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DGAP-News: NFON AG / Key word(s): Annual Results/Annual Results
NFON AG: Tailwind for Cloud telephony and continuation of growth course expected in 2020
- Preliminary figures and forecast confirmed
- Revenue grows by 33% to EUR 57 million, share of recurring revenue at 84%
- Deutsche Telefon Standard GmbH continues to be successfully integrated and the expansion strategy in Europe is proceeding as planned
- Expansion of the product portfolio improves integration with modern digital working environments
- Increase to around 450,000 seats underscores the attractiveness of the products and lays the basis for further growth
- 2020: Continuation of the high organic growth rate of recent years expected
- Spreading of COVID-19 both a challenge and an opportunity
Munich, 1 April 2020 - NFON AG (together with its subsidiaries referred to as "NFON" or the "Company"), the only true pan-European cloud PBX provider (cloud telephone system), confirms its good business development in 2019. On the basis of final, audited figures, revenue in financial year 2019 increased by 32.7% to EUR 57.1 million (previous year: EUR 43.0 million). Recurring revenue even increased by 38.9% from EUR 34.6 million in the previous year to EUR 48.1 million. The share of recurring revenue in total revenue is 84.1% (previous year: 80.4%). The main driver of the revenue growth that has been achieved is the continuously increasing number of customer-operated extensions ("seats"). Due in part to the acquisition of Deutsche Telefon Standard (DTS), the number of seats increased by 40.2% year-on-year to approximately 449,711 (previous year: 320,728). This positive development underscores both the strength of the business model and the sustained attractiveness of NFON AG's products and services.
The strategic focus in 2019 was on the acquisition of DTS at the beginning of the year, the further development of the customer and partner base, the internationalization and the further development of the UCaaS ("Unified Communications as a Service") product portfolio. NFON achieved important milestones in all these areas. Especially the further development of the product portfolio was advanced and the new products NCTI Pro and Nvoice for Microsoft Teams were introduced. These integrate NFON's telephony solutions seamlessly into modern, digital work environments. The continuous development of the products is essential for long-term success. In order to expand capacities in this field, the software agency Onwerk GmbH was acquired at the end of the year. This gave NFON access to a well-functioning, experienced development team that complements the Company's existing teams.
Hans Szymanski, CEO and CFO of NFON AG: "We reached important milestones in 2019 that are the basis for achieving further growth. We see the current economic situation as both a challenge and an opportunity. In the digitalized, globalized economy, flexibility and mobility are crucial to remaining competitive. Companies must create the prerequisites for their employees so that these ideas can be put into practice on a daily basis. The current development has once again made it clear to all companies how important this is. But it also shows what opportunities lie in digitalization. This is a further boost for us as the only pan-European provider. NFON is the new freedom of business communication: simplicity, independence and reliability. This, together with our very high share of recurring revenue, is a real asset, especially in times of economic uncertainty. Therefore, we continue to look confidently into the future."
The Management Board expects a growth rate of between 22% and 26% in recurring revenue for 2020. The high organic growth rate of recent years will thus be maintained. This does not take into account additional growth impetus from possible M&A activities. As in the past financial year 2019, the Management Board is planning to achieve a share of recurring revenue of between 80% and 85% of total revenue. With regard to seats, growth of between 20% and 24% is expected for 2020, and thus also an increase in total revenue compared to the previous year.
This forecast does not fully take into account the possible effects of the spread of COVID-19, as these cannot be quantified at the time of reporting. However, it would be incorrect to assume that this will have no impact on NFON AG's business development due to the outbreak of the Coronavirus. If, as a result of the measures implemented worldwide, there is a recession accompanied by insolvencies, this could lead to revenue losses for NFON Group. In addition, it is to be expected that decisions by customers will be delayed. As a result, new seat profits could fall short of the expectations mentioned above. On the other hand, however, additional demand impulses may arise as customers increasingly switch to home offices. On the one hand, existing customers are shifting their activities to the home office and therefore increasingly requesting not only telephony but also the possibility of telephone conferences. On the other hand, NFON is also receiving inquiries from interested parties who do not yet have a solution with which they can flexibly set up home office workstations.
Hans Szymanski: "Both negative and positive effects are possible for NFON due to the spread of COVID-19. Generally, NFON Group's business model has a certain robustness against market fluctuations due to the high share of recurring revenue."
As of today, the fully audited report for financial year 2019 is available for download in the Investor Relations section. In addition, the new issue of Clouds deals in detail with the topics of digitalization and digital transformation: "Culture, attitude or just technology." https://content.nfon.com/en/clouds-magazin You are welcome to visit NFON online at https://corporate.nfon.com/en/. We look forward to your feedback!
The web conference to present the figures will take place on April 1, 2020, at 12:00 p.m. Dial-in details are available on the website at https://corporate.nfon.com/en/investor-relations/reports.
Final and audited figures for fiscal 2019 at a glance:
Investor Relations Contact
About NFON AG
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. https://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.
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