In year of change, developer maintains margin while extending client base Eastern European software giant Luxoft Holding has reported a quarterly revenue rise to $196.5m, an increase of 21.6% year over year and 10.3% sequentially on the reporting currency basis and 22.8% increase on the constant currency basis. It is still aiming to break the $1bn annual figure in two years' time.
"We are pleased to report financial results for the first half of the financial year, marked by strong growth despite extremely volatile economic conditions and lack of visibility on the market," stated Dmitry Loschinin, CEO and President of Luxoft Holding, Inc. "This is a transformational year for Luxoft. We are diversifying our business and lowering client and vertical concentration, resulting in 7.5% decline in top-client concentration over the first six months. We are expanding premium services and offering consulting capabilities in many standard platforms, such as Murex, Calypso, Pivotal and Pega, which our clients are adopting at increasing rates."
"We are rolling out new offerings in Internet of Things, big data, predictive analytics and many more. During the past quarter we completed two strategic value-accretive acquisitions, thus entering healthcare and pharmaceuticals, improving our position in the telecom vertical and expanding Human Machine Interface and Digital Cockpit practices in automotive. Given this improved positioning coupled with the diverse pipeline of business for the year ahead, we hope to achieve our soft target of $1 billion in revenues for the year ending March 31, 2018."
For the six months ended September 30, 2016, telecom, automotive and transport, and financial services were the strongest performers, delivering 61.4%, 54.6%, and 13.5% of revenue growth respectively, compared to the first six months of last year. Outside of the top two accounts, the company’s revenue grew 37% for the first six months of the year and 45% for the second quarter, both on a year over year basis.
During the past three months the company added seven high potential accounts (HPAs) from telecom, automotive and healthcare sectors. Key revenue generating geographies continued to grow: revenues generated in the US increased 16.6%, in the UK increased 5.7%, in Germany increased 38.4%, in Switzerland increased 100.8%, and in the rest of Europe increased 91.7%, compared to the first six months of last year. The company generated a 1.2% increase in revenue per delivery employee, to $77,200 for the first half of the year. During the last quarter the total headcount crossed 11,000 employees to reach 11,898 as of September 30, 2016, while maintaining a relatively low attrition of 11.5%.