CBRAIN (CBRAIN) Q2 2024 earnings summary

Executive summary

• Achieved strong progress on the 2023-2025 Growth Plan, with revenue and earnings on track to meet or exceed internal targets.

• Revenue increased by 6% to DKK 139m in H1 2024, with Danish sales up 21% and international sales down 13% due to timing of license recognition.

• Strategic focus on becoming a global leader in commercial off-the-shelf (COTS) software for government, leveraging a unique, fully integrated platform.

• Growth driven by software subscriptions, strategic customers, and the F2-for-Partners strategy, with 80% of revenue from software sales.

• Expanded international presence with new contracts and partnerships in Germany, the US, Romania, Ghana, India, UAE, Kenya, and Nigeria.

Financial highlights

• 1H 2024 revenue reached DKK 139m, up 6% year-over-year; software sales DKK 111m (up 5%), services DKK 28m (up 7%).

• Earnings before tax (EBT) margin at 31% for 1H 2024; EBT DKK 43m (down 8% year-over-year).

• Net profit: DKK 32m (down from DKK 36m in H1 2023).

• Cash flow from operations: DKK 11m; cash and equivalents: DKK 2m; trade receivables: DKK 74m.

• Total equity: DKK 256m (up DKK 54m year-over-year); solvency ratio: 69%.

Outlook and guidance

• Revenue forecast for 2024 is DKK 287–299m, targeting 20–25% growth; EBT margin guidance for 2024 is 20–30%.

• On track to achieve DKK 350m revenue and 30% EBT margin by 2025.

• International sales expected to accelerate in H2 2024 as strategic projects mature.

• Continued growth expected in Denmark, with increased investments in public tenders and bid management.