GÖPPINGEN (dpa-AFX) - Software provider Teamviewer has set its sights surprisingly high on business in the new year. Group CEO Oliver Steil is targeting double-digit percentage growth in sales despite the reluctance of some customers, the company announced on Tuesday. The good business in the fourth quarter gives reason for confidence - even if the manager still sees potential for improvement. The share of the MDax group already increased significantly on Monday evening after trading hours, because the Goeppingen-based company wants to buy back shares again this year.

The paper of the specialist for remote maintenance software gained about four percent on the trading platform Tradegate compared to the Xetra close the previous evening. The share price had been able to recover in recent months from the lows of the fall, when it was partly below eight euros, but had recently slipped back below the 13-euro mark.

The Group's sales are expected to be between 620 and 645 million euros in 2023. That would be an increase of 10 to 14 percent. Analysts surveyed by the company had previously expected average sales of only 615 million euros. The basis for CEO Steil is the "very good" fourth quarter, as he said in an interview with financial news agency dpa-AFX. "We are successful in selling additional products and functionalities to our existing customers. In Asia Pacific, growth is taking hold following changes in the organization."

In terms of the margin before interest, taxes, depreciation and amortization (Ebitda margin) adjusted for special effects, management expects a figure of around 40 percent of sales this year, up from 41 percent last year. Teamviewer is adjusting its forecasting methodology and is now focusing primarily on sales as a benchmark.

Last year, the company ended up having a slightly better run than even expected when it came to margin, according to Steil. "In the new year, we would also be well advised not to assume the best of all scenarios when it comes to billings and costs. In addition, we have an inflationary environment in which personnel costs are also picking up," he said.

Teamviewer had hit its 2022 full-year targets as previously announced with a fourth-quarter closing spurt. In the process, business with major customers grew particularly significantly despite the uncertain economic situation, in part because they increasingly signed multi-year contracts. "We have a very healthy and steady development among large customers with larger contract volumes," Steil said. Passing on rising costs has worked well overall, he added.

However, the situation overall was not easy, Steil acknowledged. "In the Americas region, for example, we had more trouble," he said. "There, customers' decision-making processes are currently somewhat longer, especially when it comes to more far-reaching projects that require additional investments in hardware, for example." However, the Group CEO also takes a self-critical view of the problems. "But you can't just blame everything on the market, we'll also look at whether we need to make a few more adjustments in sales."

Business in Europe and Asia was better. Thanks in part to the weak euro, overall sales climbed 13 percent to just under 566 million euros. Below the line, the MDax group earned 67.6 million euros, 35 percent more than a year earlier.

As in the previous year, management is again resorting to share buybacks this year. Up to 150 million euros will be spent in two tranches this year. Last year, Teamviewer invested 300 million euros in share buybacks. Nevertheless, Steil does not see any problems with liquidity. "We are generating decent cash from our current business and have also secured a good interest rate structure in good time," said the manager. "Despite the new share buyback program, we could afford to make smaller acquisitions, so we remain flexible. However, valuations are still too high in many cases, but we are in no hurry."

According to Steil, job cuts like those at other companies in the software and technology sector are not currently on the cards at the Goepping-based company. Steil did not want to speculate on whether the company will get out of its expensive jersey sponsorship contract with English Premier League soccer club Manchester United early. "When Manchester United will find a new main jersey sponsor, we don't know. But we would then also invest some of the money freed up in other marketing measures, and we would, after all, remain a partner of Manchester United to a significantly reduced extent." Nevertheless, the operating margin would increase by several percentage points in this case, according to Steil./men/ngu/he