IR Releases

TeamViewer presents post-pandemic roadmap at Capital Markets Day and confirms outlook

• Long-term growth strategy in place to capitalize on global megatrends
• Unique financial profile with strong double-digit billings growth and industry-leading margins
• Post-pandemic roadmap to re-accelerate growth initiatives and contain cost base
• Regrouping of Senior Leadership Team: Appointment of new President APAC, CMO Lisa Agona resigns on mutual consent, ongoing search for new board member with sales and marketing focus
• Full-year 2021 and mid-term guidance confirmed

GOPPINGEN, November 10, 2021 - TeamViewer will be hosting its first Capital Markets Day today, November 10 at 2:00 pm CET. CEO Oliver Steil, CFO Stefan Gaiser and members from the Senior Leadership Team will provide an update on the company's growth initiatives and its position in attractive markets and present a new roadmap to excel in a post-COVID market environment. As a leading tech player TeamViewer is capitalizing on strong global megatrends such as digital transformation, new hybrid working models and carbon footprint reduction through remote operations.

Oliver Steil, TeamViewer CEO: "We are excited to intensify the dialogue with our investors at and after this first Capital Markets Day. We will explain our growth strategy in more detail and disclose additional KPIs to foster capital markets' understanding of the dynamics and development of our business. Most importantly we will present a comprehensive action plan in response to a lower-than-expected billings growth in the second and third quarter. The plan will include a number of initiatives to refine our growth levers and cost structure and set TeamViewer up to succeed in a post-pandemic market environment. Together with our strong financial profile of double-digit billings growth and industry leading margins, these measures make us confident to deliver on our short- and mid-term objectives."

Within the past two years the company's product portfolio evolved significantly - spanning from immediate remote support tools to managed enterprise connectivity and operational workflow optimization solutions, enabling businesses of all sizes and across all verticals to digitalize processes along the entire value chain. This leads to a Total Addressable Market (TAM) of c. EUR 19 bn in 2021, which is expected to grow at 18% p.a. through 2025. TeamViewer has a particular focus on two major customer segments - SMB and Enterprise - with different dynamics yet benefitting from each other. TeamViewer's enterprise business is a remarkable success story. During COVID times, the company has significantly broadened its enterprise solutions portfolio through acquisitions as well as organic development, leading to quadrupled enterprise billings since 2019. The SMB business is still TeamViewer's largest segment with a generally strong track record that has recently seen a slowdown based on a pull forward effect during the pandemic as well as increased competition at the lower end. However, the business is set to grow in line with the market. Additional insights and KPIs on the development of both segments will be shared at the Capital Markets Day.

Post-pandemic roadmap to further drive top line growth and improve cost structure

TeamViewer's management has developed an ambitious roadmap to re-accelerate certain growth initiatives and to contain its cost base. Key elements of this program are

1. A short-term innovation roadmap for the remote access and support product to enhance its appeal and at the same time a discontinuation of non-core products in R&D

2. A digital marketing turnaround with a focus on improving the customer journey and driving web shop performance

3. A new setup for APAC with a new proven leader who will focus on core markets and products and thus bring the region back on a better growth path

4. A global best practice rollout for the enterprise sales force, enabling faster onboarding and better cross- and up-selling across all verticals

5. Regrouped management structures to allow more focus throughout the organization

In this context, the responsibilities of the Senior Leadership Team (SLT) will be rearranged leading to a stronger focus on the key growth levers. As announced earlier, the Supervisory Board has initiated the search for a new CFO as well as for a new board member with a dedicated focus on sales and commercial excellence. As part of the regrouping of the leadership team, it has now been decided to shift the responsibilities of the CMO to this new role to drive the company's marketing strategy of building a global tech brand through leveraging the global sports partnerships. Consequently, Lisa Agona will be resigning from her role as Chief Marketing Officer and leave the company on mutual consent.

Full year 2021 and mid-term guidance unchanged

On the back of TeamViewer's strategy and supported by the new roadmap, TeamViewer is confident that it will deliver on its full year 2021 outlook as well as its mid-term guidance of high teens percentage billings growth on a year-over-year basis, mid-teens percentage revenue (IFRS) growth on a year-over-year basis and a recovery of Adjusted EBITDA margin.

Detailed information on TeamViewer's Capital Markets Day as well as the livestream link can be found here.


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About TeamViewer
TeamViewer is a leading global technology company that provides a connectivity platform to remotely access, control, manage, monitor, and repair devices of any kind - from laptops and mobile phones to industrial machines and robots. Although TeamViewer is free of charge for private use, it has more than 600,000 subscribers and enables companies of all sizes and from all industries to digitalize their business-critical processes through seamless connectivity. Against the backdrop of global megatrends like device proliferation, automation and new work, TeamViewer proactively shapes digital transformation and continuously innovates in the fields of Augmented Reality, Internet of Things and Artificial Intelligence. Since the company's foundation in 2005, TeamViewer's software has been installed on more than 2.5 billion devices around the world. The company is headquartered in Goppingen, Germany, and employs around 1,500 people globally. In 2020, TeamViewer achieved billings of EUR 460 million. TeamViewer AG (TMV) is listed at Frankfurt Stock Exchange and belongs to the MDAX. Further information can be found at www.teamviewer.com.

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IMPORTANT NOTICE
Certain statements in this communication may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer's disclosures. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels. The Company undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise. All stated figures are unaudited.

Alternative performance measures (APMs)
This document contains certain alternative performance measures (collectively, "APMs") including billings and Adjusted EBITDA that are not required by, or presented in accordance with, IFRS, German GAAP or any other generally accepted accounting principles. TeamViewer presents APMs because they are used by management in monitoring, evaluating and managing its business and management believes these measures provide an enhanced understanding of TeamViewer's underlying results and related trends. The definitions of the APMs may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results as reported under IFRS or German GAAP. APMs such as billings and Adjusted EBITDA are not measurements of TeamViewer's performance or liquidity under IFRS or German GAAP and should not be considered as alternatives to results for the period or any other performance measures derived in accordance with IFRS, German GAAP or any other generally accepted accounting principles or as alternatives to cash flow from operating, investing or financing activities.

TeamViewer has defined each of the following APMs as follows:
"Billings" represent the (net) value of invoiced goods and services charged to customers within a period and constitute a contract as defined by IFRS 15.
"Adjusted EBITDA" is defined as operating income (EBIT) as per IFRS plus depreciation and amortisation of tangible and intangible fixed assets (EBITDA), adjusted for change in deferred revenue recognised in profit or loss during the period under consideration and for certain transactions that have been defined by the Management Board in agreement with the Supervisory Board (income and expenses). Business events to be adjusted relate to share-based compensation models and other material special items of the business which are presented separately to show the underlying operating performance of the business.
"Adjusted EBITDA margin" means Adjusted EBITDA as a percentage of billings.

Operational metrics and other financial measures for information purposes
This document also includes further certain operational metrics, such as Net Retention Rate, and additional financial measures that are not required by, or presented in accordance with IFRS, German GAAP or any other generally accepted accounting principles (collectively, "other financial measures"). TeamViewer presents these operational metrics and other financial measures for information purposes and because they are used by the management for monitoring, evaluating and managing its business. The definitions of these operational metrics and other financial metrics may not be comparable to other similarly titled measures of other companies and have limitations as analytical tools and should, therefore, not be considered in isolation or as a substitute for analysis of TeamViewer's operating results, performance or liquidity as reported under IFRS or German GAAP.
TeamViewer has defined these operational metrics and other financial measures for information purposes as follows:
"Levered free cash flow" (FCFE) means net cash from operating activities less capital expenditure for property, plant and equipment and intangible assets (excl. M&A), payments for the capital element of lease liabilities and interest paid for borrowings and lease liabilities.
"Net leverage ratio" means the ratio of net financial liabilities (sum of interest-bearing loans and borrowings, current and non-current, less cash and cash equivalents) to Adjusted EBITDA (LTM).
"Net retention rate" or "NRR" is calculated as recurring billings (subscription renewals, up-selling and cross-selling activities) over the last twelve months attributable to retained subscribers (subscribers who were subscribers in the previous twelve-month period) divided by the total recurring billings from the previous twelve-month period.
"Retained Billings" means recurring billings (renewals, up- and cross sell) attributable to retained subscribers who were subscribers in the previous twelve-month period.
"New Billings" means recurring billings attributable to new subscribers.
"Non-recurring Billings" means all billings that do not recur such as professional services and hardware reselling.