NFON AG further advances its reorganisation in Q1 2024 and increases revenue and profitability as planned

• Recurring revenue up 2.8% at EUR 19.9 million in first quarter of 2024
• Share of recurring revenue increases to 93.6% of total revenue
• Significantly improved adjusted EBITDA of EUR 2.8 million results in adjusted EBITDA margin of 13.2% in relation to revenue
• Further milestones achieved in creating solid foundations for sustained profitable growth

Munich, 23 May 2024 – NFON, a leading European provider of integrated cloud business communications, recorded positive business performance overall in the first quarter of 2024 and reached key strategic milestones.

In addition to successful customer acquisition, the growth achieved in the first quarter of 2024 was also attributable to the fact that the number of seats installed with customers increased by 2.0% year-on-year to 658,544 in the first quarter of 2024 (3M 2023: 645,582). Revenue growth was also boosted by cross-selling activities with the expanded product portfolio (premium solutions). Recurring revenue, a key figure for NFON, therefore grew by 2.8% to EUR 19.9 million (3M 2023: EUR 19.3 million). Total revenue saw an increase of 2.2% to EUR 21.2 million (3M 2023: EUR 20.8 million). As a result, the share of high-margin recurring revenue rose to 93.6% of total revenue in the first quarter of 2024 (3M 2023: 93.1%). Seat growth is stable and in line with our planning for the following quarters in 2024, with price indexation leading to additional sales from April 2024. The high share of recurring revenue is driven by the high level of satisfaction among NFON’s customers and forms a solid foundation for the future. With the focus on profitability, earnings performance also improved in the first quarter of 2024. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to EUR 2.8 million in the first three months of 2024, after EUR 2.0 million in the same period of the previous year. Before adjustments, EBITDA for the reporting period amounted to EUR 2.7 million (3M 2023: EUR 1.9 million).

With the goal of living up to its self-image as an innovative pioneer in integrated cloud business communications on the European market and enabling itself to exploit further market potential, NFON focused on establishing operational excellence. The extensive transformation measures initiated in 2023 led not only to a comprehensive restructuring of the organisation, but also to more efficient process design. The restaffing and reorganisation of the management levels was already completed in the second half of 2023. At the beginning of this year, NFON also strengthened its technological innovation by appointing Andreas Wesselmann as Chief Technology Officer. In order to boost profitability, measures have also been taken to optimise the process landscape and cost base.

Further structural adjustments are planned on the path to operational excellence. For example, NFON is continuing to work on optimising the alignment between the customer- and market-based product management and the service-focused sales units and agile development. Based on this foundation, the three strategic growth pillars – “innovative product development”, “focus on sales excellence” and “stronger partnerships” – will likely begin to have a lasting impact on NFON’s performance from the first half of 2024.

Patrik Heider, CEO and CFO of NFON, explains: “The current figures show that our strategy is effective. Our work in 2023 is paying off and starting to produce significant successes. In the current year, we will continue to press ahead with the changes initiated with the goal of operational excellence, which will enable us to strengthen growth and especially profitability. We are on the right track to ensure that NFON enjoys continuously and sustainably profitable development.”

For financial year 2024, the company plans growth in recurring revenue of a mid- to upper-single-digit percentage (2023: 4.8%). The Management Board therefore anticipates a share of recurring revenue of >90% of total revenue (2023: 93.7%). Adjusted EBITDA is expected to amount to EUR 10–12 million (2023: EUR 8.4 million).

The quarterly statement is available to download in the Investor Relations section of NFON AG’s website as of today.

Overview of results for the first three months of 2024¹:

¹ Unless stated otherwise, all values in the consolidated financial statements and the related notes are rounded. The tables may therefore show rounding differences.

² Based on average number of seats per month in the periods under consideration.

Investor Relations contact

NFON AG
Friederike Thyssen
Vice President for Investor Relations & Sustainability
+49 89 453 00-449
ir-info@nfon.com

cometis AG
Claudius Krause
+49 611 205855-28
krause@cometis.de 


Media contact

NFON AG
Thorsten Wehner
Vice President for Public Relations
+49 89 453 00-121
thorsten.wehner@nfon.com

About NFON AG

NFON AG, which is headquartered in Munich, is a leading European provider of integrated cloud business communications. The listed company (Frankfurt Stock Exchange, Prime Standard) with more than 3,000 partners in 18 European countries and eight branches counts more than 55,000 companies among its customers. The NFON portfolio comprises four areas: Business Communications, Integration, Customer Contact and Enablement. With its core product Cloudya, the smart cloud communications platform, NFON offers hassle-free voice calls, simple video conferencing and seamless integration of CRM and collaboration tools for small and medium-sized companies.

All NFON’s cloud services are operated in certified data centres in Germany, with 100% of their energy needs covered by renewable sources. NFON accompanies companies into the future of business communication by offering intuitive communication solutions.

http://www.nfon.com/

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