EQS-News

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

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

• Good start to 2024 with revenues of € 47.1 million and free cash flow of € 0.6 million
• Outlook confirmed: EBITDA planned to rise by at least 40% to between € 8 million and € 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 € 2.0 million, up from € -1.3 million in the previous year. Revenues for the same period grew from € 46.6 million to € 47.1 million. Free cash flow stood at € 0.6 million, as against € 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 € 38.2 million, compared with € 37.6 million at the end of 2023. This corresponds to € 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 € 7.1 million, with revenues of € 32.9 million (Q1 2023: € 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 € 1.2 million, with revenues here of € 14.2 million (Q1 2023: € 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 € 8.2 million. Consolidated net income also improved significantly and amounted to € -1.1 million, as against € -5.0 million in the previous year.