Original-Research: VOQUZ Labs AG (von NuWays AG): BUY

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Original-Research: VOQUZ Labs AG - from NuWays AG

30.09.2024 / 09:00 CET/CEST

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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: 30.09.2024

Target price: EUR 22.00

Last rating change:

Analyst: Philipp Sennewald

Final H1 in line with prelims; Guidance confirmed

Topic: On Friday, VOQUZ Labs released its final H1 '24 report, in line with

the preliminary results published in August. Here are the key takeaways.

H1 sales increased by 25% yoy to EUR 2.3m, which is in line with our estimate.

A strong driver should have been the visoryQ business, which already gained

traction in Q4 '23. We expect H1 visoryQ revenues to have already reached

the FY '23 level of EUR 0.5m, as customer experience increasing time pressure

regarding their SAP ERP strategy. Yet, according to management, buyers'

hesitance has not yet completely subsided, still leaving room for

improvement going forward.

EBITDA in H1 came in at EUR 0.3m (in line with eNuW), marking a significant

improvement compared to last years H1 result of EUR -0.5m. Alongside cost

saving measures bearing fruit, which were already implemented during H2 '23,

the company also benefited from an improved sales mix, i.e. a lower share of

consulting orders. Those were in fact compensated by the higher margin

visoryQ offering. Notably, FCF came in positive with EUR 0.1m, which compares

to negative EUR 0.7m in last years period.

On this basis, management confirmed the FY guidance of 10-20% top-line

growth and an EBITDA margin of 15-20%. The mid-points only imply 9.7% sales

growth and a 20.6% EBITDA margin in the second half of the year (H2 '23:

28.9%). 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.

Going forward, the pending S4/HANA transformation should be seen as one of

the main growth drivers at VOQUZ. The company is currently developing a

Finops manager for its visoryQ solution to further improve its offering,

with an intended go-to-market in Q4. Moreover, the sales partnership with

PwC Germany concerning VOQUZ' remQ product should start bearing fruit in H2

(click here for more detail). According to our estimates, the TAM in Germany

alone for the SAP compliance solution should be in the ballpark of EUR 20-25m,

targeting mid- to enterprise-size customers.

To conclude, the release fully underpins our positive view on the company's

prospect based on its innovative product offering. Reiterate BUY with an

unchanged EUR 22 PT based on DCF.

You can download the research here: http://www.more-ir.de/d/30963.pdf

For additional information visit our website: www.nuways-ag.com/research

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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1997941 30.09.2024 CET/CEST

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