Q.BEYOND AG
EQS-News: q.beyond AG
/ Key word(s): Preliminary Results/Forecast
q.beyond generates positive free cash flow one year earlier than expected
Cologne, 11 March 2024 – The IT service provider q.beyond improved its free cash flow by € 11.4 million to € 1.7 million in 2023. It thus achieved a positive full-year free cash flow one year earlier than planned upon the presentation of the “2025 Strategy” in spring 2023. Based on preliminary calculations, in the past financial year revenues rose by 9% to € 189.3 million, while EBITDA improved by 6% to € 5.7 million. Both key figures are consistent with the outlook published at the beginning of 2023, with revenues forecast at between € 185 million and € 191 million, and EBITDA at between € 5 million and € 7 million. Implementation of the 2025 Strategy involved a far-reaching restructuring of the company in the past financial year. In particular, q.beyond provided its business model with a clearer focus, increased the effectiveness of its go-to-market approach and, in the “One q.beyond” project, simplified and standardised all its processes and structures. As expected, in the short term the various measures had the benefit of boosting the financial strength of the debt-free company. Net liquidity rose to € 37.6 million in 2023. Starting in 2024, the company’s earnings strength will rise sustainably. Double-digit revenue growth in SAP business Both segments contributed to the company’s revenue growth during the year of restructuring in 2023. Cloud revenues increased by 9% to € 151.2 million, while SAP revenues rose by 13% to € 38.1 million. As previously announced, the EBITDA growth was partly due to an increase in other operating income by € 3.7 million to € 9.2 million following a decision by the tax authorities concerning the tax treatment of the Plusnet sale executed in 2019. This decision, which was in q.beyond’s favour, will only impact on liquidity in 2024. A second decision by the tax authorities in this respect was a key reason for the increase in taxes on income to € -5.2 million, compared with € +0.2 million in the previous year. This decision will also impact on liquidity in 2024. Based on preliminary calculations, consolidated net income for 2023 nevertheless improved to € -16.4 million, up from € -33.1 million one year earlier. q.beyond expects its profitability to increase significantly in the current financial year, with EBITDA set to rise to between € 8 million and € 10 million. This will be accompanied by revenues of between € 192 million and € 198 million and a continued sustainably positive free cash flow. The measures q.beyond will take to boost its efficiency include raising the share of its nearshoring and offshoring activities from 11% currently, promoting the automation of processes and increasingly deploying generative artificial intelligence. Profitability ahead of growth
In its 2025 Strategy, the company set itself the target of achieving an EBITDA margin of 7% to 8% and positive consolidated net income in 2025. Thies Rixen, q.beyond’s CEO, sees the company as being well on the way to meeting these targets. The EBITDA margin is budgeted to rise to 4% to 5% in 2024. Here, Rixen has set clear priorities: profitability ahead of growth! The core goal of the 2025 Strategy is to sustainably and significantly increase q.beyond’s earnings and financial strength. Key figures at a glance
11.03.2024 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: | 1854747 |
| End of News | EQS News Service |
1854747 11.03.2024 CET/CEST
