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DGAP-News: NFON AG / Key word(s): Preliminary Results/Preliminary Results
NFON AG reaches key strategic milestones in 2021 on its way to becoming the leading provider of voice-centric business communications
- NFON grows according to plan in 2021; recurring revenues increase by 14%
- At 90%, recurring revenues account for very high share of total revenue
- Newly installed extensions (seats) increase by 12% to 587,067
- Strategic partnerships with industry leaders secure access to attractive UCaaS and CCaaS markets in Europe
- Number of employees in development increases by 41% and new products successfully launched
- Further strategic measures in 2022 aimed at accelerating growth in the years ahead
Munich, 10 March 2022 - NFON, the European provider of voice-centric business communications from the cloud, achieved the targets it had set for itself most recently in financial year 2021, based on preliminary figures, in what continues to be a challenging market environment. At the same time, the company consistently implemented the growth strategy it sharpened at the beginning of 2021 by focusing on the expansion of Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS).
Based on preliminary figures, NFON increased its recurring revenues by 14.4% to EUR 68.0 million in 2021 (2020: EUR 59.4 million). Total revenue increased by 12.3% to EUR 75.9 million (2020: EUR 67.6 million). The share of recurring revenues in total revenue thus rose to 89.5% (2020: 87.8%). The number of customer-installed extensions (seats) increased by 11.9% to 587,067 (31 December 2020: 524,791). The reluctance to invest on the part of customers across Europe, caused by the extreme situation of the past two years, still had an impact here. At the same time, the company once again managed to increase the average revenue per user (blended ARPU) to EUR 9.84 (2020: EUR 9.77) in the 2021 reporting period. This increase was mainly driven by the persistently high level of working from home and the resulting increase in the volume of voice minutes. As part of its strategic focus on the attractive UCaaS and CCaaS markets, NFON had intensified investments as planned in 2021. As a result, preliminary earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR -2.0 million (2020: EUR 2.3 million), while adjusted EBITDA amounted to EUR -1.3 million (2020: EUR 3.5 million).
With a view to its sharpened growth strategy, NFON achieved key strategic milestones in 2021: In June 2021, the company entered into a strategic partnership with the Italian company Meetecho through an equity investment. This gives NFON access to industry-leading WebRTC expertise and at the same time accelerates the implementation of its unified communications strategy. In November 2021, NFON secured access to the fast-growing European CCaaS market through its partnership with Czech-based Daktela. With the new omni-channel solution Contact Center Hub, NFON will be able to exclusively market a product in its core markets starting in the second quarter of 2022 that offers target audience-oriented professional contact center functions for small and medium-sized companies.
In order to successfully implement the company's strategy, it is extremely important to implement innovations and product functionalities quickly and bring them to the market. To this end, NFON has on the one hand increased the number of employees in development by 41%, and on the other hand once again invested more in marketing activities as planned. New products such as the Contact Center Hub, CRM Connect or Meet & Share are expected to result in increasing seat growth from the second half of 2022 on, supported by the new partner programs "Ngage" and "Gemeinsam Stark" (Strong Together). NFON also sees attractive opportunities in the still young markets of Eastern Europe in particular. Accordingly, a new subsidiary was founded in Poland in 2021 and resources were shifted to this region. The network of already more than 80 partners forms a solid basis for future growth.
In order to realise the significant potential in the European UCaaS and CCaaS markets, NFON will build on its successes in 2021. To this end, the Management Board plans to expand the product and solution portfolio to include a complete UCaaS suite, CCaaS solutions and more open APIs. In addition to expanding its own expertise and continuing to strengthen its development teams, NFON will also continue to rely on technology partnerships and targeted M&A activities in the technology sector. Sales and distribution resources are also being further increased in the current financial year.
With the measures implemented in 2021, NFON has already reached important milestones on the way to becoming a full-service provider of voice-centric business communications. The extent to which the war in Ukraine will affect the overall economic and industry-specific conditions in 2022 cannot be reliably estimated at present due to considerable uncertainties and high dynamics. NFON will therefore publish a concrete forecast for financial year 2022 together with its 2021 Annual Report.
The fully audited report for financial year 2021 will be available for download from the Investor Relations section of the NFON AG website on 7 April 2022.
NFON will also be holding its Capital Markets Day 2022 on that date.
Preliminary results for financial year 2021 at a glance:
1 Based on the average number of seats per month in each year
Investor Relations Contact
About NFON AG
Headquartered in Munich, NFON AG is the European provider for voice-centric business communication from the cloud, counting more than 50,000 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. https://corporate.nfon.com/en/
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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