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cBrain: Accelerating Government Digitization with COTS Software

AInvestThursday, Nov 7, 2024 3:17 am ET
1min read
cBrain, a leading provider of commercial off-the-shelf (COTS) software for government, continues to execute its growth plan and remains on target to achieve its financial goals. The company's unique value proposition, built on a strong reference position in Denmark and a growing international presence, positions it well to become a leading global provider of COTS for government.

cBrain's F2 digital platform, designed specifically for government use, offers substantial advantages in terms of quality, delivery speed, and reduced implementation and maintenance costs. The platform's built-in no-code/low-code configuration tools enable users without a technical background to tailor the software to meet specific organizational needs and processes. This adaptability and ease of use have contributed to cBrain's success in Denmark and its growing international presence.

The company's growth plan is anchored in two primary revenue streams: "Base" and "Stepping stones." The "Base" stream aims to achieve annual revenue growth of 10-15% by strengthening and expanding existing operations and customer relationships. In parallel, the "Stepping Stones" initiative aims to lift annual revenue growth to 30% by increasing contract values and winning larger international contracts. cBrain continues to execute its growth strategy, supported by a growing number of international pilot projects and a robust pipeline of opportunities.


In October 2024, cBrain demonstrated the power of its COTS software approach by implementing F2 at two new Danish ministries in just three weeks. This rapid deployment, which included all necessary functionality and organizational implementation, highlights the efficiency and effectiveness of cBrain's solution. By using COTS software for government, cBrain helps ministries transform into digital working environments, reducing the time and cost associated with traditional custom-built solutions.


cBrain's financial performance reflects its strong growth potential and solid fundamentals. In 2023, the company reported a 27% increase in revenue and a record high earnings before tax margin (EBT margin) of 34%. This impressive growth, coupled with a solid balance sheet and positive cash flow, positions cBrain well to execute its growth plan and maintain dividend payouts.

The company's international expansion and growth initiatives are expected to yield significant returns, driven by its unique value proposition and strong reference position in Denmark. cBrain's F2 digital platform offers a compelling alternative to traditional custom-built solutions, enabling government agencies to accelerate their digital transformation and achieve substantial cost savings.

In conclusion, cBrain's execution of its growth plan, combined with its innovative COTS software approach and strong financial performance, makes it an attractive investment opportunity. As governments worldwide increasingly adopt standardized software, cBrain is well-positioned to capitalize on this trend and continue its growth trajectory. Investors seeking undervalued opportunities with strong growth potential and solid fundamentals should consider cBrain as a promising addition to their portfolios.
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