- Number of seats increased by 41% to 431,935
- Recurring revenues rose by 39% compared to the previous year’s period
- Share of recurring revenues increased to 85%
- Total revenues of EUR 41.5 million in the first nine months
- ARPU development remains stable in the reporting period
- Europe-wide partner network has grown to over 2,500 partners
Munich, November 21, 2019 – NFON AG (together with its subsidiaries “NFON” or the “Company”), the only pan-European cloud PBX provider (telephone system from the cloud), has published its quarterly release for the first nine months of 2019 and confirms its preliminary figures. Accordingly, the company generated total revenue of EUR 41.5 million in the reporting period in 2019 (9M 2018: EUR 31.2 million). In the third quarter of 2019, revenue increased by 42% to EUR 15.1 million compared to EUR 10.6 million in the third quarter of 2018. At around 39%, recurring revenues increased to EUR 35.0 million; this equates to a very high share of 85% of total revenues. In the first nine months of 2019, NFON also recorded an overall stable development of average revenue per customer (ARPU). By posting an increase of 41%, the number of customer-operated seats also increased significantly (9M 2019: 431,935 seats / 9M 2018: 305,616 seats).
Hans Szymanski, CEO & CFO of NFON AG: “In the first nine months, we accelerated our growth compared to the previous year. At the same time, we reached important milestones in implementing our growth strategy. Since the beginning of the year, for example, we have successfully acquired and continuing integrated Deutsche Telefon Standard, opened our offices in Italy and France, and expanded our scope for M&A activities by gaining the support of AOC. We also introduced the new products NCTI Pro and Nvoice for Microsoft Teams at the end of October. In view of the very positive conditions in the telecommunications market – the old ISDN world will be a thing of the past in the foreseeable future – we are convinced that we will continue to grow dynamically in the future.”
For 2019 as a whole, NFON AG is planning seat growth of between 39% and 41%, which equates to an increase in recurring revenues of between 38% and 40% and a share of recurring revenues in total revenues of between 80% and 85%. This would mean total revenue growth of between 30% and 33%.
Overview of the key figures for the first nine months of 2019:
| EUR million || 9M 2019|| 9M 2018|| Change in %||Q3 2019 || Q3 2018||Change in % |
|Total revenue ||41.5||31.3||32.7||15.1||10.6||42.4|
|Recurring revenues ||35.0||25.3||84.5||12.6||8.8||43.4|
|Share of recurring revenues in total revenues ||84.5%||80.9%||||83.4%||82.8%|||
|Non-recurring revenues ||6.4||6.0||7.5||2.5||1.8||37.5|
|Share of non-recurring revenues in total revenues ||15.5%||19.1%||-2.5||16.6%||17.2%|||
|ARPU blended (EUR)1 ||9.71||9.96||41.3|||||||
|Seats (number) ||431,935||305,616||n/a|||||||
1 ARPU is calculated by dividing the average recurring revenue per month from seats and SIP trunks by the recurring revenue per month from SIP trunk license fees in relation to the average number of seats per month.
2 Adjusted for IPO costs (9M 2018), retention bonus (excluding Q3 2018), stock options (9M and Q3 2019) and share-based payments (9M and Q3 2018)
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About NFON AG
Headquartered in Munich, NFON AG is the only pan-European cloud PBX provider – counting more than 30,000 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. corporate.nfon.com/de/
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.