The very positive business development in an unusual year 2020 marked by COVID-19 impressively underscores that NFON is positioned exactly right in the European market for business communications with its cloud-based product portfolio. For 2021, NFON is planning seat growth of between 15% and 17% and a recurring revenue growth rate of between 14% and 16% and is thus continuing its growth course despite pandemic-related uncertainties. Recurring revenue is expected to account for over 85% of total revenue.
In 2020, NFON significantly increased recurring revenue by 23.6% to EUR 59.4 million (2019: EUR 48.1 million). Total revenue increased by 18.4% to EUR 67.6 million (2019: EUR 57.1 million). As a result, the share of recurring revenue in total revenue increased further to 87.8% (2019: 84.1%). The number of customer-operated extensions (seats) increased by 75,080 seats to 524,791, representing growth of 16.7% compared to the prior-year reporting date (31 December 2019: 431,935). Primarily due to increasing remote working activity and correspondingly higher volumes of voice minutes, average revenue per user (blended ARPU) increased to EUR 9.77 in 2020 (2019: EUR 9.64).
The increased blended ARPU combined with the significantly lower expenses compared to the previous year, for travel and marketing activities, for example, had a clearly positive impact on the development of earnings. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 2.3 million (2019: EUR -7.0 million). Adjusted EBITDA even improved to EUR 3.5 million (2019: EUR -5.1 million).