cBrain is happy to announce continued growth and a significant increase in revenue in Q4 which means that the preliminary accounts for 2020 show revenue growth of 24% and earnings before tax (EBT) of 17%.
2020 has been a good year for cBrain where a strong momentum has prompted multiple upward adjustments.
Most recently, cBrain revised our expectations in the beginning of December. Our expectations for revenue growth for the financial year were raised from 18-20% to at least 21%. This is now pinpointed to be a revenue growth of 24%.
In the beginning of December, the expectations for earnings before tax (EBT) were raised from 10-12% to at least 13%. This is now pinpointed to be earnings before tax (EBT) of 17%.
cBrain’s business and growth strategy are based on the sale of the standard product F2 which is designed and build to support the digital transformation of the public sector. cBrain has achieved solid success as a supplier to the public sector in Denmark where more than 75 public authorities use F2 as their digital platform. This also includes 15 out of 19 ministerial departments. At the same time, cBrain has been successful in exporting F2 to a number of other countries.
The largest share of cBrain’s revenue is generated from the sale of F2 in the form of so-called cloud subscriptions (Software-as-a-Service). Subscriptions are priced based on the number of users, types of users, and various add-on modules that the customer can choose from. In continuation of the subscription, cBrain also provides a number of services such as user training.
It is in particular thanks to an increased sale of F2 cloud subscriptions that cBrain can observe a significant increase in revenue in the last few months of the year. This includes both new customers that have begun using F2 and existing customers who have expanded their subscription to include more users or have begun using new add-on modules.
It is certainly joyous news when customers decide to expand their use of the product. Especially as happy customers support cBrain’s position in the market and thereby the continued growth.
The increased sales of subscriptions have a direct effect on the revenue as there are limited production costs associated with the delivery of the subscription itself. This explains why cBrain’s earnings before tax (EBT) for the financial year 2020 are lifted to 17%.
The positive end to the year means that subscriptions now account for more than 50% of cBrain’s total revenue and that cBrain is stronger than ever at the start of the new year.
cBrain will publish its annual report for 2020 on the 26th of February 2021 and will hold its annual general meeting on the 21st of April 2021.