EQS-News

NFON AG exceeds profitability targets for 2023 and continues profitable growth trajectory in transformation year 2024

EQS-News: NFON AG / Key word(s): Preliminary Results/Annual Results NFON AG exceeds profitability targets for 2023 and continues profitable growth trajectory in transformation year 2024 07.03.2024 / 07:00 CET/CEST The issuer is solely responsible for the content of this announcement. NFON AG exceeds profitability targets for 2023 and continues profitable growth trajectory in transformation year 2024

• Recurring revenue up 4.8% at EUR 77.1 million
• Share of recurring revenue increased to 93.7% of total revenue
• Adjusted EBITDA increased by more than EUR 9 million to EUR 8.4 million
• Free cash flow positive for the first time since the stock exchange listing at EUR 1.0 million
• Forecast for 2024 anticipates growth in recurring revenue combined with improvement in profitability at a faster rate despite ongoing transformation
• Transformation year 2024 to form the basis for accelerated growth along with sustained high profitability from 2025 onwards

 

Munich, 7 March 2024 – NFON, a leading European provider of integrated cloud business communications, significantly improved its adjusted EBITDA by more than EUR 9 million year-on-year in financial year 2023, while also increasing revenue, according to preliminary, unaudited figures. In 2023, NFON made significant progress in creating a solid foundation for sustained profitable growth. For the first time since its stock exchange listing, NFON also reported positive free cash flow of EUR 1.0 million – a trend that is expected to continue, thereby strengthening the Company’s financial and strategic flexibility and its resilience to external factors in the future.

In financial year 2023, NFON managed to increase revenue by acquiring new customers, activating additional seats and offering expanded products (premium solutions) to existing customers. Recurring revenue, a key figure for NFON, consequently posted growth of 4.8% to EUR 77.1 million (2022: EUR 73.6 million). Total revenue saw a moderate increase of 1.9% to EUR 82.3 million (2022: EUR 80.8 million). As a result, the share of high-margin recurring revenue rose to 93.7% of total revenue in financial year 2023. The high share of recurring revenue underscores the loyalty of NFON’s customers and forms a reliable basis for further business planning. In the context of focusing on profitability and associated increases in efficiency, earnings developed positively in 2023. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) improved from EUR –1.0 million in the previous year to EUR 8.4 million in the 2023 reporting period, thus exceeding the earnings forecast, which had been raised twice during the year. Before adjustments of EUR 1.5 million, EBITDA for the reporting year was EUR 6.8 million (2022: EUR –5.3 million).