q beyond (QBY) Q4 2023 earnings summary

Executive summary

• 2023 revenue rose to €163.0m from €134.1m, largely due to two subsidiaries merging into the parent; prior-year comparisons are therefore limited.

• Net loss widened to €26.7m from €21.0m, reflecting €8.3m of merger losses, higher personnel costs and prior-period tax expense.

• Strategy 2025 refocused the business, strengthened go-to-market and simplified structures; the transformation was largely complete by year-end.

Financial highlights

• Revenue was €163.0m vs. €134.1m; total performance was €174.1m vs. €141.1m, with merger effects driving much of the increase.

• Material costs rose to €70.1m from €55.7m; the material-cost ratio increased to 43.0% from 41.5%, mainly on higher license costs.

• Personnel costs increased to €90.5m from €72.5m; the ratio rose to 55.5% from 54.0%, reflecting merger effects, inflation and talent scarcity.

• Adjusted for the one-off €8.6m Plusnet-related income, other operating income was €11.0m; merger losses were €8.3m, including €5.2m and €3.1m from the two mergers.

• Net loss was €26.7m; income-tax expense was €4.3m, mainly €4.1m of prior-period tax, while snabble was fully impaired by €2.7m.

Outlook and guidance

• For 2024, revenue is expected to remain stable while overall results improve significantly; the strategy aims to materially strengthen earnings power by 2025.

• Profitability initiatives include prioritizing higher-margin consulting and development, pricing discipline, better consultant utilization, automation, AI and increased near/offshoring.

• The 2024 German IT-services market is forecast to grow 4.8% to €51.7bn; overall German GDP growth is forecast at 0.2%.