NFON AG Exceeds Profitability Targets in 2023, Sets Stage for Accelerated Growth in 2024

NFON AG, a leading European cloud business communications provider, reported a significant improvement in its financial performance for the fiscal year 2023. The company announced preliminary results, showcasing a 4.8% increase in recurring revenue, reaching EUR 77.1 million. This growth contributed to a total revenue of EUR 82.3 million, marking a 1.9% increase from the previous year.

One of the highlights of the report was the positive free cash flow of EUR 1.0 million, a first since NFON's stock exchange listing. The share of recurring revenue also saw an uptick, constituting 93.7% of the total revenue. Adjusted EBITDA soared by over EUR 9 million year-over-year to EUR 8.4 million, surpassing the twice-raised earnings forecast for the year.

In 2023, NFON successfully expanded its customer base, activated additional seats, and offered premium solutions to existing customers, leading to an increased revenue. The company also embarked on an extensive transformation process aimed at optimizing organizational structure and boosting technological innovation. The management anticipates this transformation to lay the groundwork for accelerated growth and sustained high profitability from 2025 onwards.

For the forthcoming fiscal year 2024, NFON projects a mid- to upper-single-digit percentage growth in recurring revenue and an adjusted EBITDA ranging between EUR 10 million and EUR 12 million. The audited report for 2023 is expected to be available from 25 April 2024.