q.beyond increases revenues by 13% in first quarter of 2023
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EQS-News: q.beyond AG
/ Key word(s): Quarter Results/Quarterly / Interim Statement
q.beyond increases revenues by 13% in first quarter of 2023
Cologne, 8 May 2023 – q.beyond’s quarterly financial statements are shaped by the implementation launch for its 2025 Strategy. The IT service provider intends to significantly boost its earnings and financial strength by 2025 while continuing to grow consistently. It aims to achieve this by clearly focusing its business model, increasing the effectiveness of its sales activities, and standardising processes and structures in the “One q.beyond” project. SAP business returns to growth q.beyond’s revenues grew year-on-year by 13% to € 46.6 million in the first quarter of 2023. This strong growth was partly driven by the consolidation of productive-data, the data analytics specialist in which q.beyond acquired a majority stake in the fourth quarter of 2022. Against this backdrop, revenues in the Cloud segment rose by 15% to € 36.9 million. SAP, the company’s second segment, regained its growth course in the past quarter, with revenues rising by 4% to € 9.7 million. “As expected, our SAP sales campaign is now beginning to pay off”, comments CEO Thies Rixen. q.beyond was early to point out that it would have to absorb higher electricity, licence, and personnel expenses in the current year. Furthermore, in the past quarter the company stated provisions of € 1.3 million for expenses incurred to reorganise its personnel structure. As part of its 2025 Strategy, q.beyond is streamlining its organisation and reducing its personnel expenses by, among other measures, eliminating duplicate functions and parting company with business units that are outside its well-focused business model. In view of this, EBITDA totalled € -1.3 million in the past quarter, as against € 0.8 million in the previous year. The conversion in the personnel structure will impact positively on earnings in the current financial year already. Free cash flow improves by € 2.7 million Implementation of the 2025 Strategy already had a positive effect on free cash flow in the past quarter, in which this key figure rose year-on-year by € 2.7 million to € 1.1 million. This increase also results from the “order-to-cash” project (implemented within “One q.beyond”), which is intended to ensure efficient management of receivables and payments. Accounting for these factors, q.beyond has confirmed its full-year forecast. The company still plans for revenues to grow to between € 185 million and € 191 million (2022: € 173.0 million), EBITDA of € 5 million to € 7 million (2022: € 5.4 million), and free cash flow of up to € -8 million (2022: € -9.7 million). Decreasing personnel expenses as the year progresses and efficiency gains from streamlining processes and structures in “One q.beyond” will lead to rising EBITDA, above all in the second half of the year. Given outstanding capital expenditure and outlays incurred to implement the 2025 Strategy, however, free cash flow will be lower in the coming quarters than in the past quarter. EBITDA margin budgeted to rise to 7% to 8% by 2025 CEO Thies Rixen confirms his targets for the years ahead: “With the 2025 Strategy, we will generate a sustainably positive free cash flow starting 2024 and achieve positive consolidated net income one year later. By 2025, the EBITDA margin will also rise to 7% to 8% – and thus more than double compared with 2022. These targets are ambitious but achievable. And our business performance in recent months shows we are on the right course.”
08.05.2023 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: | 1626137 |
| End of News | EQS News Service |
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1626137 08.05.2023 CET/CEST
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