These are the main headlines of the 2022 Financial Report that Cuatroochenta's CEO, Alfredo R. Cebrián, and CFO, David Osuna, have presented this morning to shareholders and investors at the Palacio de Linares in Madrid, Casa de América's headquarters, at the company's second Investors Day since its incorporation to BME Growth as a listed company in 2020.
Cuatroochenta's organic growth in 2022 has amounted to 3.58 million euros, which represents 26% compared to the sales volume of 2021, while global spending on software in the same year only grew by 7.1% according to the latest report by the consulting firm Gartner. An increase that "is supported by the sizing of the teams, the continuous improvement of the products and the optimization of processes, betting on scalability and recurrence", as Osuna explained.
With respect to recurrence, the Annual Recurring Revenue (ARR) stands at 11.89 million euros, which practically doubles the figure for 2021 and already represents 62% of Cuatroochenta's total business (without considering the Custom Development business line).
Results 2022 (proforma)
Cybersecurity revenues grow 114%
Cebrián highlighted the evolution of Cuatroochenta's cybersecurity line, which operates in Latin America, the U.S. and Spain under the Sofistic brand, whose organic sales growth in 2022 was 114%, reaching €5.78 million. "Since the acquisition of Sofistic in 2019, it has been an example of integration, growth and internationalization, managing to end the year with positive EBITDA, which shows the degree of maturity of the business and its potential to further improve its profitability. Revenues from the cybersecurity unit already represent 30% of the total," explained the company's CEO.
In 2022, Cuatroochenta's sales outside Spain accounted for 26%, while in 2021 they represented 15%. The growth of the cybersecurity business in Latin America allows the company to accelerate its internationalization and diversify revenues, with the expansion of the teams in Colombia, Panama, Costa Rica and Dominican Republic and the beginning of the activity in Mexico and Ecuador at the beginning of 2023.
26% of revenues are from outside Spain (vs. 15% in 2021)
«Cuatroochenta is starting to materialize the results of its plans based on a model focused on the recurrence and scalability of its solutions and services and the international expansion, as well as the development of the organic business on the companies acquired in the pas»
In 2022 Cuatroochenta has promoted several strategic projects for the expansion of its business. The company has launched its own international network of partners to increase the commercial capillarity of its solutions, especially Facility Management & Services. In addition, it has invested in AI, to continue with its transversal implementation in its products and services, as well as in the process optimization plan, which has involved the integration of management solutions at different levels in the company to improve the visibility of its performance.
Double-digit growth plan for the medium term
With 266 employees, and only 11% of voluntary turnover compared to the 22% average in the sector, Cuatroochenta faces the medium-term future with the aim of maintaining double-digit growth ratios in revenues and EBITDA profitability.
«We will prioritize the generation of cash for the shareholder, progressively reducing the net financial debt/EBITDA ratio and enabling us to face greater investments in the future, with a selective acquisition strategy and expanding geographic diversification»