Märkte & Kurse

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Original-Research: VOQUZ Labs AG - from NuWays AG

15.08.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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Classification of NuWays AG to VOQUZ Labs AG

     Company Name:               VOQUZ Labs AG
     ISIN:                       DE000A3CSTW4

     Reason for the research:    Update
     Recommendation:             BUY
     from:                       15.08.2024
     Target price:               EUR 22.00
     Last rating change:
     Analyst:                    Philipp Sennewald

H1 prelims display strong yoy improvements; chg.

Topic: VOQUZ Labs released preliminary H1 results, which show significant
improvements in top- as well as bottom-line. In detail: H1 sales increased
24.9% yoy to EUR 2.3m (eNuW: EUR 2.1m), which should have been predominantly
driven by a strong visoryQ business. In fact, H1 visoryQ revenues should
have already reached the FY '23 level of EUR 0.5m (eNuW), as the newly
launched product, which is a comprehensive SAP-ERP business case builder, is
meeting brisk demand at existing and new customers. Moreover, the company's

H1 EBITDA came in at EUR 0.3m (eNuW: EUR 0.3m), up from negative EUR 0.5m in the
previous year, implying an EBITDA margin of 12.4%. Main drivers for the
improved profitability were (1) cost saving measures which were already
imposed in H2'23 as well as (2) a lower share of consulting orders, that
were in fact compensated for by the higher margin visoryQ offering.

Against this backdrop, management also confirmed the FY guidance of 10-20%
top-line growth and an EBITDA margin of 15-20%. This implies only 9.7% sales
growth and a 20.6% EBITDA margin (H2'23: 28.9%) at mid-point. Hence, we
regard the outlook as reasonable and are even at the upper end of the sales
guidance range, while we remain conservative regarding our profitability
outlook.

Future growth drivers. While the announced partnership for the remQ
solutions with PwC Germany (further info here) should not have had an impact
in H1, we expect first orders from it to come in the second half of the
year. Mind you, the TAM for the compliance software in Germany alone should
be in the range of EUR 25-30m, targeting mid- to enterprise-size customers.
Moreover, management intends to launch a new product, combining samQ
(license management) and visoryQ, which should be available for clients in
early 2025 the latest. Besides new customers, who are seeking to kick-off
the S/4 HANA transformation, the product should be especially interesting
for existing samQ clients, opening up meaningful up-selling potential.

Overall, the release fully underpins our view, that the company with its
innovative product offering is on track to be one of the main beneficiaries
of the pending transformation.

Reiterate BUY with an unchanged EUR 22 PT based on DCF

You can download the research here: http://www.more-ir.de/d/30495.pdf
For additional information visit our website: www.nuways-ag.com/research

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NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
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Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
++++++++++

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1968441 15.08.2024 CET/CEST

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