Nfon Ag · XETR:NFN
Nfon — 9M 2019 Earnings Presentation
20 slides from Nfon's earnings presentation, Nov 21, 2019
Slide 1: Financial results nine months 2019
Munich | 21 November 2019 Financial results nine months 2019
Slide 2: Disclaimer
NFON AG Disclaimer This communication is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for any securities of the Company. The securities discussed herein have not been and will not be registered under the U.S. Securities Ac
Slide 3: Key Figures
Key Figures NFON AG results nine months 2019 Recurring revenue growth of 39% yoy Non recurring revenue growth of 8% yoy Revenue growth of 33%1 yoy Customer- • me base 85% recurring revenues at the top of the adjusted guided range Increase of seats by 41% yoy 1 First time consolidation of D
Slide 4: Total revenues influenced by low level of non-recurring revenues
Revenue development Total revenues influenced by low level of non-recurring revenues Development total recurring vs. non-recurring revenues Comments Total revenues2 grow by 33% to €41.5m in comparison to €31.3m in 9 months 2018 50.0 86.0 Total revenues Q3 2019 on a growth rate of 42% 45.0 84.5 84.0
Slide 5: Ongoing growth of seat base with still low gross churn rate
Customer base Ongoing growth of seat base with still low gross churn rate Development number of seats (‘000) Comments and ARPU Strong increase of total number of seats by 41%, however below expectations 432 Delay in product roadmap 408 Economic environment: Customers are slowing down their own 391 g
Slide 6: Roadmap delayed – roadmap components partly compensated
R&D Roadmap delayed – roadmap components partly compensated Comments 2017 Cloud PBX 2020 R&D roadmap: Rapid development of App, CTI and UC functionalities based on a defined number of employees … Qualified employees in the field of software API Ncontrol development are only available to a limited ex
Slide 7: Consistent development of gross margin emphasizes scalability of the business model
Gross Margin Consistent development of gross margin emphasizes scalability of the business model Cost of materials and gross margin development Comments €m, % of revenue Cost of materials are largely variable in nature and 11.1 mainly comprise of costs for hardware sold, costs for airtime sold and d
Slide 8: Securing tomorrow's growth by investing in today's workforce
Employees Securing tomorrow‘s growth by investing in today‘s workforce Development of personnel Comments # of employees (average) Average number of employees rose by 42% from 252 to 358 as of September 30, 2019 compared to 76 September 30, 2018 Acquisition of DTS with additional employees Increase m
Slide 9: Increase of personnel expenses as expected
Personnel expenses Increase of personnel expenses as expected Adj. personnel expense development Comments €m 17.1 17.5 Personnel expenses as reported amount to €18.3m (9M 2018: €17.4m) 13.3 Personnel expenses 9M 2019 include €0.8m 12.3 12.5 for Stock Option Plan and Retention Bonus (9M 2018: €4.9m f
Slide 10: Increasing partner network and introduction of new products
Marketing expenses Increasing partner network and introduction of new products Marketing expense development Comments €m Marketing expense increases as planned by 70.0% building a strong brand that drives sales and growth of partner network >2,500 partners across Europe 6.0 5.5 New partners in UK, I
Slide 11: Increase of other operating expenses due to ongoing European expansion
Adjusted other operating expenses Increase of other operating expenses due to ongoing European expansion Adj. other expenses development without marketing expenses Comments and sales commissions Other operating expenses as reported (e.g. sales €m commissions, marketing costs, supporting cost, 7.81 g
Slide 12: EBITDA mirros successful implementation of strategy
Development of earnings EBITDA mirros successful implementation of strategy Detailed reconciliation of one-off items Comments Reconciliation from EBITDA EBITDA as reported amounts to approx. €-5.6m 9M 2019 9M 2018 to adjusted EBITDA In accordance with strategy, personnel costs, marketing and sales c
Slide 13: Adjusted outlook for 2019
Outlook 2019 Adjusted outlook for 2019 2017 2018 2019 Number 253k 27% We expect to increase our customer base between 39% and 41% of seats Recurring revenue 29% 25% We expect recurring revenue to grow between 38% and 40% growth Revenue 17% 21% We expect a revenue growth rate in a range between 30% a
Slide 14: Status-quo NFON 2019
Status-quo NFON 2019 1 Successful acquisition and continuing integration of DTS Increase of European footprint with market entry in France and Italy and 2 increase of partner network to over 2,500 3 Introduction of NCTI Pro and Nvoice for Microsoft Teams Strengthening financial power for further M&A
Slide 15: Thanks
Thanks @NFONcom #cloud #telephony #allip
Slide 16: Appendix
Appendix Further information about NFON
Slide 17: Management Board
NFON AG Management Board Hans Szymanski Jan-Peter Koopmann César Flores Rodríguez CEO/CFO CTO CSO >20 years of C-Level >20 years of experience in >10 years of C-Level experience the IT/Telco industry experience Previous experience Previous experience Previous experience includes includes includes −
Slide 18: Share at a glance
NFON AG Share at a glance Facts Shareholder structure ISIN DE000A0N4N52 Segment Prime Standard/ Telecommunication Shares 15.1 million Others (21 October 2019) 27.4% 3.18%2 Designated Baader Bank sponsor ODDO Seydler 30.10%1 First day of trading 11 May 2018 Coverage Berenberg Bank, Baader Bank, Hauck
Slide 19: Financial calendar
Financial calendar Date Event 21 Nov 2019 Results for the 9 months 2019 Web- and Telephone Conference 25 Nov 2019 Equity Forum Frankfurt a. M. Presentation and 1-on-1 5 Dec 2019 17th Berenberg European Conference Presentation and 1-on-1 10 Dec 2019 MKK 2019 Presentation and 1-on1 12 Dec 2019 AGM (ex
Slide 20: Contact
Investor Relations Contact Sabina Prüser Head of Investor Relations Blog NFON AG https://www.nfon.com/blog/de/ Machtlfinger Straße 7 81379 Munich Facebook Germany https://facebook.com/NFONcom Telephone Twitter https://twitter.com/NFONcom Fon + 49 (0) 89 453 00 134 Fax + 49 (0) 89 453 00 33 134 sabin