NFON AG confirms positive development in 2020 and presents growth strategy 2024

Section 1 of the WpHG [the German Securities Trading Act] with the objective of Europe-wide distribution

DGAP-News: NFON AG / Key word(s): Annual Report/Annual Report
15.04.2021 / 07:00
The issuer is solely responsible for the content of this announcement.

Corporate News

NFON AG confirms positive development in 2020 and presents growth strategy 2024

- NFON aims to be the leading provider for voice-centric business communications

- Focus on the segment of small and medium-sized businesses and enterprises

- Expansion of the product portfolio into a complete UCaaS suite

- Scalability of the business via a further expanded and optimized Europe-wide partner network


Munich, 15 April 2021 - NFON AG (collectively with its subsidiaries "NFON" or the "Company"), the only pan-European Cloud-PBX provider (telephone system from the cloud), confirms the preliminary figures for the past financial year that it published at the beginning of March 2020. The very positive business development in an unusual year 2020 marked by COVID-19 impressively underscores that NFON is positioned exactly right in the European market for business communications with its cloud-based product portfolio. For 2021, NFON is planning seat growth of between 15% and 17% and a recurring revenue growth rate of between 14% and 16% and is thus continuing its growth course despite pandemic-related uncertainties. Recurring revenue is expected to account for over 85% of total revenue.

In 2020, NFON significantly increased recurring revenue by 23.6% to EUR 59.4 million (2019: EUR 48.1 million). Total revenue increased by 18.4% to EUR 67.6 million (2019: EUR 57.1 million). As a result, the share of recurring revenue in total revenue increased further to 87.8% (2019: 84.1%). The number of customer-operated extensions (seats) increased by 75,080 seats to 524,791, representing growth of 16.7% compared to the prior-year reporting date (31 December 2019: 431,935). Primarily due to increasing remote working activity and correspondingly higher volumes of voice minutes, average revenue per user (blended ARPU) increased to EUR 9.77 in 2020 (2019: EUR 9.64). The increased blended ARPU combined with the significantly lower expenses compared to the previous year, for travel and marketing activities, for example, had a clearly positive impact on the development of earnings. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 2.3 million (2019: EUR -7.0 million). Adjusted EBITDA even improved to EUR 3.5 million (2019: EUR -5.1 million).

NFON growth strategy 2024

NFON CEO Dr. Klaus von Rottkay is optimistic about the future and elaborates on the mission for the growth strategy 2024: "Telephony and IT are growing ever closer together. This is an effect that has become unmistakable in today's business world. We therefore aim to be the leading provider of voice-centric business communications in Europe."

Telephony is still the most important communication channel for companies. Jan-Peter Koopmann, CTO of NFON AG: "After the phase-out of ISDN and the ongoing replacement of outdated phone system technology with cloud PBX, we are immediately in the third wave of disruption. Telephony, collaboration with video or chat and business applications such as contact center solutions are converging." The excellent user experience on the platform is the decisive competitive advantage here. Jan-Peter Koopmann continues: "Customers want to use a platform in which they can switch between voice, video, text and collaboration fluently, easily guided and without complications. It clearly follows that we will offer a complete UCaaS suite with exactly these components, complemented by open APIs and further omni-channel solutions."

Another important feature of this platform, and a key premise for increasingly simplifying business communications and workflows, is the focus on user scenarios that include mobile work as well as hybrid or remote work.

"As part of our growth course, we will not only increasingly sell our new products to our existing customer base. We will of course also continue to expand our partner network in Europe. For us, the partner stands absolutely and unwaveringly at the center of everything we do. At the same time, we will increase our focused customer segment in the small and medium business (10 - 250 extensions) to the enterprise segment," explains Klaus von Rottkay.

A clear go-to-market strategy will also make it easier for NFON to gain efficiency and scale faster. The company already has an excellent presence in markets such as Germany, the UK and Austria. Markets such as France or Italy, on the other hand, are still new to the company's structure and are therefore classified as countries with a relative growth focus. With its 2024 growth strategy, NFON is also looking at opportunities to invest in Central and Eastern Europe. These markets promise faster growth with less competitive pressure.

"Our 2024 growth strategy can be summarized in three words: Target - Enhance - Scale," says Klaus von Rottkay. "Our business takes place in Europe, and that is where we are staying. It is precisely this presence and the product portfolio tailored to it that we will optimize. We will expand our existing PBX business in the direction of 'smart workflow' voice-centric business communications and, starting with our more than 2,700 partners, invest in the expansion of this network."

*Def. voice-centric: any business interaction that involves voice: PBX, UCaaS, CCaaS, voice assistance and beyond

NFON will present the final figures at its Capital Markets Day, 15. April 2021, at 10:00 a.m. (CET). Interested parties can register for the web and conference call via the company's Corporate NFON website.

Starting at 3:00 p.m. (CET), the management team will present the 2024 growth strategy and product strategy in detail. Registration is possible via the Capital Markets Day website: Registration.


Result for financial year 2020 at a glance:

EUR million 20202019Change
Total revenue 67.657.118.4%
Recurring revenue 59.448.123.6%
Share of recurring revenue in total revenue 87.8%84.1 % 
Non-recurring revenue 8.29.1-9.6%
Share of non-recurring revenue in total revenue 12.2%15.9% 
ARPU blended1 9.779.641.3%
Seat growth
(31 December)
EBITDA 2.3-7.0n/a
Adjusted EBITDA2 3.5-5.1n/a

1 Based on average number of seats per month in each year
2 Adjusted for the retention bonus, stock options, DTS acquisition expense, one-time effects


Investor Relations Contact

Sabina Prüser
Head of Investor Relations
+49 89 45300 134

Media Contact

Thorsten Wehner
Vice President Public Relations
+49 89 45300 121


Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider - counting more than 40,000 companies across 15 European countries as its customers. With Cloudya, NFON offers an easy-to-use, independent and reliable solution for advanced cloud business communications. Further premium and industry solutions complete the portfolio in the field of cloud communications. With our intuitive communications solutions, we enable European companies to improve their work a little every single day. NFON is the new freedom in business communication.


This announcement is not an offer of securities for sale in the United States of America. The securities of the Company have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act. No public offering of securities of the Company is being made in the United States of America and the information contained herein does not constitute an offering of securities for sale in the United States of America, Canada, Australia, Japan or any other jurisdiction in which such offering would be unlawful. This announcement is not for release, publication or distribution directly or indirectly in or into the United States of America, Australia, Canada, Japan or any other jurisdiction in which the distribution or release would be unlawful or to U.S. persons.


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