In 2023 cBrain grew revenue by 27% and delivered record high earnings before tax margin (EBT margin) of 34%

Company Announcement no. 03/2024

In 2023 cBrain grew revenue by 27% and delivered record high earnings before tax margin (EBT margin) of 34%

Copenhagen, February 22, 2024

Total revenues grew by +27% to DKK 239m in 2023, up from DKK 188m in 2022. Earnings before tax (EBT) grew by +66% to DKK 81m in 2023, up from DKK 49m in 2022. cBrain (NASDAQ: CBRAIN) thereby reports record high earnings before tax margin (EBT margin) of 34%.

cBrain is well on track and executes the 2023-2025 growth plan. The growth plan is based on organic growth, combined with a strong positive cashflow.

Fully aligned with the 2023-2025 growth plan, total software revenue, which is based on software licenses and software subscriptions, grew +40%, to DKK 189m in 2023 up from DKK 131m in 2022, while implementation and support services declined by -5% to DKK 50m in 2023, down from DKK 52m in 2022. Software thereby counts for 79% of total revenues in 2023.

The results are based on a solid development in Denmark as well as internationally. International sales grew +30% to DKK 81m in 2023, up from DKK 62m in 2022. International sales thereby count for 34% of total revenues in 2023.

In line with previous years, subscriptions count for more than 50% of total revenue in 2023, and cBrain is incredibly pleased to see solid growing subscriptions revenue. The majority of software subscriptions are based on capacity, which is calculated by active numbers of F2 users and modules, and the actual capacity usage is measured and invoiced by the end of each quarter.

cBrain recognized a significant jump in subscription revenue during the fourth quarter of 2023 due to increased usage of the F2 digital platform across the user base. The addition of more F2 users and more F2 modules to the subscription schemes demonstrates a high level of customer loyalty and user satisfaction.

In parallel cBrain came in with lower-than-expected costs. This further increased earnings before tax (EBT).

cBrain is well on track with the 2023-2025 growth plan
By leveraging standard software, cBrain offers government organizations fast digital transformation at scale. cBrain thereby challenges one of the largest global industries, government digitizing, and faces a huge business opportunity. To capitalize on this opportunity, cBrain has initiated a 3-year strategy covering the period 2023-2025.

While maintaining and growing the current business, the goal of the 2023-2025 growth plan is to further accelerate growth by investing in the ”F2 Climate software” and the ”F2-for-Partners” concept.