Original-Research: q.beyond AG (von NuWays AG): Kaufen

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Original-Research: q.beyond AG - from NuWays AG

Classification of NuWays AG to q.beyond AG

Company Name: q.beyond AG

ISIN: DE0005137004

Reason for the research: Update

Recommendation: Kaufen

from: 14.05.2024

Target price: EUR 1.10

Target price on sight of: 12 Monaten

Last rating change:

Analyst: Philipp Sennewald

Strong Q1 figures hint towards successful transformation/ chg.

Yesterday, q.beyond released a strong set of Q1 figures, which exceeded

ours and streets profitability estimates as efficiency measures bore fruit

despite rather muted top-line growth. In detail:

Q1 sales increased slightly by 1.1% yoy to EUR 47.1m (eNuW: EUR47.5m, eCons: EUR

47.6m), of which 74% were recurring revenues. The muted growth momentum was

predominantly due to the Consulting segment, which declined by 8% yoy to EUR

14.2m, which was mainly due to the reduction in low-margin project sales.

This also allowed for an improved segment gross margin (.3pp to 8.4%). In

the mid-term, management aims to continuously improve the Consulting margin

driven among others by an increasing offand near-shoring ratio (target: 20%

vs 12% after Q1), an improved utilizitation rate as well as higher daily

rates. In contrast, the Managed Services segment grew by 5.7% yoy to EUR

32.9m at an improved margin of 21.5%. Hence, q.beyond was able to improve

its gross profit by 38.5% to EUR 8.2m (eNuW: EUR 7.8m, eCons: EUR 7.9m), implying

a margin of 17.5% (.7pp yoy).

On this basis, Q1 EBITDA also significantly improved to EUR 2.0m at an

implied margin of 4.2% (eNuW: EUR 1.4m, eCons: EUR 1.4m), which compares to

negative EUR 1.3m in the previous year's quarter. Next to the improved gross

margin, EBITDA was driven by significantly reduced sales & marketing

(-1.5pp yoy sales ratio) and G&A expenses (-0.3pp) as well as the effects

of "One q.beyond" strategy (i.e. eliminating duplicate structures). FCF

came in at EUR 1.4m (company definition: EUR 0.6m), leading to a continuously

comfortable net cash position of

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http://www.more-ir.de/d/29737.pdf

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NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

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Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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