Annual Report 2021: A year of acceleration for digital engineering leader Nagarro

Nagarro, a global leader in digital engineering, presented its audited financial numbers for 2021, its first full year as an independent company. In addition to the strong growth, the inclusion in the SDAX and the TecDAX of Deutsche Börse were particular highlights of the 2021 financial year.

Demand was strong for Nagarro’s services, while the supply of talent remained constrained. Revenues grew to €546.0 million in 2021 from €430.4 million in 2020, a growth of 26.9%. In constant currency, 2021 YoY revenue growth was 28.6%. Gross profit grew in 2021 to €154.4 million from €140.2 million in 2020. Gross margin dropped, changing from 32.6% in 2020 to 28.3% in 2021. Adjusted EBITDA grew 4.6% from €76.2 million (17.7% of revenue) in 2020 to €79.7 million (14.6% of revenue) in 2021. It may be noted that 2020 included the effect of salary cuts in response to the onset of the Covid-19 pandemic.

EBITDA increased by €4.1 million from €66.2 million in 2020 to €70.3 million in 2021. EBIT increased by €1.2 million from €44.5 million in 2020 to €45.7 million in 2021. Net profit increased by €5.6 million to €30.0 million in 2021 against €24.4 million in 2020.

The annual report also carried results for Q4 2021. Notably, Q4 2021 revenues grew YoY by 48.7% over Q4 2020 and grew QoQ by 15.0% over Q3 2021.

Sandeep Anand, Managing Director, said, “Nagarro continues to benefit from the surge in demand for digital engineering services. At the same time, this rapid growth demonstrates the inherent resilience and agility of Nagarro’s organizational design and culture.”