EQS-News

q.beyond generates positive free cash flow one year earlier than expected

EQS-News: q.beyond AG / Key word(s): Preliminary Results/Forecast q.beyond generates positive free cash flow one year earlier than expected 11.03.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. q.beyond generates positive free cash flow one year earlier than expected

• Preliminary results for 2023: Free cash flow rises by € 11.4 million to € 1.7 million
• Revenues of € 189.3 million and EBITDA of € 5.7 million also meet targets
• For 2024, q.beyond has budgeted EBITDA growth to € 8 million to € 10 million, with revenues of € 192 million to € 198 million and sustainably positive free cash flow

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.