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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 (+6.3pp 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% (+4.7pp 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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NuWays AG - Equity Research
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The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.
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