EQS-News: q.beyond AG
/ Key word(s): Quarter Results/Half Year Results
q.beyond increases revenues by 11% in Q2 2023 and raises free cash flow forecast
Cologne, 14 August 2023 – Notwithstanding the weak economic backdrop, the IT service provider q.beyond maintained its growth course in the second quarter of 2023: revenues grew by 11% to € 46.4 million. The company generated EBITDA of € 1.0 million and free cash flow of € -1.1 million. Cumulative revenues for the first six months of the current financial year totalled € 93.0 million, while EBITDA stood at € -0.2 million and the free cash flow was neutral, i.e. amounted to € 0.0 million. In light of these results, the company can confirm its full-year forecast for 2023 for revenues (€ 185 million to € 191 million) and EBITDA (€ 5 million to € 7 million) and is raising its free cash flow forecast to up to € -4 million from previously up to € -8 million. The higher free cash flow is due above all to the progress made in implementing the new “2025 Strategy”. This has three strategic priorities: building a more focused business model, achieving a more effective go-to-market approach, and standardising and simplifying all processes and structures in the “One q.beyond” project. This involves numerous measures as well as clear targets and schedules. Some of these measures will take effect in the short term; these include improved receivables management, a factor which made it possible to raise the free cash flow forecast. The positive impact of other measures, such as the required reorganisation of personnel and merger of subsidiaries into q.beyond AG, will, by contrast, only become apparent in the quarters ahead. Significant rise in profitability of Cloud business On an operating level, the company can report an improved business performance in the past quarter in its “Cloud” segment in particular: revenues here grew year-on-year by 11% to € 37.6 million. The segment contribution increased by 57% to € 4.4 million, while the quarterly segment margin improved year-on-year by 4 percentage points to 12%. In the “SAP” segment, revenues rose by 6% to € 8.8 million in the second quarter of 2023. The segment contribution was unchanged at € 0.5 million, while the segment margin stood at 6%. Given the advances in implementing the 2025 Strategy, q.beyond expects to achieve higher profitability across the whole of the company in the second half of 2023. q.beyond’s CEO, Thies Rixen, explains: “In the second half of 2023, we will press just as consistently ahead with implementing the 2025 Strategy. Where necessary, we will step up the intensity of measures to ensure we can sustainably return to profitability. And where still required, we will simplify processes and structures and thus further enhance our efficiency.” Together with CFO Nora Wolters and q.beyond’s team, he is thus laying solid foundations to strengthen the company’s earnings and financial strength by 2025. Based on average revenue growth of 7% to 8%, q.beyond intends to generate an EBITDA margin of 7% to 8% and positive consolidated net income in 2025. The company plans to achieve a sustainably positive free cash flow starting in 2024.
Notes:
14.08.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | q.beyond AG |
Richard-Byrd-Straße 4 | |
50829 Cologne | |
Germany | |
Phone: | +49-221-669-8724 |
Fax: | +49-221-669-8009 |
E-mail: | invest@qbeyond.de |
Internet: | www.qbeyond.de |
ISIN: | DE0005137004 |
WKN: | 513700 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1701997 |
End of News | EQS News Service |
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1701997 14.08.2023 CET/CEST
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