- Number of seats grows by around 42% to over 408,000
- Recurring revenue up around 36%
- Proportion of recurring revenue accounts for roughly 85%
- Total revenue increased by around 28% in the first six months of 2019
- ARPU stable in the first half of the year
- Sales started in Italy and France in the first half of the year
Munich, August 23, 2019 – NFON AG (together with its subsidiaries “NFON” or the “Company”), the only pan-European cloud PBX provider (telephone system from the cloud), released its 2019 Half Year Report today, according to which the Company continued on its growth path in the first six months of the year and is therefore on track for the full year.
In the first six months of 2019, NFON increased its total revenue by 27.7% to EUR 26.3 million (previous year: EUR 20.6 million). Recurring revenue thus increased by 36.1% from EUR 16.5 million to EUR 22.4 million. The strength of NFON’s business model is reflected in the very high proportion of recurring revenue. At 85.2% (previous year: 79.9%), the share of recurring revenue in total revenues is well above the range forecast for 2019 as a whole. In the first two quarters of 2019, NFON also recorded a stabilization of average revenue per customer (ARPU).
The increase in the number of extensions (seats) is the basis for the accelerated pace of growth in the first half of the year. Compared to the previous year, NFON was able to significantly increase the number of seats by 41.8% to over 408,000. Deutsche Telefon Standard (DTS), the company acquired on March 1, 2019, made an important contribution to this increase. Its sales and development teams have been successfully integrated into the NFON Group. In March and July of this year, sales and development of the partner network in Italy and France also officially started.
NFON continues to grow dynamically. As is usual in NFON’s business, a cumulative effect in the development of sales is expected in the course of the year, so that the pace of growth will continue to increase in the second half of the year. However, the company also sees a few challenges for the second half of the year. Apart from the macroeconomic downturn, which NFON is also feeling, the time lag in the onboarding of major customer projects will also slightly dampen growth momentum over the year as a whole. Against this backdrop, and assuming that the macroeconomic environment does not deteriorate further, NFON nevertheless continues to expect a sales increase of 40% to 45% year-on-year for 2019, albeit at the lower end of the range. From today’s perspective, the share of recurring revenue will be at the upper end of the forecast range of 75% to 80%. NFON continues to forecast growth of at least 45% in the number of seats.
“With more than 408,000 seats, more than 30,000 corporate customers and more than 2,000 partners in 15 countries, NFON is the only pan-European cloud PBX provider. This is a clear competitive advantage. This gives us an excellent basis to once again accelerate the pace of growth in the second half of the year. We will continue to expand our strong market position in this and the coming years by expanding our product portfolio, expanding regionally and acquiring targeted companies. Our goal is clear: we want to become the number 1 for cloud telephony in Europe,” said Hans Szymanski, CEO and CFO of NFON AG.
Overview of the figures for the first half of 2019:
|In EUR millions |
|Total revenue ||26.3||20.6||27.7%||14.2||10.6||33.8% |
|Recurring revenue ||22.4||16.5||36.1%||12.0||8.4||43.0%|
|Share of recurring revenue to total revenue ||85.2%||80.0%|| ||84.7%||79.2%|| |
|Non-recurring revenue ||3.9||4.1||-5.7%||2.2||2.2||-1.4%|
|Share of non-recurring revenue to total revenue ||14.8%||20.1%|| ||15.3%||20.2%|| |
|ARPU blended (EUR)1 ||9.76||10.05||-2.9%||9.77||9.96||-1.9%|
|Seats (extensions) ||408,393||287,998||41.8%||408,393||287,998||41.8%|
|Adjusted EBITDA2 ||-2.6||0.1||n/a||-1.7||0||n/a|
1The ARPU is calculated as the ratio of the average recurring revenue of seats and SIP trunks per month less the recurring revenue from the SIP trunk license fees in relation to the average number of seats per month
² Adjusted for IPO costs, retention bonus and stock options
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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.