DGAP-News: TeamViewer AG: TeamViewer AG delivers strong Q3 growth and high profitability - guidance increased
DGAP-News: TeamViewer AG
/ Key word(s): Quarterly / Interim Statement
TeamViewer AG delivers strong Q3 growth and high profitability - guidance increased - Q3 billings up 29% yoy (+34% cc) to EUR 106.4m and 9M billings of EUR 332.1m (+48% yoy; +50% cc) - Q3 Adjusted EBITDA of EUR 58.2m (+26% yoy; +34% cc) and 9M Adjusted EBITDA of EUR 189.3m (+58% yoy; +61% cc) - Q3 first quarter in a normalized market environment after COVID-19 pandemic-related extra demand - Number of subscribers increased to 567 thousand as of 30 September 2020 - TeamViewer has been installed on more than 2.5 billion devices until today - Ubimax integration progressing well - Billings guidance for 2020 increased to EUR 450-455m, excluding Ubimax contribution Goppingen, 10 November 2020: TeamViewer continued to deliver strong growth and high profitability in the third quarter, driven by the company's broad solutions portfolio and leading position in attractive markets. Q3 billings grew by 29% year-over-year (yoy) and by 34% at constant currencies (cc) to EUR 106.4m. This resulted in billings of EUR 332.1m in the first nine months of 2020, up 48% yoy (+50% cc). Q3 Adjusted EBITDA was up 26% yoy (+34% cc) to EUR 58.2m corresponding to an Adjusted EBITDA margin of 55% (Q3 2019: 56%). 9M Adjusted EBITDA grew by 58% yoy (+61% cc) to EUR 189.3m resulting in an Adjusted EBITDA margin of 57%, up 4 percentage points. Oliver Steil, CEO of TeamViewer, said: "In our first year as a listed company we have over-delivered on our growth plan. Until today, our software has been installed on more than 2.5 billion devices around the globe which shows our leadership in connectivity. We have significantly broadened our expertise and solutions portfolio with the successful acquisition of Ubimax. Our combined offering provides a strong platform for future growth and we see a huge market potential in particular in the industrial sector driven by Internet of Things and Augmented Reality." Stefan Gaiser, CFO of TeamViewer, said: "Our substantial investments in recent years are a key factor for our success. We are very pleased with our performance in Q3 which proves our long-term growth opportunities in a normalized market environment after the pandemic-related extra demand. The results underline our industry-leading financial profile of strong billings growth combined with high profitability. Also, thanks to a promising start into Q4, particularly in the enterprise segment, we have raised our full-year billings guidance and are very confident for 2021."
In July 2020, TeamViewer announced the acquisition of Ubimax to create the global leader in connectivity solutions and workplace digitalization technology. The transaction was closed in August 2020. The integration of Ubimax's products into the TeamViewer portfolio is progressing well with coordinated cross-selling opportunities already starting to materialize. With Ubimax, the size of the Total Addressable Market (TAM) increases by EUR 10 billion to EUR 40 billion in 2023. The combination of the product portfolios also accelerates the TAM's annual growth rate from 24% to 27% mainly driven by the strong expansion of the Augmented Reality market. With the integration of TeamViewer into Microsoft Teams, allowing users to launch TeamViewer remote access and AR support connections from within the Microsoft Teams environment, the company further expands its use case scenarios and increases its brand awareness among more than 115m daily Microsoft Teams users. The increasing maturity of the group's enterprise offering including Tensor, Frontline and IoT solutions is reflected in a now combined Go-to-Market approach for those products. As a result of TeamViewer's growth initiative in this segment, the enterprise customer base has grown by 181% to 1,658 subscribers over the last twelve months (30 September 2019: 590). The number of total subscribers increased to 567thousand (30 September 2019: 432 thousand) while the net retention rate of 104% led to a further expansion of more predictable annual recurring billings from retained subscribers. In the first nine months, TeamViewer continued to invest significantly across all functions with a focus on Sales and R&D. The group has added about 370 employees (full-time equivalents) since the start of the year, thereof more than 120 in software engineering and nearly 150 across all sales functions. Despite those significant investments TeamViewer was able to further expand its Adjusted EBITDA margin. In addition, TeamViewer signed the UN Global Compact initiative and has received favorable ESG ratings from various independent agencies. These include the "AA" ESG rating from the agency MSCI, awarding TeamViewer as a leader in ESG in the Software & IT Services sector.
1) LTM, 30 September
All regions have contributed to the group's strong billings growth. APAC's Q3 billings grew the fastest by 56% cc delivering EUR 16.1m, due to a very strong performance in Japan and China. EMEA remained the largest of the three regions with Q3 billings of EUR 48.0m, up 34% cc - the strong performance was very well balanced across EMEA, including key markets like Germany, UK and France. The AMERICAS showed particularly strong traction in enterprise, delivering EUR 42.3m of billings in Q3. Adjusted for currency effects considering the devaluation of the US-Dollar as well as other currencies in the region, billings grew by 27%. Revenue (IFRS) exceeded billings in the third quarter (EUR 117.2m) and in the first nine months (EUR 334.6m) due to the recognition of deferred perpetual license revenue during the first nine months as well as subscription deferred revenue releases in the third quarter. TeamViewer's high profitability continues to translate into very strong cash generation. Net cash from operating activities grew by 92% yoy in the first nine months to EUR 160.4m, while levered free cash flow increased by 142% to EUR 109.4m. Despite the Ubimax acquisition net leverage remained low at 2.0 times Adjusted EBITDA (30 June 2020: 1.9x).
Following the very strong performance in the first nine months and a promising start into the fourth quarter, particularly in the enterprise segment, TeamViewer has increased its full-year billings guidance to EUR 450-455m from previous estimates of around EUR 450m. This does not include the contributions from the Ubimax business and corresponds to 38.5 - 40.0% billings growth yoy (40.5 - 42.0% cc). TeamViewer still expects revenue of at least EUR 450m, an Adjusted EBITDA margin of around 56% and a capital expenditure of EUR 25 to 30m. In 2021 and beyond, TeamViewer continues to benefit from global megatrends around digitalization and sustainability.
Oliver Steil (CEO) and Stefan Gaiser (CFO) will host an analyst and investor conference call at 14:00 CET on 10 November 2020 to discuss the results. The audio webcast can be followed via https://webcasts.eqs.com/teamviewer20201110. A replay will be available on the Investor Relations website under https://ir.teamviewer.com/websites/teamviewer/English/1/investor-relations.html. The accompanying presentation can be also downloaded there.
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 500,000 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 or 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 1,200 people globally. In 2019, TeamViewer achieved billings of around EUR 325m. 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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Goppingen, 10 November 2020
Alternative performance measures (APMs) TeamViewer has defined each of the following APMs as follows:
TeamViewer has defined these operational metrics and other financial measures for information purposes as follows: The use by TeamViewer AG of an MSCI ESG RESEARCH LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of TeamViewer AG by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or services of MSCI.
Consolidated Balance Sheet
Consolidated Balance Sheet (cont'd)
Consolidated Cash Flow Statement
10.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | TeamViewer AG |
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: | 1146796 |
End of News | DGAP News Service |
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1146796 10.11.2020
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