q.beyond expects strong revenue growth through 2025

DGAP-News: q.beyond AG / Key word(s): Annual report/Forecasts
30.03.2022 / 07:30
The issuer is solely responsible for the content of this announcement.

q.beyond expects strong revenue growth through 2025

– 2021 consolidated financial statements: revenue up 8% to €155.2 million
– 2022 forecast: revenue growth between €180m and €200m
– “beyond 2022” strategy: turnover of €270m to €300m in 2025

Cologne, March 30, 2022 – q.beyond AG will also generate strong profitable growth in the coming years. Building on revenue growth of 8% over the past year, the IT services provider plans to increase its 2022 revenue by at least 16% to between 180 and 200 million euros. The company’s new growth strategy, “beyond 2022”, forecasts revenues ranging from 270 to 300 million euros in 2025. Along with the growth of the Cloud and SAP businesses, this still dynamic revenue performance will be driven by a growing share of software. – revenue as a service (SaaS). These will be generated by internally developed SaaS solutions, such as the “StoreButler”, a digitalization platform for merchants launched in 2021, as well as by targeted acquisitions.

All objectives achieved in fiscal year 2021

As announced in early February 2022, in the past financial year, q.beyond generated revenue of €155.2 million (2020: €143.4 million). With an EBITDA of 31.7 million euros (2020: -2.0 million euros) and a free cash flow of 33.2 million euros (2020: -15.8 million euros), the company also met the other targets reported in its guidance, which was last raised in November. 2021. This had accounted for all effects resulting from the successful sale of the colocation business. Jürgen Hermann, CEO of q.beyond, draws a positive conclusion for 2021: “Despite difficult conditions, we have consistently pursued the implementation of our growth strategy and increased all relevant key figures.”

The revenue growth recorded for 2021 was driven above all by the success of the Cloud business, where segment revenues increased by 11% to 113.7 million euros. At 41.5 million euros, the revenue generated in the SAP segment during the second year of the coronavirus corresponds to the figure for 2020 (41.4 million euros). The rapid increase in segment contributions underscores the scalability of q.beyond’s business model. Cloud & IoT segment profits increased 58% year-on-year to EUR 12.3 million. Thanks in particular to efficiency improvement measures, the profits of the SAP segment even jumped by 93% to 5.4 million euros. The company-wide marginal return was more than 40% in 2021, meaning that every additional euro of revenue increased profits by more than 40 cents.

Strong growth over the 2022 financial year

With record new orders of €184.5 million and its takeover of scanplus commercial activities in December 2021, q.beyond has a solid foundation to achieve its revenue target of €180-200 million euros in 2022. The wide range of this forecast is due to the uncertainty surrounding the impact of the war in Ukraine on the German economy. Nor is it yet possible to predict the potential implications of the coronavirus pandemic later this year.

The SaaS business will already contribute EUR 15-20 million to q.beyond’s growth in 2022. Including the costs of preparing internally developed and externally acquired SaaS solutions and bringing them to market, the company expects to generate EBITDA of €8 million to €16 million and free cash flow of a maximum of -€10 million in 2022. These investments in the future of q.beyond will be made possible by the profitability of Cloud and SAP activities, as well as the company’s net liquidity of €56.2 million as of December 31, 2021.

Strong revenue, EBITDA and free cash flow growth through 2025

The expansion of the SaaS business will create additional growth opportunities in the years to come. With its growth strategy “beyond 2022”, the company is once again setting itself ambitious objectives: by 2025, its turnover should amount to between 270 and 300 million euros. In 2025, the company expects to reach an EBITDA margin of 14% to 16% and a free cash flow of 15 to 25 million euros. Jürgen Hermann explains: “The profitable growth of our Cloud and SAP businesses allows us to expand SaaS solutions with great potential for growth and revenue.” Shareholders should benefit from this growth dynamic mainly through the increase in the value of the company. In 2021, this increased by 14% to reach 188.0 million euros.

The growth forecast for the coming years will be driven by the three businesses: Cloud, SAP and SaaS. In its cloud business, q.beyond will particularly benefit from continued growth in demand for cloud and security solutions. At present, nearly 50% of medium-sized companies are still thought to operate their own IT. In the SAP business, the migration of enterprises to the next generation of S/4HANA software will accelerate once the pandemic is over. These factors will be complemented by strong growth momentum in the SaaS business, notably through acquisitions.

Growing demand for SaaS solutions

The SaaS business is mainly about introducing new business models. It therefore extends q.beyond’s Cloud and SAP businesses, which typically focus on improving business efficiency, with another major component. Jürgen Hermann is convinced that the demand for SaaS industry solutions will increase sharply as digitalization progresses. He explains: “Together with customers in our priority sectors, we have been working for a long time to promote SaaS pilot projects. Given the very positive response we received, we are now further accelerating development work and launching a steady stream of new SaaS solutions on the “With more than 170 SaaS specialists, q.beyond has the capabilities to do just that.

Jürgen Hermann sees SaaS solutions as the next logical step in q.beyond’s growth strategy: “We said from the start that we aim to reinvent digitization for SMEs – with innovative one-stop-shop solutions to revolutionize business models. That’s exactly what our SaaS do, they’re the right product at the right time.

Key figures at a glance

millions of euros

2021

2020

Revenue

155.2

143.4

– Cloud & IoT segment

113.7

102.0

– SAP Segment

41.5

41.4

EBITDA

31.7

(2.0)

EBIT

15.2

(18.8)

Consolidated net income

9.8

(19.9)

Free movement of capital

33.2

(15.8)

Net liquidity as of December 31

56.2

44.9

Equity ratio as of December 31

74%

72%

Workforce as of December 31

1,139

936

Remarks:
This Corporate News contains forward-looking statements based on management’s current expectations and forecasts regarding future events. Due to risks or incorrect assumptions, actual events may differ materially from these forward-looking statements. The annual report is available at www.qbeyond.de/en/investor-relations.

About q.beyond AG:
q.beyond AG is the key to successful digitization. We help our clients find the best digital solutions for their business and then put them into practice. Our 1,100 strong team supports SME customers securely and reliably throughout their digital journey. We are experts in Cloud, SAP and IoT.

q.beyond AG was born out of the rebranding of QSC AG in September 2020. With locations all over the country and its own certified data centers, it is one of the leading IT service providers in Germany.

Contact:
q.beyond AG

Arne Thull
Head of Investor Relations/Mergers & Acquisitions
T +49 221 669-8724
invest@qbeyond.de
www.qbeyond.de

30.03.2022 Dissemination of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
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