NFON AG: Positive Outlook with Growing Recurring Revenue

NFON AG, according to recent research by NuWays AG, shows a promising financial trajectory. The German business communication provider is set to release its third-quarter results on November 21st, with expectations of a 5.4% year-on-year increase in sales, reaching €21.6 million. This growth is attributed to price increases and a continuous rise in seat numbers.

Recurring revenues are projected to constitute 94.6% of total income, equating to €20.4 million. Despite muted hardware sales, the average revenue per user (ARPU) is assessed at €9.94, with prospects for further enhancement due to premium solutions up-selling and the botario acquisition's impact.

The adjusted EBITDA is expected to reach €2.9 million, indicating a 10.3% year-on-year increase and a 13.3% margin, driven by efficiency measures. NFON's full-year guidance appears achievable, backed by a significant €8.5 million in adjusted EBITDA for the first nine months of 2024.