TeamViewer SE
/ Key word(s): Quarter Results/Quarterly / Interim Statement
GOPPINGEN, Germany, 7 May 2024 TeamViewer kicks off 2024 with continued profitable revenue growth, FY 2024 guidance reiterated
Oliver Steil, TeamViewer CEO « Our Q1 2024 results mark a good start to the year with strong Enterprise revenue growth of 19% (cc) yoy. In recent months, we have concentrated on deepening our customer and partner relationships while elevating our product offering. These efforts led to a significant surge in both SMB and ENT customers across regions, fueling a 25% yoy increase in Billings from new subscribers. Notably, we saw a particular sales momentum in the highest value buckets. In addition, we strengthened our leadership in vision picking offerings by joining forces with Manhattan Associates, a top-tier provider of supply chain software. By entering a go-to-market partnership with Deloitte, we are capitalizing on our powerful integration with SAP’s Extended Warehouse Management solution. Looking ahead, we are confident that all our regions will continue to deliver in what is traditionally a stronger second half of the year for enterprise software sales. » ______ Michael Wilkens, TeamViewer CFO « We delivered growth in both Revenue and Adjusted EBITDA, a notable success given a persistently demanding macroeconomic climate. Mindful of these conditions, we are carefully balancing investments and profitability. Our Adjusted EBITDA margin of 40% exceeded our expectations. As anticipated, our profitability will benefit from the scaled-back partnership with Manchester United in the second half of this year. We are more than confident to fulfil our guidance for the full year 2024. I am also very pleased to announce that we have successfully agreed to issue a promissory note loan in May 2024, totaling EUR 100m, which will serve to refinance a term loan facility as part of our existing syndicated loan. »
1 Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. 2 Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period.
In the first quarter of 2024, TeamViewer focused on customer relations as well as sales enablement. This resulted in pipeline development and relevant Enterprise deals, especially in the highest value buckets with annual contracts over 100k EUR. The company was very successful in bringing in net new customers, leading to an all-time high subscriber number of 640k and an increase in Billings from new subscribers by 25% yoy, demonstrating the continued relevance of TeamViewer’s products and its leading market position. Additionally, new marketing campaigns and appearances at renowned industry conferences increased brand visibility, setting the stage for an acceleration of billings growth in the second half of the year. TeamViewer continued to forge relevant partnerships in Q1, enhancing its innovative offerings in augmented reality and spatial computing. Together with Almer, a pioneering European provider of AR headsets for industrial use cases, TeamViewer launched a subscription-based hardware and software bundle to further facilitate the adoption of AR technology on the shop floor. In a strategic move to solidify its leadership in vision picking software, TeamViewer announced two strategic partnerships. With Deloitte, TeamViewer aims to accelerate digital transformation of warehouse logistics with a synergistic go-to-market and implementation approach. This way, TeamViewer is capitalizing on the powerful integration of TeamViewer’s vision picking software with SAP’s Extended Warehouse Management solution. Additionally, TeamViewer teamed up with Manhattan Associates, a US-based global leader in unified commerce and supply chain solutions, to integrate Frontline xPick into the cloud-based Active Warehouse Management platform of Manhattan Associates. With the launch of a real-time spatial assistance app for the new Apple Vision Pro device in February, TeamViewer demonstrated its commitment to cutting-edge innovation and sparked numerous conversations with customers about next level after sales support and field service. The company made good progress with its sustainability program c-a-r-e, initiating environmental, female empowerment as well as tech education activities. The Cyber Robotics Challenge is a standout effort, engaging around 750 children in Germany and the US in an online coding competition to build digital competencies. Moreover, a new study conducted by sustainability experts from Five Glaciers Consulting confirmed that TeamViewer users and customers avoided around 41 million tons of CO₂ equivalents in 2022 mainly by reducing the need for travel through remote connections. TeamViewer’s continuous sustainability efforts paid off with an improved ESG Risk Rating from Morningstar Sustainalytics, ranking TeamViewer as the number one of more than 400 companies assessed in the “Enterprise & Infrastructure Software” sub-industry. At the beginning of May, Rupert Clayson, a seasoned enterprise software sales executive with a wealth of experience from top-tier software vendors like cyber security firm Fortinet, joined TeamViewer. He will succeed Jan Junker as President EMEA after an extensive transition period. Jan, who came to TeamViewer through the Ubimax acquisition, was instrumental in successfully building up the EMEA enterprise business. With a clear succession plan in place, he will now pass the baton to Rupert. Revenue and Billings Development In Q1 2024, total Revenue increased by +7% yoy to EUR 161.7m. FX headwinds from 2023 Billings had a combined negative impact of EUR 3.5m in the quarter. In constant currency, total Revenue grew by +9% yoy. Total Billings for the quarter came in at EUR 174.5m (-1% / -1% cc yoy). This slight decrease was anticipated, mainly driven by a EUR 6.8m lower contribution from multi-year-deals with full upfront payments (Q1 2024: EUR 9.4m; Q1 2023: EUR 16.2m). New Billings saw a strong growth of +25% yoy, which is testament to TeamViewer’s ability to attract new customers even in a challenging macro environment. SMB and Enterprise Development Revenue and Billings by customer
1 Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. 2 Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period.
SMB business saw the number of subscribers reach an all-time high of 636k in the first quarter. Supported by continued pricing measures and successful cross-selling, SMB Revenue grew by +5% (+7% cc) yoy. Billings were largely stable at -1% (0% cc) yoy against a strong Q1 2023. LTM Billings in the highest SMB value bucket (ACV between EUR 1.5k to 10k) showed a good growth of +8% yoy continuing to benefit from the pricing motions over the last twelve months. Regional Development Revenue and Billings by region
1 Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. 2 Billings growth rate in constant currency (cc) translates Billings in foreign currencies using the average exchange rates from the comparative period instead of the current period.
EMEA recorded a strong Revenue growth of +11% (+11 cc) yoy. Billings decreased slightly by -3% (-3% cc) yoy, which is mainly attributable to the lower contribution from multi-year deals. AMERICAS started the year with Revenue growth of +2% (+6% cc) yoy and a +3% (+4% cc) yoy increase in Billings. APAC saw Revenue increase by +2% (+10% cc) yoy with Billings down by -5% (+1% cc) yoy. Earnings Development TeamViewer delivered growth in both Revenue and Adjusted EBITDA despite a persistently tough macroeconomic climate in the first quarter. Mindful of these macroeconomic conditions, TeamViewer is striking a deliberate balance between investments and profitability. In Q1 2024, total recurring cost amounted to EUR 96.5m (+11% yoy), and included strategic investments in marketing, sales, and R&D, which are set to enhance the Company’s performance as the year progresses. Adjusted EBITDA grew +2% yoy to EUR 65.2m. Adjusted EBITDA margin came in at 40%. Excluding the effect from FX headwinds from 2023 Billings of -2pp, Adj. EBITDA margin would have been 42%. As anticipated, profitability will benefit from the scaled-back partnership with Manchester United in the second half of this year. Net income was EUR 22.3m (-3% yoy). In the quarter, TeamViewer reported a loss from its equity investments of EUR 1.1m. Adjusted (basic) EPS remained largely at the previous year’s level with EUR 0.22. Recurring cost (adjusted for non-recurring items and D&A)
1 Incl. other income/expenses and bad debt expenses of EUR 2.7m in Q1 2024 and EUR 2.4m in Q1 2023.
Financial Position TeamViewer’s business is highly cash-generative. Unlevered Free Cash Flow (pre-tax UFCF) was EUR 58.2m in Q1 2024. This decrease yoy is mainly driven by the anticipated lower billings and an increased cost base. The Levered Free Cash Flow (FCFE) was EUR 40.5m, reflecting higher total interest paid and income taxes yoy. Income taxes in Q1 2024 increased yoy on the back of FY 2023 results. On the other hand, Q1 2023 income taxes were positively impacted from a tax refund of EUR 3m. Correspondingly, Cash Conversion (FCFE in relation to Adjusted EBITDA) was at 62% in Q1 2024. Cash and cash equivalents were at EUR 35.8m at the end of Q1 2024. The reduction of EUR 37m compared to the end of 2023 is mainly driven by share buybacks of EUR 67.7m and net debt repayment of EUR 10m in Q1 2024. The reduction in Non-current Liabilities compared to the end of 2023 is related to a reclassification of a loan in the amount of EUR 100m to Current Liabilities. In total, Net Debt increased by +6% compared to the end of 2023 to EUR 486m, which resulted in a Net Leverage Ratio of 1.9x (Net Debt/Adj. EBITDA LTM) for Q1 2024. Outlook TeamViewer reiterates its FY 2024 guidance. Q1 2024 results marked a good start to the year, with Revenue up +7% (+9% cc) and a high profitability with an Adjusted EBITDA Margin of 40%. TeamViewer expects a continued high level of demand for its products in FY 2024 despite a challenging macro environment outlook. Based on the average FX rates of 2023, the company forecasts Revenue in a range of EUR 660m to 685m. This Revenue outlook includes FX headwinds from 2023 billings of around EUR 10-12 million on a full year basis. Corrected for these FX headwinds, guided revenue range corresponds therefore to 7 to 11% growth on a constant currency basis. The company expects further improving Adjusted EBITDA margin of at least 43% for FY 2024. Following the revised scope of the Manchester United partnership, a larger part of effective savings will positively affect margins in the second half of the year 2024. 2024 Guidance
1 Based on the average FX rates of 2023. 2 Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings. ### Webcast Oliver Steil (CEO) and Michael Wilkens (CFO) will speak at an analyst and investor conference call at 9:00am CET on 7 May 2024 to discuss the Q1 2024 results. The audio webcast can be followed via https://www.webcast-eqs.com/teamviewer-2024-q1. A recording will be available on the Investor Relations website at ir.teamviewer.com. The accompanying presentation is also available for download there. 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 around 640,000 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 more than 1,500 people globally. In 2023, TeamViewer achieved a revenue of around EUR 627m. TeamViewer SE (TMV) is listed at Frankfurt Stock Exchange and is a member of the MDAX. Further information can be found at www.teamviewer.com. Contact
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 TeamViewer’s 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. TeamViewer 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. Percentage change data and totals presented in tables throughout this document are generally calculated on unrounded numbers. Therefore, numbers in tables may not add up precisely to the totals indicated and percentage change data may not precisely reflect the change data of the rounded figures for the same reason. This document contains alternative performance measures (APM) that are not defined under IFRS. The APMs (non-IFRS) can be reconciled to the key performance indicators included in the IFRS consolidated financial statements and should not be viewed in isolation, but only as supplementary information for assessing the operating performance. TeamViewer believes that these APMs provide an additional, deeper understanding of the Company's performance. TeamViewer has defined each of the following APMs as follows:
Consolidated Profit & Loss Statement (unaudited)
Consolidated Balance Sheet Total Assets (unaudited)
* Previously shown under Financial assets.
Consolidated Balance Sheet Liabilities and Equity (unaudited)
07.05.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
Language: | English |
Company: | TeamViewer SE |
Bahnhofsplatz 2 | |
73033 Göppingen | |
Germany | |
Phone: | +49 7161 97200 81 |
Fax: | +49 7161 60692 335 |
E-mail: | [email protected] |
Internet: | www.teamviewer.com |
ISIN: | DE000A2YN900 |
WKN: | A2YN90 |
Indices: | MDAX, TecDAX |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1896871 |
End of News | EQS News Service |
|
1896871 07.05.2024 CET/CEST