cBrain A/S: cBrain beats expectations on top and bottom lines as subscription revenue jumps

Company Announcement no. 01/2024

cBrain beats expectations on top and bottom lines as subscription revenue jumps

Copenhagen, January 15, 2024

cBrain (NASDAQ: CBRAIN) is pleased to recognize a significant jump in subscription revenue during the fourth quarter of 2023 due to increased usage of the F2 digital platform across the user base.

Consequently, cBrain now upgrades total revenue growth guidance to 25-27%, up from previous 20-25%, and upgrades earnings before tax (EBT) guidance to 32-34%, up from previous 20-25%.

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For the fiscal year 2023, cBrain initially guided revenue growth of 15-20% and earnings before tax (EBT) of 18-22%.

First half year 2023 results exceeded expectations due to increased software sales. Consequently, in July the full-year revenue growth guidance for 2023 was increased to 20-25%, up from the previous range of 15-20%. In parallel the full-year guidance for earnings before tax (EBT) was increased to 20-25%, up from the previous range of 18-22%.

More than 50% of total cBrain revenue is based on software subscriptions, and total software revenue, which is based on software licenses and software subscriptions, accounts for approximately 80% of total revenue. The majority of software subscriptions are based on capacity, which is calculated based on number of F2 users and modules. The actual capacity usage is measured and invoiced across the user base by the end of each quarter.

cBrain is pleased to notice a solid jump in actual usage of F2 during fourth quarter of 2023. This has a positive and significant impact on revenue and earnings.

Consequently, the full-year revenue growth guidance for 2023 in now revised and increased to 25-27%, up from the previous range of 20-25%, and the full-year guidance for earnings before tax (EBT) is now revised and increased to 32-34%, up from the previous range of 20-25%.

We are very pleased to see a high level of customer loyalty, and we believe that the continued increase of F2 usage across the user base, adding still more F2 users and adding still more F2 modules to the subscription schemes, demonstrates a high level of user satisfaction. Customer loyalty and a high level of user satisfaction form a strong foundation for cBrain's international growth plan.

Best regards

Per Tejs Knudsen, CEO

Inquiries regarding this Company Announcement may be directed to

Ejvind Jørgensen, CFO, cBrain A/S, [e-mail], [phone]