NFON AG's Promising Financial Outlook

NFON AG has reported strong financial results for FY24, reflecting a solid performance across various metrics. Preliminary figures show a 6.1% increase in sales, reaching €87.3 million. This growth was primarily driven by moderate seat growth and premium solutions. Non-recurring sales surged by 95% in Q4, partly due to the botario project business and contributions from a newly acquired subsidiary.

Recurring revenues increased by 5.1% to €81.1 million, maintaining a high recurring revenue ratio of 92.9%. Adjusted EBITDA rose significantly by 48% to €12.3 million, attributed to an improved product mix and efficiency measures.

Free cash flow showed a remarkable improvement, rising from €1.0 million in FY23 to €6.5 million in FY24. New guidance for FY25 projects sales growth of 8-10% and adjusted EBITDA between €13.5 and €15.5 million. Despite a recent share price rise of 45% YTD, the valuation remains modest at 7.3x EV/EBITDA for FY25.