EQS-News: q.beyond increases revenues and free cash flow in Q3 2023

q.beyond increases revenues and free cash flow in Q3 2023

• Revenues grow by 5% to € 45.4 million
• Free cash flow improves by € 2.8 million to € 1.1 million
• Far-reaching transformation and Inflation impact on EBITDA (Q3 2023: € 0.1 million)
• Full-year forecast for 2023 confirmed

Cologne, 13 November 2023 – Notwithstanding the weak economic climate in Germany, IT service provider q.beyond upheld its growth in the third quarter of 2023, with revenues rising by 5% to € 45.4 million. Year-on-year comparison of the nine-month figures underlines the resilience of the company’s business model – revenues in the first three quarters of this year grew by 10% to € 138.5 million.

Nine-month free cash flow up by € 6.3 million year-on-year to € 1.1 million

At the same time, q.beyond made further progress in implementing the “2025 Strategy” unveiled in spring 2023. In the short term, the success of this strategy is particularly visible in the free cash flow, which stood at € 1.1 million in the third quarter of 2023 compared with € -1.7 million in the previous year. In the nine-month period, the free cash flow improved by € 6.3 million to € 1.1 million. Given the challenging inflationary climate, it will take more time for the measures set out in the 2025 Strategy, some of which are of a far-reaching nature, to be fully reflected in the company’s profitability as well. EBITDA for the third quarter of 2023 amounted to € 0.1 million, as against € 1.7 million one year earlier. Nine-month EBITDA totalled € -0.1 million, compared with € 4.0 million in the previous year.

With its 2025 Strategy, q.beyond is creating a basis for significantly raising its profitability in the years ahead. In 2025, the company intends to achieve an EBITDA margin of 7% to 8% and generate positive consolidated net income. The free cash flow is to be sustainably positive starting in 2024 already. To achieve these targets, the 2025 Strategy sets three priorities: focusing the business model, achieving an effective go-to-market approach, and standardising and simplifying processes and structures thanks to the “One q.beyond” project. The process of focusing the business model is now well advanced – the new go-to-market approach is already proving its worth in practice. In recent weeks, moreover, q.beyond Cloud Solutions, formerly known as scanplus, and q.beyond Consulting Solutions, formerly datac, were merged into q.beyond AG. In connection with “One q.beyond”, the company will also be doubling the share of its nearshoring and offshoring activities from currently 10% to 20%. Since September, the existing locations in Latvia and Spain have been joined by a third new operation in India.

Debt-free company with net liquidity of € 37.3 million

“This year, we are leaving hardly any stone unturned at q.beyond”, reports company CEO Thies Rixen. The new structures were now mostly in place. “This way, q.beyond has become an even more customer-focused company, one that covers all IT requirements of German SMEs from a single source.” By making targeted acquisitions, Thies Rixen aims to further expand the company’s strong market position. With net liquidity of € 37.3 million as of 30 September 2023 and no debt, the company is in a position to finance acquisitions of this nature with its own resources.

Upon the presentation of its quarterly results, q.beyond also confirmed its full-year forecast for 2023. The company still plans to achieve revenues of between € 185 million and € 191 million, EBITDA of € 5 million to € 7 million, and free cash flow of up to € -4 million. With regard to the EBITDA forecast, it should be noted that, as in previous years, this key figure includes a positive other operating result. The company pointed out at an early stage that, in particular, a decision concerning the tax treatment of the Plusnet sale in 2019 is due in the current year.

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 Quarterly Statement 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 the best digital solutions for their business and then put them into practice. Our strong team of 1,100 people accompanies SME customers securely and reliably throughout their digital journey. We are experts in Cloud, SAP, Microsoft, data intelligence, security, and software development. With locations throughout 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
invest@qbeyond.de
www.qbeyond.de