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q.beyond accelerates growth in third quarter of 2021

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DGAP-News: q.beyond AG / Key word(s): Quarter Results/Quarterly / Interim Statement
08.11.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

q.beyond accelerates growth in third quarter of 2021

- Revenues rise year-on-year by 14% to € 40.0 million
- Positive free cash flow of € 3.6 million in Q3 2021
- Colocation sale leads to one-off increase in EBITDA to € 29.4 million
- 2021 EBITDA forecast raised further to more than € 31 million

Cologne, 8 November 2021 - q.beyond AG accelerated its growth in the third quarter of 2021. Revenues at the IT service provider rose to € 40.0 million, up 14% on the previous year's quarter. In the two preceding quarters, revenue growth rates stood at 12% (Q2 2021) and 10% (Q1 2021). "q.beyond is showing dynamic growth", declared CEO Jürgen Hermann. "Our clear positioning as a Cloud, SAP and IoT provider and our scalable business model are proving their worth."

Cloud & IoT revenues grow year-on-year by 20%

The company's dynamic performance in the current year has been driven above all by growth in its Cloud & IoT business. Segment revenues here rose by 20% to € 30.0 million in the past quarter. As in the previous year, the SAP segment generated revenues of € 10.0 million. Rapidly rising segment contributions underline the scalability of the business model. Earnings in the Cloud & IoT segment improved year-on-year by 129% to € 3.2 million, while earnings in the SAP segment even surged by 200% to € 1.8 million. The company-wide marginal return stood at more than 40% in the past three quarters, meaning that each additional euro of revenue increases earnings by more than 40 cents.

The company's profitability has been boosted by a high volume of one-off items resulting from the successful sale of the colocation business and its deconsolidation as of 30 September 2021. These items totalled € 27.8 million. EBITDA rose to € 29.4 million in the past quarter, compared with € -0.6 million in the previous year. EBIT amounted to € 25.3 million, as against € -4.9 million in the third quarter of 2020. Net of taxes and the financial result, this resulted in consolidated net income of € 20.7 million in the third quarter of 2021, compared with € -5.0 million in the previous year. Furthermore, the company generated positive free cash flow of € 3.6 million, up from € -3.9 million in the third quarter of 2020. The purchase price for the colocation subsidiary IP Exchange was paid in the fourth quarter of 2021.

Revenue and free cash flow forecasts confirmed

Given its pleasing operating performance in the third quarter of 2021, q.beyond has confirmed its full-year revenue and free cash flow forecasts for 2021, which were updated on 17 September 2021. The company thus expects to generate revenues of between € 155 million and € 165 million, and free cash flow of at least € 33 million. As the positive items resulting from the deconsolidation of the colocation business are now expected to be higher than in the assessment as of 17 September 2021, q.beyond is also further raising its EBITDA forecast. Based on the current status of the calculation of deconsolidation items, EBITDA is now expected to exceed € 31 million, up from the previous forecast of at least € 27 million.

Record level of new orders

The successful sale of the colocation business has honed q.beyond's positioning as a Cloud, SAP and IoT provider, reduced complexity and extended its scope for action. The company therefore has ideal opportunities to maintain its dynamic growth in the coming year as well. This prospect is underlined not least by the fact that new orders are heading for a new record level in 2021. In the third quarter of 2021, new orders amounted to € 25.4 million. Of these, 74% came from new customers or involved new services for existing customers. At the end of the nine-month period, this key figure, which is of decisive importance to the company's medium-term growth, totalled € 141.7 million and was 16% ahead of the previous year's figure.

Growth momentum will additionally be boosted by targeted acquisitions in the quarters ahead. With net liquidity of € 28.0 million as of 30 September 2021 and a free cash flow of at least € 33.0 million budgeted for this year, the company, which has no debt, is superbly positioned to make further acquisitions. Consistent with the "2020plus" growth strategy, in its M&A activities the company focuses on acquiring majority stakes in technology companies which strengthen its existing sector focuses, extend its product portfolio or supplement its existing technology expertise. Specifically, q.beyond focuses on technology providers with annual revenues of up to € 30 million and sustainably profitable business models.

Company value almost doubles

CEO Jürgen Hermann explains: "q.beyond will generate further dynamic growth, tap additional revenue potential by making targeted acquisitions and thus sustainably increase the company's value." At € 223.6 million as of 30 September 2021, this key figure was almost twice as a high as one year ago.


Key figures at a glance

€ million

Q3 2021

Q3 2020

Revenues

40.0

35.1

- Cloud & IoT

30.0

25.1

- SAP

10.0

10.0

EBITDA

29.4

(0.6)

EBIT

25.3

(4.9)

Consolidated net income

20.7

(5.0)

Free cash flow

3.6

(3.9)

Equity ratio at 30 September/31 December

75%

72%

Employees at 30 September/31 December

1,037

936

 

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 events 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 1,000 people accompanies SME customers securely and reliably throughout their digital journey. We are experts in Cloud, SAP and IoT.

q.beyond AG resulted from the rebranding of QSC AG in September 2020. With nationwide locations and its own certified data centres, it 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


08.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

Language:

English

Company:

q.beyond AG

Mathias-Brüggen-Straße 55

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:

1246729


 

End of News

DGAP News Service

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