NFON AG revises downwards growth forecast

Headwinds of economic uncertainty have prompted German hosted comms provider NFON AG to revise downwards growth expectations this year despite indicating strong preliminary figures for financial year 2019.

In a business update NFON said that revenues increased 32.7% to 57.1m euros with recurring revenues up by 38.9%, now accounting for over 84% of total revenues. The number of seats expanded by 40.2% to circa 450,000.

The company attributed growth to the expansion of its UCaaS product portfolio, internationalisation and M&A activities. 

New products include NCTI Pro and Nvoice for Microsoft Teams launched in October; and the company acquired Deutsche Telefon Standard while new subsidiaries in Italy and France were established, with additional R&D capabilities gained via the purchase of Onwerk in December.

Hans Szymanski, CEO & CFO of NFON AG said: “In view of the general shortage of resources on the labour 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. We have therefore adjusted our key performance indicators.”

NFON AG forecasts growth of between 20% and 24% for the full year 2020, and for recurring revenues it expects to register a growth rate of between 22% and 26% for 2020 compared to the previous year. These projections do not take into account the impact of potential acquisitions.

The fully audited report for financial year 2019 will be published on March 31st 2020.

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