NFON AG confirms business development in 2022 and looks to drive profitable growth from 2023 on

• NFON confirms revenue and seat growth and improvement in adjusted EBITDA for financial year 2022
• Strategic positioning as a provider of integrated business communications successfully completed
• Product growth, best-in-class channel organisation and growth through partnerships and alliances strategic pillars for profitable growth from 2023 on

Munich, 27 April 2023 – NFON, a European provider of integrated business communications from the cloud, published its report for financial year 2022 today. The company confirms the preliminary 2022 figures and the outlook for 2023.

Based on the final audited figures, recurring revenues increased by 8.3% to EUR 73.6 million in 2022 (2021: EUR 68.0 million). With total revenues of EUR 80.8 million (2021: EUR 75.9 million), this represents a very high share of recurring revenues of 91.1% (2021: 89.5%). At the same time, the number of extensions (seats) installed at the customer’s premises was expanded by 8.0% to 634,288 (31 December 2021: 587,067). Average revenue per user (blended ARPU) for financial year 2022 was at the pre-pandemic level of EUR 9.72 (2021: EUR 9.84). Due to the high investments in growth in the first half of 2022, earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR -5.3 million in the reporting period (2021: EUR -2.0 million). After an adjustment of EUR 4.3 million, EBITDA amounted to EUR -1.0 million (2021: EUR -1.3 million).

From a strategic standpoint, NFON successfully positioned itself as a provider of integrated business communications in financial year 2022. Whereas the previous strategy was marked by the pursuit of rapid seat growth and respective investments, NFON focused on profitability in the second half of 2022. Corresponding measures aimed at increasing profitability already began to take effect in 2022 and will have a positive impact on the operating result in the current financial year 2023 in particular. In order to profitably monetise the growth investments made to date from 2023 on, NFON has defined various strategic thrusts. Building on its many years of expertise as a pioneer in cloud communications, NFON is increasingly focusing on expanding the application options and target audiences for its core Cloudya platform. NFON sees further opportunities for profitable growth in particular in an even deeper integration of its own solution in MS Teams and in the further expansion of the Contact Center-as-a-Service (CCaaS) area. The strategy is rounded off by partnerships and alliances. Technological partnerships with other providers offer the chance to strengthen the company’s own innovative power even further and to secure positions in dynamic markets. Partnerships in sales and distribution will also help to realise potential, particularly in the enterprise and verticals areas and in integrated business communications.

Dr. Klaus von Rottkay, CEO der NFON: “With the growth investments we have made thus far, we have laid a successful foundation for sustainable and profitable growth in 2023 and beyond. Through the targeted expansion of the product portfolio, the development into a leading channel position as well as selective strategic partnerships with a clear profitability strategy, we feel that NFON is well positioned to become a leading provider of integrated business communications in Europe in the years to come.” 

In view of the sharpened strategy for profitable growth, NFON adjusted the most significant performance indicators in financial year 2023. The growth rate of recurring revenues and the share of non-recurring revenues in total revenue remain unchanged. Adjusted EBITDA will replace seat growth as the most significant performance indicator from 2023. The implementation of the profitability-enhancing measures and strategic initiatives in the areas of products, sales and partnership will have a positive impact on operating profit as well as revenue growth. Therefore, the company is planning to achieve recurring revenue growth in the mid to upper single-digit percentage range, recurring revenues as a percentage of total revenue of more than 88%, and adjusted EBITDA of more than EUR 4 million in 2023.

The complete audited report for financial year 2022 is available for download on the website of NFON AG in the Investor Relations section.

Financial year 2022 at a glance:

¹ based on the average number of seats per month in each year
² adjusted for stock options, expenses for acquisitions, rebranding, etc.

Investor Relations Contact

NFON AG
Sabina Prüser
Head of Investor Relations & Sustainability
+49 89 45300 134
sabina.prueser@nfon.com

Media Contact

NFON AG
Thorsten Wehner
Vice President Public Relations
+49 89 45300 121
thorsten.wehner@nfon.com

About NFON

NFON AG, headquartered in Munich, is a European provider of integrated business communications from the cloud. The listed company (Frankfurt Stock Exchange, Prime Standard) includes over 3,000 partners in 15 European countries, seven subsidiaries and counts more than 50,000 companies as its customers. With the core product Cloudya, the smart cloud communications platform, NFON offers simplified voice calling, easy video conferencing, and seamless integrations for CRM and collaboration tools for small and medium sized companies. The NFON portfolio consists of four segments: Business Communications with Cloudya, Customer Contact, Integration and Enablement. All of NFON's cloud services are operated in certified data centres in Germany, whose energy requirements are covered 100% by renewable energies. NFON guides companies into the future of business communication with intuitive communication solutions. http://www.corporate.nfon.com/en 

Disclaimer

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.