PLANO, Texas, Feb. 25, 2016 /PRNewswire/ -- Fonality, an innovator in unified communications as a service (UCaaS) and cloud VoIP phone systems, reported record revenue growth and profitability for the year ending December 31, 2015. The $45 million business phone system provider continues to see its growth accelerating into 2016 and beyond.
The 11-year-old company has successfully harnessed the power of cloud-hosted services, transforming its business model in recent years. Once rooted in more traditional PBX systems – large, capital-intensive transactions that might come around every few years – more than 85 percent of the company's 2015 revenue came from subscriptions. It also sold more than 22,000 new seats.
Growth isn't the only story, however. The company also reported 99.6 percent customer retention (0.4 percent net churn) for the fourth quarter of 2015. Fonality attributes much of its 2015 success to its ability to attract new customers, delight them with world-class service resulting in best-in-class retention rates, and generate repeat purchases.
"Fonality really showed what we can do in 2015. We achieved profitability while driving record revenue and subscription growth," said David Scult, Fonality chief executive officer. "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 – the centerpiece of which is its award-winning Heads Up DisplayTM (HUD) UC suite for web and mobile.
"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 chief financial officer 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."
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.
- Receiving recognition from PCMag as Editors' Choice for business VoIP 2015
For more updates on how Fonality is thriving in the cloud and helping customers do the same, subscribe to the blog.
PCMag Editors' Choice reprinted with permission. © 2015 Ziff Davis, LLC. All Rights Reserved.