Unified communications as a service (UCaaS) and cloud VoIP provider Fonality has reported record revenue growth and profitability for the year ending December 31, 2015, selling more than 22,000 new seats and reaching a valuation of $45 million.
The 11-year-old company has transitioned from offering traditional PBX systems – large, capital-intensive transactions that might come around every few years – to having more than 85 percent of 2015 revenue coming from subscriptions.
The company also reported 99.6 percent customer retention (0.4 percent net churn) for the fourth quarter of 2015.
“Fonality really showed what we can do in 2015. We achieved profitability while driving record revenue and subscription growth,” said David Scult, Fonality CEO. “Perhaps as telling as new bookings, more than half of our customers bought additional services from us last year as they added staff, upgraded equipment, or enhanced productivity with products like Voicemail Transcription. Our customers continue to invest in us and demonstrate their loyalty.”
In 2015, Fonality also focused on refining its marketing, sales, and support as well as enhancing its infrastructure and product portfolio – including with the Heads Up Display (HUD) UC suite for Web and mobile.
Other 2015 milestones include:
- Growing the company’s channel and referral partner programs to more than 650 organizations, representing nearly 70 percent of seats sold
- Surpassing 2,000 customers in the insurance sector, the company’s largest vertical
- Attracting and growing relationships with customers across industries, including Borrego Community Health Foundation, National Staffing Solutions and Solano Family & Children’s Services.
“Few companies in our space achieve profitability. Even fewer successfully transition from one-time to recurring revenue or can claim such high customer retention,” said Dan Rosenthal, Fonality CFO and one of its first employees. “Last year’s milestones and successes are a strong testament to our products, our customers, and our people. They set the stage for continued acceleration of our growth and profitability in 2016.”
