Revenue of EUR161.1m in Q1 2018 with accelerated organic growth of 17%
Revising upwards the annual organic growth objective to more than 12.5%
Paris, 16 May 2018
In millions of euros Q1 2018 Q1 2017 Q1 2017
Revenue 161.1 130.3 131.2
L-f-l variation(3) 17.0%
(1)Restated in accordance with IFRS 15 related to revenue from contracts with
customers. Impact currently being validated by the Group Auditors.
(2)In the FY 2017 press release.
(3)At comparable perimeter and exchange rates.
Devoteam (Euronext Paris: DVT) achieved revenues of EUR161.1 million for the
first quarter of 2018, growing 17% compared to the first quarter of 2017
excluding the changes in scope and exchange rates, despite fewer working days
(1.8% working days less than in the first quarter of 2017).
At current exchange rates and perimeter, consolidated revenues have increased
by 23.6% during the first quarter. It included negative effects of currency for
1.4 point (UAE dirham and Norwegian krone, mainly). The changes in scope had a
positive impact of 8 points on the growth of the quarter with a contribution of
EUR10.4 million to the consolidated revenues during the first quarter of
Devoteam continues its strong development on Digital / SMACS (Social Mobile
Analytics Cloud Security), which represented 65% of the business in the first
In line with its 2020 Scale! plan, the Group pursued its investments on
building its partnerships with the key software vendors of the digital
With Google, Devoteam initiated an EMEA business strategy specific to the
Retail vertical to capitalize on the recent flagship projects won in France
(Auchan among others). Outside France, the Group's investment on Google Cloud
Platform was mainly concentrated in Germany, Spain and the Netherlands.
Devoteam developed and structured its Artificial Intelligence expert community
and already started some fifteen projects on chatbots, data structuration,
cognitive research or cognitive process automation.
On ServiceNow, the Group launched an International Center of Excellence in
Central Europe at the beginning of 2018. This center aims at being an
innovation lab as well as a training center for the consultants of the Group.
It should also allow to expand Devoteam's positioning on ServiceNow's Beyond
ITSM solutions. The ServiceNow partnership was also expanded to the Middle
East, where Devoteam won a project for the Saudi government at the beginning of
Since the acquisition of D2SI, Devoteam also became a major player on Amazon
Web Services solutions and has been awarded with the AWS+100 distinction
(partners recognized for achieving more than 100 AWS certifications).
Tied to the progression of the business investment on strategic partners, the
Group puts a strong emphasis on certifying its employees, through the launch of
the Knowledge Up Program. Started in early 2018, this initiative, directly
linked to the Scale! offers, is a training and certification program aiming at
being a career booster for young consultants. The ambition is to get more than
300 employees in this program in 2018.
Analysis of Q1 2018 revenue by region
France reported revenues of EUR85.7 million in the first quarter of 2018,
growing 20.0% organically, and driven by the Google solutions and Business
Process Excellence, Data as a Service and Customer Experience activities.
At constant scope and exchange rates, the revenue of the Northern Europe &
Benelux region increased by 9%; notably linked to the strong performance on
Service Management activities in Denmark and in the United Kingdom.
The Central Europe region achieved revenues of EUR17.1 million, representing an
organic growth of 24%, as a result of a strong growth in Germany and in the
Cyber Security activities.
The Spain region reported revenues of EUR8.0 million in the first quarter of
2018. It grew more than 16% on a like-for-like basis. This is reflecting a
return to growth after the merge with Drago and a significant business
development with a Spanish client in Latin America.
Rest of the world generated revenues of EUR10.3 million, increasing 22.7%
organically compared to the first quarter of 2017, supported by a strong growth
in the Middle East.
Headcount and utilization rate
As of March 31st, 2018, the Group employed 5 425 people, compared to 5 195
people as of December 31st, 2017. Excluding the changes in scope, the headcount
increased by 216 people over the first quarter of 2018, compared to an increase
of 110 people over the first quarter of 2017.
The ratio of billable headcount to total headcount was stable over the quarter
The utilization rate of internal resources stood at 85.6%, increasing 2.5
points compared to the first quarter of 2017.
Changes in scope
Devoteam SA, through its subsidiaries, acquired the majority of the shares of
Altius Services, thus reinforcing its technological and local expertise on the
Salesforce platform. Altius Services, a Salesforce pure-player, is notably a
prime partner of Salesforce.org - dedicated to non-profit organizations - and
Gold partner on its Consulting Partner program. The company employs 14 people
and generated EUR1.2 million revenue in 2017. This acquisition is fully
consolidated starting February 1st, 2018.
Devoteam also purchased 62,59% of minority interests from Progis, Premium
partner on Google for Work. The Group now owns 87,48% of the shares and the
company is fully consolidated starting January 1st, 2018.
Considering the level of organic growth on the first quarter, the Groups
revised upwards its annual revenue objective to EUR625 millon (versus "above
EUR615 million" announced in March), reflecting:
- Organic growth above 12.5% (versus "above 10%" on last press release);
- A negative exchange rate impact of 0.8%;
- Contribution from the acquisitions of 4.7%;
- Reduction of EUR5 million in revenue related to the application of IRFS 15 on
The accretive effect of IFRS 15 on the operating margin, being estimated to be
less than 10 basis points over the year, will not lead to a significant update
on the operating margin objective, which should represent 10.5% of the revenue
(versus "close to 10.5%" in the last press release).
Dividend and financial calendar
Press release after market closed Sharholders'
meeting Dividend payment
Q2 2018 Q3 2018
5 September 2018 14 November 2018 18 May 2018 18 June 2018
Revenue and operating margin by region
In millions of euros Q1 2018 Q1 2017 Q1 2017
France 85.7 67.7 67.7
L-f-l variation 20.0%
Northern Europe & Benelux 40.8 32.5 32.6
L-f-l variation 9.1%
Central Europe 17.1 13.7 13.7
L-f-l variation 24.0%
Spain 8.0 6.9 6.9
L-f-l variation 16.4%
Rest of the world 10.3 9.4 10.2
L-f-l variation 22.7%
Corporate & other (0.7) 0.1 0.1
Total 161.1 130.3 131.2
L-f-l variation 17.0%
Of which impact of significant acquisitions:
In millions of euros Q1 2018 Q1 2017 Q1 2017
D2SI, consolidated as of 1 October 2017 3.8
Progis, fully consolidated as of
1 January 2018 0.4
Altius Services, consolidated as of
1 February 2018 0.2
Northern Europe & Benelux 6.0
TMNS, consolidated as of 1 July 2017
Restated: restated in accordance with IFRS 15 related to revenue from contracts
with customers. Impact currently being validated by the Group Auditors.
Northern Europe & Benelux: Belgium, Denmark, United Kingdom, Luxembourg,
Netherlands inclusing TMNS in Switzerland, in Germany and Serbia, and Norway.
Central Europe: Austria, Czech Republic, Germany and Poland.
Spain: Spain, Mexico and Panama.
Rest of the world: Middle East, Italy, Morocco, Tunisia and Turkey
Corporate & other: headquarter activities which cannot be allocated directly to
the operational regions, and discontinued activities.
Revenue and group contribution: the revenue of a region is the contributive
revenue and is defined as the total revenue (internal and external) of the
region minus the costs of internal subcontracting. It reflects the contribution
of the region to the revenue of the Group produced with own resources. The sum
of the contributions of the regions corresponds to the consolidated revenue of
Operating margin: current operating result excluding the cost of share-based
payments and the amortization of intangible assets resulting from
Like-for-like or l-f-l variation: variation at comparable perimeter and
Utilization rate of resources: number of working days of billable employees
that were billed to a client compared to the total number of available days
SMACS: Social Mobile Analytics Cloud Security.
Chatbots: a chatbot is a piece of software that conducts a conversation with
users. Chat bots simulate how a human would behave as a conversational partner,
and can be used to provide customer service or deliver other informational
services. (Source: Google, 2018)
DevOps: IT organizations must become nimble and work together to stay relevant.
The consumerization of IT has changed customer expectations and IT must adapt
its culture and processes to deliver apps and features faster. With a complete
DevOps strategy, organizations can begin the culture, process, and platform
changes needed to meet the new demands. The result is an IT organization that
can deliver business innovation faster. (Source: RedHat.com, 2018)
Service Management: IT Service Management solutions allow IT Departments to
consolidate their fragmented tools and legacy systems by automating processes,
making incident management faster and more reliable. (Source: ServiceNow,
At Devoteam, we deliver innovative technology consulting for business.
We are 5,500 professionals dedicated to ensuring our clients win their digital
Present in 17 countries in Europe and the Middle East and drawing on 20 years
of experience, we improve business performance making their companies truly
digital. We build IT infrastructure for digital, and make sure people are along
for the ride.
Devoteam achieves yearly revenue above EUR600 million.
At Devoteam, we are "Digital Transformakers".