cBrain's Growth Strategy and Financial Performance Update
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On track with Growth Plan
Company Announcement no. 09/2024
Financial Performance Overview
Revenue grew by +6% to DKK 139m in the first half of 2024, up from DKK 132m in the first half of 2023. The low half-year growth was expected due to an unusual revenue split between the first and second half of 2023, where first-half revenue grew +39% year over year.
Danish revenue increased by +21% to DKK 87m in the first half of 2024, indicating robust growth within the Danish market. However, international sales declined by -13% to DKK 52m in the same period.
Earnings and Future Guidance
First half 2024 results show earnings before tax (EBT) of DKK 43m, slightly lower than DKK 47m in the previous year. cBrain continues to deliver solid earnings with an EBT margin of 31%. Earnings are slightly higher than expected as some of the international investments were postponed.
cBrain maintains its guidance for the 2024 fiscal year with anticipated revenue growth of 20-25%, based on growth within Denmark, increased international sales, and investments into the growth plan.
Growth Drivers: Subscriptions and Strategic Partnerships
Growth is driven by subscriptions, strategic customers, and partnerships. Software subscriptions constitute approximately 50% of total revenue, supported by long-term contracts with customers using the F2 software.
The F2 platform was developed with Danish ministries and focuses on building long-term relationships with government customers. cBrain's strong customer base includes over 75 Danish government organizations.
International Expansion and Market Penetration
cBrain's international growth is based on organic development and collaboration with local partners. The company is focused on establishing a presence in key international markets while maintaining a lean organizational structure.
Recent agreements in various countries, including California, India, Ghana, Kenya, Nigeria, Romania, and the United Arab Emirates, position cBrain to capitalize on growing digital transformation needs.
Innovations in Government Software
cBrain is moving forward with the development of its F2 AI Assistant, which integrates AI functionality into its software. This tool complies with government security requirements and aims to enhance public administration efficiency.
The F2 Service Builder is essential for scaling operations. It democratizes IT modernization by providing user-friendly tools that enable individuals with limited technical skills to manage IT processes.
Conclusion and Contact Information
cBrain remains optimistic about its growth trajectory, leveraging its innovative solutions to meet government digitalization needs. For inquiries, please contact Ejvind Jørgensen, CFO & Head of Investor Relations, cBrain A/S, ir@cbrain.com, +45 2594 4973.
Frequently Asked Questions
What are cBrain's main growth drivers?
cBrain's growth is primarily driven by software subscriptions, strategic partnerships, and international expansion efforts.
How has cBrain performed financially in the first half of 2024?
cBrain reported a 6% revenue growth and an earning before tax of DKK 43m, maintaining a solid EBT margin of 31%.
What innovations has cBrain introduced recently?
cBrain launched the F2 AI Assistant and is enhancing the F2 Service Builder to support government digitalization and IT modernization.
How does cBrain engage with international markets?
cBrain establishes local partnerships and focuses on organic growth to expand its international presence.
Who can I contact for more information about cBrain?
For more information, please contact Ejvind Jørgensen, CFO & Head of Investor Relations at cBrain A/S.
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