OVHcloud cuts sales and margin targets, shares tumble

OVHcloud’s shares fell sharply on Wednesday after the French cloud services provider trimmed its forecast for full-year sales and margins, flagging signs of weakening customer demand.

The company now sees organic revenue growth between 13% and 14% in 2023, against a previous outlook of growth in the range of 14%-16%. It expects its 2023 adjusted core profit (EBITDA) margin to be above 36%, against a previous forecast for it to be in line with the 2022 level of 39%.