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TeamViewer AG Investor Presentation 2021
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Investor Presentation
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TeamViewer
Capital Markets Day
10 November 2021
Important notice
This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding TeamViewer AG (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "TeamViewer"). It is being provided for informational purposes only and should not be relied on for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. All stated figures are unaudited, unless otherwise stated.
Certain statements in this presentation 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 subsequent written and oral forward-looking statements attributable to it or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Presentation.
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.
This document also includes further certain operational metrics, such as Net Retention Rate, and additional financial measures (including splits) 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 renewal, 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.
2
TeamViewer
Agenda
- Welcome
- Market
- Products & Solutions
- Q&A
- Branding & Marketing
- Go-to-Market Strategy
- Financials
- Summary
- Q&A
Oliver Steil
Oliver Steil
Hendrik Witt
Oliver Steil
Patty Nagle
Stefan Gaiser
Oliver Steil
3
TeamViewer
TeamViewer
Video
4
TeamViewer
Our purpose
Creating a world that works better
For society
Bridge distances, reduce environmental footprint, remove barriers to digital progress, and democratize technology
37m
tons of CO2 avoided through use of TeamViewer solutions per year¹
For free users
Enable people to connect and help each other
For customers
Digitalize business-critical processes along the value chain end to end and in all verticals
For partners
Enable new business models and services
For employees
Provide a meaningful workplace with a strong company culture for people who want to realize their full potential
1,500
Employees with more than 70 nationalities
For shareholders: Creating value through long-term growth, attractive margins and cash generation
Sources: 1. DFGE
TeamViewer
We benefit from strong and sustainable megatrends
Future of Work
Smart Things Everywhere
Carbon Footprint Reduction
Robotics & Automation
Augmented Reality
47% 27%
13 8
Average number of networked devices per capita in North America by 2023 as compared to 2018²
13 8
55% 40%
EU's target to reduce greenhouse gas emissions by 2030 compared to 1990, as of 2021 compared to as of 2019³
$241bn $110bn
Worldwide spending on robotics systems & drones by 2023 as compared to 2019⁴
$140bn $100bn
Augmented Reality Total Market Value step up from 2024 to 2025⁵
Sources: 1. Gartner; 2. Cisco; 3. European Union; 4. IDC; 5. ABI Research
6
TeamViewer
Remote connectivity – Anyone. Anything. Anywhere. Anytime.
7
TeamViewer
Through easy-to-use tools, managed enterprise connectivity and digital workflows
8
TeamViewer
Industry leading solution portfolio on our Remote-as-a-Service platform
Immediate Remote Support Tools
Remote connectivity for individuals and business of all sizes
TeamViewer
TeamViewer Remote Management
TeamViewer PowerPoint
Managed Enterprise Connectivity
Advanced secure solutions for SMB and enterprises
TeamViewer
TeamViewer
TeamViewer Remote Management
TeamViewer PowerPoint
Operational Workflow Optimization
Digitalization across entire value chain through leading-edge technology
TeamViewer
TeamViewer
TeamViewer Remote
TeamViewer Access AB
TeamViewer Remote-as-a-Service Platform
Open APIs
Microservices
Software Libraries
API for Connectivity
Global Access Network
9
TeamViewer
Customers solve critical business challenges with our solutions
10
Future of Work
Create secure & efficient home office setup
Work from Home
Online Collaboration
Smart Things Everywhere
Handle many different devices in many places
Remote Support
IT Mgmt.
Carbon Footprint Reduction
Reduce travel where possible
Digital Sales & Customer Service
Remote Access
Robotics & Automation
Drive digitalization
Remote Operations
Augmented Reality
Upskill frontline workers
AR guided Workflows
AR Field Support
TeamViewer
We are very well set up for continued success
ATTRACTIVE MARKET
- ~€19bn 2021 global TAM, set to grow 18% CAGR to 2025¹
- Digital transformation, future of work and sustainability key market priorities
- Huge leap in digital penetration and large TAM pull forward in core markets in 2020¹
- AR & MR TAM worth €2.6bn today, rising to €11bn in 2025¹
LEADING PRODUCTS
- Product features remain industry leading across SMB and Enterprise
- Positioned as AR market leader² via M&A
- New use case discovery continues
- Proven ability to increase ACV through upsell/cross-sell
BRANDING OPPORTUNITY
- Developed strategy to drive our role in future digitalization
- Raising awareness to match our product and GTM readiness
- Powerful sports partnerships, providing massive reach and use case development
COMPREHENSIVE GO-TO-MARKET
- Increased salesforce to capture COVID-induced growth opportunities
- Increased verticalization to tackle digital workflows
- Exciting new partnerships with SAP and Google
- New APAC set-up to drive growth
UNIQUE FINANCIALS
- 4x growth in Enterprise Billings since 2019
- Enterprise NRR > 100% and growing
- Fully invested cost base, yet still industry leading EBITDA margins
- High cash conversion
- Project REMAX in place to push on growth and profitability
Notes:
-
Company information based on market study by top tier consulting firm
-
PAC Radar – open digital platforms for connected workers (AR) in Europe 2021
11
TeamViewer
12
With a highly experienced and motivated team to deliver
Management Board
Oliver Steil
Chairman of the Management Board and CEO
Stefan Gaiser
Member of the Management Board and CFO
Initiated search
Member of the Management Board and CMO/CCO
Senior Leadership Team
Dr. Mike Eissele
Chief Technology Officer
Dr. Hendrik Witt
Chief Product Officer
Jan Junker
Executive Vice President Solution Sales & Delivery
Alfredo Patron
Executive Vice President Business Development
Patty Nagle
President Americas
To be announced
President APAC
Georg Beyschlag
Chief of Staff & Strategy
Years of relevant experience
TeamViewer
However, very mixed 2021 results call for improvement program: Remax
13
TeamViewer
Therefore, key topics for today's session
- Market: Provide TAM update
- Business composition: Provide deep-dive into both SMB and Enterprise
- Product range: Provide update on broad solutions portfolio and context on competitive dynamics
- Brand investments: Discuss sports partnerships' expected long-term impact and return
- Mid-term guidance: Present and discuss growth initiatives and levers to adapt cost structure
14
TeamViewer
Agenda
15
TeamViewer
COVID has driven a huge amount of change in our market
Significant TAM pull forward in our core markets in 2020
Large step-up in penetration, leading to strong subscriber growth in 2020
Increased awareness & more use cases
Digitalization urge intensified
Increased competition, although mainly in low-value ACV segments
16
TeamViewer
Significant TAM pull forward in our core markets in 2020
TAM development for remote access and support market vs. expectations
| TAM Growth (%) | FY20 | FY21 | ’19-21 CAGR |
|---|---|---|---|
| Expectation | 24% | 24% | 24% |
| Actual | 34% | 14% | 24% |
Sources: Top Tier Strategy Consultancy; TeamViewer
17
TeamViewer
Large step-up in penetration during 2020…
Monthly active devices in relevant markets¹
Notes:
- Relevant markets represent 80% of TeamViewer billings
18
TeamViewer
...led to rapid new subscriber growth...
Monthly new added subscribers
excluding migrated from perpetual
— Monthly new added subscribers — Monthly active devices in relevant markets (m)
19
Notes:
- 2019 new active subscriber numbers boosted by transition from perpetual licence to SaaS customers
TeamViewer
...and our billings continued to grow throughout the period
20
TeamViewer
COVID has also significantly increased awareness for digital solutions across business areas
Average share of products & services that are fully or partially digitalized
$10t
Spend on digital transformation from 2019-24, growing at a 15% CAGR
$1t
Spending on future of work technologies in 2024
57%
of total technology spend will be on digital transformation in 2024
Source: McKinsey, IDC
TeamViewer
Our products and solutions tap into a large and growing TAM
TAM split by use cases: 2021
TAM & CAGR: 2021- 2025
Source: Company information based on market study by top tier consulting firm
22
TeamViewer
Within remote support, competition has increased, but mainly in low ASP cluster
Notes:
- Based on recurring Billings
TeamViewer
Competitive situation for low ASP segment clearly overstated on Google trends
Global search term interest (Trend, indexed)
Interest by country
Sources: Google Trends, TeamViewer BI
24
TeamViewer
We enjoy much better traffic mix and higher subscriber count
Global search term popularity
Color intensity represents the percentage of searches for the leading search term in a particular region.
TeamViewer top 5 countries by paid connection
TeamViewer's high subscriber count
more subscribers¹ at TeamViewer vs. AnyDesk
Sources: Google Trends, TeamViewer
Notes:
- based on TeamViewer data and publicly available data for 2020 EOY
25
TeamViewer
We have focused our product development and go-to-market investments on higher ASP segments
| Billings by cluster^{1} | Share of Billings | Increasing portfolio | Established sales channel | Other differentiators |
|---|---|---|---|---|
| Enterprise (>€10,000) | 15% | TeamViewer | ||
| Tensor | TeamViewer | |||
| Frontline | Direct EAM and Partners | |||
| >€1,500 | 32% | TeamViewer | ||
| Engage | TeamViewer | |||
| Remote Management | Mid-market Inside sales | |||
| >€500 – <€1,500 | 31% | TeamViewer | ||
| <€500 | 22% | TeamViewer | Webshop |
26
Notes:
1. Based on recurring Billings
TeamViewer
And have significantly improved on large Enterprise deals since IPO
Top 50 deals, total billings¹
€m
- >4x higher billings from 50 largest deals per year since 2018
- No single 2018 deal would have entered the Top 25 in 2021
- Already 30 deals above 200k closed in 2021 LTM
Notes:
1. Top 50 billings excluding resellers and OEMs
27
TeamViewer
Key takeaways
- €19bn 2021 global TAM, set to grow 18% CAGR to 2025
- Huge leap in digital penetration and large TAM pull forward in core markets in 2020
- Competition mostly in low ASP clusters and higher security risk geographies
- Digital transformation and future of work as key market trends
- AR & MR TAM worth €2.6bn today, growing to €11bn in 2025
- We successfully focus on Enterprise market dynamics
28
TeamViewer
Agenda
29
TeamViewer
TeamViewer
Video
30
TeamViewer
Evolved to industry leading solution portfolio on our Remote-as-a-Service platform
Immediate Remote Support Tools
Remote connectivity for individuals and business of all sizes
TeamViewer
TeamViewer Remote Management
TeamViewer PowerPoint
Managed Enterprise Connectivity
Advanced secure solutions for SMB and enterprises
TeamViewer
TeamViewer
TeamViewer Remote Management
TeamViewer PowerPoint
Operational Workflow Optimization
Digitalization across entire value chain through leading-edge technology
TeamViewer Remote
TeamViewer Power
TeamViewer Remote
TeamViewer Access AB
TeamViewer Remote-as-a-Service Platform
Open APIs
Microservices
Software Libraries
API for Connectivity
Global Access Network
31
TeamViewer
Platform delivers value to customers along the entire value chain
32
TeamViewer
Now beyond just IT Support, attracting more buying centers
33
TeamViewer
| Primary Buying Center | Usage Environment |
|---|---|
| BUSINESS | |
| Supply Chain, Manufacturing, Field Service, Sales, Customer Support, Training | OPERATIONS |
| IT | |
| Support, Helpdesk, Infrastructure, Application Mgmt. | OFFICE |
| PRIVATE | |
| Consumer | Consumer |
| SMB | |
| Enterprise |
Operational Workflow Optimization
- Deeply embedded into processes
- Solution rather than product
- Requires industry and process know-how to sell and implement
Enterprise offering
- Hybrid between office and business
- Often involving complex IT infrastructure or embedded OT
- Requires deep technical know-how
TMV Core products
- Predominantly used in the office as a support tool (product)
- Horizontal solution rolled out from IT departments
Portfolio expansion through organic growth and high-impact M&A
34
TeamViewer
Double-down on AR as key enabler for operational workflow optimization
Strategic Rationale
- Augmented Reality the mega trend: Changing the world to work better
- Build on and expand organic AR product success: From TeamViewer Pilot to Frontline
- Deeper process integration of products: By optimizing operational workflows
- 80% of global workforce are non-desk workers: Potential to improve workflows
Source: Company information based on market study by top tier consulting firm
35
TeamViewer
AUGMENTED REALITY
ALREADY PART OF OUR DAILY LIFE
AUGMENTING AUTOMOTIVE AFTER SALES WITH AR TECHNOLOGY
WORKFLOW OPTIMIZATION IN WORKSHOPS
Reduced repair and maintenance times through knowledge sharing and remote diagnosis
100% hands-free remote assistance via smart glasses
Replacement for emails and phone calls
All 347 BMW U.S. dealers & selected MINI dealers
99.99% ACCURACY THROUGH VISION PICKING
CCA-Cola HBC
PERFECT LAND & EXPAND EXECUTION
19 warehouses use TeamViewer Frontline, FY2021 target is 27
Use case expansion into 54 manufacturing plants
250+ devices deployed
1,000+ AR users skilled up
39
TeamViewer Frontline changing the game, creating the Internet of Humans
TeamViewer Frontline
| Business Area | Logistics | Manufacturing | Field Service | Remote Support |
|---|---|---|---|---|
| Key Processes | Manual Order Picking | |||
| In- & Outbound Logistics | ||||
| Inventory & Sorting | Assembly Instructions | |||
| Quality Assurance | ||||
| Guided Training | Maintenance & Service | |||
| Inspection & Repair | ||||
| Audit | Remote Support | |||
| Instant Troubleshooting | ||||
| Virtual Visits | ||||
| Our Solution | ||||
| Business Benefits |
TeamViewer
TeamViewer now leading Augmented Reality player
TeamViewer’s positioning is best in class
Strong early results
> €13m Augmented Reality billings Q3 2021 LTM
> Largest Frontline deal
> ever in Sep 2021
> ☐ Upsold 5 contracts from €100k to €500k+ (to date)
40
Source: PAC Radar – open digital platforms for connected workers (AR) in Europe 2021
TeamViewer
CORE PRODUCTS
FOR OFFICE AND OPERATIONAL TECHNOLOGY
TeamViewer
REMOTE DESKTOP AND SUPPORT POWERHOUSE
ATGA
SCALE IT SUPPORT FOR COMPLEX IT LANDSCAPE
Leading IT infrastructure provider present in 84 cities with 200k remote sessions per year
TeamViewer as go-to tool for customer support team in all 350 day-to-day customer interactions
Successful partnership for more than 12 years
ENABLING A NEW BUSINESS MODEL IN HEALTHCARE
SIEMENS Healthineers
SUPPORT & CONTROL FOR NON-STANDARD IT DEVICES
Remotely maintain tens of thousands of diagnostic devices worldwide & support clinical staff
Game changing new service: Remotely perform magnetic resonance imaging (MRI) scans when lacking qualified radiology staff
Higher utilization of devices and reduced waiting time for patients
Allow handling sensitive healthcare data in real-time with highest security standards
In the sweet spot of OT to profit from device proliferation
EXAMPLE #1: FIXING OUTDOOR LOCKERS REMOTELY
MULTINATIONAL MAILING EQUIPMENT PROVIDER
- Highlights: Migrated to TeamViewer for security and support of embedded platform
- Further Potential: Expand to other connected systems, e.g. refrigerated lockers, indoor lockers
EXAMPLE #2: SERVICING INVENTORY STORAGE VENDING SYSTEM REMOTELY
GLOBAL TECHNICAL WHOLESALER
- Highlights: Migrated from TMV Corporate to special purpose IoT product after OT inclusion
- Further Potential: Endpoint volume expected to expand across all platforms (lock-in)
Notes:
1. Operating technology (i.e. connection for non-IT devices)
2. TeamViewer
44
TeamViewer
Winning combination of product features and connectivity expertise
Global connectivity
Customers can reliably connect.
No need to worry about infrastructural pitfalls.
OS & Device agnostic
Customers can easily connect.
From all relevant systems.
Security / Data Privacy
Our DNA, guiding our decisions.
Security and data privacy across all connections and solutions.
24/7 Service
Customers reach us around the clock.
Respond in >30 languages thanks to a global footprint.
Unparalleled Expertise
Remote IT support is what we are known for.
Shaped this category like nobody ever since.
45
TeamViewer
Strong competition only in most mature remote support product segment
46
TeamViewer
Most complete solution offering for all remote support use cases
47
TeamViewer
Customer Type
Large Organizations & MSPs
Mid-sized Organizations
Individuals & Small Teams
SIMPLE
- Often application support (e.g., MS Excel), while using the application
- Mainly solved by showing and pointing without actual remote control
ADVANCED
- Most use cases on incidental basis
- Requires remote control, admin rights on the remote device, and potentially a reboot
COMPLEX
- Recurring basis, not only PC but other IT infrastructure devices
- Requires an additional expert to solve with multiple reboots, admin rights and/or needs unattended access from time to time
Support Case Scenario
48
TeamViewer
Video
Industry-leading security – Very important criteria in buying decisions
$\sim 50$
people in IT Security, Product Security, and Data Protection
> €30m
Investment in Security and Data Protection last five years
Top 10%
Ranking in Tech Industry by leading BitSight Security Rating and others
Best-of-breed approach combining the world's leading IT security resources
24/7 Security Operations Center (SOC) for AI-based infrastructure monitoring
Red teaming fire drills by elite consultants including in-depth audits of key suppliers
Product Security and Privacy by Design vetted in pen tests and Bug Bounty program
Good platform hygiene fostered by high-impact innovation in misuse prevention
49
TeamViewer
Strong user ratings for our core product – People love using us
50
TeamViewer
Used to [...] manage my own cloud server; easy to explain/ install/ respond in any case [...]. I leave other programs for this one without hesitation."
October 2021
"It is easy to install, to configure and use. The latest security features are a plus."
October 2021
"This is one of the best applications I used for my business for the last 30 years."
October 2021
"TeamViewer once again saved me in troubleshooting a major problem with my door access control system of 7 doors and over a hundred users."
August 2021
Enterprise ramp-up diluted SMB product focus – action plan in place to regain momentum for core product
OUTSIDE PRODUCT
INSIDE PRODUCT
- Improve Customer Journey
- Simplify Online Product Discovery
- Review Product Packaging
- Change to State-of-the-Art Premium UI Design
- Harmonize Across all Products
- Improve User Experience
51
TeamViewer
Product innovation: Fast time to market with TeamViewer Classroom
Listened to customers.
Need for a GDPR-compliant online teaching and learning product not relying on any US-based services
Developed with speed.
Built on our acquired, web-based Engage online collaborating technology stack in only two months. Developed in EU, hosted in Germany
Tapped into adjacent market.
Post-COVID, schools and universities demand long-term hybrid teaching and collaboration solutions that don't compromise students' privacy
52 TeamViewer
Product focus 2022: Improvements, innovation, and increased use of AI
2022
Data-driven Services and Capabilities
53
TeamViewer
Key takeaways
- Radically expanded product portfolio to win in new high growth markets
- TeamViewer's AR positioning is best-in-class via three successful acquisitions and integration
- Remain most complete remote support offering for all remote support use cases
- Industry leading product features and capabilities across SMB and Enterprise
- Near term focus on improving customer journey and in-product experience
54 TeamViewer
Agenda
55
TeamViewer
Q&A
56
TeamViewer
Agenda
57
TeamViewer
Marketing at TeamViewer: Evolution from viral to digital to brand
58
TeamViewer
Awareness and Consideration
- Virality of free user ecosystem and F2P conversion
- Digital demand generation based on large organic traffic share
- Strategic global brand positioning to drive long term considerations
Less important in a maturing market
Short-term action plan being implemented
Leverage two of the most powerful platforms in sports
59
1 Free-2-paid conversion from free user ecosystem accounting for €15-20m in billings per year
TeamViewer
60
TeamViewer
Ecosystem largely stable through the cycle
Ecosystem currently in recovery mode
Share of paid traffic already increasing
Recent post-pandemic weaknesses to be addressed through product, UI/ UX enhancement
61
TeamViewer
- What to look out for: Installs and active devices
| Installs Q3 2021 | Yearly active devices as of Q3 2021 | |
|---|---|---|
| 51m | 283m | |
| EMEA | 19m | 134m |
| Americas | 14m | 76m |
| APAC | 18m | 73m |
62 TeamViewer still benefiting from top digital position...
1
search position in key markets / main key words¹
75% of total traffic is organic¹
36% Webshop as % of new billings²
Sources: 1. Google Analytics, 2. TeamViewer
Notes: All data for 9M 2021 globally
62
TeamViewer
63
TeamViewer
2
...however, recent direct e-commerce performance disappointing and being addressed
Webshop vs. Inside Sales billings
Relative share of 100% new billings (only Webshop, Inside Sales)
Problem identified and addressed through our Digital Task Force
64
TeamViewer
2 Stronger growth will be driven by dedicated short-term measures
Better SEM targeting of prospects in countries with highest propensity to buy
SEO improvements to raise our position on Search Engine Results Page (SERP)
Simplified user experience and calls to action for downloads and direct purchase
Simple tools to help prospects identify the right product for their needs
Instant trials and support for prospects needing more engagement
SHORT-TERM (next 2-4 months)
Continuous improvements of our total user and customer experience
MID-TERM
Marketing at TeamViewer: Evolution from viral to digital to brand
65
TeamViewer
3
There is a large opportunity to grow our brand equity
Source: TeamViewer Brand Tracking Study – Wave 0
Notes:
- n = 4,760; 2. = 2,027; 3. Average Score of four major SMB and Enterprise competitors (AnyDesk, Splashtop, LogMeln, BeyondTrust)
66
TeamViewer
3
Brand equity works along the entire purchasing funnel
All major tech players have started to build significant brand equity at same point in their life cycle
| DOMINATE the clutter
Awareness
Gain global unaided
awareness & significantly revive ecosystem | POSITIONING the solutions
Consideration
Foster brand values, relevant success stories and quality perception to position the solutions portfolio | GAIN pricing power
Purchase
Gaining pricing power from premium position, through significant customer access and lead generation | BUILD relationships
Re-Purchase Loyalty
Long term business (Re-Purchase) based on relevant innovation, repeated performance proof points |
| --- | --- | --- | --- |
67
TeamViewer
Many enterprise software leaders leverage motorsports to build brand equity…
68
TeamViewer
69
TeamViewer
3...and team sports are becoming more and more popular with tech players
70
TeamViewer
3 Why? Because "tech in sports" is the future
Tech companies benefit from…
-
Reaching GLOBAL audiences
through gaining more (at)traction and visibility in the markets -
Showcasing their full capabilities
by running in such critical & high-performance environments -
Reaching NEW audiences and decision makers
to demonstrate solution portfolio and innovation capabilities -
Attracting best talent
with employees and recruiting candidates
Sports teams benefit from…
-
Elevating the game
profiting from tech disruptions to train & further enhance own capabilities -
DIVing digital innovation
positioning oneself as tech leader in the respective field of sports -
Attracting young target groups
connecting with digital natives in times of intensified and diversified pastime -
Bringing fans closer
through digitalized fan experience, insights and engagement
71 | Source: Manchester United, Mercedes-AMG Petronas F1 Team
TeamViewer
We picked the very best assets: winners in their space, global brands, technical resonance, educated audiences, decision makers...
The world's most broadcasted sports league with 179 countries contracted
98% of fans can name the shirt partner, high marketing ROA
> 20% of the Manchester United's 1.1 bn fan base are business decision makers
287m e-sport matches played with Manchester United Team
Global Sport followers (m)
Formula 1
... 87m average TV viewing audience per race
... as only truly global sports series with 23 races in 22 countries on all continents
dominant team with 7 titles since 2014
48 CEOs attended last Mercedes-AMG Executive Summit
> 50 technology & software players partner with Formula 1 and Formula E
Strategic partnerships to accelerate our brand equity building
72
3 With ManUnited we acquired a very broad set of rights (plus Ronaldo effect)
> 160
Decision makers invited to Old Trafford
Shirt launch ever
LifeAR
based Player diaries
Launch
Branding
Various campaigns in print and social launched
web summit
Joint
Conference key note
Partner event held with C-level guests
of match time
digi board advertisement
200
Dedicated marketing FTE
with Man Utd
China Event
Fan center reopening
TeamViewer
73
We can and will present all of our various use cases over time
| PRODUCT DEVELOPMENT | OPERATIONS | LOGISTICS | CORPORATE FUNCTIONS | SALES | SERVICE |
|---|---|---|---|---|---|
| AR-supported wind tunnel (Frontline, POC) | Remote media operations (Core, implemented) | Merchandise Picking solution (Frontline, Ideation) | Remote IT Support (Tensor, implemented) | Virtual live event support (Engage, implemented) | Fan service co-browsing (Engage, implemented) |
| Remote race support (Tensor, implemented) | Remote display maintenance (Tensor, implemented) | ||||
| ■ Immediate Remote Support Tools | ■ Managed Enterprise Connectivity | ■ Operational Workflow Optimization |
TeamViewer
8
Early days but successful launches with great media value
MANCHESTER UNITED
3.4bn¹
Impressions of TeamViewer logo²
200m+
Estimated cumulative global live match TV audience
173m¹
Digital impressions of TeamViewer content²
Most-mentioned partner during a launch period in recorded history
Twitter mentions in %, relative to MU/TeamViewer mentions)
MERCEDES-AMG PETRONAS F1 TEAM
$23.1m³
QI Value
Brand exposure from all dedicated TV coverage
$3.4m³
QI Value
Brand exposure from all dedicated social media coverage
Owned vs. Earned
QI Value
1/3 of the season
(7 races) has already provided TeamViewer coverage worth annual cost of sponsorship, based on brand exposure and media value
Large multiplier effect through earned traffic (80% of feeds) vs. owned feeds (20%)
QUALITY INDEXED (QI) MEDIA VALUE
The "Quality Index Score" (QI) represents a discounted media value and is uniquely calculated for each brand sequence detected during analysis. The QI score for exposure is determined through five factors, and then applied as a weighting for the value calculation.
Notes:
-
Excludes match highlights / news coverage / catch-ups, press, player channels, earned media
-
Worldwide, incl. first 9 season games
-
Partnership started in Monaco (round #5); all values based on 7 rounds (out of 22 in 2021)
Source: Manchester United, Mercedes-AMG Petronas F1 Team
TeamViewer
75
TeamViewer
3 We will regularly measure our brand KPIs and report back
76
TeamViewer
Video
Key takeaways
01 Marketing at TeamViewer has extended from viral to digital to brand
02 Virality still important, as is our top digital position, but we can and will do more
03 Brand equity a critical element of long term growth in SMB and Enterprise, within years
04 Best assets with huge reach, rights, and use case opportunities
05 Promising launches to complement our other Enterprise and SMB marketing initiatives
77
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Agenda
78
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Expand our sales motion to capture new markets
79
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Developing stronger horizontal and new vertical sales routes
80
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Diversified strategy to enable broad customer reach and net new logo acquisition aligned to how customers consume
| Immediate Remote Support Tools | Managed Enterprise Connectivity | Operational Workflow Optimization | |
|---|---|---|---|
| Customer | Inside Sales and SMB | Mid-market & Enterprise IT | Enterprise OT & Partners |
| Decision buyer | SoHo worker / IT professional | IT department / CIO / CTO | Business owner / COO / CEO |
| Decision criteria | Immediate need / Pricing | Quality, reliability & security | Long term solution sustainability |
| Route to market | Webshop & Inside Sales | MM / EAM, Distributor, Reseller | EAM & vertical references strategic alliances |
| Sale conversion | Transactional | ||
| Net New | 3-6 month sales cycles | ||
| Capacity expansion | PoC to full implementation | ||
| Adjacent use cases |
81
TeamViewer
We have developed a fully deployed GTM model
INSIDE SALES / SMB
- High velocity model supporting efficient and productive sales results
- Highly educated and incentivised salesforce
- Data-driven approach, leveraging vast customer base
ENTERPRISE SALES MID-MARKET / IT / OT
- Global coverage: mid-market, enterprise IT, enterprise OT...
- Horizontal & vertical domain expertise
- Geographical & named account sales model(s)
- Focused business use case(s)
7%
CHANNEL SALES
- Channel strategy: volume and market reach
- ☑ Distributor = volume
- ☑ Reseller = local expertise and solution orientation
NEW
STRATEGIC PARTNERSHIP
- Market validation
- Portfolio / platform oriented
- New sales potential with highly integrated solutions
- SAP
- Microsoft
Notes:
- Enterprise including mid-market
% of 9M 2021 billings generated through respective Go-to-market; 34% through Webshop
TeamViewer
83
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Selling RaaS across market segments means moving beyond the funnel approach
Action plan to deliver regional best practices, globally
INSIDE SALES
- ☑ Highly efficient and productive
- ☑ Solution knowledgeable
- ☑ Multilingual
- ☑ Low attrition & churn
- ☑ Consistent lead generation and funnel conversion “feeder”
- ☑ Successful SMB / MM cross selling
ENTERPRISE
- ☑ Focused sales teams
- Horizontal / IT
- Vertical / OT
- ☑ Use case orientation
- ☑ Enabled Partner structure
- ☑ Targeted engagement model for the enterprise
STRUCTURAL ALIGNMENT
- ☑ Single hub required (Singapore)
- ☑ Focused leadership (new President APAC hired)
- ☑ Targeted solution selling (OT focus)
- ☑ Localization (e.g. replicate Japan success)
84
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Focused Inside Sales footprint to win in different markets
Notes:
1. Sales FTEs added in APAC between December 2018 and May 2019
85
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Highly efficient EMEA Inside Sales team consistently contributes to our growth
Billings (new & upsell) per Inside Sales Representative
Key success factors
- Educated, solution knowledgeable with low churn
- Quick onboarding of new employees and continuous training (right-skilling)
- Cross-sell new or other underpenetrated products
- TeamViewer Reduce Management
- TeamViewer Cleanroom
- TeamViewer Topper
- Steering and actively managing for target ROI between 6.0x and 6.5x economically
- Continued invest in the mid-market team and in new local reps for underpenetrated markets
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We have successfully expanded Enterprise sales since it was launched at IPO
Split of Enterprise quota carriers¹ by region
1 Includes Enterprise, Midmarket and Business Development
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Americas - Evolving the Enterprise sales motion ...
Defining the blueprint for enterprise engagement
... Through 4 Key Drivers
Early days but …
☑ 66% decrease in ramp time (from 9 to 3 months for EAMs)¹
☑ >30% increase in ASP¹
☑ 34 accounts with >€100k ACV (up from 16 at FY 2020)
☑ 41% win rate (up from 21%)¹
Notes:
- Q3 2021 LTM vs Q3 2020 LTM
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We have a large installed base ready for verticalization
Industry split of current Customer Base¹
18%
Retailing, Logistics and Transportation
17%
Commercial & Professional Services
12%
Software & Services
11%
Industrial & Automotive
7%
Diversified Consumer Services
5%
Financials
4%
Health Care Equipment & Services
4%
Hotels, Leisure, Restaurants
3%
Real Estate
3%
Media & Entertainment
Notes:
1. Company information. Based on Customer logos. Data available for ca. 80% of customer base, data as of September 2021, Other Industries: 17%
89
TeamViewer
We have built up vertical expertise and strong references to grow in selected industries and expanding into new verticals
90
Digitize the field and factories
Optimize Productivity
Connect workers
Transfer expert knowledge
Minimize error rates
TeamViewer
Value of the Platform: proven upsell, cross-sell and combination of both
91
Horizontal IT
Technology customer
>€30bn
Used throughout the internal IT organization and for customer facing support. Currently rolling out globally and extending to other business units
TeamViewer
Tensor
Vertical OT
Automotive customer
>€100bn
Global deployment of Frontline empowering centralized field service management for 4,000+ international dealer community locations
TeamViewer
Frontline
Combined IT/OT
Manufacturing customer
>€5bn
TeamViewer Tensor and Frontline enabling support, training and education, service and repair, demo/testing, and manufacturing
TeamViewer
Tensor
TeamViewer Assist AR
TeamViewer
92
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Video
New external routes to drive horizontal and vertical sales
93
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Remote-as-a-Service Platform
Sports sponsorships accelerating our partner-driven Enterprise sales motion
Distributors & Resellers : provide volumetrics, regional support, local expertise and geographical
Strategic Alliances & System Integrators : global relationships that will tap new sales potential via highly integrated solutions
94 TeamViewer
SAP Partnership: Market validation for AR & MR solutions
TeamViewer
Frontline
Strategic partnership with SAP involving
deep product integration
Full TeamViewer
Frontline product set will be made available to serve multiple
verticals and
selling centers
Joint GTM
engagement model
between SAP and
TeamViewer: lead generation, pipeline development, opportunity management
Leverage the SAP footprint with
>400k customers
and 25k+ sellers
across geographies with
a vertical led approach
95
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Sports sponsorships accelerating our partnership-driven enterprises sales motion
96
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We now have multiple levers to grow Enterprise NRR
97
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Key takeaways
- Increased salesforce globally to capture COVID-induced growth opportunities
- Fully enabled and deployed go-to market model supporting all routes to market
- Vertically focused sales orientation supporting broader customer segmentation
- Transferring best practices globally to drive improvement
- Leverage global Strategic Alliances as a force multiplier
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Agenda
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Enterprise now relevant part of our business…
Billings development
€m
Quarterly billings growth rate
%
Notes:
- TeamViewer defines Enterprise customers as customers with invoiced billings across all products and services of at least EUR 10,000 within the last 12 months. Customers which exceed or fall below this threshold are reallocated accordingly
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...and already accounting for a significant part of growth with 40% of incremental billings from Enterprise
Billings development
€m
101
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102
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Clear and simple billings model for both customer segments
Billings, Revenue, Adj. EBITDA and FCF
SMB
TeamViewer
104
Strong growth in SMB subscribers, albeit slowing down in 2021…
Quarterly number of SMB subscribers
000s
104 TeamViewer
105
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However even in a year with significant headwind we generated >40k net SMB subscriber additions
Net SMB subscriber additions
000s
106
And SMB churn now stabilizing and significantly lower in EMEA and Americas
SMB subscriber churn LTM %
| Q3 2021 LTM | Trend |
|---|---|
| APAC 20-25% | → |
| Americas 14-17% | → |
| EMEA 10-12% | → |
TeamViewer
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Healthy SMB ASP development even against backdrop of a tougher environment...
SMB ASP development
...driven by consistent SMB ASP growth of retained subscriber through upsell and cross-sell across all cohorts...
SMB subscriber cohorts¹ ASP development
Increase in ASP Q3
2021 LTM vs. first cohort year
Notes:
- Each yearly cohort includes ASP of all SMB subscribers added during that year (new and migration) that are still subscribers in Q3 2021 LTM. Subscribers moving into Enterprise are no longer included in the cohort from the year of the move onwards
108
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...and higher ASP of new SMB subscribers compared to churned SMB subscribers
Q3 2021 LTM
110
Therefore shifting SMB billings into higher SMB ASP buckets with lower churn
SMB billings distribution by bucket
1,500-10,000
500-<1500
<500
Q3 2021 LTM
subscriber churn
TeamViewer
Key levers to get back to market growth of 12%
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Quarterly SMB billings growth
Ambition: Market Growth
Market growth = 12%
Illustrative growth decomposition
ASP growth 5%-10% across segments
+
30k-50k new subscribers p.a.
= Market growth
N.B: 50 Cent ASP increase equal 1k net new subscriber additions
ENTERPRISE
TeamViewer
113
Outstanding growth in Enterprise business
Quarterly number of Enterprise customers
TeamViewer
114
Three pillars of continued strong Enterprise growth
Annual enterprise billings development by billings origin
€m
Key growth pillars
Increasing Net Retention Rate
Continuous Upsell from SMB
New Customer Additions at increasing ASPs
TeamViewer
115
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Pillar 1 – Retention: Improving Enterprise NRR, now comfortably over 100% (excl. 20-25ppt SMB upsell)
- Enterprise business scaled enough to make NRR a relevant metric
- NRR above 100% (Q3 2021 LTM) driven by both upsell and cross-sell
- Excludes benefit of SMB upsell, which is worth another +20-25ppt on NRR (Q3 2021 LTM)
- COVID boosted NRR in 2020, with reductions in Q1 and Q2 2021 due to capacity adjustments (downsell)
- Expect to become a reported item in FY2022
116
Pillar 2 – SMB upsell: Huge untapped pool for Enterprise upsell within SMB base
628k
Total customer pool
~20k
SMB customers with Enterprise potential¹
2.4k
Enterprise customers
~60% of current Enterprise customers were upsold from SMB
<5% of customers with Enterprise potential (>500 FTE) are within Enterprise bucket
Notes:
1. Company information. Data available for ca. 80% of customer base, data as of September 2021. Enterprise potential defined as customers with >500 FTE
TeamViewer
117
Pillar 3 – New customers: Deal sizes for new customers are increasing rapidly
New customers ASP €
TeamViewer
Growth ambition based on higher growth Enterprise business and SMB
Billings
€m
118
TeamViewer
Clear plan to margin recovery – Project REMAX to benefit all expense lines
Notes: 1. Extrapolation of current financial performance
119
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Project Remax: Impact on various cost lines
| Q3'21 costs as % of billings | Impact | Impact on cost as % of billings | |
|---|---|---|---|
| Cost of Sales | 6% | • Remain constant as % of billings | → |
| Sales | 14% | • Modest improvement in % of billings, as utilization improves | → |
| Marketing Costs | 27% | • Modest reduction as discretionary marketing is reduced (excl. Sports Partnerships) | → |
| R&D | 9% | • Absolute €MM to remain largely stable as FTEs are re-allocated to higher growth initiatives | → |
| G&A | 10% | • Moderate reduction in absolute €MM | → |
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Seasonality of billings impact on margin
Illustrative impact of Billings growth on margin
Conceptual framework
- EBITDA margin is sensitive to quarterly billings growth, given high gross margin and temporarily high fixed cost base
- Recovery of margin will be weighted towards to 2nd half of 2022 as:
- billings growth outstrips cost growth
- project REMAX takes impact
- Marketing cost impact from sports partnerships is already in Q3 Adj. EBITDA
- FY22 will be the first year such expenses are incorporated in Q1 and Q2
Notes:
1. Represent Cost of Sales, Marketing, Sales, R&D, G&A costs
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Strong levered free cash flow, improving in Q3 2021
122
TeamViewer
Capital structure & allocation
Net financial position
€m
- Business remains well capitalized with plenty of liquidity
- Full focus on execution, will only consider M&A opportunistically
- Currently no change to capital allocation or returns policy – full toolkit at our disposal
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Mid-term guidance unchanged from Q3 results
| Outlook 2021 | 2022 and beyond | |
|---|---|---|
| Billings | ||
| (non-IFRS) | €535m - €555m^{1} | High teens percentage growth YoY |
| Revenue | ||
| (IFRS) | €495 - €505m^{1} | Mid teens percentage growth YoY |
| Adj. EBITDA Margin | ||
| (non-IFRS, as % of Billings) | 44% - 46% | Margin recovery |
Notes:
- Assumes USD/EUR exchange rate of 1.20 and broadly stable other currencies
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Key takeaways
- Two large, growing businesses (SMB and Enterprise); multiple growth levers for each
- SMB new adds have decelerated post-COVID, but continuous increase in ASP
- Enterprise NRR of 100%+, growing, with additional +20-25% contribution from SMB
- Fully invested cost base, yet still industry leading EBITDA margins
- Project REMAX: focused on action plan delivery
125
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Agenda
126 TeamViewer
A compelling positioning
Our purpose
Creating a world that works better
For society
Bridge distances, reduce environmental footprint, remove barriers to digital progress, and democratize technology
For free users
Enable people to connect and help each other
For customers
Digitalize business-critical processes along the value chain end to end and in all verticals
For partners
Enable new business models and services
For employees
Provide a meaningful workplace with a strong company culture for people who want to realize their full potential
For shareholder: Creating value through long-term growth, attractive margins and cash generation
127
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128
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An industry leading solution portfolio
Immediate Remote Support Tools
Remote connectivity for individuals and business of all sizes
- TeamViewer
- TeamViewer Remote Management
- TeamViewerFEasertest
Managed Enterprise Connectivity
Advanced secure solutions for SMB and enterprises
- TeamViewer
- TeamViewer
- TeamViewer
- TeamViewer
Operational Workflow Optimization
Digitalization across entire value chain through leading-edge technology
- TeamViewer Remote
- TeamViewer Printer
-
TeamViewer Boost AR
-
TeamViewer Remote-as-a-Service Platform
Open APIs
Microservices
Software Libraries
API for Connectivity
Global Access Network
A short-term improvement plan
| PRODUCTS | MARKETING & BRANDING | SHORT-TERM BILLINGS | ORGANIZATION | COST REDUCTION |
|---|---|---|---|---|
| 1 | ||||
| Reallocate non-core product FTE | 3 | |||
| Kick start digital marketing optimization | 5 | |||
| Lift up EMEA Enterprise sales force efficiency | 8 | |||
| Organizational & leadership streamlining | 10 | |||
| Trim discretionary spend | ||||
| 2 | ||||
| Renew TMV Core appeal for SMB | 4 | |||
| Leverage sports partnerships | 6 | |||
| Implement cross-selling campaigns | 9 | |||
| APAC Strategy 2.0 | ||||
| 7 | ||||
| Leverage strategic alliances |
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Key investment highlights
| €19bn global TAM, set to grow at 18% CAGR to 2025 with strong technological tailwinds | 18% CAGR | |
|---|---|---|
| Remote-as-a-Service Platform to solve business problems in multiple use case | >10 products | |
| Leading AR offering | ||
| Accelerated global brand building and use case discovery through high-end partnerships | 7% awareness | |
| baseline | ||
| Viral sales model amended by key account management, horizontal and vertical sales routes, plus new strategic partnerships with SAP, Microsoft and Google | 75% ASP growth for new ENT customers | |
| Attractive combination of resilient SMB business and accelerated growth dynamics in Enterprise offering | 75% LTM growth in Enterprise | |
| Large up/x-sell potential with >628k customers from SoHo to Fortune 500 across regions | <5% converted to Enterprise | |
| High margin financial profile with superior cash conversion | >45% margin end of 2022 |
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Agenda
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Q&A
TeamViewer
Capital Markets Day
10 November 2021