TEAMVIEWER SE
DGAP-News: TeamViewer AG / Key word(s): Quarterly / Interim Statement
TeamViewer AG: Q1 2021 - TeamViewer prepares the ground for long-term growth and achieves record billings
2021-05-04 / 06:45
The issuer is solely responsible for the content of this announcement.
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GOPPINGEN, GERMANY, 4 MAY 2021
Q1 2021: TeamViewer prepares the ground for long-term growth and achieves record billings
. Strong billings growth of 26% at constant currencies to EUR 146.6m on top of extraordinary Q1 2020
. Adjusted EBITDA up 22% year-on-year to EUR 90.0m
. Adjusted EBITDA margin of 61.4%
. Two successful tuck-in acquisitions and two landmark sports partnerships to underpin long-term sustainable growth
. New CMO and new President Americas to drive global brand building and accelerate expansion and growth in the
Americas region
. EUR 300m ESG-linked promissory note loan issued at very attractive terms
. Full-year 2021 outlook confirmed: EUR 585m - 605m billings with 49 - 51% adjusted EBITDA margin and revenue of EUR
525m - 540m
Key Figures
EUR m, Q1 2021 Q1 2020 ? yoy ? cc^1
unless otherwise stated
Billings (non-IFRS) 146.6 119.7 +22% +26%
Adj. EBITDA (non-IFRS) 90.0 73.9 +22%
Adj. EBITDA Margin (%) 61.4% 61.7% -0.3pp
Revenue (IFRS) 118.3 102.7 +15%
Levered Free Cash Flow 25.0 35.2 -29%
Subscribers (thousand LTM)^2 603 514 +17%
Employees (FTE, 31 March) 1,378 928 +49% 1) Growth at constant currency 2) Last twelve months as of 31 March
«In the first quarter, we have continued our remarkable growth path, while setting the strategic course to build a truly global tech brand. We are delivering sustainable growth combined with high profitability and will continue to do so which underpins the strength of our business model. With two landmark sport partnerships we are investing significantly in our brand as well as in the marketing of our broadened solutions portfolio across all customer segments. Together with our investments in the enterprise segment and our recent acquisitions in adjacent markets, these strategic decisions put TeamViewer in a pole position to grow stronger for longer - to the benefit of all our stakeholders.»
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Oliver Steil, TeamViewer CEO
«On top of an outstanding growth against an extremely strong comparative quarter last year, we were also able to significantly drive our ESG agenda in the first three months of 2021. We embedded ESG in our financing, set the target to become climate neutral by 2030 latest and have received the confirmation by leading sustainability scientists that our offering helps our customers and users to significantly reduce their carbon footprint.»
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Stefan Gaiser, TeamViewer CFO
Q1 2021 Business Update
In the first quarter of 2021 TeamViewer recorded billings growth at constant currencies of 26% to EUR 146.6m. This is on top of an exceptionally strong Q1 in the prior year driven by significant extra demand after the outbreak of the COVID-19 pandemic. As a result, TeamViewer grew its Q1 billings by nearly 50% on average over two consecutive years. Adjusted EBITDA increased to EUR 90.0m, up 22% year-on-year, leading to a very strong adjusted EBITDA margin of 61.4%. This underlines TeamViewer's unique financial profile of high growth combined with exceptional profitability.
Key growth drivers for TeamViewer were the strong customer retention and continued expansion of the enterprise business. TeamViewer's subscriber base grew to 603,000, including 2,058 enterprise customers with a yearly contract value above EUR 10,000. Increasingly, large organizations are using TeamViewer for operational technology (OT) use cases including IoT and Augmented Reality (AR) technology. For example, Mitsubishi Electric Europe uses TeamViewer's AR support solution in its offices across Central and Eastern Europe to enhance customer support experience and improve repair processes for their industrial control systems, drives, and robots. Switzerland-based global technology company Bühler Group has implemented TeamViewer's enterprise solution including AR for remote maintenance and commissioning of critical infrastructure for production outlets across the globe.
Through two strategic acquisitions, TeamViewer further expanded its addressable market in the first quarter and invested in long-term growth. With the acquisition of Xaleon, TeamViewer entered the customer engagement space. Only three months later, its operations and technology are fully integrated, and the new solution suite TeamViewer Engage has been introduced to the market. It enables seamless digital customer interaction from first contact to closing contracts in virtual conversations. The second acquisition of Upskill, the US pioneer for industrial AR solutions, strengthens TeamViewer's global leadership in enterprise AR solutions across all verticals and has significantly expanded the visibility and reach in the US, TeamViewer's largest market.
To turn TeamViewer into a global tech brand, the company signed strategic five-year partnerships with two of the most successful and well-known sports brands in the world: football club Manchester United and Mercedes racing teams in formula 1 and formula E. Both partners have a very large global fanbase including APAC and the Americas as major growth regions. These landmark partnerships will enable TeamViewer to present its brand and its technology across all customer segments - through prominent brand placements across various assets and channels, through activation in social media and at live events, and through high-end hospitality for relationship-building. Another focus will be the joint creation of case studies that showcase how TeamViewer's technology supports both teams on their path to digital transformation.
Moreover, TeamViewer hired new senior talent: The company appointed Lisa Agona as new global CMO and member of the management board which underscores the relevance of the marketing function for TeamViewer. In addition, senior enterprise software executive Patricia Nagle joined as new President Americas to further accelerate business development and expansion in the Americas region. Both new hires started in Q2.
Outlook
Operating in the very attractive growth markets around digitalization, connectivity, and industry 4.0 solutions, TeamViewer is best positioned to grow across all customer segments. The company has put comprehensive initiatives in place to further penetrate these markets and foster sustainable long-term growth targeting more than EUR 1bn billings in 2023 and continued high billings growth of at least 25% after 2023.
Following a strong first quarter, TeamViewer confirms its 2021 outlook and projects reported billings in a range of EUR 585m and EUR 605m and revenue to be in a range between EUR 525m and EUR 540m, assuming a US Dollar exchange rate of 1.20 per EUR and broadly stable other currencies. As announced in March 2021, the company expects an adjusted EBITDA margin of 49% to 51% for fiscal year 2021.
Financial Results
TeamViewer achieved record billings of EUR 146.6m in the first quarter 2021, up 22% year-on-year and up 26% adjusted for currency effects. Subscriber retention was a key focus in the first quarter and TeamViewer's customer support and sales teams very successfully retained a large number of subscribers that were added in the first wave of global lockdowns in 2020. The net retention rate remained strong with 100%.
The expanded enterprise customer base contributed EUR 58.7m of billings during the last twelve months ending 31 March 2021, up 90% compared to the twelve-month period ending on 31 March 2020 (EUR 31.0m). At the same time, the share of contracts with annual values of EUR 50,000 or more has increased to 41% from 32% a year earlier. TeamViewer benefits form a well-diversified go to market model covering all customers segments which has shown strong growth across the EMEA and Americas regions and solid performance in APAC.
Billings and Revenue per Region
EUR m Q1 2021 Q1 2020 ? yoy ? cc^1 Billings (non-IFRS) 146.6 119.7 +22% +26% EMEA 86.7 68.8 +26% +27% AMERICAS 44.9 38.1 +18% +28% APAC 14.9 12.8 +17% +17% Revenue (IFRS) 118.3 102.7 +15% - EMEA 63.2 56.4 +12% - AMERICAS 40.1 33.2 +20% - APAC 15.0 13.1 +15% - 1) Growth at constant currency
Q1 2021 revenue increased by 15% year-on-year to EUR 118.3m (Q1 2020: EUR 102.7m), reflecting the discontinuation of the former perpetual license model. This effect will phase out during 2021 closing the growth differential to billings from 2022 onwards. A significant amount of Q1 billings have been booked towards the end of the quarter and will therefore be recognised as revenue later in the year contributing to TeamViewer's full year 2021 revenue in the following quarters.
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