TeamViewer SE, DE000A2YN900

TeamViewer SE / DE000A2YN900

06.11.2024 - 07:00:06

TeamViewer delivers Revenue growth of 8 % cc yoy and outstanding profitability in Q3 2024

TeamViewer SE / Key word(s): Quarterly / Interim Statement/9 Month figures


06.11.2024 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


GOPPINGEN, Germany, 6 November 2024

Revenue up 7 % (+8 % cc) yoy to €168.7m; continued growth in cc across all regions Continued strong momentum in Enterprise; Revenue up 22 % (+23 % cc) yoy and sequentially advanced growth trend ARR increase of 6 % (+7 % cc) yoy demonstrates sustained underlying growth Adjusted EBITDA up 15 % yoy, very strong Adjusted EBITDA margin of 48 % Significant increase in Net income of +49 % yoy; adjusted basic EPS up 30 % yoy to €0.29 FY 2024 guidance: Revenue guidance range narrowed to between €662m and €668m; Adjusted EBITDA margin raised by 1 pp from at least 43 % to at least 44 %
Oliver Steil, TeamViewer CEO
« In an environment where global economic growth for 2024 is forecast to be barely above 3 %, we are very satisfied that we have successfully sustained our growth trajectory. In the third quarter, we reported revenue growth of 8 % yoy in constant currency. Our Annual Recurring Revenue showed a healthy increase of 7 % yoy in constant currency, which demonstrates sustained underlying growth. We are particularly pleased with our continued strong Enterprise momentum and continuous closing of higher value deals, which led to a 23 % revenue increase yoy in constant currency. In parallel, our maintained cost discipline is driving bottom-line growth, emphasized by an outstanding Adjusted EBITDA margin of 48 % in Q3 and very strong Adjusted EPS growth of 30 % yoy. »

______

Michael Wilkens, TeamViewer CFO
« We delivered a good set of results in the third quarter. On the back of a solid top-line performance, we continued our investments to secure future growth. At the same time, we successfully expanded our Adjusted EBITDA margin by 4 pp yoy in the third quarter, mainly driven by the reduced scope of our partnership with Manchester United and further cost efficiencies. On top of our improved EBITDA, the PPA of TeamViewer’s customer base has been fully amortized in July, which supports our reported net income growth this quarter and beyond. We narrowed our Revenue guidance range for FY 2024 to between €662m and €668m. On the back of a very strong profitability this quarter, we raise our Adjusted EBITDA margin guidance by 1 pp to at least 44 %. In addition, we continue to expect our Levered Free Cash Flow to increase by ~8 % yoy for FY 2024. »
 
Key Figures (consolidated, unaudited)
    Q3 2024   Q3 2023   ? YoY   9M 2024   9M 2023   ? YoY
Sales                        
Revenue (in EUR million)        168.7            158.1       +7 %        494.5            463.6       +7 %
      +8 % cc1       +9 % cc1
Annual Recurring Revenue (ARR) (in EUR million)2         669.3            631.8       +6 %         669.3            631.8       +6 %
      +7 % cc       +7 % cc
Billings (in EUR million)        154.1            149.8       +3 %        486.9            477.2       +2 %
      +4 % cc3       +3 % cc3
Number of subscribers (reporting date)
(in thousands)
           644                626       +3 %            644                626       +3 %
Net Retention Rate (NRR) (on ARR, cc), Enterprise4, 5   99 %   n/a   n/a   99 %   n/a   n/a
Profits and margins                        
Adjusted EBITDA (in EUR million)           81.0               70.3       +15 %        213.6            198.1       +8 %
Adjusted EBITDA margin   48 %   44 %   +4 pp   43 %   43 %   0 pp
EBITDA (in EUR million)           74.1               59.4       +25 %         187.3            166.9       +12 %
EBITDA margin (EBITDA in % of revenue)   44 %   38 %   +6 pp   38 %   36 %   2 pp
EBIT (in EUR million)           65.0               45.3       +44 %        149.7            125.1       +20 %
EBIT margin (EBIT in % of revenue)   39 %   29 %   +10 pp   30 %   27 %             +3 pp
Cash flows                        
Cash flows from operating activities (in EUR million)           48.0               54.5        -12 %         167.1            166.0       +1 %
Cash flows from investing activities (in EUR million)            -2.8                -2.0       +41 %            -9.8             -14.7       -33 %
Levered free cash flow (FCFE)           41.3               45.7       -10 %        142.6            144.4       -1 %
Cash conversion (FCFE/adjusted EBITDA)   51 %   65 %   -14 pp   67 %   73 %   -6 pp
Cash and cash equivalents (in EUR million)           24.5               79.9       -69 %           24.5               79.9       -69 %
Other                        
R&D expenses (in EUR million)          -21.3              -19.6       +9 %         -60.0             -58.4       +3 %
Employees, full-time equivalents (FTEs) (reporting date)        1,545            1,433       +8 %        1,545            1,433       +8 %
Earnings per share – basic (in EUR)           0.25               0.16       +60 %           0.55               0.48       +13 %
Adjusted earnings per share – basic (in EUR)           0.29               0.22       +30 %           0.75               0.66       +14 %
1 Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve Months Billings.
2 Annual Recurring Revenue calculation logic changed from previous quarters. Previous year’s numbers have been re-calculated based on the new logic. Previously reported Annual Recurring Revenue (ARR) (in EUR m) based on Billings was €632.5m in Q3 2023 and €672.6m in Q3 2024, 6 % yoy growth.
3 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.
4 Net Retention Rate on Group level is now calculated on Annual Recurring Revenue in constant currency. Group NRR (on ARR, cc) in Q3 2024 was 98 %. Previously reported Group NRR based on Billings was 107 % in Q3 2023 and 101 % in Q3 2024, which amounts to a delta of -6 pp yoy.
5 Enterprise Net Retention Rate is now calculated on Annual Recurring Revenue in constant currency. Previous year’s numbers have been re-calculated based on the new logic. Previously reported ENT NRR based on Billings was 102 % in Q3 2023 and 120 % in Q3 2024, which amounts to a delta of 18 pp yoy.
 
Business Highlights
In the third quarter, TeamViewer’s enterprise business continued to show momentum with revenue growth of 22 % year-over-year (23 % cc), ARR growth of 19 % yoy (+20 % cc)  and billings growth of 30 % yoy (+32 % cc). The company’s ability to sell into larger organizations is reflected in new customer wins with high deal volumes across both IT and OT use cases, as well as the expansion of existing relationships through significant upsells. This positive momentum was particularly present in the EMEA region, followed by the AMERICAS.

For example, Coop, one of Switzerland’s largest retail and wholesale companies, uses both Tensor and Frontline to remotely solve IT issues for its employees, as well as to digitalize its warehouse picking processes. YPF, a leading South American oil & gas corporation, is using TeamViewer Frontline to streamline complex inspection and maintenance processes of its machinery and equipment. Furthermore, a well-known European luxury brand opted for TeamViewer to improve global retail operations and enable an innovative digitalized in-store customer experience.

In October, TeamViewer announced the launch of its AI-powered “Session Insights” for remote connectivity customers, offering IT teams powerful tools to boost efficiency and streamline operations. The feature automates documentation of remote support sessions and provides an overview of all cases, empowering IT service desks to resolve issues faster, improve customer satisfaction, and scale expertise, even with limited staff. 

In September, TeamViewer’s Supervisory Board extended the contract of Michael Wilkens as the company’s Chief Financial Officer and Member of the Management Board by three years. At the same time, Chief Commercial Officer Peter Turner has decided, after alignment with the Supervisory Board,  not to extend his contract as member of the company’s Management Board beyond its expiry in July 2025.

In recent months, TeamViewer achieved multiple recognizable ESG results. Firstly, the company maintained the AAA rating in the 2024 MSCI ESG Rating and improved its ISS ESG rating. In addition, TeamViewer strengthened its efforts towards net-zero and announced a partnership with carbon removal provider neustark that will result in the removal of 1,200 residual tons of CO2 over the course of six years. In July, TeamViewer finalized its cyber robotics competition that introduced 750 kids from the US and Germany to the basics of coding. And finally, TeamViewer achieved the privacy certification from TÜV Informationstechnik GmbH for its commitment to data protection.
 
Introducing Annual Recurring Revenue (ARR)
As a leading global SaaS company, TeamViewer follows best practices in its reported numbers to provide an optimal understanding of its business. Therefore, TeamViewer introduced changes to two of its main SaaS-related secondary performance indicators as of Q3 2024, Annual Recurring Revenue (ARR) and Net retention rate (NRR). Annual Recurring Revenue (ARR) is a standard performance metric used in the Software-as-a-Service industry, facilitating better growth assessment and peer comparison. Net retention rate (NRR) is related to the Annual Recurring Revenue. ARR is reported at the Total (Group) level and at the SMB and Enterprise level.

Annual Recurring Revenue (ARR) is now calculated as the annualized revenue of active subscription contracts as at the end of the reporting period. This excludes non-recurring revenues (e.g. one-time fees, hardware revenues). ARR is calculated by annualizing the Daily Subscription Revenue at the last calendar day of the respective period. ARR growth rate yoy in constant currency (cc) eliminates foreign currency effects by using prior-year exchange rates for all recurring revenue invoiced in the last twelve months.

With the changed logic of ARR, Net Retention Rate (NRR) (on ARR, cc) is now calculated as: Retained ARR at the end of the reporting period divided by the total ARR at the end of the prior year reporting period. NRR (on ARR) will be provided ‘in constant currency’. Retained ARR is defined as the ARR  at the end of the reporting period from customers that have been already a customer at the end of the prior year reporting period.
 
Revenue and Billings Development
In Q3 2024, TeamViewer’s Revenue increased by 7 % yoy to €168.7m. FX headwinds from 2023 Billings had a combined negative impact of €2.4m in the quarter. Total Revenue increased by 8 % yoy in constant currency.

Billings for the quarter reached €154.1m (+3 % / +4 % cc yoy). In a still very challenging and uncertain macroeconomic environment, growth was mainly driven by a continued strong momentum in Enterprise. Billings from new subscribers were broadly flat yoy. Additionally, demand from customers for long term contracts remained solid in the quarter, which resulted in an increase of Billings from multi-year deals with upfront payment by €1.5m yoy, and reached a total of €17.4m (Q3 2023: €15.9m).

Total ARR amounted to €669.3m in Q3 2024, an increase of 6 % (+7 % cc) yoy, which underscores TeamViewer’s continued healthy fundamental growth.        
 
SMB and Enterprise Development
Revenue and Billings by customer
in EUR million   Q3 2024   Q3 2023   ? YoY   9M 2024   9M 2023   ? YoY
SMB                        
Revenue               131.6               127.6   +3 %               388.6               374.8    +4 %
      +5 % cc1       +6 % cc1
Annual Recurring Revenue (ARR)               530.1               514.5    +3 %               530.1               514.5    +3 %
      +4 % cc       +4 % cc
Billings               118.8               122.8   -3 %               381.9               387.4    -1 %
      -2 % cc2       -1 % cc2
Enterprise                        
Revenue                  37.1                  30.5    +22 %               105.9                  88.8   +19 %
      +23 % cc1       +21 % cc1
Annual Recurring Revenue (ARR)               139.3               117.2   +19 %               139.3               117.2   +19 %
      +20 % cc       +20 % cc
Billings                  35.3                   27.1   +30 %               105.0                  89.8   +17 %
      +32 % cc2       +18 % cc2
Total Revenue               168.7               158.1   +7 %               494.5               463.6   +7 %
      +8 % cc1       +9 % cc1
Total ARR               669.3               631.8   +6 %               669.3               631.8   +6 %
      +7 % cc       +7 % cc
Total Billings               154.1               149.8   +3 %               486.9               477.2   +2 %
      +4 % cc2       +3 % cc2
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 Q3 2024, Enterprise Revenue further improved its continuous growth trend and amounted to €37.1m, which corresponds to a year-over-year increase of 22 % (23 % cc). Enterprise ARR also strongly increased by 19 % (+20 % cc) yoy to €139.3m, and thereby confirms the sustainability of the strong Enterprise fundamentals. Enterprise NRR (on ARR, cc) reached a solid 99 % in the quarter, broadly similar as in Q2 2024 with an Enterprise NRR (on ARR, cc) of 99 %.1

Enterprise Billings again showed a very strong momentum in the quarter, despite ongoing macroeconomic uncertainties. The meaningful 30 % yoy growth (+32 % cc) in Enterprise Billings was driven by new customer acquisitions, an expanding customer base, and larger deal sizes. 

Enterprise (ARR view) exhibited the highest growth in the highest value range (>EUR 200k ARR)  with an increase of 30 % cc yoy in Q3 2024. The Enterprise customer base further expanded by 11 % yoy, and reached a total of 4,494.

SMB Revenue was €131.6m in Q3 2024, up 3 % (+5 % cc) yoy, broadly in line with the yoy growth trend observed in the previous quarter. SMB ARR showed a solid growth of 3 % (+4 % cc) yoy, reaching €530.1m, with a continued strong subscriber base of 639k, up 3 % yoy. 

SMB Billings were €118.8m in the quarter, down 3 % (-2 % cc) yoy. This can largely be attributed to the challenging macroeconomic environment, which had a particular impact on the SMB business, where on the lower end customer loyalty is generally weaker than in higher-priced segments. The prior-year quarter also benefited from higher price increases and a larger number of multi-year deals with upfront payment.

1 Previously reported Enterprise NRR based on Billings was 102% in Q3 2023 and 120% in Q3 2024, which amounts to a delta of 18 pp yoy.
 
Regional Development
Revenue and Billings by region
in EUR million   Q3 2024   Q3 2023   ? YoY   9M 2024   9M 2023   ? YoY
EMEA                        
Revenue                    92.5                   84.4   +10 %                 270.3                 245.6   +10 %
      +9 % cc1       +10 % cc1
Billings                    77.5                    73.7   +5 %                 258.1                 253.7   +2 %
      +5 % cc2       +1 % cc2
AMERICAS                        
Revenue                    58.1                    55.7   +4 %                 170.5                 164.6   +4 %
      +7 % cc1       +7 % cc1
Billings                    58.9                    57.4   +3 %                 171.9                 164.1   +5 %
      +5 % cc2       +6 % cc2
APAC                        
Revenue                   18.0                    18.1   0 %                    53.6                    53.4   +1 %
      +5 % cc1       +8 % cc1
Billings                    17.7                    18.8   -6 %                    56.9                    59.4   -4 %
      -4 % cc2       0 % cc2
Total Revenue                 168.7                 158.1   +7 %                 494.5                 463.6   +7 %
      +8 % cc1       +9 % cc1
Total Billings                 154.1                 149.8   +3 %                 486.9                 477.2   +2 %
      +4 % cc2       +3 % cc2
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 Q3 2024, all regions delivered year-over-year growth in Revenue, measured in constant currency.  Whilst operating in a difficult macro environment across all its regions, with prolonged sales cycles in a usually slower summer period, TeamViewer still delivered a solid total Billings growth of 4 % yoy in cc. EMEA was the strongest region in the quarter, whilst AMERICAS and APAC also experienced some FX headwinds.

In EMEA, Revenue was €92.5m, up 10 % (+9 % cc) yoy, while Billings reached €77.5m, up 5 % (+5 % cc) yoy, in particular due to a continued strong Enterprise momentum. AMERICAS Revenue reached €58.1m, up 4 % (+7 % cc) yoy, while Billings reached €58.9m, up 3 % (+5 % cc) yoy, which can be mainly attributed to the Enterprise performance. APAC Revenue continued to face considerable FX headwinds, which resulted in a flat yoy development (+5 % cc). Billings came in at -6 % (-4 % cc) yoy, compared against a strong prior-year quarter that included a larger multi year deal contract.
 
Earnings Development
TeamViewer delivered outstanding profitability in Q3 2024 with maintained cost discipline whilst continuing to invest in innovation and Enterprise growth. Profitability benefited significantly from the scaled-back partnership with Manchester United, which took effect after 30 June 2024. Partly due to this, total recurring cost remained stable yoy at €87.7m. On the back of a solid revenue growth and flat recurring costs yoy, Adjusted EBITDA increased by 15 % yoy to €81.0m in the quarter. Adjusted EBITDA margin reached an outstanding 48 % in Q3 2024.

Net income amounted to €39.5m in Q3 2024, which significantly increased by 49 % yoy. This growth was partially driven by the increase in EBITDA as well as a €5.3m lower PPA yoy. This PPA related to the acquisition of TeamViewer in 2014 and was fully amortized in July. Post-tax, this positively affected the reported net income by €3.8m in the quarter. Adjusted (basic) EPS increased by 30 % yoy to €0.29 in the quarter. On 2 August 2024, TeamViewer canceled 4 million ordinary shares that had been repurchased through its share buyback program, and were held in treasury. As a result, the share capital has been reduced from 174 million to 170 million ordinary shares outstanding.

Recurring cost (adjusted for non-recurring items and D&A)
in EUR million   Q3 2024   Q3 2023   ? YoY   9M 2024   9M 2023   ? YoY
Cost of Goods Sold (COGS)               -13.4               -12.0   +12 %               -39.9               -33.4   +19 %
Sales               -25.0               -21.1   +18 %                -73.3               -64.5   +14 %
Marketing               -21.6               -32.3   -33 %               -89.3               -98.2   -9 %
R&D               -17.5               -15.5   +13 %               -49.5               -46.3   +7 %
G&A                  -8.8                  -7.6   +16 %               -25.2               -24.0   +5 %
Other1                  -1.4                   0.7   -287 %                  -3.7                    1.1   n/a
Total COGS and OpEx               -87.7               -87.8   0 %            -280.8            -265.4   +6 %
1 incl. other income/expenses and bad debt expenses of EUR 2.8m in Q3 2024 and EUR 1.3m in Q3 2023 / EUR 8.0m in 9M 2024 and EUR 5.2m in 9M 2023.

In Q3 2024, Cost of Goods Sold (COGS) increased by 12 % yoy, mainly driven by deployment costs of Frontline projects. Sales expenses were up 18 % yoy, driven by the new sales talent hired in recent months. Marketing costs decreased by 33 % yoy following the adjustment of the Manchester United partnership for the new season. R&D expenses were up 13 % yoy, which reflects a shift away from external contractors to strengthen internal development teams to support product innovations. G&A expenses increased by 16 % yoy mainly due to a slightly higher FTE count and phasing effects, while Other expenses slightly increased to €1.4m due to higher bad debt expenses.
 
Financial Position
Pre-tax Unlevered Free Cash Flow (pre-tax UFCF) was flat yoy and amounted to €63.2m at the end of Q3 2024. Positive effects from the revised scope of the Manchester United partnership were already recorded in Q2 2024. Levered Free Cash Flow (FCFE) amounted to €41.3m in Q3 2024 (a decrease of 10 % yoy), and €142.6m 9M YTD, broadly flat yoy, fully in line with internal expectations. Cash Conversion (FCFE in relation to Adjusted EBITDA) was at 51 % in Q3 2024.

Cash and cash equivalents were at €24.5m at the end of Q3 2024, down €48.4m year-to-date. This trend mainly reflects TeamViewer’s share buybacks of €120.1m year-to-date (thereof €25.8m in Q3 2024) and a net debt repayment of €65m year-to-date (thereof €35m in Q3 2024).

In total, Net Debt amounted to €444.0m at the end of Q3 2024, which resulted in a Net Leverage Ratio of 1.6x (Net Debt/Adj. EBITDA LTM) for Q3 2024. This shows a further improvement compared to 1.8x as at 31 December 2023.
In July 2024, TeamViewer successfully extended the maturity of its 2022 Syndicated Revolving Credit Facility of €450m in full by further two years, from 2027 to 2029.
 
Outlook
In 9M 2024, TeamViewer delivered Revenue of €494.5m, +7 % (+9 % cc) yoy, and high profitability with an Adjusted EBITDA margin of 43 %.

TeamViewer narrows its Revenue guidance range for FY 2024 to between €662m and €668m, within its originally guided Revenue range3. This Revenue outlook includes FX headwinds from 2023 billings of around €10-11 million on a full year basis. Corrected for these FX headwinds, guided revenue range corresponds therefore to 7-8 % growth on a constant currency basis. 

On the back of better than expected strong profitability in Q3 2024, TeamViewer raises its Adjusted EBITDA margin guidance by 1 pp to at least 44 %. Following the revised scope of the Manchester United partnership, a portion of effective savings will also positively affect margin in Q4 2024.
Guidance 2024
Revenue (IFRS)3   between €662m - €668m¹
    (corresponds to +7 to +8 % cc yoy2)
Adjusted EBITDA margin4   at least 44 %
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.
3 Revenue (IFRS) previously guided “between EUR 660m to 685m (corresponds to +7-11% cc yoy)”
4 Adjusted EBITDA margin previously guided “at least 43 %”
 
###

Webcast
Oliver Steil (CEO) and Michael Wilkens (CFO) will speak at an analyst and investor conference call at 9:00am CET on 6 November 2024 to discuss the Q3 2024 results. The audio webcast can be followed via https://www.webcast-eqs.com/teamviewer-2024-q3. 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
Press                                                                                                               Investor Relations
Martina Dier                                                                                             Bisera Grubesic
Vice President Communications                                             Vice President Investor Relations
E-Mail: press@teamviewer.com                                               E-Mail: ir@teamviewer.com

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: Adjusted EBITDA is defined as operating income (EBIT) according to IFRS, plus depreciation and amortization of tangible and intangible fixed assets (EBITDA), adjusted for certain business transactions (income and expense) defined by the Management Board in agreement with the Supervisory Board. Business transactions to be adjusted relate to share-based compensation schemes and other material special items of the business that are presented separately to show the underlying operating performance of the business. Adjusted EBITDA margin means Adjusted EBITDA as a percentage of revenue. Billings represent the value (net) of goods and services invoiced to customers within a specific period and which constitute a contract as defined by IFRS 15. Retained Billings means recurring Billings (renewals, up- & cross sell) attributable to retained subscribers who were subscribers in the previous twelve-month period. Retained ARR is defined as the ARR  at the end of the reporting period from customers that have been already a customer at the end of the prior year reporting period. New Billings means recurring Billings attributable to new subscribers. Non-recurring Billings means Billings that do not recur, such as professional services and hardware reselling. Net Retention Rate (NRR) (on ARR, cc) is defined as Retained ARR at the end of the reporting period divided by the Total ARR at the end of the prior year reporting period. Annual Recurring Revenue (ARR) is annualized recurring revenue for all active subscriptions at the end of the reporting period. SMB (ARR view) means customers with ARR across all products and services of less than EUR 10,000 at the end of the reporting period. If the threshold is exceeded, the customer will be reallocated. Enterprise (ARR view) means customers with ARR across all products and services of at least EUR 10,000 at the end of the reporting period. Customers who do not reach this threshold will be reallocated. Number of subscribers means the total number of paying subscribers with a valid subscription at the reporting date. SMB customers mean customers with ACV across all products and services of less than EUR 10,000 within the last twelve-month period. If the threshold is exceeded, the customer will be reallocated. Enterprise customers mean customers with ACV across all products and services of at least EUR 10,000 within the last twelve-month period. Customers who do not reach this threshold will be reallocated. Churn (subscriber) is calculated by dividing the number of retained subscribers at the reporting date by the total number of subscribers at the previous year’s reporting date. Average Selling Price (ASP) is calculated by dividing the total SMB / Enterprise Billings of the last twelve months (LTM) by the total number of SMB / Enterprise subscribers at the reporting date. Annual Contract Value (ACV) is used to distinguish different pricing buckets within SMB and Enterprise. The ACV is defined as the annualized value of one SMB / Enterprise contract. Net financial liabilities are defined as financial liabilities (without other financial liabilities) less cash and cash equivalents. Net leverage ratio means the ratio of net financial liabilities to Adjusted EBITDA of the last twelve-month period. 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. Cash Conversion means the percentage share of Levered Free Cash Flows (FCFE) in relation to the Adjusted EBITDA. Adjusted Net Income is the net income adjusted for certain income and expenses. These adjustments are: share-based compensation, amortization related to business combinations, other non-recurring income and expenses and related tax effects. Adjusted basic earnings per share is calculated in line with basic earnings per share, whereby Adjusted Net Income is used as the basis for the calculation instead of the net income.
 
Consolidated Profit & Loss Statement (unaudited)
in EUR thousands   Q3 2024   Q3 2023   9M 2024   9M 2023
Revenue      168,681       158,114       494,451       463,575  
 Cost of Goods Sold (COGS)        (17,392)       (20,751)        (62,890)       (59,580)
Gross profit      151,288       137,363        431,561       403,995  
 Research and development       (21,266)       (19,581)        (59,956)       (58,386)
 Marketing       (22,965)         (33,336)        (92,877)   (101,660) 
 Sales       (28,823)       (23,486)       (84,858)       (78,151) 
 General and administrative       (13,128)       (10,470)        (34,413)       (34,521)
 Bad debt expenses          (2,846)          (1,282)          (8,045)           (5,233)
 Other income                 414             1,402              1,536              5,248 
 Other expenses             2,358            (5,317)          (3,250)          (6,241)
Operating Profit         65,032           45,292      149,696        125,051  
 Finance income                     79                (438)                  676                   806 
 Finance costs           (4,317)          (3,468)       (13,502)       (12,136) 
 Share of profit/(loss) of associates               (814)                       0           (2,909)                        0 
 Foreign currency result                 142           (1,162)           (1,115)           (2,772)
Profit before tax         60,122          40,224        132,846      110,949  
 Income taxes       (20,621)         (13,676)        (44,457)       (27,206) 
Net income         39,501           26,548          88,389          83,743   
 Basic number of shares issued and outstanding       158,431         170,592         161,385         173,527 
Basic earnings per share (in € per share)               0.25                 0.16                 0.55                 0.48 
 Diluted number of shares issued and outstanding       159,737         171,856         162,878         174,286  
Diluted earnings per share (in € per share)               0.25                 0.15                 0.54                 0.48 
 
Consolidated Balance Sheet Total Assets (unaudited)
in EUR thousands   30 September 2024   31 December 2023
Non-current assets        
  Goodwill                                     667,685                                       667,662  
  Intangible assets                                     152,844                                       175,736  
  Property, plant and equipment                                        44,556                                         43,261  
  Financial assets                                            6,952                                          11,866 
  Investments in associates1                                         17,711                                          15,414 
  Other assets                                        22,294                                          19,530 
  Deferred tax assets                                        26,390                                          18,596  
 Total non-current assets                                    938,433                                      952,065  
Current assets        
  Trade receivables                                         12,779                                          21,966  
  Other assets                                        36,805                                          52,366 
  Tax assets                                            3,272                                            2,892  
  Financial assets                                           6,510                                             9,423 
  Cash and cash equivalents                                        24,455                                         72,822  
 Total current assets                                        83,821                                     159,468 
Total assets                                1,022,255                                  1,111,533  
1 Previously shown under financial assets.

Consolidated Balance Sheet Equity and Liabilities (unaudited)
in EUR thousands   30 September 2024   31 December 2023
Equity        
  Issued capital                                    170,000                                      174,000   
  Capital reserve                                        67,878                                       105,234  
  Accumulated losses                                         (6,799)                                      (95,188)
  Hedge reserve                                                   66                                                 929  
  Foreign currency translation reserve                                            1,373                                            1,614  
  Treasury share reserve                                  (160,618)                                   (102,929) 
 Total equity attributable to shareholders of TeamViewer SE                                                          71,900                                                                83,660    
Non-current liabilities        
  Provisions                                                566                                                 389 
  Financial liabilities                                      331,293                                      432,149  
  Deferred revenue                                         39,966                                          41,367 
  Deferred and other liabilities                                           2,096                                             2,486 
  Other financial liabilities                                                325                                                    13 
  Deferred tax liabilities                                        46,138                                          39,693  
  Total non-current liabilities                                    420,383                                     516,098 
Current liabilities        
  Provisions                                            9,552                                            9,503 
  Financial liabilities                                      137,127                                          97,274  
  Trade payables                                         11,772                                            8,016  
  Deferred revenue                                     315,066                                       314,797  
  Deferred and other liabilities                                         52,155                                          73,067  
  Other financial liabilities                                            2,277                                            8,125  
  Tax liabilities                                           2,022                                                  993 
  Total current liabilities                                     529,972                                       511,775  
 Total liabilities                                    950,355                                  1,027,873   
Total equity and liabilities                                1,022,255                                  1,111,533  

 
Consolidated Cash Flow Statement (unaudited)
in EUR thousands   Q3 2024   Q3 2023   9M 2024   9M 2023
Profit before tax          60,122           40,224         132,846       110,949  
Depreciation, amortization and impairment of non-current assets             9,061           14,086            37,644           41,830 
Increase/(decrease) in provisions                  (73)             1,087                   226               1,110  
Non-operational foreign exchange (gains)/losses                 114                (185)                  (14)                     65 
Expenses for equity settled share-based compensation             5,120            (1,112)          15,733            14,287  
Net financial costs             5,051               3,906            15,736            11,330 
Change in deferred revenue       (17,806)           (9,877)           (1,132)         21,204 
Changes in other net working capital and other             4,755           19,239            10,837            (4,103)
Income taxes paid        (18,395)       (12,900)       (44,802)       (30,677)
Cash flows from operating activities         47,950           54,467       167,074         165,996  
Payments for tangible and intangible assets           (1,255)          (1,714)          (4,230)          (4,582)
Payments for financial assets           (1,512)                       0            (5,559)          (2,038)
Payments for acquisitions                       0                (250)                       0           (8,073)
Cash flows from investing activities          (2,767)         (1,964)         (9,790)      (14,693)
Repayments of borrowings      (39,000)                        0    (259,000)    (100,000) 
Proceeds from borrowings            4,000                         0      194,000                         0 
Payments for the capital element of lease liabilities          (1,921)           (2,273)           (7,266)           (5,165)
Interest paid on borrowings and lease liabilities          (3,502)          (4,812)        (12,935)       (11,872)
Purchase of treasury shares        (25,833)        (37,774)    (120,140)    (115,211)
Cash flows from financing activities      (66,256)      (44,858)   (205,341)   (232,248)
Net change in cash and cash equivalents      (21,074)            7,644        (48,056)      (80,945)
Net foreign exchange rate difference               (363)                 354                (310)               (161)
Cash and cash equivalents at beginning of period          45,892            71,892            72,822         160,997  
Cash and cash equivalents at end of period         24,455          79,891           24,455          79,891  
 
 


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Language: English
Company: TeamViewer SE
Bahnhofsplatz 2
73033 Göppingen
Germany
Phone: +49 7161 60692 50
Fax: +49 7161 60692 335
E-mail: ir@teamviewer.com
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: 2023217

 
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