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Good afternoon, ladies and gentlemen, and welcome to q.beyond's conference call regarding the first quarter results 2021. [Operator Instructions]Let me now give the floor to Mr. Hermann.
Thank you very much, and a warm welcome to our Q1 conference call. My name is Jürgen Hermann. I'm the CEO of the company. And with me, like always, is Arne Thull, our Head of Investor Relations and responsible for M&A. Ladies and gentlemen, we had a good start this year. Why? First, compared to Q1 last year, we grew by 10% in revenues. Secondly, EBITDA increased to EUR 0.7 million and improves the sustainability of our breakeven that we achieved in Q4 last year. And thirdly, very important, from my point of view, year-to-date, our order entry sums up to EUR 96 million, which is after 4 months, already 60% of the order entry we recorded for the full year 2020 in detail. So on Page 3, you can see the increase of revenues and EBITDA. And it's very important to mention again that each and every euro in revenue growth is paying in our profitability. So the EUR 3.4 million additional revenues leads to EUR 1.8 million additional EBITDA. Not to forget that 76% of revenues is recurring actually. And 68% of revenues is coming from our main sectors, retail, manufacturing and energy. Let's have a few on the segments. First, Cloud and IoT segment. The main drivers of growth in this segment is cloud solutions and digital workplace. And yes, I'm convinced that this is only the starting point driven by the pandemic situation. I'm sure that we are always in the beginning of equipping digital workplaces for the German Mittelstand. The segment margin in this segment rises to 10%. Just to add that, last year, we achieved 7.6%, and the target for next year is 18% to 20%. So we are on track. Coming to our second segment, on Page 5, SAP. Yes, SAP segment grew as well, but not as much as the Cloud and IoT segment. And this has mainly to do with the fact that we still have restrictions on the consulting business that takes place on the customer premises. Although important to mention that the margin in this area rises to 13%. Last year, we achieved 6.8%, and the target for next year is 14% to 15%. So the main reasons for this increase in profitability is high efficiency, in a certain way, less travel costs and more S/4HANA projects. On the next slide, you can see the sum of both segments. And segment margin, our definition includes everything apart from general and administrative expenses, which were EUR 4 million for the first quarter this year, a number by the way that is representative for the full year. So in a nutshell, our business model is scalable. We, in a certain way, just have to grow, and we will reach our targets. Let's have a look at the full profit and loss statement. So you can see compared to the first quarter last year that we improved in all figures. And I want to highlight that the segment contribution in absolute figures was nearly doubled from EUR 2.2 million to EUR 4.1 million. And with the fact that administrative expenses are at a stable level, this is the basis for the improvement of EBITDA, EBIT and net income at the very bottom line. So a snapshot of our balance sheet on Page 8. Solid equity ratio and EUR 40.4 million net cash as of end of March. And yes, including our plan to be free cash flow breakeven in Q4 this year, we have full financing flexibility, especially for M&A transactions to come. Yes. The next chart is my favorite chart, let's put this way to demonstrate the 5 cornerstones of our growth strategy. Our attractive core business with, as mentioned, 70.6% recurring revenues, our platform based innovations for the time being, small in revenues, but the future beyond 2022, a clear sector focus with retail, manufacturing and energy and since a few days with the fourth sector logistics and the management team and performance-based culture and M&A, as mentioned. And let's come to this fourth focus sector. Last week, we launched this and the driver is our cooperation with Röhlig Logistics. And yes, there are two new companies. One is a new subsidiary that will offer the full portfolio of services expected that of an IT service provider for this segment. From consulting for the CargoWise logistics solutions, the SAP modules, BI/BW finance, and of course, the full operation of global cloud infrastructure and data integration services through a global 24/7 help desk. And the second part is the investment in the logistics software specialist. And here, we are looking for -- yes, among other aspects to provide digital solutions for tracking consignments and for setting quotas, making entries and handling payments, a very innovative area. And we all know that logistics is a sector that is still not very digitized. Yes, the partner, as mentioned, is really logistics. Which is an international owner-operated specialist for intercontinental sea freight, airfreight and contract logistics, which has more than 2,200 employees in 150 offices in 35 countries. And yes, this is only possible to enter this sector with the combination. So we have the IT competence and Röhlig Logistics has in a certain way, the sector knowledge. And with that, we are happy that Röhlig itself is our customer, as mentioned, with a EUR 2 million order entry that we signed. A 5-year contract with the elements that you can see on this page. Yes. Next page, order entry. You know that figure that is quite important for future growth. Of course, Röhlig, with its mid double-digit million volume, was a driver for the EUR 96 million new orders, but there were others as well. And in any case, it is an extraordinary good start in a new year and a very good basis for ongoing strong and profitable growth. With this good start, of course, we confirm our guidance. We expect revenues to rise to EUR 160 million to EUR 170 million this year with an EBITDA in the area of EUR 5 million to EUR 10 million and a free cash flow of minus EUR 10 million to minus EUR 5 million, not to forget to become positive free cash flow from Q4 2021 onwards sustainability. As mentioned, M&A is a cornerstone of our growth strategy, and we still have 3 aspects in focus. So one is to extend and to support our existing product portfolio. The second one is to invest in unique technologies. And the third one is to expand our markets. Like Röhlig we did last week, to expand our strong position in focus sectors. Next page. Yes. Recently, we published our first DNK-compliant sustainability report. And with that, we even mentioned a clear target to become climate neutral by 2025. And ladies and gentlemen, for anyone wishing to hold climate change and cut emissions, there is no alternative from our point of view to digital solutions and digitization at all. And this digitization and sustainability are 2 sides of the same coin and with that part of our future. Yes, our growth strategy 2020plus is on track. And even today, we are working on the basis for growth beyond 2022, especially with platform based innovations. And you can see our targets that we now published 2 years ago when we sold our telco business. And so far, as mentioned, we are on track. And with that, I'm happy to take your questions.
[Operator Instructions] And the first question comes from Jonas Blum, Warburg Research.
I got three, please. Firstly, I was wondering around logistics market that you are now also targeting a few services. Is that something that you already baked into your midterm targets? I mean, I'm sorry, if you have to repeat this now because I had some technical difficulties of the call? Or should we think of it as potential upside due to the current midterm targets you are out? And secondly, since you changed the wording slightly around your 2021 guidance in terms of the pandemic impact from Q2 to Q3 in terms of the obstacles related to damages, just wondering if that's something that we should consider as well? You're basically expecting to end up the year at the lower end of the guidance? Or is it basically neutral? And then just finally, around your SAP business. I mean, you were talking about favorable margin contribution, which is basically a result of 2 factors: one, less travel and two, the improved cost structure. Just wondering, again, if you could quantify those two metrics.
Yes. Thank you very much for the questions. Concerning logistics or the new segment, it's pretty the same like the others that we are already targeting. We are always questioning ourselves if there is a sector that we know where we have a certain experience or we have a partner that helps us to be successful on one hand. And secondly is this is a sector that is, let's say, with a low level of digitization and with huge challenges concerning the years to come. And definitely, logistics is in that area like the other partners. Of course, we would not have entered this sector without a strong partner like Röhlig because this would be a real greenfield approach. And with that -- with this partner, I think we are well prepared to be successful. Concerning the midtime targets, this is part of our numbers that we announced already. Concerning our wording. So actually, I do not have the idea that we would change the wording or any obstacles. So we always said that there is a certain impact concerning SAP consulting, especially the area where we are not able to enter the customer premises, which is still the case, as mentioned. And apart from that, I think there is no impact. And therefore, there is the full commitment to our guidance this year. Concerning SAP, you are right. We mentioned more S/4HANA projects. We mentioned less travel costs, and we mentioned higher efficiency, especially by, let's say, improve our mixture of internal and external employees. And they did so far, more detailed numbers. Yes, the competitors would be happy to get them and we will not disclose them for the time being.
At the moment, there seem to be no further questions. [Operator Instructions] We have one more question coming up from Yannik Siering, Stifel.
I would just have one additional question, and that would be, if you could provide an update on the planned sale of the colocation business, please?
Yes. Thanks, Yannik. I'm looking to Arne. I think we have now all things closed so far. The entity is there. And I think -- not I think, I'm sure that we will -- very soon can give further information into the market that now the process has started officially. And still the plans are in time to now to start the process and maybe to close if this is the option that we will -- will choose. Of course, there are other strategic options, but the sale of the business is our preferred solution. And if it will happen, I think, it is most likely to be closed in the third quarter this year. So everything is on plan, Yannik.
And we have one more question from Sebastian Weidhüner, Montega.
Yes. So I have 2 left. The first one is you said that currently, the expansion of your competence in the enterprise software business is an important topic, so which applications are you currently focusing on? And the second one is what were the main drivers for the order intake of [ EUR 28.8 million ] in Q1 being lower than in any quarter in 2020.
The first one concerning new enterprise solutions, the new one is, yes, maybe linked to our, we call it, internally expect the next portfolio. And here, we are focusing on the sale of our StoreButler, our solution for the retail area, which provides our customers with, let's say, a digital solution for their stores. And secondly, concerning the Edgizer. Yes. At the end of the day, the [ EUR 20.8 million ] received in the first 3 months is still a good number, and we are happy with that, and we are fully on track concerning our full year targets. Of course, there are always delays from one quarter to the others, but we are absolutely confident that we make our numbers, and there's no negative impact at all.
Okay. Maybe last one. Is the new share program for your employees linked to the development of the share price?
The new share program is not linked to the development of the share price. This is only for management team, not for the employees. I want to make sure, I think we have a different situation because, let's be honest, the salaries are different, and we want to really encourage our employees and to make sure that each and every will take part at this. And of course, the risk structure of, let's say, a normal employee and normal work is different compared to the management team.
There are no further questions from the audience. [Operator Instructions] There are no more questions. So I would like to hand back over for closing remarks to the company.
Yes. Thank you very much for your time, for your questions, for taking part. A final statement, yes, our -- as mentioned, our growth strategy is working, ladies and gentlemen. We have -- we do have an attractive core business, and we are expanding in new markets. We are boosting the momentum with platform-based innovations, and we have the financial strength to support this development by targeted acquisitions. Yes. Thank you very much, again. Stay healthy. And maybe we meet us on Wednesday on our AGM. Thank you very much, and goodbye.