Cuatroochenta

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grows

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eightfold

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in

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five

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years

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and

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exceeds

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50%

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of

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recurring

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revenues

Growth, profitability, resilience, business diversification with an emphasis on cybersecurity and an increasingly solvency to continue expanding the market through proprietary software, third-party software and an active M&A strategy. These are the credentials that Cuatroochenta has shown at its first Investors Day, held by Inveready at the Recinte Modernista Sant Pau in Barcelona on Tuesday, April 26, in front of investors and media to present its financial results for 2021 with the audited accounts and the main objectives of its Strategic Plan.

The cloud solutions and cybersecurity technology company, listed on BME Growth since 2020, has increased its pro forma revenues eight-fold over the last 5 years, from 1.7 million in 2017 to 14.8 million in 2021, an increase of 26% in the last fiscal year. At the level of recurring pro forma EBITDA, the company has also achieved impressive growth, reaching 104% CAGR in that period (Compound Annual Growth Rate 2017-2021).

Cuatroochenta's CEO and co-founder, Alfredo R. Cebrián, and CFO, David Osuna, have highlighted the increase in recurring revenue in the last year, consolidating the SaaS (Software as a Service) model both in the organic and inorganic business, which allows scaling up in a fast, sustainable and profitable way. Thus, in 2021 the company reached an ARR (Annual Recurring Revenue) of 6 million euros, which represents 52% of the pro-forma turnover without considering the specific area of Custom Development (DAM). ARR growth in the last fiscal year was 33% and the TACC since 2017 reached 154%.

Investors and press met at Cuatroochenta's Investors Day.

Recurrence and diversification

As examples of recurrence, Cebrián referred to the company's own platforms of facility management, FAMA, and field service, CheckingPlan, industry leaders in Spain in their respective fields, and to the ERP solutions which have achieved the status of Gold Microsoft Partner. Similarly, he highlighted the performance of the cybersecurity business, Sofistic, whose revenues grew by 29% in 2021 year-on-year, supported by important contracts covering multiple years with banks and critical infrastructures in Central America and with different companies in Spain.

The good performance of Sofistic means that the impact of revenues generated by Cuatroochenta at international level exceeds 15% of total revenues. A growth that is accompanied by a structure relying on more than 45 professionals distributed among the headquarters in Panama, Colombia, Spain, Costa Rica, Dominican Republic and the United States, where a company has just been incorporated with headquarters in the Research Triangle Park in Durham/Raleigh, the second largest technology park in the country.

"The revenues by business areas in 2021 show the diversification of Cuatroochenta's portfolio of products and services which, besides reducing the risk of overreliance on certain sectors or clients, allows us to offer powerful and state-of-the-art software that covers a wide range of technological needs for companies and organizations", explained Alfredo R. Cebrián, Cuatroochenta's CEO.

Structured for future growth

Regarding its future strategy, Cuatroochenta is building a structure, both in terms of human resources and financing, to continue with its organic and inorganic growth plans. To that affect, Osuna recalled that the company signed in 2021 an investment agreement with Inveready for the issue of up to 4 million euros in convertible bonds, which in April 2022 has been extended to 5 million. "A strategic alliance through which we can continue to develop the growth plans, hand in hand with a management company with extensive experience in growing companies and an extensive network of contacts", added Osuna. "We continue with our plan aimed at positioning Cuatroochenta as a company of international reference for its SaaS solutions", as announced Alfredo R. Cebrián.