NFON AG
EQS-News: NFON AG
/ Key word(s): 9 Month figures/Change in Forecast
NFON AG continues transformation process for long-term company success in Q3 2023
Munich, 23 November 2023 – NFON, a leading European provider of integrated cloud business communications, again reported good business performance after the first three quarters of 2023 and reached major strategic milestones. Growth in Q3 2023 was again driven by successful new customer acquisition, with the number of seats installed also increasing within its existing customer base. In addition, some of the revenue growth resulted from sales of the expanded product portfolio (premium solutions). Recurring revenue, a key figure for NFON, thus rose by 5.1% to EUR 57.8 million (9M 2022: EUR 55.0 million). Total revenue saw a moderate 2.1% increase to EUR 61.7 million (9M 2022: EUR 60.4 million). Prompted by this, high-margin recurring revenue as a share of total revenue picked up to 93.6% in the first nine months of 2023. The high share of recurring revenue underscores the loyalty of NFON’s customers and provides a very strong basis for future company planning. Given the focus on profitability, earnings performance in the first nine months of 2023 was very positive. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) improved significantly from EUR -0.8 million in the previous year to EUR 6.0 million in the 2023 reporting period. EBITDA before adjustments of EUR 1.3 million came to EUR 4.7 million in the reporting period (9M 2022: EUR -4.7 million). With seat growth of 3.7%, the number of seats installed with customers increased to 645,707 in the first nine months of 2023 (9M 2022: 622,785). This performance shows that existing customers are highly satisfied with NFON’s solutions for integrated cloud business communication. At the same time, the rise in seats attests to the growing demand for cloud telephone systems among business customers. With the aim of maintaining its role as an innovative pioneer in integrated cloud business communication on the European market and harnessing market potential in the future, a transformation process was launched after the first half of 2023. Initial milestones for an improved organisational structure have already been reached following the management reshuffle, including new areas of responsibility at the C level. Andreas Wesselmann will also join the Management Board team on 1 January 2024 as Chief Technology Officer. With more than 20 years’ experience in an international working environment and in various management positions and outstanding technological expertise, he is the ideal person to shore up NFON’s technological innovation. Further structural changes are planned as part of this programme for operating excellence to ensure that NFON’s foundations are as strong as they need to be. Given this, the company must align collaboration between customer and market-based product management and its service-focused sales units and its agile development. Based on this foundation, the three strategic growth pillars of innovative product development, a focus on sales excellent and stronger partnerships will likely begin to have a lasting impact on NFON’s performance from the first half of 2024. Patrik Heider, who has been responsible for NFON’s development for around six months in his role as CEO and CFO, said: “Operating developments in the first nine months of 2023 highlight the opportunities open to NFON and confirm our plans. We can be proud of the progress we have already made and the roadmap for securing long-term success at NFON until 2025 is in place. I firmly believe that we are well on track to bring a new shine to our role as a cloud pioneer.” For fiscal 2023, the company is still planning growth in recurring revenue of a mid to upper single-digit percentage. The Management Board thus expects recurring revenue to account for >88% of total revenue. After amending the 2023 adjusted EBITDA forecast (EUR 6-7 million) after the first half of 2023, we are now once again raising this moderately. We are confident that adjusted EBITDA for 2023 as a whole will likely be between EUR 7.8 million and EUR 8.3 million. This adjustment reflects our ongoing efforts to ensure solid operating performance and generate long-term profitable growth at NFON. The quarterly report is now available for download on the NFON AG website under Investor Relations.
Overview of net earnings for the first three quarters of 20231:
1 Unless stated otherwise, all values in the consolidated financial statements and the related notes are rounded. Rounding differences can therefore occur in the tables. 2 Based on average number of seats per month in the periods under review.
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About NFON AG NFON AG, headquartered in Munich, is a leading European provider of integrated cloud business communications. The listed company (Frankfurt Stock Exchange, Prime Standard), with over 3,000 partners in 15 European countries and seven branches, counts more than 50,000 companies. With its core product Cloudya, the smart cloud communication platform, NFON offers voice calls, easy video conferences and smooth integration of CRM and collaboration tools for small and medium-sized enterprises. The NFON portfolio consists of four areas: business communication with Cloudya, customer contact, integration and enablement. All NFON cloud services are operated in certified computer centres in Germany, with all energy coming from renewable sources. NFON accompanies companies with intuitive communication solutions into the future of business communication. http://www.nfon.com/
Disclaimer This communication is for information purposes only and constitutes neither an offer to sell nor a solicitation to buy or subscribe for securities of the company. The securities discussed here are not and will not in the future be registered under the U.S. Securities Act of 1933 and may be sold or offered for sale in the United States of America only after prior registration or on the basis of an exemption under the U.S. Securities Act. There will be no public offering of the securities listed here in the United States of America and the information contained in this communication does not constitute an offer to purchase securities. This communication is not intended for direct or indirect dissemination, publication or transmission in or to the United States of America, Australia, Canada, Japan or other countries in which disseminating this communication would be unlawful, or to U.S. persons.
23.11.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | NFON AG |
| Machtlfinger Straße 7 | |
| 81379 Munich | |
| Germany | |
| Phone: | +49 89 453 00 0 |
| E-mail: | ir-info@nfon.com |
| Internet: | https://corporate.nfon.com |
| ISIN: | DE000A0N4N52 |
| WKN: | A0N4N5 |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1779585 |
| End of News | EQS News Service |
1779585 23.11.2023 CET/CEST
