in Q1 2022.
EBITDA grew 60.9% YoY to €27.9 million, up from €17.3 million in Q1 2021. EBIT grew 73.8% YoY to €20.5 million, from €11.8 million in Q1 2021. Net profit increased by 81.6% YoY to €13.9 million against €7.7 million in Q1 2021. The cash balance reduced by €30.8 million from December 31, 2021, to €75.8 million at the end of the first quarter of 2022, primarily due to payment towards acquisition liabilities of €20.8 million.
Bachar Kassar, co-founder and Managing Director, said, “Nagarro’s organizational design and culture and our engineering excellence continue to drive our strong growth. Right now, we may be one of the fastest growing IT services companies on the planet, and that is a great feeling.”