News

Cuatroochenta
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grows
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by
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31%
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in
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the
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first
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half
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of
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2022
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with
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47%
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recurring
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revenues

Investors  ·  Present  ·  Results

The technology company has tripled its turnover in the last two years and intensified its investment in organic growth in order to scale up. Sofistic, its cybersecurity unit, increased its sales by 113% in the first half of the year.

Cuatroochenta’s financial report for the first half of 2022 (reported to the market as a listed company on BME Growth) confirms the good performance of this technology company, with results that generate operating cash flow and solvency despite the economic conditions. This position allows it not only to maintain its M&A strategy, but also to intensify investment in organic growth in order to continue to enter into new markets and expand markets with solidity.

Cuatroochenta’s proforma net turnover from January to June 2022 exceeded € 9 million, an increase of 31% over the previous year. These results show a recurring proforma EBITDA at 31 June 2022 of € 814,000, i.e. 9% of revenues. Thus, the company has managed to triple its sales in the last two years, registering a compound annual growth rate of 71%.

The company’s excellent progress provides it with the resources to deepen a strategy that balances solvency, profitability and growth through key investments to accelerate the business plan, making it more scalable. This reinvestment in organic growth, estimated at € 1.7 million, allows the expansion of technological development teams, process optimization and business streamlining, with the opening of a partner channel to increase market flexibility at international level. In the first half of the year alone, organic growth has already registered an increase of 17%.

«We have prepared ourselves to grow in an environment of global uncertainty and turn it into an opportunity. The company has always advocated a sustainable, cash-generating and profitable business model, which in the current scenario still provides us with a high growth potential, in a situation of solvency and financial independence»

Alfredo R. Cebrian, CEO and co-founder of Cuatroochenta

Cybersecurity, the business with the highest turnover

This strategy of profitability and scalability is complemented by the objective of an increasingly recurring business model, both organically and through the acquisition of new products. Thus, ARR (Annual Recurring Revenue) exceeded € 4.18 million, which represents 47% of net revenues at 30 June 2022.

Furthermore, it is important to note the recurrence recorded by the cybersecurity unit, which operates as Sofistic, our fastest growing brand, with a rate of 76% compared to its business as a whole in the first half of 2022. In that period, Sofistic has managed to increase its sales by 113% and, since its acquisition in 2019 by Cuatroochenta, it has multiplied sales by five.

The integration of Sofistic over the last three years has led to the development of Atlantis SOC (Security Operations Centre) to offer a comprehensive 24/7 service to the banking and critical infrastructure sector, with a strong presence in Latin America. Cuatroochenta’s cybersecurity unit is thus positioned as an outstanding MSSP (Managed Security Services Provider), specialized in threat detection based on Artificial Intelligence and ready to penetrate the North American market.