EQS-News: q.beyond increases EBITDA by € 1.2 million to € 2.2 million and affirms forecast

q.beyond increases EBITDA by € 1.2 million to € 2.2 million and affirms forecast

• Q2 2024: revenues rise by € 0.9 million to € 47.3 million, free cash flow up € 1.9 million to € 0.8 million
• Full-year EBITDA is budgeted to rise by at least 40% to between € 8 million and € 10 million

Cologne, 12 August 2024 – q.beyond continues to grow its earnings and financial strength thanks to consistent implementation of its “2025 Strategy” and despite the ongoing weak economic climate. EBITDA rose year-on-year by € 1.2 million to € 2.2 million in the second quarter of 2024. Quarterly revenues at the IT service provider grew by € 0.9 million to € 47.3 million, while free cash flow improved by € 1.9 million to € 0.8 million in the second quarter of 2024. This was accompanied by a further increase in net liquidity at the debt-free company to € 39.0 million, up from € 37.6 million at the end of 2023. This corresponds to € 0.31 per q.beyond share.

2025 Strategy proves its worth in challenging conditions

Comparison of the half-year figures underlines the pleasing development in the operating business. EBITDA for the first six months of the current financial year totalled € 4.2 million, compared with € -0.2 million in the previous year. Revenues for the same period grew from € 93.0 million to € 94.4 million, while free cash flow rose to € 1.4 million, up from € 0.0 million in the first half of 2023. Against this backdrop, the company can affirm its full-year forecast for 2024: it has budgeted for EBITDA to rise by at least 40% to between € 8 million and € 10 million and for this to be accompanied by revenues of between € 192 million and € 198 million, and sustainably positive free cash flow.

Comments Thies Rixen, q.beyond’s CEO: “The 2025 Strategy is proving itself. q.beyond is raising its earnings and financial strength even in the current challenging conditions.” Unlike expected at the beginning of the year, Germany has still not witnessed any economic upturn.

Focusing of business model is paying off

With its 2025 Strategy, q.beyond has focused its business model, made its sales activities more effective, and simplified its processes and structures. In the past quarter, 72% of revenues came from the five focus sectors of retail, logistics, manufacturing, financial services, and the public sector. The resilience of the business model is further boosted by the high share of recurring revenues, which stood at 75% in the second quarter of 2024.

Recurring revenues particularly shape the “Managed Services” business involving the operation of IT infrastructures. Revenues in this segment rose year-on-year by € 1.9 million to € 33.7 million in the second quarter of 2024. By contrast, the “Consulting” segment, which tends to be characterised by short-term consulting and development projects, felt the effects of the macroeconomic headwind. Revenues here stood at € 13.5 million, as against € 14.6 million in the previous year. Nora Wolters, q.beyond’s CFO, views both segments as still being well positioned: “We have streamlined structures and optimised capacity utilisation. Not only that: we are consistently expanding the share of nearshoring and offshoring activities. We have thus put good conditions in place to further raise our profitability regardless of the economic backdrop.” Year-on-year, quarterly EBIT improved by € 1.3 million to € -1.0 million, while consolidated net income for the second quarter of 2024 rose by € 1.9 million to € -0.8 million.

EBITDA margin of 7% to 8% and positive consolidated net income budgeted for 2025

The company intends to generate positive consolidated net income in the coming financial year, accompanied by an EBITDA margin of 7% to 8% and an ongoing sustainably positive free cash flow. Adds CEO Thies Rixen: “q.beyond is very well on course to meet the ambitious targets set in the 2025 Strategy. As our earnings and financial strength grows, we are also creating a solid basis, in particular to sustainably increase the company’s value.”

Key figures at a glance

Notes:
This Corporate News contains forward-looking statements that are based on current expectations and forecasts on the part of the management with regard to future events. Due to risks or erroneous assumptions, actual results may deviate materially from these forward-looking statements. The complete Half-Year Financial Report is available at www.qbeyond.de/en/investor-relations.

About q.beyond AG:
q.beyond AG is the key to successful digitalisation. We help our customers find, implement and operate the best digital solutions for their businesses. Our strong team of 1,100 specialists accompanies SMEs reliably as they tackle their digital transformation. Customers benefit here from our all-round expertise in cloud, artificial intelligence, SAP, Microsoft, data intelligence, security, and software development. With locations across Germany, as well as in Latvia, Spain and India, and its own certified data centres, q.beyond is one of Germany’s leading IT service providers.

Contact:
q.beyond AG
Arne Thull
Head of Investor Relations/Mergers Acquisitions
T +49 221 669-8724
[email protected]
www.qbeyond.de