CBRAIN (CBRAIN) Q3 2024 earnings summary

Executive summary

• cBrain is executing its 2023-2025 Growth Plan, targeting DKK 350m revenue in 2025, with a focus on climate software, international expansion, and becoming a global leader in COTS software for government.

• The F2 platform is widely adopted in Denmark and implemented across five continents, supporting diverse public sector areas.

• Strategic partnerships and international projects are expanding cBrain’s footprint across Europe, Africa, the US, and Asia.

• Recent rapid implementations at two new Danish ministries and international pilot projects highlight the scalability and efficiency of cBrain's solutions.

Financial highlights

• 1H 2024 revenue reached DKK 139m, up 6% year-over-year, with software sales accounting for 80% of total revenue and international sales representing 37%.

• Danish revenue grew 21% to DKK 87m, while export revenue declined 13% to DKK 52m due to timing of license recognition.

• Software revenue increased 5% to DKK 111m; services revenue rose 7% to DKK 28m.

• cBrain targets total revenue of DKK 350m in 2025, with 2024 revenue growth forecasted at 10-15%.

• Strong positive cash flow supports ongoing execution of the growth plan.

Outlook and guidance

• Revenue is forecasted at DKK 263-275m for 2024, with a targeted EBT margin of 10-15%.

• The 2025 goal is DKK 350m revenue with a 30% growth rate.

• EBT margin target for 2023-2025 is 15-20%; 2024 EBT forecast is 24-30%.

• Significant growth is expected in 2025, driven by expanding partnerships and large international contracts.

• Increased investments in the US and new projects in Germany, India, Kenya, Rumania, and Ghana are expected to materialize into orders in 2025.