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QSC AG Earnings Release 2020
343_ip_2020-11-09_877efbe9-95b8-426b-83db-f16d9b51956b.pdf
Earnings Release
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q.beyond is growing Key figures Q3 2020
9 November 2020 | Jürgen Hermann, CEO
Disclaimer
This presentation contains forward-looking statements based on management estimates and reflects the current views of q.beyond AG's ("q.beyond's") management board with respect to future events. These forward-looking statements correspond to the situation at the time this presentation was prepared. Such statements are subject to risks and uncertainties, which q.beyond is mostly unable to influence. These risks and uncertainties are covered in detail within the risk report section in our financial reporting.
Although the forward-looking statements are made with great care, their correctness cannot be guaranteed. Actual results may therefore deviate from the expected results described here. q.beyond does not intend to adjust or update any forward-looking statements after publication of the presentation.
Record level of new orders
- 70% of orders in Q3 2020 received from new customers
- Marketing success above all in focus sectors of retail and manufacturing
- 30% of extensions in scope and term of contracts due to existing customers
Fifth consecutive quarter of revenue growth
Covid-19 crisis prevents even higher growth:
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Restrictions on contact impede on-site consulting
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Rising case numbers lead to deferral of projects that are not urgently necessary
Rising revenues improve operating profitability
| in € million | Q3 2019 | Q3 2020 | |
|---|---|---|---|
| Revenues | 32.3 | 7 | 35.1 |
| Cost of revenues | (27.9) | (29.6) | |
| Gross profit | 4.4 | 7 | 5.5 |
| Sales and marketing expenses | (3.0) | (3.4) | |
| General and admin expenses | (4.9) | (3.2) | |
| Other operating income | 1.5 | 0.6 | |
| Other operating expenses | (0.3) | (0.1) | |
| EBITDA | (2.2) | 7 | (0.6) |
| Depreciation | (4.1) | (4.3) | |
| EBIT | (6.3) | 7 | (4.9) |
| Financial result | (0.2) | (0.1) | |
| Income taxes | 3.9 | ||
| Net income | (2.6) | 7 | (5.0) |
- Revenues grow by 9%
- Gross profit rises by 25%
- Administrative expenses adapted to company's new size
- EBITDA improves by more than 70%
Cloud & IoT: Double-digit growth
- Revenue drivers: Cloud solutions and digital workplaces
- Segment contribution improves to € 1.4 million
- Segment contribution would be higher without upfront costs for new Cloud solutions
SAP: Broad-based positioning pays off
- SAP operation and application management continue to work during Covid-19 crisis
- Restrictions on contact hold back on-site consulting
Rock-solid financing
- Net liquidity of € 49.4 million at 30 September 2020 as against € 54.7 million at 30 June
- Free cash flow of € -3.9 million (excluding Incloud purchase price)
- Equity ratio at 74%
q.beyond expects strong fourth quarter of 2020
Growth drivers
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- High volume of new orders from previous quarters
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- Completion of migration of new Cloud customers from Q2 and Q3 2020
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- Ongoing high demand for Cloud solutions
Forecast confirmed – positive EBITDA from Q4
- Revenue growth of at least 13% budgeted
- Assumption: Further normalisation in economic activity
- Investments in future growth: Therefore EBITDA of up to € -5 million and free cash flow of up to € -16 million budgeted
- Sustainably positive EBITDA from Q4 2020
- Sustainably positive free cash flow from Q4 2021
Prepared for prolonged Covid-19 crisis
q.beyond is in a privileged position:
-
-
q.beyond maintains its growth course
- Consistent implementation of "2020plus" growth strategy
- High share of recurring revenues and high volume of new orders create very strong foundation for 2021/2022
- Scalable business model leads to rising EBITDA margin (2022: >10%)
- Sustainably positive free cash flow from Q4 2021
Contact
q.beyond AG Arne Thull Head of Investor Relations/M&A
T +49 221 669-8724 F +49 221 669-8009 [email protected] www.qbeyond.de
Twitter.com/qbyirde Twitter.com/qbyiren blog.qbeyond.de xing.com/companies/qbeyondag
Executives acquire 1 million shares
Executives acquire 1,000,000 shares in September/October 2020
CEO already acquired 330,000 further q.beyond shares in March 2020: Jürgen Hermann 1,000,000 shares
Neither founder has yet sold any shares share ownership is structured as follows:
- 12.68% Gerd Eickers1
- 12.68% Dr. Bernd Schlobohm2
- 74.64% Free float
1 Founder and member of Supervisory Board
2 Founder and Chairman of Supervisory Board Status: 31 October 2020
Buy recommendations for q.beyond shares
| O EUR | Bank | Recommendation | Target price |
|---|---|---|---|
| 04/05/2020 | Mainfirst | "Buy" | € 2.25 |
| mberg: QSC GR | Commerzbank | "Buy" | € 2.00 |
| Bankhaus Lampe | "Buy" | € 1.80 | |
| Warburg Research | "Hold" | € 1.40 | |
| Independent Research | "Hold" | € 1.40 |
