Progressing with the Growth Plan
Company Announcement no. 09/2024
Overview of Financial Performance
In the first half of 2024, revenue increased by 6%, reaching DKK 139 million, compared to DKK 132 million during the same period in 2023. This modest growth was anticipated due to an unusual revenue distribution between the first and second halves of 2023, where the first half saw a significant 39% year-over-year increase.
In Denmark, revenue surged by 21% to DKK 87 million in the first half of 2024, reflecting strong performance in the local market. However, international sales experienced a decline of 13%, amounting to DKK 52 million in the same timeframe.
Profitability and Future Projections
The results for the first half of 2024 indicate earnings before tax (EBT) of DKK 43 million, slightly down from DKK 47 million the previous year. cBrain continues to show solid earnings, maintaining an EBT margin of 31%. Earnings exceeded expectations, partly due to the postponement of some international investments.
cBrain is holding steady with its guidance for the 2024 fiscal year, projecting revenue growth of 20-25%. This forecast is based on anticipated growth in Denmark, increased international sales, and investments aligned with the growth plan.
Key Growth Factors: Subscriptions and Strategic Partnerships
The company's growth is fueled by software subscriptions, strategic clients, and partnerships. Approximately 50% of total revenue comes from software subscriptions, bolstered by long-term contracts with clients utilizing the F2 software.
The F2 platform was co-developed with various Danish ministries and aims to foster long-term relationships with government clients. cBrain proudly serves over 75 Danish government organizations within its strong customer base.
International Growth and Market Entry
cBrain's international expansion strategy relies on organic growth and collaboration with local partners. The company is dedicated to establishing a foothold in key international markets while keeping its organizational structure streamlined.
Recent agreements in countries such as California, India, Ghana, Kenya, Nigeria, Romania, and the United Arab Emirates position cBrain to take advantage of the increasing demand for digital transformation.
Advancements in Government Software
cBrain is advancing the development of its F2 AI Assistant, which incorporates AI capabilities into its software suite. This tool is designed to meet government security standards while enhancing the efficiency of public administration.
The F2 Service Builder plays a crucial role in scaling operations. It simplifies IT modernization by providing accessible tools that empower individuals with limited technical expertise to manage IT processes effectively.
Final Thoughts and Contact Information
cBrain remains hopeful about its growth path, leveraging innovative solutions to address the digitalization needs of government entities. For any inquiries, please reach out to Ejvind Jørgensen, CFO & Head of Investor Relations at cBrain A/S, via email at ir@cbrain.com or by phone at +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 efforts to expand internationally.
How has cBrain performed financially in the first half of 2024?
cBrain reported a 6% increase in revenue and earnings before tax of DKK 43 million, maintaining a solid EBT margin of 31%.
What innovations has cBrain introduced recently?
cBrain has launched the F2 AI Assistant and is enhancing the F2 Service Builder to support government digitalization and IT modernization initiatives.
How does cBrain engage with international markets?
cBrain establishes local partnerships and emphasizes organic growth to expand its presence in international markets.
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.
