Original-Research: VOQUZ Labs AG - from NuWays AG 30.09.2024 / 09:00 CET / CEST Dissemination of a Research, transmitted by EQS News - a service of EQS Group AG.

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

Original-Research: VOQUZ Labs AG - from NuWays AG

30.09.2024 / 09:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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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: [e-mail]
LinkedIn: https://www.linkedin.com/company/nuwaysag
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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1997941 30.09.2024 CET/CEST