In This Article:
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Recurring Revenue Growth: 4.4% increase compared to the first half of 2023.
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Recurring Revenue Share: 94.3% of total revenue.
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Total Revenue Growth: 3.3% increase compared to six months 2023.
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Gross Margin: Improved to 84.5%.
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Adjusted EBITDA: EUR5.5 million for the first half of 2024.
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EBIT: Improved to EUR1.1 million.
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Operating Cash Flow: Increased to EUR3.7 million from EUR2.3 million in the same period last year.
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Personnel Expenses: Average number of employees reduced by 9% to 412.
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Investment Cash Flow: Negative impact of EUR1.6 million.
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Financing Cash Flow: Negative EUR0.8 million due to lease liabilities repayment.
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botario GmbH Acquisition: Purchase price in the low double-digit million euro range; 2023 revenue of EUR2.1 million with a 30% EBITDA margin.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NFON AG (FRA:NFN) achieved solid recurring revenue growth of 4.4% compared to the first half of 2023, with a strong recurring revenue share of 94.3%.
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The company successfully finalized the merger of Deutsche Telefon Standard GmbH, strengthening its position in the German market and creating a standardized product portfolio.
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NFON AG's adjusted EBITDA improved to EUR5.5 million, reflecting a focus on profitability and successful transformation initiatives.
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The acquisition of botario GmbH is expected to enhance NFON AG's AI capabilities, with anticipated annual revenue growth of 40% and an EBITDA margin of 30%.
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The company's operating cash flow increased significantly to EUR3.7 million, driven by positive net profit development and prudent financial management.
Negative Points
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Total revenue growth was lower at 3.3% due to a decrease in non-recurring revenue, primarily from less profitable hardware sales.
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The company faced a challenging environment in the German economy, which could impact future growth prospects.
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Personnel expenses were recognized in connection with the merger and integration of Deutsche Telefon Standard GmbH, impacting overall costs.
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NFON AG plans to spend EUR1.5 million on integration costs for the merger, which could affect short-term profitability.
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The company's non-recurring revenue remains a drag on overall growth, and there is a need to accelerate this segment to achieve double-digit revenue growth.
Q & A Highlights
Q: Can you share the split between the earnout and the fixed component of the botario acquisition? A: The acquisition is structured with 60% fixed and 40% in earnout, which is tied to profitability over 2.5 years, covering the business years of 2024, 2025, and 2026, with an expected growth rate of around 40% each year. - Patrik Heider, CEO, CFO