Q.beyond AG Faces Challenges but Retains BUY Rating

q.beyond AG recently released its third quarter preliminary results, announcing adjustments to its financial guidance for the year. Despite sales aligning with forecasts at €43.2 million, the EBITDA figure of €-4.8 million fell short of expectations, influenced by provisions for AI-related layoffs.

The company has revised its full-year sales target to €174-178 million, with an adjusted EBITDA prediction of €-4 to -2 million. This update reflects escalating costs associated with one-off licenses and internal digitalization projects, compounded by postponed customer projects.

Despite the setbacks, q.beyond AG's order intake in Q3 increased to €49.7 million, indicating potential growth moving forward. Management remains optimistic about realizing cost savings from workforce reductions and service relocations in the upcoming year.

While doubts over the company's credibility linger due to repeated guidance cuts, potential remains in enhancing EBITDA margins. Thus, NuWays AG maintains a BUY recommendation, albeit with a slightly reduced target price.