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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
2024-05-13 / 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 

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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

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2024-05-13 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

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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
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1900435 2024-05-13 CET/CEST

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END) Dow Jones Newswires

May 13, 2024 01:30 ET (05:30 GMT)