Due to strong demand from US tech companies, the French cloud services provider OVHcloud exceeded its Q3 revenue expectations. Despite economic challenges affecting cloud spending in Europe, OVHcloud experienced a significant 15.9% surge in its shares, a record increase for the company.

The firm emphasised substantial US private cloud sector growth, particularly in high-performance Bare Metal servers. Competing with industry giants like Amazon Web Services and Oracle, OVHcloud aims for global expansion through competitive pricing and enhanced performance offerings. OVHcloud achieved a 10.1% year-on-year revenue growth, reaching 251 million euros for Q3, exceeding market predictions. That contrasts with the revised 2024 targets set earlier due to weaker demand in key European markets, notably France and Germany.

Why does it matter?

OVHcloud's Q3 performance underscores its competitive edge in the global cloud services market, particularly against dominant US players like Amazon Web Services and Oracle. The strong revenue growth fuelled by US technology demand highlights OVHcloud's strategic positioning and potential for international expansion.