Shares in IONOS Group surged on Thursday, climbing as much as 12% in early Frankfurt trading after the cloud and web hosting provider delivered better-than-expected second-quarter results and lifted its full-year revenue forecast. The rally pushed the stock to its highest level in three months, outperforming the broader technology sector.
The Germany-based company, which listed on the Frankfurt Stock Exchange in 2023, reported a 9% year-on-year increase in quarterly revenue to €402 million, driven by strong demand for its cloud infrastructure and managed hosting products. Adjusted EBITDA rose 11% to €91 million, beating consensus estimates. Management said the improved performance was underpinned by higher customer retention and increased spending per client.
In a statement, IONOS said it now expects full-year revenue growth of 8-10%, up from a previous range of 7-9%. The upgrade reflects “sustained momentum in the cloud segment and a resilient small-to-medium business customer base,” the company noted. Analysts at Berenberg described the update as “reassuring” and highlighted the firm’s improving margin trajectory.
The broader European tech sector saw a modest lift from the IONOS news, though the FTSE 100 was largely flat on the day, trading around 8,210 points. UK-listed cloud and data centre stocks, including Equinix and Digital Realty, edged higher in sympathy. For UK investors holding diversified portfolios or pension funds with continental exposure, the surge underscores the ongoing structural shift toward cloud adoption among SMEs.
“IONOS is benefiting from a tailwind that is not cyclical but structural,” said an analyst at Jefferies. “Businesses continue to migrate workloads to the cloud, and IONOS has carved out a strong niche serving the mid-market.” The analyst cautioned, however, that competition from larger US hyperscalers remains a risk. IONOS shares have gained roughly 25% year-to-date.