cBrain is very satisfied with the results for the first half of 2020, which show revenue growth of 25% and earnings (EBT) of 20%.
Revenue has grown to DKK 57.3 million, against DKK 46.0 million in the first half of 2019, while earnings before tax (EBT) have grown to DKK 11.5 million, against DKK 4.9 million in 2019, corresponding to growth in earnings (EBT) of 137%.
In particular, it is noted that sales of subscriptions have grown by 30% and now account for 48% of revenue, while exports have grown by 55% and now account for 14% of revenue.
The figures support cBrain's international growth strategy and show that cBrain has the potential to embark on a development curve with higher growth rates and earnings than before.
At the same time, the sale of subscriptions substantiates that cBrain has established a solid long-term business foundation, where the company's F2 product is delivered as software-as-a-service (SaaS).
A significant part of cBrain's revenue is based on the national Danish SKI agreements (Statens og Kommunernes Indkøb Service). The latest SKI 02.19 SaaS-Cloud agreement, which came in the autumn of 2019, has a term of up to 10 years, and a number of customers have chosen to switch to the new agreement.
As a result, in the first half of the year, cBrain entered into framework agreements for the new SKI agreement, covering new and existing customers, to a total value of approx. 250 million DKK.
In the Danish market, cBrain has announced an agreement with the Ministry of Trade and Industry's department in the first half of the year. This means that 13 out of 18 of the Danish ministries now use F2 in the ministry.
The continued progress in the Danish market is important for international expansion.
Today, more than 50 Danish authorities use F2, and in the spring, the UN again named Denmark as the leading country within E-government (United Nations E-government survey 2020). This gives cBrain a very strong international reference position.
Last year, cBrain launched a major project around a digital support of the Danish Environmental Protection Agency's processes across areas such as grant administration, permits and control and supervision.
This work, combined with the fact that the departments in both the Ministry of Climate and the Ministry of the Environment also use F2, positions cBrain well as a digital supplier in connection with climate and the environment.
Internationally, cBrain announced 4 orders in Germany in the spring, of which 3 orders are for a double-digit million amount. These are framework agreements to be delivered over the coming year, and with these orders, cBrain is facing a breakthrough in the German market.
Recently, cBrain also announced that it has entered into the national French procurement agreement. cBrain has also delivered its first agreement to the USDA in the United States.
At the beginning of the year, cBrain announced an expectation of revenue growth of 12-15% and earnings before tax (EBT) of 7-10%.
The spring showed a very good development, both in relation to order intake and deliveries, which is why cBrain in June raised its expectations to a revenue growth of 14-16% for the financial year 2020.
The positive development has been maintained over the summer, and in August cBrain further raised its expectations for the financial year 2020 to a revenue growth of 16-18%.
At the same time, cBrain raised its earnings expectations to 8-11% before tax (EBT) and has increased its investments in growth and internationalization.
cBrain is working on a solid pipeline of new potential tasks. Depending on the time of order entry and delivery speed, cBrain has the opportunity to increase growth further in the current financial year.
cBrain has significant liquid reserves of DKK 50.3 million, which constitute 37% of the company's total assets. cBrain thus has the financial strength to maintain its development and growth plan.