- Recurring revenues increase by 29%
- Number of seats rises by 45% to over 390,000
- Total revenue increases by 21% in the first three months of 2019
- Share of recurring revenues increases to around 86%
- Important strategic milestones reached in first year since the IPO
- Deutsche Telefon Standard AG fully consolidated for the first time since March 2019
- Outlook for 2019 confirmed
Munich, 21 May 2019 – NFON AG (collectively with its subsidiaries “NFON” or the “company”), the only pan-European Cloud-PBX provider (telephone system from the cloud), announced today that it has reached all its targets one year after its IPO, and is on track for the full year with developments in the first quarter of 2019.
NFON AG increased total revenue in the first three months of 2019 by 21.2% to EUR 12.1 million (previous year: EUR 10.0 million). The recurring revenues were even increased by 28.9% from 8.0 million euros to 10.4 million euros. The strength of NFON AG’s business model is reflected in the very high share of recurring revenues. At 85.7% (previous year: 80.6%), the share of recurring revenue in total revenues is above the range of 75% to 80% forecast for 2019 as a whole. The main drivers of the revenue growth achieved are the acquisition of new customers, the continuously increasing number of seats and the expansion of the product portfolio. Deutsche Telefon Standard AG (DTS), which was fully consolidated in the NFON Group for the first time on 1 March 2019, also contributed to revenue in March. The number of seats increased by 45% year-on-year to 390,826 (previous year: 269,392).
Hans Szymanski, CEO and CFO of NFON AG: “The increasingly positive development of the seat growth underscores the sustainability of our business model and the attractiveness of our products and services. It also shows the successful implementation of our growth strategy with the new NFON core product Cloudya, the initiated international expansion in Italy and France and the acquisition of DTS. Starting in the second quarter, DTS will also make a full contribution to our targeted growth. We already serve over 30,000 corporate customers in 14 European countries and will continue to consistently implement our growth strategy and we are confident that we will continue to grow faster than the market.”
For 2019, the Management Board expects revenue growth of between 40% and 45% compared to the previous year. The share of recurring revenues in total revenues is expected to be between 75% and 80% for the year as a whole. NFON AG plans to achieve growth of at least 45% in the number of seats operated at the customers in 2019 as a whole.
Overview of the figures for the first quarter of 2019:
| In EUR millions || Q1 2019|| Q1 2018||Change |
| Total revenue || 12.1|| 10.0|| +21.2%|
| Recurring revenue || 10.4|| 8.0|| +28.9%|
| Share of recurring revenue to total revenue || 85.7%|| 80.6%|| |
| Non-recurring revenue || 1.7|| 1.9|| -10.7%|
|Share of non-recurring revenue to total revenue ||14.3%||19.4%|||
|ARPU blended1 ||9.74||10.15||-4.0%|
|Seats (extensions) ||390,826||269,392||+45.1%|
| EBITDA2 (adjusted) || -0.9|| 0.1|| 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 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 14 European countries as 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/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. In the United Kingdom, this information is directed at and/or for distribution only to (i) investment professionals falling within article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) high net worth companies falling within article 49(2)(a) to (d) of the Order (each such person hereinafter a "relevant person"). Any person who is not a relevant person should not act or rely on this information or any of its contents. This release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company. Group and its subsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and future operations of NFON and the NFON Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the results of operations, profitability, performance or results of NFON or the NFON Group to differ materially from those expressed or implied by such forward-looking statements.
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