q.beyond increases revenues by 11% in Q2 2023 and raises free cash flow forecast
- Revenues rise to € 46.4 million thanks to growth in Cloud and SAP businesses
- Numerous advances in implementing “2025 Strategy”
- Improved free cash flow of up to € -4 million now expected for 2023 (previously: up to € -8 million)
The higher free cash flow is due above all to the progress made in implementing the new “2025 Strategy”. This has three strategic priorities: building a more focused business model, achieving a more effective go-to-market approach, and standardising and simplifying all processes and structures in the “One q.beyond” project. This involves numerous measures as well as clear targets and schedules. Some of these measures will take effect in the short term; these include improved receivables management, a factor which made it possible to raise the free cash flow forecast. The positive impact of other measures, such as the required reorganisation of personnel and merger of subsidiaries into q.beyond AG, will, by contrast, only become apparent in the quarters ahead.
Significant rise in profitability of Cloud business
On an operating level, the company can report an improved business performance in the past quarter in its “Cloud” segment in particular: revenues here grew year-on-year by 11% to € 37.6 million. The segment contribution increased by 57% to € 4.4 million, while the quarterly segment margin improved year-on-year by 4 percentage points to 12%. In the “SAP” segment, revenues rose by 6% to € 8.8 million in the second quarter of 2023. The segment contribution was unchanged at € 0.5 million, while the segment margin stood at 6%. Given the advances in implementing the 2025 Strategy, q.beyond expects to achieve higher profitability across the whole of the company in the second half of 2023.
q.beyond’s CEO, Thies Rixen, explains: “In the second half of 2023, we will press just as consistently ahead with implementing the 2025 Strategy. Where necessary, we will step up the intensity of measures to ensure we can sustainably return to profitability. And where still required, we will simplify processes and structures and thus further enhance our efficiency.” Together with CFO Nora Wolters and q.beyond’s team, he is thus laying solid foundations to strengthen the company’s earnings and financial strength by 2025. Based on average revenue growth of 7% to 8%, q.beyond intends to generate an EBITDA margin of 7% to 8% and positive consolidated net income in 2025. The company plans to achieve a sustainably positive free cash flow starting in 2024.
Key figures at a glance
|€ million||Q2 2023||Q2 2022||H1 2023||H1 2022|
|Consolidated net income||(2.7)||(3.1)||(7.7)||(6.6)|
|Free cash flow||(1.1)||(1.9)||0.0||(3.5)|
|Equity ratio at 30 June||72%||72%|
|Employees at 30 June||1,090||1,144|
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 Half-Year Financial Report 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 and in Spain, and its own certified data centres, q.beyond is one of Germany’s leading IT service providers.
Head of Investor Relations/Mergers & Acquisitions
T +49 221 669 8724
Head of Investor Relations / Mergers & Acquisitions
T +49 221 669-8724