q.beyond increases EBITDA by EUR 3.3 million to EUR 2.0 million in Q1 2024

EQS-News: q.beyond AG / Key word(s): Quarter Results/Quarterly / Interim
Statement
q.beyond increases EBITDA by EUR 3.3 million to EUR 2.0 million in Q1 2024

13.05.2024 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

q.beyond increases EBITDA by EUR 3.3 million to EUR 2.0 million in Q1 2024

  * Good start to 2024 with revenues of EUR 47.1 million and free cash flow of
    EUR 0.6 million

  * Outlook confirmed: EBITDA planned to rise by at least 40% to between EUR 8
    million and EUR 10 million

Cologne, 13 May 2024 - The Cologne-based IT service provider q.beyond is
now, as planned, increasing its earnings power, having already boosted its
financial strength thanks to consistent implementation of its "2025
Strategy". EBITDA for the first quarter of 2024 rose to EUR 2.0 million, up
from EUR -1.3 million in the previous year. Revenues for the same period grew
from EUR 46.6 million to EUR 47.1 million. Free cash flow stood at EUR 0.6
million, as against EUR 1.1 million in the first quarter of 2023. This also
involved an increase in net liquidity at the company, which has no debts, to
EUR 38.2 million, compared with EUR 37.6 million at the end of 2023. This
corresponds to EUR 0.31 per q.beyond share.

Profitability has priority over growth

The marked improvement in profitability has been driven in particular by
standardising and simplifying processes and structures, as well as by
systematically expanding the share of nearshoring and offshoring activities
within the 2025 Strategy. In addition, staff capacity utilisation rates have
been optimised and the company has focused on higher margin business fields.
"Profitability has priority over growth", stresses q.beyond's CEO, Thies
Rixen. At the same time, the 2025 Strategy was taking effect as expected.
Adds Rixen: "q.beyond is developing into a company with strong earnings and
strong finances."

Profitability rose in both of the company's segments in the past quarter. In
the Managed Services business relating to IT operations, gross profit
improved by 27% to EUR 7.1 million, with revenues of EUR 32.9 million (Q1 2023:
EUR 31.1 million). The gross margin increased by 4 percentage points to 22%.
In the Consulting segment, comprising the consulting and development
business, gross profit quadrupled to EUR 1.2 million, with revenues here of EUR
14.2 million (Q1 2023: EUR 15.5 million). The gross margin rose to 8%, up from
2% in the previous year. Across the company as a whole, gross profit grew by
37% to EUR 8.2 million. Consolidated net income also improved significantly
and amounted to EUR -1.1 million, as against EUR -5.0 million in the previous
year.

Growing earnings strength in 2024 and beyond

Following its good business performance at the start of the year, q.beyond
can confirm its outlook for the 2024 financial year. The company has
budgeted for its EBITDA to increase to between EUR 8 million and EUR 10 million,
with a resultant EBITDA margin of 4% to 5%, and for revenues of between EUR
192 million and EUR 198 million and sustainably free cash flow.

For the coming year, the company has set itself the target within its 2025
Strategy of raising its EBITDA margin to between 7% and 8%, and generating
sustainably positive consolidated net income. The measures to reach this
target include raising the share of nearshoring and offshoring activities
from 12% currently to at least 20%, and pressing ahead with automating
processes with the assistance of artificial intelligence.

Key figures at a glance

                                     EUR million    Q1 2023    Q1 2024
                                      Revenues       46.6       47.1
             - Managed Services ("Operations")       31.1       32.9
     - Consulting ("Consulting & Development")       15.5       14.2
                                  Gross profit        6.0        8.2
                                        EBITDA      (1.3)        2.0
                                          EBIT      (4.6)      (1.1)
                       Consolidated net income      (5.0)      (1.1)
                                Free cash flow        1.1        0.6
                     Net liquidity at 31 March       37.0       38.2
                      Equity ratio at 31 March        74%        66%
                         Employees at 31 March      1,090      1,109

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


---------------------------------------------------------------------------

13.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com

---------------------------------------------------------------------------

   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:    1900435

End of News EQS News Service
---------------------------------------------------------------------------

1900435 13.05.2024 CET/CEST