Good morning, ladies and gentlemen. On behalf of Montega, welcome to the NFON earnings call regarding the preliminary fiscal figures of the financial year 2022. Let me now hand over the floor to the Head of Investor Relations, Sabina Prüser, for the presentation and the presentation of the Board.
Thank you, Mrs. Schilling. Good morning, ladies and gentlemen, also from my side, and a very warm welcome to our call today. My name is, as Mrs. Schilling said, Sabina Prüser. Joining me today are my colleagues, Klaus von Rottkay, our CEO, and Petra Boss, our CFO. Klaus and Petra will present the preliminary results for 2022 and the outlook for 2023. The presentation will last about 20 minutes. As always, there will be an opportunity to discuss your questions afterwards. With that, I hand over to my colleague, Klaus. Klaus, please.
All right, you know, good morning from my side. Welcome. I'll, you know, ask Petra to lead you through the financials, and I will then, you know, go into details on the outlook.
Good morning, ladies and gentlemen. Let's shed some light on the last year's figures. As we all know, last year was not an easy one economically and was characterized by many uncertainties. In this environment, however, NFON was able to confirm its growth path and keep earnings constant. Even so, we had initially set ourselves higher targets, we are not dissatisfied with the past year. Overall, our revenue increased by 6.5% year-over-year, and we were able to increase recurring revenues by 8.3%. This means that we are able to achieve our updated guidance, which is good news for us. As in previous years, non-recurring revenues made a re-relevant contribution to our revenues. With a decline of 9%, we were unable to match last year's results.
Our business model is of course, based on the growth of recurring revenues as they are the basis for future revenues. Here, we were able to achieve an all-time high of 91%. With a growth of 8%, we also achieved the guidance for our seat base, and here at the upper end of the prognosis corridor. The figure reflects the weakening growth in the overall cloud PBX market. While growth figures of over 15% were expected in recent years, this has not been confirmed, in this way, neither for the past year, nor for the, nor for the medium-term future. For example, Cavell has now assumed market growth of around 9%, so it's substantially lower than the 15% estimated before.
In addition, the lower relative growth is also an indicator that we are now growing on a very large seat base of more than 600,000 seats. It is naturally that it's more difficult to achieve major leaps here than on a small base. The very large seat base is supported by the constant low churn. It's still about 6% per year. Here we have not observed any negative effect from economic turmoil. We have not observed that more customers went bankrupt or something like that. It's still a very stable seat base.
When we have a look at the ARPU, we see that it's slightly lower than last year figures. The year 2021, as you all know, was positively influenced by high voice minute revenues due to lockdown whilst corona pandemic. In this respect, ARPU in 2022 decreased slightly compared to previous year, but is still slightly higher than pre-pandemic. When we look at 2019, we had EUR 9.64 ARPU. We are still very stable in this area. As you know, the ARPU is influenced by many factors, like how much business do we make with wholesale partners? Because wholesale partners have lower prices for each seat, month for each month. It's dependent on how many voice minutes people use.
On the other hand, it's positively influenced by the premium solution we additionally sell and by the price adjustments we made. We made some price adjustments already and could stabilize the ARPU via that, and we will continue to increase the prices as we have an inflation on cost side as well. To keep the gross profit stable, we have to do that. Customer understand that we have to do it because it's everywhere. In total, ARPU remains very stable, which is very important for us as it is, in addition to the seat base, our second pillar for future revenues. When we look at the EBITDA, we see that the EBITDA is lowered from EUR 2.02 million to minus EUR 5.4 million.
This due to the fact that we had some one-off effects last year. They will not impact the current year, and they do not stem from last year's operating business. That's the reason why we adjust them. When you have a look at the adjusted EBITDA, you see that we are even slightly better than last year. For these two effects balance each other out. It's like we were able to achieve higher revenues and thus higher gross profit. On the other hand, we had some full year effects on the cost side because we hired last year due to our strategy and some more people, and we have higher personnel costs.
We already in the second half of last year, we made some measures to be more efficient and to lower the costs. Therefore we set the basis for being able to have profitable growth next year and to achieve scaling effects from now on. With that, let's have a look on the financial results and summary and compare to the guidance. We reached all our targets as the number of seats with 8% and the recurring revenues with 8.3%. We are in our corridor, and we slightly overachieved our recurring revenue share, as I mentioned, with 91.1%. With that, hand over to Klaus.
Thank you, Petra. Yeah. Now let's look ahead. What hasn't changed is the our final goal, where we want to be, is to become the leading provider of integrated business communications in Europe. Let's see, you know, how the market has developed there and, you know, what our strategy is to get there. Overall, obviously, our overall targets are, you know, to will be, you know, as I will guide later on. Three main pillars that our strategy is based on to reach those targets is to achieve, you know, additional growth through products. Doesn't mean necessarily only new products, but just, you know, product-driven growth, that we have the right offers for the right segments.
That we continue to build out our strength in the channel and create a truly best-in-class channel business. At the same time that we accelerate, especially, you know, long-term growth through further strategic partnerships and alliances, but also, you know, just keeping the ones that we have started already in the previous years, ramping those up and making those productive. Overall, the market, you know, historically, you know, we have, you know, our company was founded about 15 years ago with the, you know, the main goal to move the traditional on-premise PBX into the cloud. This still remains a major part of the market, and especially in the geographies where we are operating, with a focus on Germany. There's huge untapped potential.
This is some cloud transformation that's taking place really, really slowly, especially when I compare it to the cloud transformation in the IT space. In fact, that's actually good news for NFON because there's lots of potential. On unified communication side, that's, you know, the market that actually got the major boost through the pandemic lockdowns, where, you know, now remote working, hybrid working, and online collaboration are just main parts of doing business. However, obviously, with the consequence of post-pandemic, you know, the growth has slowed down a little bit.
Where we want to go and where, you know, we see obviously the first markets are forming is, you know, integrated business communication, where it's really mostly about integrating telco solutions with IT in order to support business processes and support, you know, making the work of our end customers fluid. All right, overall, this is not a direct translation of the previous buckets, but, you know, let's still look at it. The cloud PBX market's still, you know, a massive one, especially in our, you know, geographies. Those are European numbers. Supposed to, you know, grow at least over the midterm substantially. The UCaaS market, it's a very large one, but as I said, like, growth has slowed down, you know, a bit.
We see actually a really good growth potential in the currently still smaller customer contact as a service market, where we also, you know, are ramping up our efforts. Overall, we, you know, see that the attractiveness of the market overall is stable in the long term. A lot of changes underneath, but the, you know, the fundamental customer needs in these areas is still large, remains large and, you know, will even grow. Overall, we estimate an addressable market of about EUR 11 billion in Europe. We are especially, I would say, like, in the more traditional, you know, geographies of Europe, strongly positioned in SME and, you know, low to mid-tier enterprise.
Obviously the, you know, large untapped potential in the DACH space is something that we want to, you know, deliver into the cloud, and so therefore, we see, you know, a lot of potential there. Whereas, you know, would say, like, there was a, you know, over time, strong focus on the UCaaS market. We, you know, now want to strengthen our efforts, both, you know, on the, you know, integrated business communication side and launching, you know, continuing to launch our second Contact Center as a Service solution, but also focus on the core needs, of many customers out there still, having the transition to the cloud, from a PBX point of view, ahead of them.
All right. Let's look a little bit what do we mean with, you know, scaling growth, via products, you know, overall, you know, the rationale is that the core market, you know, is still stably growing, but becoming more mature, obviously requiring, you know, more precise positioning. We have a very strong positioning in the cloud PBX since it's our heritage. You know, we're born in the cloud and, you know, have had many years to hone this. We are continuing to build this out, especially with a focus on the user experience, both on end customer and on partner side, and, you know, delivering features required also for larger enterprises. This is obviously not new. You know, we told you this, you know, for about, you know, a little bit more than a year now.
And you know, roadmap that basically supports this is, you know, takes until the end of 2024, but we're making steady progress. This, you know, the numbers and the market feedback actually proves that this is the right direction. you know, If you want to be an integrated business communication player, it's good to have integrations, which we do, and obviously continue to increase those. We have, you know, been one of the leading integration solutions for Microsoft Teams through our Direct Routing solution. we'll be happy to announce very shortly to join the Microsoft Operator Connect program that, you know, enables Teams users to, you know, use voice over the PSTN network.
We have further, you know, innovations in, on the roadmap for, you know, the middle part of this year around integrating Microsoft Teams and voice- enabling Microsoft Teams customers, which is, you know, as I said many times, still the dominant trend, I would say, in the market taking place today. As I mentioned, we launched our contact center solution through our Czech partner, Daktela, pretty much a year ago, I think it was April 2022, and have had good progress in, you know, most of our geographies. This continues to be, you know, resonating well in the market, which has happened to have the, you know, contact center world in Berlin about two weeks ago with very positive customer feedback.
And the pipeline is growing, obviously, this is solution sales with long sales cycle, but we feel that, you know, there's strong customer demand and, you know, a strong rationale to grow this further and also integrations for this side. Obviously, one of the leading necessities in order to integrate it well with the customer processes when it comes to their end customer interactions. On the channel side, we are obviously proud to be a very strongly committed and focused channel player, which is important also for the channel to know. And that's how they know NFON. We have a strong focus on increasing the number of active partners.
Really, you know, just, we have a large, you know, set of partners who occasionally trade, but we want to focus on the number of partners who are actively driving business with us, since, you know, there's just a lot of, you know, more economies of process to be achieved with those. We support this through building out our partner program that we have in place, called NGAGE, with, you know, different elements. You know, Having a strong partner relationship management platform, delivering trainings and materials to partners on that. This is something we continuously build out.
On the roadmap, on the, you know, on the, on the admin side of things, we will deliver additional innovations and enhanced user experience to our partners later on. Last but not least, we need to, you know, build out the relationships with large players in the, you know, integrated business communications market. I am glad to announce that, you know, after I think one we closed about April or May last year, we closed a partnership with 1&1 Versatel. We passed the final quality gate in February that now basically leads to active selling and marketing on their side with a good ramp-up of activities.
We all know this is gonna be a long-term engagement to ramp up this partnership, but we're super thrilled that this is now complementing, you know, other important partnerships we have in the market with who in Germany, two of the two more large operators. You know, complementing this with additional partnerships with, you know, on the, on the IT side or on even the distribution side. We continuously evaluate, you know, where we can take in additional products through tech partnerships or, let's say, enhance our existing products with partner solutions. That's something we have done, you know, traditionally, but, you know, we have a couple things, more things that we are evaluating.
Although right now may not be the prime time for M&A, as is evidenced in the market, this will come back in the, you know, I would think in the midterm. We obviously, still, you know, check for selective opportunities to scale existing businesses or enhance our long-term product portfolio. You know, what's really important to me, and I think this is the first time we covered in that position also in an earnings call, that we have made the decision to not just have, you know, one of our top priorities to, you know, further our sustainability efforts, but that we've really, you know, placed sustainability front and center to our not just our strategy, but actually our way of working.
We've made significant progress last year, especially on the social social side, and the environmental side. We have had, you know, early focus and, you know, have done, you know, a lot of the green transitions already in the past, but this is something we still continue to build out. You know, every year, obviously, we can, you know, professionalize further aspects of governance and communication, which is also something of, you know, changing market requirements and innovations. This is something we would, we happily invest additional efforts to make sure this is reflected both internally but also externally as, you know, it should be an intrinsic part of doing business.
With that, let me give you an outlook a little bit in terms of guidance. We think that, you know, recurring revenue growth in 2023, you know, will range somewhere between the mid to upper single-digit percentage range in terms of year-over-year growth. It's a somewhat, you know, careful assumption because, I mean, we don't know what happens. We just see the market, how it's developing now, and obviously it has slowed down quite a bit in, I would say, Q2 of 2022, and, you know, hasn't really, you know, come back. It's a little bit of a wait and see approach. From what we currently see and how the markets currently behave, it's still a little bit slow, meaning like decision cycles take long.
We don't lose against competition, but often customers, you know, don't invest. We think, you know, okay, before this market comes around, we expect, you know, our revenue and growth to be, you know, on the stable side. Obviously, we're ready to accelerate, whenever, you know, markets permit with a decent ROI. We continuously think that our recurring revenues will be in the high percentage range. We don't necessarily plan for a higher share of non-recurring revenues, but, you know, if you have a large installation, for example, one customer can easily, you can easily get, you know, a large non-recurring portion. That's why we also wanna be, you know, somewhat conservative in terms of, you know, what range we are aspiring to.
Most importantly, we've decided and also, you know, with, you know, after feedback from some of our investors, to, you know, also reflect our focus for profitable growth, in guiding on the EBITDA. We want to achieve a significant jump in into a positive EBITDA of larger than EUR 4 million adjusted this year, while we don't obviously foresee major adjustments and think, you know, last year may have been a little bit an outlier on that front.
Do not guide on the number of customer seats any longer since actually it's not just a, you know, it's not just a pure market replace 1 customer box and move it to the cloud, but it's actually, you know, a lot more about, you know, the value you're selling, about upselling premium solutions, and focusing on, like, as I said, like whatever we can build on integration around a customer seat is not reflected necessarily in the number of customer base, but actually is reflected in the profitability of that. That's why we think it's only consistent if we guide on profitable growth, that we also give you a corridor of where we expect our positive EBITDA to end up for the year.
With that, I'll let me summarize a little bit why we think that, you know, NFON is special. We are obviously a leading player in the European integrated business communication market with a focus on the lower end of the market. You know, as I said, like, by until the end of 2024, slowly growing up in the customer size, as we are the number one in Germany, like we still have, you know, very, very, very large untapped marketing market potential to pursue. Just the value proposition of made in Germany, hosted in Germany still resonates very well, and, you know, as I said, like some, through some geopolitical, you know, turmoil, it actually sometimes makes it even stronger of a value proposition.
Our strong recurring revenue base is, you know, a very stable basis that we can use to pursue profitable growth as we are guiding it. You know, since we basically consistent low churn actually signals that, you know, we have still a business critical business solution to our customers that is not easily replaced or turned off, especially when the, you know, when the going gets a little tougher, but it actually is one of the core pillars that our customers need in order to communicate with their customers or partners and that, you know, is a very stable value proposition. With that, I'm happy to opening it up for a Q&A. How should we do it? Should we go through the chat questions? I'll leave it up to the moderator.
Thank you first of all, Mr. von Rottkay, Ms. Boss, for your interesting and detailed presentation. We now move forward to the Q&A session. Let me quickly introduce you on how to place your questions. You can either ask your questions by audio line or by chat. If you would like to ask the questions directly to the management, please raise your virtual hand. If you have dialed in via phone, please press the star key followed by nine, and then the star key followed by six. We already received some questions and would start with the questions from Knut Woller. Please go ahead.
Yeah. Hi, thank you for taking my questions. Looking at your recurring revenue growth expectations for 2023, can you share with us to which extent RPU is expected to be a driver, and to which extent the seats? Just to get a better feeling what you're expecting to drive recurring revenue growth. Also can we get an update on the cash burn in Q4? Looking at the EBITDA development, it looks like cash burn hasn't deteriorated. Is that correct? Briefly, Petra, you talked about price increases on the RPU side. Can you share here some light on to which extent or by how much you're increasing prices for your solutions? Thank you very much.
Thank you. Maybe I can comment on the first part in terms of, you know, how much price increases versus customer seat increases are driving the growth, and let Petra handle the rest. I mean, we've seen this, and Petra has actually one RPU, you know, side mentioned this a bit. What's actually, you know, we think it's about even, in terms of, you know, growth is relatively in line with the increase in customer base for now, because we have two, you know, effects that are, you know, kinda like counterbalancing each other a little bit. There is actually impact of, you know, higher RPUs on the license side, and we have good growth on that.
Obviously the minutes are, you know, decreasing a bit by seat, and that evens each other out, approximately on the RPU side. That's something where we have some positive effects, you know, from selling additional premium solutions. You know, there is a slight uptick in RPU that we see, but it's not a major part of the, you know, the profitability increase. Petra, maybe you wanna take the-
Yeah.
-cash burn.
When I continue with the price increase, it's like, it's not that it easily can be answered, like we rise the prices by 5% or something like that. It's kind of a science, because we look at each customer group and contract duration and which price they started with and for the new selling contracts and like, it's a mixture of all of it, but we try to make the price increase quite moderate, that we don't want to have some churn as a result of our price increase, because that in the end wouldn't help us at all. The price increases were, it's not one price increase. It's shocking like, but some waves and, as I said, moderately. The cash is-
-regarding the cash, I can say that we still invest in our BSS system and something we, some investments which are not reflected in the EBITDA, but we think that, and that answers another question I've seen in the chat already. It's like our cash position in the end of last year was about EUR 13 million. So, was now targeting positive EBITDA. And we expect cash burn to totally slow down and go the other direction and that we get along, as I said in the last earnings call, with our own money and that we are not forced to go to the capital market. If we might do so if we have an M&A target, which is very interesting or something like that. We want to really, get the turn not only in profitability, but in cash burn as well.
Thank you.
Maybe I can, I can add on the, on the pricing side. We have, done, you know, some price increases in different cohorts. Overall, you know, I would say like our premium, cloud PBX proposition, which is a full, UCaaS proposition, went up from EUR 8.80-EUR 9.90 in terms of list price. We have also, implemented some of these price increases with existing customers, but that has been done last year. I would say it's only, you know, it's some driver, as I said, like that complements some of the, you know, lower voice minutes through, you know, use of online collaboration rather than calling. As I said, there is some positive effect on the bottom line, but it's not like a, not, yeah, it doesn't extend to the overall base of our revenues, but just the customers on, I would say on the latest cloud tariff.
Great. Thank you both.
Thank you for your question, Mr. Woller. We will continue with the questions from Philipp Sennewald. Please go ahead.
Yeah. Thank you very much. Can you hear me?
Yes.
Yeah. We can.
Perfect. First one regarding the Contact Center Hub, Mr. von Rottkay, you mentioned a good progress. Positive customer response, and you also said, okay, pipeline is growing, and also mentioned, like, long sales cycles. Can you maybe give us a bit more color on that? What does pipeline growing mean? How long is the sales cycle? Yeah, can you give us some more color maybe on that progress on the Contact Center side?
Muting helps. Yes. Obviously it's hard to simplify it on a common denominator, but I would say rather than, you know, having sales cycles from three to four months on like a simple cloud PBX sale, you know, on the contact center side for like a medium opportunity can easily be six to nine months. Considering, you know, basically we launched it, you know, in Q2 last year, we saw the first, I would say, interesting wins to come down about in Q4 of last year. Usually when you have the win, then the customer needs about two months to actually use the demo installation they have to integrate into the business processes and to activate the agent.
That's actually takes about, on average, two months after the, you know, the contracting to actually activate the usage. I would say on a, on a larger deals, we are working, they're actually becoming active in Q1. I would say this, you know, continues, we started basically, you know, from very low, but, we are actually, budgeted an internal growth of this line of contact center, you know, to double this year. We obviously have still, you know, our existing, end contact center solution out there with, happy and satisfied customers on it. Even, you know, simpler requirements we, you know, we address with other solutions. I would say it's a continuous, progress.
Focus there also is, you know, mostly Germany, Austria and U.K., which are, you know, the three of, you know, our four areas, basically, how we think. I know there's another question on geography later. I'll probably touch upon this later. I would say like we, you know, have seen, encouraging growth.
I don't know what the, you know, I don't have the growth number on top of my head in terms of the overall contact center business, but it's obviously it helps the overall business in terms of growth. Next year it's gonna be, you know, we add double to it. Actually see that progress for quite a while, especially since now partners, new partners come on board, that actually believe in the solution and, you know, are getting behind the wheel.
Thank you very much. That was quite helpful. My one other question on the P&L, you gave us the DAAT figures. I'm seeing a quite significant improvement over the course of the year. What we've seen at many IT companies that already reported figures, is that we've seen some impairments on goodwill with our rising interest rates and some other factors influencing company value last year. Did you have any impairments, anything we have to expect there on the EBIT lines?
No, there's nothing you should expect. It's like we think, we are convinced that we won't have any goodwill impairments or something like that.
All right. Perfect.
Not so far.
Very good. That's it from my side. Thank you for answering my questions.
Thank you for your questions, Mr. Sennewald. We received some further questions over the chat. Mr. von Rottkay, you already touched the point regarding the developments on a country base and regional base. Maybe you would like to elaborate a bit on that or no?
Sure. I think what's important to maybe to point out this call, I don't know if I've probably mentioned last earnings call, but it's probably good to reiterate it, that we, you know, have consolidated a little bit, you know, our regional activities. We have combined our Italian, French and Spanish subsidiaries more or less into 1 area, running, you know, from the Italian subsidiary. We consider this our fourth area. You know, area one is Germany, area two is Austria, CEE. area three is U.K., and area four is basically southwestern France. Sorry, France. Southwestern Europe. In terms of development, it's I would say like Austria, CEE remains to be our strongest overall growth performer.
Obviously, also helped with, you know, the new markets in Eastern Europe. U.K., the U.K. market has actually proven to be quite resilient despite, you know, economic difficulties. But our, you know, U.K. performance has been hampered by, you know, a loss of the, you know, a large retailer that was bought by a competitor, you know, migrating the customer base away. While the new business is actually growing at a decent pace, and, you know, it's, you know, it has been eaten up by churn more or less for, you know, like in the last, whatever seven months, like eight months, eight, nine months, and maybe like three or four, you know, to come. But overall the, you know, the business underneath is healthy.
Germany has been, I would say, like in terms of breadth market momentum, struggled a little bit, and we expect actually some positive momentum through new partners we've signed and through a, you know, a third operator partnership we are launching this year. Italy obviously remains, and France and Spain on a small level remain, you know, drivers of a good strong relative growth, but, you know, still low on the absolute side. I mean, we're talking for the three subsidiaries together, we're talking somewhat a little bit more than EUR 1 million in terms of contributions, but obviously growing strong relatively. There we focus on adding additional partnerships, especially in Italy, to grow this business to a critical size in the following years.
Yes, and then I think next question was collaboration is gone from strategy working. We focus on communication. I would say when obviously, we have never really focused on collaboration in a sense of, you know, Teams with integrated with SharePoint, because that, you know, is basically, I would say, a, a battle that has been fought, probably like more than 5 years ago with, my Microsoft Office 365.
Obviously, when you include video, conferencing into that domain, this is obviously something we also offer, but we are somewhat realistic that the market has moved in terms, you know, of, to Teams, and that our focus is providing collaboration solutions to customers that for some reason don't want Teams or don't wanna pay for Teams or are really, you know, low-end SMB businesses that want installation-free, you know, out-of-the-box functionality. Rather than that, you know, we actually enhance the solution around Teams, around voice and especially business integration features. That is our focus. You know, we still have a full unified communication and contact center communication solution that can provide everything.
In terms of, you know, where the customer need is the most pronounced, that's, you know, a little bit what I referred to in, in the market section before. On the UCaaS side, especially on the collaboration side, the market growth rates just have plummeted because, you know, everyone has their COVID solution in place and there's not so much growth on that side. As I said, like the things that customers really value is actually getting that productive and integrated into the business processes.
Thank you very much, Mr. von Rottkay. Kind reminder at this stage, if you still have questions to be addressed to the board, kindly let us know either via chat or by raising your virtual hand. We now have one final question left in the chat, concerning your competition. Who are your biggest competitors, and what is the biggest problem in your business or the market right now?
Okay. I think our biggest, if you want, there's only one competitive trend actually. I just attended the, you know, the annual conference of this industry in London yesterday, organized by Cavell. The biggest trend is Microsoft Teams by far. It's not so new, but it's just, it's blatant how much it has actually evolved over 12 months. To us, you know, we don't see it as a, you know, competitive threat. It's just something that has shaped the market completely. That's why we also offer, you know, launch additional offerings to take, you know, a part in that market trend and enhance Microsoft Teams solutions and voice enable them.
As I said, this is something we have some stuff in place, some we're launching, I don't know, one next week probably, and the other one's in the middle of the year. To benefit from that and to create customer value. There is not any single competitor that is dominant in the markets we operate in. I would say, like, if there's the one thing that's working the least, is that the market's growth has really tremendously slowed after the, you know, from whatever, from the consequences from the Ukraine crisis. This is nothing, you know, to worry about because if, you know, in some, channels, I would say the market is slowing, then we just work on, you know, creating new channels and avenues to market segments we haven't touched before.
There's still enough, plenty of latent demand in the market that we just have to address. Even if, you know, it might be temporarily subdued, we're sure it was gonna come in the mid to long term. I think fundamentally the outlook hasn't really, decreased on that side. Sorry, did I miss the question?
All right. Thank you for elaborating. We have a follow-up question from Knut Woller. Please go ahead.
Yeah. Thank you. Just on the large enterprise segment, can you provide here an update on your successes? I'm aware that sales cycles are also longer than normally.
Yeah.
- in your business, how is here the pipe tracking and what should we expect, looking at 2023 from the larger enterprise segment? Thank you.
Okay. Yes. Good question, because obviously it's part of our strategy. I always also point out that the strategy, you know, is supported by a roadmap that takes until the end of 2024. We continuously track, you know, what customers we, you know, succeed with. I would say there's a slow, you know, I would say like a positive trend in terms of adding large accounts to the pipe. With large accounts, enterprise customer starts at 250 seat. They may not be always above 1,000 per quarter, but I would say every quarter we maybe add, you know, one more than we did the previous quarter, in the, you know, 100 plus seat range.
We're talking obviously some customers in the 4-digit seat range, but some of those sales cycles are kind of like ridiculously long. Like, we're talking, you know, 12 plus months. I would say I would expect the real change really, you know, once we have those features ready in 2024, 2025, on that side. Right now I would say, you know, incremental, you know, growth on a low level, every quarter. You know, with real breakthrough, you know, supported by a precise roadmap with that target definition and partner strategy, which we all have in place and which is running right now. It's gonna be, as I said, it's gonna be another close to 24 months.
Great. Thank you, Klaus.
Thank you for your question, Mr. Woller. As we did not receive any further questions in the meantime, we would come to the closing of this earnings call. Just a kind information regarding those who were wondering if that there was no balance sheet in the press release, only a P&L statement. The balance sheet will be released with the final consolidated figures on 27th April. For now, it's for me to say thank you for your interest and attending the call, and of course, to you, Mr. von Rottkay and Ms. Boss for taking the time, the presentation and answering the questions. I hand over to you for some final remarks.
Well, thank you everyone. It was a pleasure to give you a brief glimpse on our results. Obviously, we'll be happy to announce those once finalized, and hope to answer any remaining questions. When you see the full breadth of numerical detail, maybe some of that will be resolved anyway. In the meantime, if you have any questions, please reach out to us and, you know, we'll try to tackle it individually as good as we can.