EQS-News: q.beyond increases EBITDA by € 2.1 million to € 2.2 million

q.beyond increases EBITDA by € 2.1 million to € 2.2 million

• Q3 2024: revenues rise to € 47.0 million, free cash flow amounts to € 1.0 million
• Full-year EBITDA is now budgeted to increase by significantly more than 40% to between € 8 million and € 10 million

Cologne, 11 November 2024 – q.beyond is further increasing its earnings strength despite Germany’s recession by consistently implementing its “2025 Strategy”: EBITDA for the third quarter of 2024 grew year-on-year by € 2.1 million to € 2.2 million. Quarterly revenues at the IT service provider rose by € 1.6 million to € 47.0 million, while free cash flow amounted to € 1.0 million, as against € 1.1 million in the third quarter of 2023. Net liquidity at the company, which has no debt, now stands at € 38.7 million, corresponding to € 0.31 per q.beyond share.

9-month EBITDA improves from € -0.1 million to € 6.4 million

Year-on-year comparison of the 9-month figures shows how well q.beyond is performing in the challenging economic climate: EBITDA for the first nine months of the current financial year totalled € 6.4 million, up from € -0.1 million in the previous year. Revenues for the same period rose to € 141.4 million, up from € 138.5 million, while free cash flow improved from € 1.1 million to € 2.4 million. The company will again prioritise profitability over growth in the fourth quarter of 2024. For the 2024 financial year as a whole, it now therefore expects EBITDA to increase not only by at least, but rather by significantly more than 40% to between € 8 million and € 10 million, and for this to be accompanied by sustainably positive free cash flow and revenues closer to around € 192 million than up to € 198 million. Despite the ongoing recession, our forecast thus remains within the ranges stated at the beginning of the year, namely EBITDA of € 8 million to € 10 million and revenues of € 192 million to € 198 million.

Thies Rixen, q.beyond’s CEO, explains: “q.beyond is maintaining its course and further increasing its earnings strength. Profitability has priority over growth. And this principle is proving its worth, particularly in the difficult current economic climate.” With the strategy presented at the beginning of 2023, q.beyond has focused its business model more sharply, increased the effectiveness of its sales activities, and – in “One q.beyond” – standardised its processes and structures. In the past quarter, it generated 72% of its revenues in the five focus sectors of retail, logistics, manufacturing, financial services, and the public sector. The resilience of the company’s business model is further boosted by its high share of recurring revenues, which stood at 75% in the third quarter.

Nearshoring and offshoring quota rises to 13%

The company’s growing earnings strength has been significantly driven by the progress made in implementing One q.beyond. The company has eliminated duplicate structures, optimised the deployment of internal capacities, and expanded the share of nearshoring and offshoring locations. The nearshoring and offshoring quota rose to 13% at the end of the third quarter of 2024, up from 3% at the beginning of last year. Nora Wolters, q.beyond’s CFO, views the expansion of the locations in Latvia, Spain, and India not only as a lever to enhance the company’s efficiency: “With our nearshoring and offshoring activities, we are also countering the shortage of specialists in Germany and ensuring that we can at all times offer optimal support to our customers in their digital transformation.”

Just like making greater use of artificial intelligence and intensifying the focus on specific sectors, raising the nearshoring and offshoring quota to at least 20% will further boost the company’s earnings strength in the coming year and beyond. q.beyond intends to generate positive consolidated net income in 2025 and for this to be accompanied by an EBITDA margin of 7% to 8% (2024 budget: 4% to 5%) and sustainably positive free cash flow.

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, 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, applications, AI and security. With locations across Germany, as well as in Latvia, Spain, India, and the USA, 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