NFON AG remains on its growth path with strong increase in earnings and cash flow
- Total revenue up by 6.1% to EUR 87.3 million
- Recurring revenue rises to 92.9% share of total revenue (2023: 93.7%)
- Adjusted EBITDA posts significant growth of 48% to EUR 12.3 million
- Marked increase in free cash flow to EUR 6.5 million
- FY 2025 guidance: revenue growth between 8% and 10% and adjusted EBITDA between EUR 13.5 million and EUR 15.5 million
- “NFON NEXT 2027” strategy update: focus on sustainable growth, AI investments and higher earnings
Munich, 27 February 2025 – NFON, a leading European provider of integrated business communication, has published its preliminary, unaudited results for the financial year 2024. The company reports clearly stronger profitability: adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose significantly by 48% year-on-year to EUR 12.3 million, thereby reaching the upper end of its guidance range. Free cash flow posted a marked improvement to EUR 6.5 million (2023: EUR 1.0 million), showing how the strategic measures have fed through to sustainable profitability and efficiency.
Growth was supported by stable customer demand and the successful expansion of the product portfolio. The number of seats installed at customers reported moderate growth of 1.4% to 665,449 (2023: 655,967). Premium Solutions also made a positive contribution to revenue growth. Overall, total revenue was up by 6.1% to a level of EUR 87.3 million (2023: EUR 82.3 million). The continued high share of high-margin recurring revenue of 92.9% (2023: 93.7%) of total revenue underscores the stability of the business model and the focus on long-term, predictable earnings.
, CEO of NFON AG comments: “2024 was a year of transformation for NFON – both financially and technologically. We have sustainably enhanced our profitability, which is reflected in our strong EBITDA growth and significant free cash flow improvement. In addition, our acquisition of botario has exceeded our expectations and is already making a significant contribution to our positive business growth. This confirms that our business model is scalable and that we are able to generate profitable growth. With our “NFON NEXT 2027” strategy – with its focus on higher earnings, technological innovation and deeper market penetration – we aim to consistently pursue this course further in 2025.” NFON is implementing a dual transformation: not only is the company optimising its core business to further enhance efficiency and profitability, but it also making targeted investments in artificial intelligence (AI) to tap new market potentials and strategically expand the product portfolio. The company is thereby consistently pursuing its objective of realising sustainable and profitable growth faster than its competitors.
In August 2024, NFON already strengthened its position in the Ai-based business communication area with the acquisition of botario GmbH. Since October, Jana Richter, Executive Vice President Artificial Intelligence & Innovation, has been playing a key role in driving the integration of innovative AI solutions within the AI & Innovation organisation together with CTO Andreas Wesselmann. With the introduction of its NFON Intelligent Assistant (Nia) and planned voice mail transcription from March 2025, NFON is underscoring its claim to technological leadership. Furthermore, the opening of a new location in Kosovo represents a significant step towards realising the long-term growth strategy. Further details can be found in the published on 26 February 2025.
For the financial year 2025, NFON is aiming for dynamic growth above previous years’ levels. This growth is to be driven mainly by the consistent implementation of the “NFON NEXT 2027” strategy, especially the targeted expansion and integration of AI-based solutions, the optimisation of operational processes and focused market penetration. While recurring revenue continues to play a key role, total revenue is moving increasingly into strategic focus as the primary growth metric. For 2025, NFON forecasts the revenue growth rate in a range between 8% and 10% (2023: 6.1%) and adjusted EBITDA in a range between EUR 13.5 million and EUR 15.5 million (2023: EUR 12.3 million).
The fully audited report for the financial year 2024 will be published on 17 April 2025, when it will be available as a download from the area of the website of NFON AG.
Preliminary results for the financial year 2024:1
| in EUR million |
2024 |
2023 |
Change |
| Total revenue |
87.3 |
82.3 |
6.1% |
| Recurring revenue |
81.1 |
77.1 |
5.2% |
| Share of recurring revenue |
92.9% |
93.7% |
– |
| Non-recurring revenue |
6.2 |
5.2 |
19.2% |
| Share of non-recurring revenue |
7.1% |
6.3% |
– |
| ARPU blended2 (in EUR) |
9.89 |
9.71 |
1.9% |
| Number of seats |
665,449 |
655,967 |
1.4% |
| EBITDA |
10.8 |
6.8 |
59.3% |
| Adjusted EBITDA |
12.3 |
8.4 |
48.0% |
1 Rounding differences may arise in the tables.
2 Based on average number of seats per month in the periods under consideration.
Investor Relations contact
NFON AG
Vice President Investor Relations & Sustainability
49
Media contact
NFON AG
Vice President Public Relations
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About NFON AG
NFON is a leading European provider of integrated business communication with a focus on AI-based applications. The company, which is listed in the Prime Standard segment of the Frankfurt Stock Exchange, has nine branch operations and works together with over 3,000 partners. Every day, NFON supports around 55,000 business customers in Europe with intuitive communication solutions that make their businesses more efficient and flexible. NFON is active as a licensed telecoms company in 15 European countries.
As a long-term partner for small and medium-sized businesses, NFON combines technological innovation with user-friendly and efficient business communication solutions. With both Ai-based technologies and operational excellence, NFON enables companies to harness the full potential that artificial intelligence offers – for optimised processes, more precise customer interactions and new growth opportunities.
With its core product, 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 of NFON’s cloud services are operated in certified data centres in Germany, with 100% of their energy needs covered by renewable sources.
Disclaimer
This notification is provided for information purposes only and constitutes neither an offer to sell nor an invitation to buy or subscribe for the company’s securities. The securities discussed in this notification are not and will not be registered under the US Securities Act of 1933 as amended (“US Securities Act”) and are only permitted to be sold or offered for purchase in the United States of America after prior registration or on the basis of an exemption under the US Securities Act. No public offer of the securities discussed in this notification will be made in the United States of America and the information contained in this notification does not constitute an offer to buy securities. This notification is not intended for direct or indirect distribution, publication or dissemination to or within the United States of America, Australia, Canada, Japan or in other countries where the distribution of this notification is unlawful, or to US persons.
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