cBrain welcomes the best result to date in the company's history, with continued progress in both Denmark and abroad. At the same time, cBrain has taken a number of important steps as a provider of software that supports the global fight against climate change.
Revenue grew 29%, from DKK 120 million in 2020 to DKK 155 million in 2021. The progress is based on purely organic growth, while the largest part of the growth has been achieved through increased sales of software subscriptions in the form of so-called cloud services, as well as increased sales of software licenses.
As a result, earnings before tax (EBT) grew by 94%, from DKK 20 million in 2020 to DKK 39 million in 2021, whereby cBrain reaches earnings before tax (EBT) of 25% in 2021.
Software subscriptions have grown by 31%, from DKK 64 million in 2020 to DKK 84 million in 2021, and thus make up 54% of total revenue.
At the same time, cBrain notes with satisfaction that exports have grown by 116%, from DKK 17 million in 2020 to DKK 37 million in 2021, which means that exports now account for 24% of total revenue.
cBrain's business is based on public digitization. This is one of the world's largest markets, often characterized by large, unmanageable and expensive IT projects because many authorities still procure custom-built solutions. cBrain challenges the market for public digitization by offering standard software instead of custom-built solutions.
cBrain's software is called F2, and with F2, cBrain has proven what only few thought possible. Using a unique technology called process templates, F2 can be quickly and easily adapted to the needs and workflows of the authorities without the use of neither special programming nor many consulting hours. F2 is therefore groundbreaking and shows a completely new path for public digitization.
United Nations places Denmark as the world's leading nation in public digitization, and today more than 75 Danish authorities, including 17 out of the 21 Danish ministries, use F2 as their digital platform.
The Danish position is a key element in cBrain's international growth plan. It is therefore also gratifying that in 2021, cBrain can note a continued progress in Denmark with a number of new customers, including the Danish Environmental Portal, the new Ministry of Food, Agriculture and Fisheries of Denmark, the new Ministry of the Interior and Housing, the Danish Ministry of Culture and The Danish Working Environment Authority.
The international growth plan is based on an organic growth model, where cBrain wins the first local customers based on direct sales from the headquarters in Denmark, and then builds local organizations and partnerships in the countries that can support a further expansion. Thus, cBrain can work and establish itself in a number of markets in parallel without neither capital investments nor acquisitions, whereby all investments in exports are financed directly through operations.
The organic growth model has shown its strength in the year 2021, where exports have more than doubled, while at the same time cBrain has both further developed and entered several new international markets.
In Germany, cBrain has entered into a number of new agreements, including a framework agreement. The agreement includes the delivery of 5,000-10,000 user licenses as well as a number of modules with extended functionality together with software maintenance. The agreement is expected to have a total value of approximately DKK 250 million and is thus the largest single order in cBrain's history, both in relation to the number of users and revenue. cBrain has 20 employees in the office in Berlin and in 2021 announced a collaboration with the consulting house Nortal in Germany.
In 2021, cBrain delivered its fifth F2 solution to the Ministry of Finance in the United Arab Emirates, which supports the collection, audit and reporting of company information to the OECD in order to avoid tax evasion.
The Ministry of Finance in the UAE recommended the solution to the global WSIS award, which is sponsored by the United Nations and which honors solutions that support the 17 Sustainable Development Goals. This strengthens and supports cBrain's continued efforts in the UAE.
In 2021, cBrain has taken a number of important steps as a supplier of climate software to authorities.
The global fight against climate change is largely driven by governments, and they are under great time pressure to achieve climate goals. But it often takes a long time to implement political decisions, not least because it usually takes a long time to establish the necessary IT systems with the executive authorities.
In recent years, cBrain has, in collaboration with i.a. The Danish Environmental Protection Agency, developed a broad portfolio of F2 solutions that supports authorities' fight against climate change, from nature restoration to emergency preparedness and reduction of greenhouse gas emissions.
cBrain calls this type of solution “climate software”, and cBrain is in a unique position here because cBrain's climate solutions are based on standard software. cBrain's solutions can therefore be delivered very quickly, which is crucial for achieving the climate goals.
For example, in the spring of 2021, just a few months after the Danish Parliament's decision, cBrain delivered a grant solution to the Danish Environmental Protection Agency which supports the application and case processing of grants for climate farmland. The project contributes to the green transition, reduces greenhouse gas emissions and benefits nature and the environment.
Climate software is a key element in cBrain's growth and export strategy. In the autumn of 2021, cBrain was invited as a member of the Danish delegation, both at the Sustainability Week at the Expo 2020 in Dubai and at COP26 in Glasgow. In parallel, in 2021 cBrain announced a number of international agreements concerning the climate.
In June, cBrain reported that the company had won a tender for the delivery of the first software solution in South America, to the authorities in Guyana. The solution is originally developed for use by the Danish Environmental Protection Agency, but is now exported and reused in order to support monitoring and regulation of international trade in endangered species and plants in the Amazon, which is the world's largest rainforest area.
In November, cBrain announced that the company will advise a local authority in California on digitizing the authority's processes in connection with CO2 capture ("Carbon Farming") in order to reduce the CO2 footprint in the state.
cBrain's growth plan is based on purely organic growth, and cBrain's balance sheet therefore does not include any loans or the like. At the same time, the cash and cash equivalents and receivables from customers amount to DKK 100 million. cBrain thus has a solid financial position and the financial strength to maintain its growth plan.
As a result of cBrain's positive growth, the Board of Directors proposes to the Annual General Meeting that the dividend be raised by 21%, so that the dividend is raised from DKK 0.14 per share in 2020 to DKK 0.17 per share in 2021.
In 2022, cBrain expects a revenue growth of 20-25% and earnings before tax (EBT) of 15-20%.
It is noted that there is considerable uncertainty associated with the expectations. cBrain has a solid pipeline in the form of orders and assignments. However, revenue growth is affected by how quickly the individual projects are delivered, because both the growth of software subscriptions and license sales depend on how quickly the customers go into operation. It can affect expectations for growth in both a positive or negative direction.
In addition, cBrain will move to a new domicile in 2022, which is expected to have a negative effect on earnings as a result of one-off costs in connection with the move.