NFON posts an impressive 32% growth rate in 2019
NFON AG has significantly increased its growth rate in financial year 2019 based on preliminary figures. NFON is benefiting from the consistent execution of its growth strategy, which is based on the four areas development of its customer base, expansion of the UCaaS product portfolio, internationalisation and M&A activities.
NFON successfully acquired Deutsche Telefon Standard at the beginning of the year and is continuing its integration into the NFON Group. The new products NCTI Pro and Nvoice for Microsoft Teams were launched in October. NFON has also expanded its own R&D capacities with a full-stack development team in the areas of mobile, web front and backend as well as client/server by acquiring Onwerk GmbH at the end of the year.
Hans Szymanski, CEO & CFO of NFON AG: “In 2019, we further accelerated our overall growth compared to the previous year. At the same time, we reached important milestones in the executing our growth strategy and laid the foundation for NFON’s continued successful operational development. We will continue on this path in 2020.”
Based on preliminary figures, NFON AG increased its revenue in financial year 2019 by 32.7% to EUR 57.1 million (previous year: EUR 43.0 million). Recurring revenues increased by 38.9% to EUR 48.1 million from EUR 34.5 million the previous year. Recurring revenues accounted for 84.1% of total revenues (previous year: 80.4%) and underscored the strength of NFON AG’s business model. The number of customer-operated extensions (“seats”) increased by 40.2% to 449,711 (previous year: 320,728). The continuously expanding number of seats forms an excellent basis for further growth in revenues in the future. NFON achieved the upper end of all of the adjusted targets it had set for the full year 2019.
Hans Szymanski explains: “In view of the general shortage of resources on the labor market in the area of software development and, in particular, the macroeconomic development in 2019 throughout Europe, we saw a need to adjust our ambitious plans for the development of the newly acquired seats and the associated development of non-recurring revenues during the year. However, we are not struggling with this situation, but are sending a clear growth signal for the future with the introduction of NCTI Pro and Nvoice for Microsoft teams and by taking on the Onwerk development team.” Hans Szymanski is correspondingly optimistic for the future: “Our strength is the very high proportion of recurring revenues, which account for over 80% of our total revenues. With each additional seat, we increase the basis for our future, plannable revenues. This is a true asset, especially against the backdrop of the ongoing macroeconomic uncertainties, which can lead to fluctuations in non-recurring revenues for NFON as well. We have therefore adjusted our key performance indicators and are forecasting the growth rate of recurring revenues starting this financial year.”
With regard to recurring revenues, NFON plans to achieve a growth rate of between 22% and 26% for 2020 compared to the previous year.
Industry: Unified Communications
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