DGAP-News: TeamViewer AG: TeamViewer confirms preliminary Q3/9M results with healthy and profitable billings growth

2021. november 03., szerda, 07:30







DGAP-News: TeamViewer AG


/ Key word(s): Quarterly / Interim Statement






TeamViewer AG: TeamViewer confirms preliminary Q3/9M results with healthy and profitable billings growth








03.11.2021 / 07:30




The issuer is solely responsible for the content of this announcement.




GOPPINGEN, GERMANY, 3 November 2021



TeamViewer confirms preliminary Q3/9M results with healthy and profitable billings growth



  • Billings growth at constant currencies of 18% in Q3 and 21% in 9M

  • Adjusted EBITDA Margin of 34% in Q3 and 48% in 9M, including planned brand investments

  • Growth to 628,000 subscribers, lower churn rate and higher NRR

  • Enterprise business accelerated its growth sequentially, up by 75% to EUR 77.8m billings on LTM basis, now representing 15% of total billings

  • Major partnerships with SAP and Google Cloud to drive Augmented Reality enterprise business

  • Strong financial profile with net leverage stable at 1.5x Adjusted EBITDA

  • Full-year guidance confirmed



Key Figures




















































































EUR m, unless otherwise stated Q3 21 Q3 20 Δ Δ cc1 9M 21 9M 20 Δ Δ cc1
Billings (non-IFRS) 125.8 106.4 +18% +18% 393.9 332.1 19% 21%
Adj. EBITDA (non-IFRS) 42.3 58.2 -27%   189.3 189.3 +0%  
Adj. EBITDA Margin (%) 33.6% 54.7% -21pp   48.1% 57.0% -9pp  
Revenue (IFRS) 127.7 117.2 +9%   368.8 334.6 +10%  
Revenue from subscription model (non-IFRS) 127.4 108.1 +18%   366.3 294.9 +24%  
Levered Free Cash Flow 32.5 29.7 +9%   89.8 109.4 -18%  
Subscribers (thousand, 30 Sept.) 628 567 +11%          
Employees (FTE, 30 Sept.) 1,506 1,213 +24%          

1) At constant currency



 



«We are clearly coming out of a challenging quarter. While billings growth and profit remain very attractive, we are not satisfied with those results. We will address this by reconfiguring some of our growth initiatives and our cost structure, which we will present in more detail at our Capital Markets Day. TeamViewer is well positioned to capitalize on global megatrends with strong positions in key growth markets and a broadened solutions portfolio combined with our compelling financial profile. The entire leadership team is fully convinced of the long-term growth prospects.»



_______



Oliver Steil, TeamViewer CEO


 



«We are pleased to finally see a normalization of the business activity post COVID effects. Our profitability continues to be one of the highest in the industry, our cash position is consistently strong and the leverage ratio low. The improvement of our Net Retention Rate and the increase of the average billings per customer reflect a positive momentum. This together with the steps we are taking to re-adjust TeamViewer"s growth levers make us confident that we will deliver on our short- and mid-term ambitions.»

_______



Stefan Gaiser, TeamViewer CFO



 



Business Update



TeamViewer has confirmed its preliminary Q3 results from the beginning of October. The company grew third quarter billings by 18% (18 cc1) to EUR 125.8m compared to the same period last year and after 15% billings growth in Q2 2021. TeamViewer"s first nine months billings in 2021 grew by 18% and 21% cc to EUR 393.9m compared to previous year"s 9M period. TeamViewer thereby achieved to grow its billings by more than 75% within two years (9M 2019: EUR 224.3m). Adjusted EBITDA decreased to EUR 42.3m (Q3 2020: EUR 58.2m) due to the already communicated billings shortfall and significant planned investments in brand in Q3, ultimately resulting in an Adjusted EBITDA margin of 34% (Q3 2020: 55%).



TeamViewer increased its subscriber base by 11% year-over-year to 628,000 at quarter end. The enterprise business continued to grow very strongly by 75% on a last twelve-month (LTM) basis to EUR 77.8m, thereby accelerating its growth sequentially (Q2 2021: +66% LTM). Within the enterprise business, the share of contracts with value >EUR 50k moved from 34% in Q3 2020 to 48%, reflecting successful up- and cross-selling. Total subscriber churn improved from 15.7% in Q3 2020 to 14.6% in Q3 2021.
1 At constant currencies

 



Broadened Solutions Portfolio to Attract Customers Across All Verticals



TeamViewer successfully broadened its solutions portfolio through strategic acquisitions and R&D investments in existing and new products. These efforts enable TeamViewer to further drive digitalization along the entire value chain and continue to attract new high-profile customers across all verticals such as global leading B2B coffee machine manufacturer Gruppo Cimbali and major Nordics telecom operator Tele2. In addition, TeamViewer won the largest Augmented Reality (AR) deal in the company"s history to help one of the major U.S. car manufacturers in digitalizing its after-sales workflows and field service management using TeamViewer"s frontline AR solutions. With the launch of TeamViewer Classroom, the company entered the promising sector of digital education with a fully GDPR-compliant online teaching solution dedicated to the needs of educational institutions.



Strategic Industry and Tech Partnerships to Address Growing Enterprise Demand



Recently, TeamViewer entered a strategic partnership with Google Cloud to bring its AR solutions to the Google Cloud platform. The first jointly developed solution is a hands-free order picking application that leverages Google Glass Enterprise Edition 2 equipped with TeamViewer"s vision picking software from the Frontline AR suite. Through this partnership, TeamViewer and Google Cloud are co-developing and co-marketing enterprise AR solutions to better meet customer needs. The partnership is aimed to be extended to improve manufacturing, logistics, and supply chain processes within other industries. Moreover, TeamViewer Frontline was successfully certified as an SAP Endorsed App and is now available on the SAP(R) Store. Joint sales activities have been started, too. Both partnerships prove that TeamViewer"s technology is highly relevant to complex use cases in the enterprise sector and plays a major role in the global tech ecosystem.



Financial Overview



TeamViewer"s billings of EUR 125.8m in the third quarter and EUR 393.9m in the first nine months represent 18% and 21% cc growth compared against the respective prior year periods, which saw significant extra demand following the outbreak of the pandemic especially in the first six months. The Net Retention Rate improved significantly to 99% in Q3 after the decline in Q2 2021 (88%) due to post-COVID lower renewal values. At the end of September 2021, NRR stood at 96% on a LTM basis (98% cc).



Revenue from the subscription business model, which is now representing 99% of total revenues, increased by 18% to EUR 127.4m in the third quarter and by 24% to EUR 366.3m in the first nine months. However, revenue from discontinued perpetual licenses decreased by EUR 8.9m compared to the prior-year period to EUR 0.2m for Q3 and by EUR 37.2m to EUR 2.5m for the nine months-period. This depressed overall revenue growth to 9% year-over-year in Q3 2021 and 10% in the first nine months of the year. This effect will largely disappear by the end of Q4 2021.



TeamViewer"s most mature market, EMEA, showed strong third quarter billings growth of 25% (24% cc), billings in the Americas grew by 17% (17% cc). APAC billings were below expectations with EUR 16.1m.





Billings and Revenue per Region




















































































EUR m Q3 21 Q3 20 Δ Δ cc1 9M 21 9M 20 Δ Δ cc1
Billings (non-IFRS) 125.8 106.4 18% 18% 393.9 332.1 19% 21%
EMEA 60.0 48.0 25% 24% 210.6 172.9 22% 22%
AMERICAS 49.6 42.3 17% 17% 133.0 113.3 17% 23%
APAC 16.1 16.1 0% 0% 50.3 46.0 9% 11%
Revenue (IFRS) 127.7 117.2 9%   368.8 334.6 10%  
EMEA 69.0 63.7 8%   197.6 183.2 8%  
AMERICAS 43.4 38.0 14%   125.6 108.5 16%  
APAC 15.2 15.5 -2%   45.6 43.0 6%  
1) At constant currency


 



The Adjusted EBITDA stood at EUR 42.3m in the third quarter and EUR 189.3m in the first nine months, corresponding to an Adjusted EBITDA margin of 34% and 48%, respectively. The marked decline in the third quarter (Q3 2020: Adjusted EBITDA margin of 55%) was mainly driven by brand investments compared to the same period of the previous year. This investment combined with the lower-than-expected billings growth and the effect of the discontinued perpetual licence model revenues resulted in a decrease of operating profit (IFRS) at EUR 18.3m (Q3 2020: EUR 43.8m). Net profit was at EUR 3.7m (Q3 2020: EUR 31.6m) in line with the development of the operating profit.



Levered free cash flow in Q3 2021 amounted to EUR 32.5m (Q3 2020: EUR 29.8m) and benefitted from strong cash conversion as well as significantly lower capex and interest payments. For the first nine months, levered free cash flow decreased by 18% to EUR 89.8m. Main drivers were planned payments for marketing partnerships and higher tax payments. During the third quarter 2021, cash and cash equivalents increased by EUR 36.9m to EUR 502.5m. The net leverage ratio was at 1.5x Adjusted EBITDA.



 



Outlook



TeamViewer confirms the outlook provided together with the pre-release of Q3 2021 financials on October 6 this year. Full year 2021 billings are expected in a range between EUR 535m to EUR 555m and revenue between EUR 495m to EUR 505m.



This assumes a US Dollar exchange rate of 1.20 per EUR and broadly stable other currencies. The adjusted EBITDA margin for the current business year is expected to be at 44% to 46%.




Additional information



This Quarterly Statement and all information therein are unaudited.



 



Webcast



Senior management will host an analyst and investor conference call at 9:00 CET on 3 November 2021 which will be webcast live at https://www.webcast-eqs.com/teamviewer20211103. A replay as well as the accompanying presentation will be available on ir.teamviewer.com.





###




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.



 



Contact





Press TeamViewer

Martina Dier


Director, Communications

Phone: +49 (0)7161 97200 10

E-Mail: press@teamviewer.com 
Investor Relations TeamViewer

Daniel Fard-Yazdani


Head of Investor Relations

Phone: +49 (0) 7161 60692 3713

E-Mail: ir@teamviewer.com
 


 



Financial Calendar





Capital Markets Day 10 November 2021
 


 



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.



 



Consolidated Profit & Loss Statement



























































































































€ thousand Q3 2021 Q3 2020 9M 2021 9M 2020
Revenue 127,684 117,197 368,845 334,644
Cost of sales (16,702) (16,352) (53,656) (46,637)
Gross profit 110,982 100,845 315,189 288,006
Other income 127 1,504 2,187 2,025
Research and development (14,873) (12,067) (44,870) (31,188)
Sales (24,570) (19,145) (75,372) (52,612)
Marketing (36,287) (9,484) (67,589) (27,218)
General and administrative (11,932) (15,735) (38,478) (42,335)
Other expenses (764) 62 (2,627) (230)
Bad debt expenses (4,354) (2,228) (12,306) (10,751)
Operating profit 18,328 43,752 76,135 125,699
Finance income (134) 2,752 399 2,902
Finance costs (4,117) (4,820) (13,972) (18,326)
Foreign currency income 5,109 18,859 12,366 28,208
Foreign currency costs (8,160) (6,106) (24,367) (14,353)
Profit before taxation 11,026 54,437 50,562 124,130
Income taxes (7,340) (22,812) (28,952) (50,042)
Profit/(loss) for the period 3,685 31,625 21,610 74,088
         
Basic number of shares issued and outstanding 200,159,088 200,000,000 200,053,612 200,000,000
Earnings per share (in € per share) 0.02 0.16 0.11 0.37
Diluted number of shares issued and outstanding 200,476,623 200,017,907 200,588,744 200,006,018
Diluted earnings per share (in € per share) 0.02 0.16 0.11 0.37
 



Consolidated Balance Sheet






















































€ thousand 30 September 2021 31 December 2020
Non-current assets    
Goodwill 667,073 646,793
Intangible assets 256,839 255,330
Property, plant and equipment 44,225 40,469
Financial assets 4,480 4,516
Other assets 1,135 857
Deferred tax assets 276 159
Total non-current assets 974,029 948,124
Current assets    
Trade receivables 11,245 19,667
Other assets 31,880 7,594
Tax assets 3,890 52
Financial assets 189 4,456
Cash and cash equivalents 502,491 83,531
Total current assets 549,694 115,301
Total assets 1,523,723 1,063,425
 


 



Consolidated Balance Sheet (continued)

















































































€ thousand 30 September 2021 31 December 2020
Equity  
Issued capital 201,071 201,071
Capital reserve 407,362 366,898
(Accumulated losses)/retained earnings (305,244) (326,854)
Hedge reserve (58) (61)
Foreign currency translation reserve 693 (343)
Total equity attributable to shareholders of TeamViewer AG 303,824 240,711
Non-current liabilities
Provisions 378 433
Financial liabilities 858,825 440,153
Deferred revenue 1,921 361
Deferred and other liabilities 3,010 1,614
Other financial liabilities 14,734 0
Deferred tax liabilities 29,671 29,186
Total non-current liabilities 908,539 471,747
Current liabilities    
Provisions 2,146 2,225
Financial liabilities 33,764 82,099
Trade payables 8,519 8,304
Deferred revenue 233,454 214,811
Deferred and other liabilities 30,678 39,120
Other financial liabilities 2,557 29
Tax liabilities 241 4,378
Total current liabilities 311,360 350,966
Total liabilities 1,219,899 822,714
Total equity and liabilities 1,523,723 1,063,425
 


 



Consolidated Cash Flow Statement



















































€ thousand 9M 2021 9M 2020
Cash flows from operating activities    
Profit before taxation 50,562 124,130
Depreciation, amortisation and impairment of non-current assets 37,661 29,641
Increase/(decrease) in provisions (134) (137)
Non-operational foreign exchange (gains)/losses 13,739 (17,342)
Expenses for equity-settled share-based compensation 40,464 33,193
Net financial costs 13,573 15,424
Change in deferred revenue 20,203 (5,116)
Changes in other net working capital and other (18,632) 5,271
Income taxes paid (39,879) (24,707)
Cash flows from operating activities 117,558 160,357
Cash flows from investing activities    
Capital expenditure for property, plant and equipment and intangible assets (12,098) (22,808)
Payments for acquisitions (23,383) (84,053)
Cash flows from investing activities (35,481) (106,862)
 


 



Consolidated Cash Flow Statement (continued)





































€ thousand 9M 2021 9M 2020
Cash flows from financing activities
Repayments of borrowings (52,730) (38,987)
Proceeds from borrowings 400,000 0
Payments for the capital element of lease liabilities (4,647) (3,358)
Interest paid for borrowings and lease liabilities (11,054) (24,837)
Cash flows from financing activities 331,569 (67,182)
Net change in cash and cash equivalents 413,647 (13,687)
Net foreign exchange rate difference 6,021 (4,614)
Net change from cash risk provisioning (707) 117
Cash and cash equivalents at beginning of period 83,531 71,153
Cash and cash equivalents at end of period 502,491 52,969














03.11.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de





























Language: English
Company: TeamViewer AG

Bahnhofsplatz 2

73033 Göppingen

Germany
Phone: +49 7161 97200 81
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: 1245633





 
End of News DGAP News Service





1245633  03.11.2021 



fncls.ssp?fn=show_t_gif&application_id=1245633&application_name=news&site_id=geo_holding_tug
Tilos a hír bármilyen adatbázisba történő mentése vagy annak továbbítása harmadik fél számára;kereskedelmi viszonylatban vagy kereskedelmi céllal csak a Deutsche Gesellschaft für Ad-hoc-Publizität mbh írásos engedélyével történhet.

Közzétételek - archívum