TeamViewer AG / Key word(s): Preliminary Results/Change in Forecast
Disclosure of an inside information according to Article 17 of Regulation (EU) No 596/2014 on market abuse (MAR)
TeamViewer discloses preliminary Q3 2021 results and adjusts guidance
Goppingen, 6 October 2021 - Following an initial review of its financial performance, TeamViewer AG announces preliminary financial results for the quarter ending 30 September 2021.
In Q3 2021, TeamViewer generated billings of around EUR 126m, up around 18% reported and 18% cc, thereby showing higher year-on-year growth compared to Q2 2021 but still below its own projections of at least 20% year-over-year quarterly billings growth in 2021. IFRS revenues amount to around EUR 128m. Due to the billings' shortfall and the cost ramp up, the adjusted EBITDA margin amounts to around 34% for the third quarter and approximately 48% for 9M 2021.
The expected quarter-on-quarter improvement of the net retention rate (NRR) materialized with NRR of nearly 100% in Q3 2021 vs. 88% in Q2 2021. NRR in the last twelve months thereby reached c. 96%. The contribution from large Enterprise deals grew significantly, however at a slower than expected rate. Subscriber churn improved to 14.6% in Q3 2021. Overall, billings growth improved significantly towards the end of the quarter.
Based on the billings growth year-to-date and the current conversion rate of prospective large deals in the Enterprise business, TeamViewer adjusts its outlook for the full year and now expects billings of between EUR 535m to EUR 555m (so far: lower end of range of EUR 585m to EUR 605m). The guidance for revenues is changed to EUR 495m to EUR 505m (prior guidance: lower end of range of EUR 525m to EUR 540m) for the full year 2021. Following the revision of billings growth, the adjusted EBITDA margin for the current business year is consequently also adjusted and is now expected to be at 44% to 46% (prior: 49% to 51%).
All information contained in this release is preliminary and unaudited.
Information and Explanation of the Issuer to this News:
Additional Information to this Release
Conference call today
On the occasion of today's release, the company will hold a conference call today at 4 pm CEST. Dial-in information will be available on ir.teamviewer.com approximately one hour before the call. The full Q3 2021 results will be published on 3 November 2021.
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. All figures contained in this release are preliminary and unaudited.
Alternative performance measures (APMs)
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:
'Net retention rate' or 'NRR' is calculated as annual recurring billings (subscription renewal, 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. (Note: TeamViewer amended the NRR definition with the beginning of FY 2021 to facilitate a direct derivation from reported annual recurring billings.)
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