cBrain adjusts expectations for 2025 while preparing a new growth plan for 2026–2028

Core Viewpoint - cBrain has adjusted its revenue expectations for 2025, forecasting a decline to approximately DKK 250 million, primarily due to a significant drop in one-time license sales, while planning a new growth strategy for 2026-2028 focused on recurring software revenues and market-driven approaches [1][3][4]. Group 1: Revenue Expectations - cBrain initially forecasted revenue for 2025 to be between DKK 268 million and DKK 281 million, indicating a year-on-year growth of 0-5% [1]. - The company now expects revenue to decline from DKK 268 million in 2024 to approximately DKK 250 million in 2025, reflecting a decrease in sales of new one-time licenses [3]. - Earnings before tax (EBT) are projected to be around DKK 45 million, with an EBT margin of 18% [3]. Group 2: Sales Performance - During the fourth quarter, cBrain secured orders from both existing and new clients, including the Danish Secretariat for Competence Development and a digital platform for Aarhus Municipality [2]. - Despite these new orders, there was a further decline and postponement of expected orders and projects in the fourth quarter [2]. Group 3: Recurring Revenue Growth - Recurring software revenues are forecasted to grow to DKK 165 million in 2025, representing a 19% increase from DKK 139 million in 2024, and will constitute two-thirds of total revenue [4]. - The decline in one-time license sales is contrasted by the growth in recurring revenues, indicating a strategic shift towards long-term government contracts [4]. Group 4: Strategic Shift and Future Plans - cBrain is transitioning from a project-focused sales model to a broader, market-driven approach centered on the F2 standard software, which aims to reduce dependency on individual customers [6]. - The company is finalizing a new three-year growth plan for 2026-2028, focusing on selected market segments within the emerging market for standard government software [5][6]. - Organizational changes have been initiated to support this revised strategy, including the establishment of new sales and product units [6].