Q.beyond AG Sees Growth with AI and Cybersecurity Focus

In a recent update by NuWays AG, q.beyond AG has been assigned a "BUY" recommendation. The company's FY24 sales increased by 1.7% to €193 million, largely driven by growth in the Managed Services segment, up 4.9% to €135 million. The implementation of AI solutions in knowledge and records management contributed significantly to this growth. A strong emphasis on cybersecurity and integrated software development also played a vital role in the firm's performance.

However, the Consulting segment saw a decline of 5%, attributed to investment hesitation within the German Mittelstand. Despite this, q.beyond AG managed a substantial improvement in its gross margin, rising to 17.9% due to a strategic reduction in external personnel.

The company's EBITDA surged to €10.5 million, a 5.5% margin, outperforming both internal and industry estimates. This financial strength supports q.beyond's M&A ambitions, with plans to acquire targets with a strong public sector focus, especially in healthcare, energy, and defense.