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TeamViewer AG
Investor Presentation • Nov 6, 2024
430_ip_2024-11-06_57916a44-6fbb-4f79-b89a-b274791645ed.pdf
Investor Presentation
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$\Theta$ TeamViewer
Q3/9M 2024 Results
Analyst / Investor Presentation
Important Notice / APMs
This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding TeamViewer SE (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "TeamViewer"). It is provided for information 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.
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 TeamViewer's 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. TeamViewer 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.
All stated figures are unaudited.
Percentage change data and totals presented in tables throughout this presentation are generally calculated on unrounded numbers. Therefore, numbers in tables may not add up precisely to the totals indicated and percentage change data may not precisely reflect the change data of the rounded figures for the same reason.
This document contains alternative performance measures (APM) that are not defined under IFRS. The APMs (non-IFRS) can be reconciled to the key performance indicators included in the IFRS consolidated financial statements and should not be viewed in isolation, but only as supplementary information for assessing the operating performance. TeamViewer believes that these APMs provide an additional, deeper understanding of the Company's performance.
TeamViewer has defined each of the following APMs as follows:
- Adjusted EBITDA is defined as operating income (EBIT) according to IFRS, plus depreciation and amortization of tangible and intangible fixed assets (EBITDA), adjusted for certain business transactions (income and expense) defined by the Management Board in agreement with the Supervisory Board. Business transactions to be adjusted relate to share-based compensation schemes and other material special items of the business that are presented separately to show the underlying operating performance of the business.
- Adjusted EBITDA margin means Adjusted EBITDA as a percentage of revenue.
- Billings represent the value (net) of goods and services invoiced to customers within a specific period and which constitute a contract as defined by IFRS 15.
- Retained Billings means recurring Billings (renewals, up- \& cross sell) attributable to retained subscribers who were subscribers in the previous twelve-month period.
- Retained ARR is defined as the ARR at the end of the reporting period from customers that have been already a customer at the end of the prior year reporting period.
- New Billings means recurring Billings attributable to new subscribers.
- Non-recurring Billings means Billings that do not recur, such as professional services and hardware reselling.
Important Notice / APMs (continued)
- Net Retention Rate (NRR) (on ARR, cc) is defined as Retained ARR at the end of the reporting period divided by the Total ARR at the end of the prior year reporting period.
- Annual Recurring Revenue (ARR) is annualized recurring revenue for all active subscriptions at the end of the reporting period. SMB (ARR view) means customers with ARR across all products and services of less than EUR 10,000 at the end of the reporting period. If the threshold is exceeded, the customer will be reallocated. Enterprise (ARR view) means customers with ARR across all products and services of at least EUR 10,000 at the end of the reporting period. Customers who do not reach this threshold will be reallocated.
- Number of subscribers means the total number of paying subscribers with a valid subscription at the reporting date.
- SMB customers mean customers with ACV across all products and services of less than EUR 10,000 within the last twelve-month period. If the threshold is exceeded, the customer will be reallocated.
- Enterprise customers mean customers with ACV across all products and services of at least EUR 10,000 within the last twelve-month period. Customers who do not reach this threshold will be reallocated.
- Churn (subscriber) is calculated by dividing the number of retained subscribers at the reporting date by the total number of subscribers at the previous year's reporting date.
- Average Selling Price (ASP) is calculated by dividing the total SMB / Enterprise Billings of the last twelve months (LTM) by the total number of SMB / Enterprise subscribers at the reporting date.
- Annual Contract Value (ACV) is used to distinguish different pricing buckets within SMB and Enterprise. The ACV is defined as the annualized value of one SMB / Enterprise contract.
- Net financial liabilities are defined as financial liabilities (without other financial liabilities) less cash and cash equivalents.
- Net leverage ratio means the ratio of net financial liabilities to Adjusted EBITDA of the last twelve-month period.
- 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.
- Cash Conversion means the percentage share of Levered Free Cash Flows (FCFE) in relation to the Adjusted EBITDA.
- Adjusted Net Income is the net income adjusted for certain income and expenses. These adjustments are: share-based compensation, amortization related to business combinations, other non-recurring income and expenses and related tax effects.
- Adjusted basic earnings per share is calculated in line with basic earnings per share, whereby Adjusted Net Income is used as the basis for the calculation instead of the net income.
Business Overview
Oliver Steil (CEO)
Continued revenue growth and outstanding profitability
Highlights
Revenue growth (+8\% cc yoy) in line with expectations and across all regions
Continued strong Enterprise momentum with sequentially improved Revenue growth trend (+23\% cc yoy)
4
Continued strong Enterprise momentum with sequentially improved Revenue growth trend $(+23 \%$ cc yoy $)$
Annual Recurring Revenue ${ }^{1}$ increase of +7\% cc yoy demonstrates sustained underlying growth
4
Significant increase in Net income by +49\% yoy and Adjusted (basic) EPS up +30\% yoy
FY 2024 Guidance: Revenue guidance range narrowed to between $€ 662 \mathrm{~m}-€ 668 \mathrm{~m}^{1}$; Adjusted EBITDA Margin raised to at least $44 \%$
Continued Revenue growth across all regions and customer categories
Regional Development
(\% yoy)
Enterprise continued to deliver significant growth in higher-value ranges
New customer wins across industries
Session Insights powered by AI
TeamViewer's new AI capabilities take care of routine, time-consuming tasks:
$\checkmark$ Al-generated session summaries reduce manual documentation and speed up post-session reporting.
$\checkmark$ Reporting dashboards make it easy to gain deep insights into support patterns.
Enormous productivity gains for IT support teams:
Financial Overview
Michael Wilkens (CFO)
Q3 2024: Good results with outstanding profitability
Topline KPIs Q3 2024
(\% and pp yoy)
| Revenue | $\begin{gathered} € 168.7 \mathrm{~m}^{1} \ +7 \% /+8 \% \mathrm{cc} \end{gathered}$ |
|---|---|
| Billings | $\begin{gathered} € 154.1 \mathrm{~m} \ +3 \% /+4 \% \mathrm{cc} \end{gathered}$ |
| ARR $^{3}$ | $\begin{gathered} € 669.3 \mathrm{~m} \ +6 \% /+7 \% \mathrm{cc} \end{gathered}$ |
| ENT NRR (on ARR, cc) ${ }^{4}$ | $\begin{gathered} 99 \% \ n / a \end{gathered}$ |
${ }^{1}$ Corresponds to $€ 167.8 \mathrm{~m}$ Revenue based on average guided FX rates.
Excluding the negative effect from FX headwinds from 2023 Billings of -1 pp on the margin, Adj. EBITDA margin would have been $49 \%$.
Profitability / Cash Q3 2024
(\% and pp yoy)
| Adjusted EBITDA | $\begin{gathered} € 81.0 \mathrm{~m} \ +15 \% \end{gathered}$ |
|---|---|
| Adjusted EBITDA Margin | $\begin{gathered} 48 \% \% \ +4 \mathrm{pp} \end{gathered}$ |
| Free Cash Flow (FCFE) | 9M: €142.6m (-1 \%) Q3: $€ 41.3 \mathrm{~m}(-10 \%)$ |
| Adjusted EPS | $\begin{gathered} € 0.29 \ +30 \% \end{gathered}$ |
Annual Recurring Revenue calculation logic changed from previous quarters. Previous year's numbers have been re calculated based on the new logic. Previously reported Annual Recurring Revenue (ARR) (in EUR m) based on Billings was $€ 532.5 \mathrm{~m}$ in Q3 2023 and $€ 872.8 \mathrm{~m}$ in Q3 2024, 6\% yoy growth.
Net Retention Rate is now calculated on Annual Recurring Revenue in constant currency. Previous year's numbers have been re-calculated based on the new logic. Previously reported ENT NRR based on Billings was 102 \% in Q3 2023 and 120 \% in Q3 2024, which amounts to a delta of 18 pp yoy.
Good Revenue and ARR growth; significant Margin expansion
Quarterly Revenue and Growth Rates ${ }^{1}$
ARR and Growth Rates ${ }^{2}$
[^0]
New Billings Development
(€m)
[^1]
[^0]: ${ }^{1}$ Q3 2024 Revenue corresponds to $€ 167.8 \mathrm{~m}$ based on average guided FX rates.
[^1]: ${ }^{2}$ Annual Recurring Revenue calculation logic changed from previous quarters. Previous year's numbers have been recalculated based on the new logic. Previously reported Annual Recurring Revenue (ARR) (in EUR m) based on Billings
Continued strong momentum in Enterprise, doubledigit growth advanced sequentially
Quarterly ENT Revenue and Growth Rates
ENT ARR and Growth Rates ${ }^{1}$
ENT ASP $^{1}$
ENT Customer
(eep)
ENT NRR (on ARR, cc) ${ }^{2}$
$( \% ; \mathrm{cc})$
[^0]
[^0]: ${ }^{1}$ Based on reported Billings.
${ }^{2}$ Net Retention Rate is now calculated on Annual Recurring Revenue in constant currency. Previous year's numbers have been re-calculated based on the new logic. Previously reported ENT NRR based on Billings was $102 \%$ in Q3 2023 and $120 \%$ in Q3 2024, which amounts to a delta of 18 pp yoy.
SMB solid quarter with mid single digit revenue and ARR growth and improved subscriber churn
Quarterly SMB Revenue and Growth Rates
SMB ARR and Growth Rates
SMB ASP $^{1}$
SMB Subscriber Churn ${ }^{2}$
(\%; LTM)
SMB Subscriber Churn ${ }^{2}$
(\%; LTM)
[^0]
[^0]: ${ }^{1}$ Based on reported Billings; subscribers not adjusted.
2023 adjusted for discontinuation of business in Russia and Belarus.
Outstanding profitability, Adj. EBITDA margin at $48 \%$
| Cm (all adjusted non-IFRS figures) | Q3 2024 | Q3 2023 | $\Delta \%$ | 9M 2024 | 9M 2023 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Revenue | 168.7 | 158.1 | 7\% | 494.5 | 463.6 | 7\% |
| Cost of Goods Sold (COGS) | (13.4) | (12.0) | $12 \%$ | (39.9) | (33.4) | $19 \%$ |
| Gross profit | 155.3 | 146.1 | 6\% | 454.6 | 430.1 | 6\% |
| \% Margin | 92\% | 92\% | 0 pp | 92\% | 93\% | $-1 p p$ |
| Sales | (25.0) | (21.1) | $18 \%$ | (73.3) | (64.5) | $14 \%$ |
| \% of Revenue | $-15 \%$ | $-13 \%$ | $-15 \%$ | $-14 \%$ | ||
| Marketing | (21.6) | (32.3) | $-33 \%$ | (89.3) | (98.2) | $-9 \%$ |
| \% of Revenue | $-13 \%$ | $-20 \%$ | $-18 \%$ | $-21 \%$ | ||
| R\&D | (17.5) | (15.5) | $13 \%$ | (49.5) | (46.3) | 7\% |
| \% of Revenue | $-10 \%$ | $-10 \%$ | $-10 \%$ | $-10 \%$ | ||
| G\&A | (8.8) | (7.6) | $16 \%$ | (25.2) | (24.0) | 5\% |
| \% of Revenue | $-5 \%$ | $-5 \%$ | $-5 \%$ | $-5 \%$ | ||
| Other ${ }^{1}$ | (1.4) | 0.7 | $-287 \%$ | (3.7) | 1.1 | $-444 \%$ |
| \% of Revenue | $-1 \%$ | $0 \%$ | $-1 \%$ | $0 \%$ | ||
| Total Opex | (74.3) | (75.8) | $-2 \%$ | (240.9) | (232.0) | 4\% |
| \% of Revenue | $-44 \%$ | $-48 \%$ | $-49 \%$ | $-50 \%$ | ||
| Total Costs ${ }^{2}$ | (87.7) | (87.8) | 0\% | (280.8) | (265.4) | 6\% |
| Adjusted EBITDA | 81.0 | 70.3 | 15\% | 213.6 | 198.1 | 8\% |
| \% Margin | 48 \% | 44 \% | $+4 p p$ | 43 \% | 43 \% | 0 pp |
Q3 2024 Adjusted EBITDA grew by $15 \%$ yoy, margin expansion 4 pp yoy
COGS: Increase mainly driven by deployment of Frontline projects
Sales: Higher due to additional FTEs hired in previous quarters
Marketing: Significant reduction due to scaled-back partnership with Manchester United
R\&D: Increased invest in FTEs and products, partly offset by a reduction of external contractors
G\&A: Slightly higher FTE count and phasing effects
Other cost: Slightly increased Bad Debt
[^0]
[^0]: ${ }^{1}$ incl. other income/expenses and bad debt expenses of $€ 2.8 \mathrm{~m}$ in Q3 2024 and $€ 1.3$ in Q3 2023 / $€ 8.0 \mathrm{~m}$ in 9 M 2024 and $€ 5.2 \mathrm{~m}$ in 9 M 2023.
${ }^{2}$ Total Costs are the sum of Cost of Goods Sold (COGS) and Total Opex.
Significant yoy increase in Net Income and EPS
| Cm | Q3 2024 | Q3 2023 | $\Delta \%$ | 9M 2024 | 9M 2023 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Adjusted EBITDA | 81.0 | 70.3 | $15 \%$ | 213.6 | 198.1 | $8 \%$ |
| Adjustment for non-recurring ${ }^{1}$ items | (6.9) | (10.9) | $-37 \%$ | (26.3) | (31.3) | $-16 \%$ |
| EBITDA | 74.1 | 59.4 | $25 \%$ | 187.3 | 166.9 | $12 \%$ |
| D\&A | (9.1) | (14.1) | $-36 \%$ | (37.6) | (41.8) | $-10 \%$ |
| Operating Profit (EBIT) | 65.0 | 45.3 | $44 \%$ | 149.7 | 125.1 | $20 \%$ |
| Financial / FX result | (4.1) | (5.1) | $-19 \%$ | (13.9) | (14.1) | $-1 \%$ |
| Share of profit/loss of associates | (0.8) | 0.0 | n/a | (2.9) | 0.0 | n/a |
| Profit before tax (EBT) | 60.1 | 40.2 | $49 \%$ | 132.8 | 110.9 | $20 \%$ |
| Income taxes | (20.6) | (13.7) | $51 \%$ | (44.5) | (27.2) | $63 \%$ |
| Net income | 39.5 | 26.5 | $49 \%$ | 88.4 | 83.7 | $6 \%$ |
| Basic number of shares issued and outstanding ${ }^{2}$ in $m$ | 158.4 | 170.6 | $-7 \%$ | 161.4 | 173.5 | $-7 \%$ |
| EPS (basic) in € | 0.25 | 0.16 | $60 \%$ | 0.55 | 0.48 | $13 \%$ |
| Adjusted EPS (basic) in € | 0.29 | 0.22 | $30 \%$ | 0.75 | 0.66 | $14 \%$ |
[^0]
Significant increase in Net income attributable to:
- Lower non-recurring costs, in particular reduced fair value changes related to FX hedges
- Reduced D\&A as PPA from the acquisition of TeamViewer in 2014 was fully amortized in July 2024
- Improved Financial / FX result due lower FX headwinds
- Higher Income Taxes paid in line with EBT increase
Increase of Adjusted EPS also supported by lower share count due to share buybacks
[^0]: ${ }^{1}$ IFRS 2 and other Items.
${ }^{2}$ Period average, without treasury shares. On 2 Aug, TeamViewer canceled 4 million ordinary shares that had been repurchased through S8B and were held in treasury. As a result, the share capital has been reduced from 174 million to 170 million ordinary shares outstanding.
FCFE development as anticipated, expected to grow by $\sim 8 \%$ yoy for FY24
| Cm | Q3 2024 | Q3 2023 | $\Delta \%$ | 9M 2024 | 9M 2023 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Pre-Tax net cash from operating activities (IFRS) | 66.3 | 67.4 | $-2 \%$ | 211.9 | 196.7 | $8 \%$ |
| Capital expenditure (excl. M\&A) | (1.3) | (1.7) | $-27 \%$ | (4.2) | (4.6) | $-8 \%$ |
| Lease payments | (1.9) | (2.3) | $-15 \%$ | (7.3) | (5.2) | $41 \%$ |
| Pre-tax Unlevered Free Cash Flow (pre-tax UFCF) | 63.2 | 63.4 | $0 \%$ | 200.4 | 186.9 | $7 \%$ |
| Cash Conversion (pre-tax UFCF / Adjusted EBITDA) | $78 \%$ | $90 \%$ | $94 \%$ | $94 \%$ | ||
| Interest paid for borrowings and lease liabilities | (3.5) | (4.8) | $-27 \%$ | (12.9) | (11.9) | $9 \%$ |
| Pre-tax Levered Free Cash Flow (pre-tax FCFE) | 59.7 | 58.6 | $2 \%$ | 187.4 | 175.1 | $7 \%$ |
| Cash Conversion (pre-tax FCFE / Adjusted EBITDA) | $74 \%$ | $83 \%$ | $88 \%$ | $88 \%$ | ||
| Income tax paid | (18.4) | (12.9) | $43 \%$ | (44.8) | (30.7) | $46 \%$ |
| Levered Free Cash Flow (FCFE) | 41.3 | 45.7 | $-10 \%$ | 142.6 | 144.4 | $-1 \%$ |
| Cash Conversion (FCFE / Adjusted EBITDA) | $51 \%$ | $65 \%$ | $67 \%$ | $73 \%$ |
9M 2024 Pre-Tax FCFE increased $7 \%$ yoy.
9M 2024 FCFE flattish yoy due to increased income tax paid, which is the result of:
- EBT up $20 \%$ yoy
- Positive effect of tax repayments of $€ 6 \mathrm{~m}$ in H1 2023
Leverage further improved
FY 2024 guidance
- TeamViewer narrows its Revenue guidance range for FY 2024 within its originally guided Revenue range. Corrected for FX headwinds, guided revenue corresponds to $7-8 \%$ growth yoy in cc.
- TeamViewer raises its Adjusted EBITDA margin guidance by 1 pp.
- Updates to FY 2024 Revenue and Adj. EBITDA Margin Guidance translate into increased internal expectations for Adj. EBITDA
[^0]
[^0]: ${ }^{1}$ Based on the average FX rates of 2023.
${ }^{2}$ Revenue growth rate in constant currency (cc) eliminates foreign currency effects related to Last Twelve
${ }^{3}$ Revenue (IFRS) previously guided "between EUR 660m to 685m (corresponds to $+7-11 \%$ cc yoy)" Adjusted EBITDA margin previously guided "at least $43 \%$ " FY 2024 Revenue outlook includes FX headwinds from 2023 billings of around $€ 10-11 \mathrm{~m}$ on a full year basis
Q\&A
Introducing Annualized Recurring Revenue (ARR)
As a leading global SaaS company, TeamViewer will introduce two main new SaaS related KPIs, as of Q3 2024:
- Revenue-based Annual Recurring Revenue (ARR), a standard performance metric used in the Software-as-aService industry. Aligning with SaaS peers, this marketstandard metric facilitates better growth assessment and peer comparison.
- NRR (on ARR) related to the Annual Recurring Revenue.
ARR is a leading indicator of TeamViewer's anticipated subscriptions revenues.
ARR emphasizes annualized recurring subscriptions, offering a clear view of annualized and recurring portion of revenue, which reflects TeamViewer's subscriptionbased core business and provides a clear, predictable view on the company's business.
ARR eliminates distortions and quarterly volatility that occurs in Billings; ARR is less subject to variations in shortterm trends that may not appropriately reflect the health of the business. Changes in ARR throughout the year could be subject to seasonality.
TeamViewer will report these new KPIs with its quarterly financial disclosure as of Q3 2024
[^0]
[^0]: ${ }^{1}$ ARR and NRR (on ARR) are alternative performance measures (APM) that are not defined under IFRS. The APMs (non-IFRS) can be reconciled to the key performance indicators included in the IFRS consolidated financial statements and should not be viewed in isolation, but only as supplementary information for assessing the operating performance. TeamViewer believes that these APMs provide an additional, deeper understanding of the Company's performance.
Definitions
Annualized Recurring Revenue
Annualized Recurring Revenue (ARR) is calculated as:
the annualized revenue of active subscription contracts as at the end of the reporting period. This excludes nonrecurring revenues (e.g. one-time fees, hardware revenues).
Daily Subscription Revenue at the end of the reporting period multiplied by 365 days (or 366 days for leap years).
Daily Subscription Revenue is calculated as: the total active contract value divided by the contract duration in days.
The end of the reporting period is defined as the last calendar day of the respective period.
Net Retention Rate on ARR
- Net Retention Rate on ARR (on ARR, cc) is calculated as:
- Retained ARR at the end of the reporting period divided by the Total ARR at the end of the prior year reporting period
- Retained ARR is defined as the ARR at the end of the reporting period from customers that have been already a customer at the end of the prior year reporting period
- NRR (on ARR, cc) will be provided 'in constant currency'
Historic comparable data
New calculation method (as introduced in Q3 2024)
| Based on Revenue | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| Total | ||||
| ARR in $€ \mathrm{~m}$ | 669.3 | 663.2 | 652.9 | 644.1 |
| ARR yoy | 6\% | 6\% | 6\% | 7\% |
| ARR yoy in cc | 7\% | 8\% | 9\% | 9\% |
| - | ||||
| NRR (on ARR) in cc | 98\% | 99\% | 99\% | 100\% |
| Enterprise | ||||
| ENT ARR in $€ \mathrm{~m}$ | 139.3 | 134.0 | 127.4 | 124.3 |
| ENT ARR yoy | 19\% | 18\% | 17\% | 16\% |
| ENT ARR yoy in cc | 20\% | 21\% | 21\% | 20\% |
| - | ||||
| ENT NRR (on ARR) in cc | 99\% | 99\% | 98\% | 94\% |
| SMB | ||||
| SMB ARR in $€ \mathrm{~m}$ | 530.1 | 529.2 | 525.5 | 519.8 |
| SMB ARR yoy | 3\% | 3\% | 4\% | 5\% |
| SMB ARR yoy in cc | 4\% | 5\% | 6\% | 6\% |
Previous calculation method (method applied until Q2 2024, disclosed in parallel for transparency purposes)
| Based on Billings | Q1 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| Total | ||||
| ARR (LTM) in $€ \mathrm{~m}$ | 672.6 | 667.0 | 656.9 | 649.5 |
| ARR (LTM) yoy | 6 \% | 7 \% | 7 \% | 8 \% |
| - | ||||
| NRR (LTM) reported | 101\% | 102\% | 103\% | 104\% |
| - | ||||
| Enterprise | ||||
| - | ||||
| - | ||||
| - | ||||
| ENT NRR (LTM) reported | 120\% | 116\% | 108\% | 106\% |
| - | ||||
| SMB | ||||
| - | ||||
| - |
Appendix
Overview sales KPIs
| Q3'24 | Q2'24 | Q1'24 | Q4'23 | Q3'23 | Q2'23 | Q1'23 | Q4'22 | Q3'22 | |
|---|---|---|---|---|---|---|---|---|---|
| SMB | |||||||||
| Billings p.q. in $€ \mathrm{~m}$ | 118.8 | 121.3 | 141.8 | 148.6 | 122.8 | 121.9 | 142.8 | 147.3 | 117.9 |
| Billings LTM in $€ \mathrm{~m}$ | 530.6 | 534.5 | 535.0 | 536.0 | 534.7 | 529.9 | 517.3 | 502.8 | 479.8 |
| Number of subscribers ${ }^{1}$ | 639,480 | 637,571 | 635,962 | 627,362 | 622,188 | 629,302 | 627,436 | 622,410 | 615,650 |
| ASP (LTM) in $€$ | 836 | 838 | 841 | 852 | 857 | 840 | 822 | 804 | 773 |
| Enterprise | |||||||||
| Billings p.q. in $€ \mathrm{~m}$ | 35.3 | 37.0 | 32.7 | 52.2 | 27.1 | 28.7 | 34.0 | 43.3 | 26.7 |
| Billings LTM in $€ \mathrm{~m}$ | 157.2 | 149.0 | 140.7 | 141.9 | 133.0 | 132.6 | 130.8 | 132.0 | 118.1 |
| Number of subscribers | 4,494 | 4,342 | 4,199 | 4,164 | 4,034 | 3,956 | 3,777 | 3,666 | 3,296 |
| ASP (LTM) in $€$ | 34,977 | 34,309 | 33,509 | 34,089 | 32,971 | 33,517 | 34,619 | 36,000 | 35,826 |
| Total | |||||||||
| Billings p.q. in $€ \mathrm{~m}$ | 154.1 | 158.3 | 174.5 | 200.8 | 149.8 | 150.6 | 176.8 | 190.6 | 144.6 |
| - Retained p.q. in $€ \mathrm{~m}$ | 139.1 | 139.2 | 155.2 | 179.6 | 135.4 | 135.9 | 161.4 | 174.8 | 129.4 |
| - New p.q. in $€ \mathrm{~m}$ | 14.0 | 17.5 | 18.5 | 19.4 | 14.2 | 13.9 | 14.7 | 14.3 | 14.9 |
| - Non-subscribers p.q. in $€ \mathrm{~m}$ | 1.0 | 1.6 | 0.9 | 1.8 | 0.3 | 0.8 | 0.6 | 1.5 | 0.3 |
| MYD with full upfront payment p.q. in $€ \mathrm{~m}$ | 17.4 | 17.4 | 9.4 | 20.9 | 15.9 | 14.7 | 16.2 | 20.9 | 10.9 |
| Billings LTM in $€ \mathrm{~m}$ | 687.8 | 683.5 | 675.7 | 678.0 | 667.7 | 662.5 | 648.1 | 634.8 | 597.9 |
| ARR in $€ \mathrm{~m}^{2}$ | 669.3 | 663.2 | 652.9 | 644.1 | 631.8 | 625.7 | 614.0 | 603.6 | n/a |
| Number of subscribers ${ }^{1}$ | 643,974 | 641,913 | 640,161 | 631,526 | 626,222 | 633,258 | 631,213 | 626,076 | 618,946 |
${ }^{1}$ 2022-2023 adjusted for discontinuation of business in Russia and Belarus.
${ }^{2}$ Annual Recurring Revenue calculation logic changed from previous quarters. Previous year's numbers have been re-calculated based on the new logic. Previously reported Annual Recurring Revenue (ARR) (in EUR m) based on Billings were as follows: Q3 2024: 672.6, Q2 2024: 667, Q1 2024: 656.9, Q4 2023: 649.5, Q3 2023: 632.5, Q2 2023: 626.2, Q1 2023: 613.6, Q4 2022: 602.5, Q3 2022: 574.1
Annual Contract Value (Billings based)
SMB Billings by ACV Bucket (LTM)
Q3 2024: Reconciliation management metrics to IFRS
| Cm | Management view arilitedfBAI ${ }^{1}$ | Change in deferredrevenue ${ }^{2}$ | Management view Revenue adf BAI ${ }^{3}$ | D\&A | Other non-IFRS arilustments | Accounting view IEDS BAI |
|---|---|---|---|---|---|---|
| Billings / Revenue | 154.1 | 14.6 | 168.7 | 168.7 | ||
| Cost of Goods Sold (COGS) | (13.4) | (13.4) | (3.4) | (0.6) | (17.4) | |
| Gross profit contribution | 140.7 | 155.3 | 151.3 | |||
| \% of Billings / Revenue | 91.3\% | 92.0\% | 89.7\% | |||
| Sales | (25.0) | (25.0) | (2.0) | (1.9) | (28.8) | |
| Marketing | (21.6) | (21.6) | (0.9) | (0.4) | (23.0) | |
| R\&D | (17.5) | (17.5) | (2.1) | (1.7) | (21.3) | |
| G\&A | (8.8) | (8.8) | (0.7) | (3.6) | (13.1) | |
| Other ${ }^{3}$ | (1.4) | (1.4) | 0.0 | 1.3 | (0.1) | |
| Adj. EBITDA | 66.4 | 81.0 | ||||
| \% of Billings / Revenue | 43.1\% | 48.0\% | ||||
| D\&A (ordinary only) ${ }^{4}$ | (6.9) | (6.9) | ||||
| Adj. EBIT / Operating profit (EBIT) | 59.5 | 14.6 | 74.1 | $-2.1^{5}$ | (6.9) | 65.0 |
| \% of Billings / Revenue | 38.6\% | 43.9\% | 38.6\% | |||
| D\&A (total) ${ }^{4+5}$ | 9.1 | |||||
| EBITDA | 74.1 | |||||
| \% of Billings / Revenue | 43.9\% |
[^0]
[^0]: ${ }^{1}$ Margins and percentages of billings in adjusted view and IFRS revenue
${ }^{2}$ Included change in undue billings
${ }^{3}$ Incl. other income/expenses and bad debt expenses of $€ 2.8 \mathrm{~m}$
${ }^{4}$ D\&A excl. amortization intangible assets from PPA
${ }^{5}$ Amortization intangible assets from PPA
Non-IFRS adjustments in EBITDA
| Cm | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total IFRS 2 charges | (6.0) | 0.2 | (16.0) | (16.4) |
| TeamViewer LTIP | (0.6) | (0.6) | 0.5 | (1.3) |
| RSU/PSU ${ }^{1}$ | (3.6) | (4.2) | (11.2) | (11.8) |
| M\&A related share-based compensation | 0.0 | (0.7) | 0.0 | (3.3) |
| Share-based compensation by TLO ${ }^{2}$ | (1.8) | 5.7 | (5.4) | 0.1 |
| Other material items | (2.2) | (2.0) | (4.3) | (4.9) |
| Financing, M\&A, transaction-related | 0.0 | (1.5) | 0.1 | (1.7) |
| ReMax | 0.0 | 0.0 | 0.0 | (0.1) |
| Other | (2.2) | (0.5) | (4.4) | (3.1) |
| Valuation effects | 1.3 | (9.0) | (6.0) | (10.0) |
| Total | (6.9) | (10.9) | (26.3) | (31.3) |
Total Non-IFRS adjustments
in Q3 2024 decreased due to:
- Lower TLO-related charges due to vesting period adjustments in Q3 2023
- Expired M\&A-related vesting
- Lower costs related to the employee share program
- Other increased partially related to June Cyber Incident
- Positive Valuation effects due to fair valuation changes related to FX hedges (future periods in non-recurring items)
[^0]
[^0]: ${ }^{1}$ Refers to the Restricted Stock Unit Plan (RSU) und Phantom Stock Unit Plan (PSU) introduced by TeamViewer in 2022.
${ }^{2}$ Pre-IPO management incentive program provided by Tiger LuxOne S.à r.l.
Share Count Development since IPO
[^0]
[^0]: ${ }^{1}$ Including 95,306 shares already bought back but still held on trading accounts of executing bank per 29 December 2023
${ }^{2}$ Including 54,000 shares already bought back but still held on trading accounts of executing bank per 30 September 2024
Financial Statements
Profit \& Loss Statement
| \& thousand | 03,5024 | 03,5023 | 6\% | 0M,2024 | 0M,2023 | 6\% |
|---|---|---|---|---|---|---|
| Revenue | 168,681 | 158,114 | 7\% | 494,451 | 463,575 | 7\% |
| Cost of Goods Sold (COGS) | (17,392) | (20,751) | $-16 \%$ | (62,890) | (59,580) | $6 \%$ |
| Gross profit | 151,288 | 137,363 | 10\% | 431,561 | 403,995 | 7\% |
| Research and development | (21,266) | (19,581) | $9 \%$ | (59,956) | (58,386) | $3 \%$ |
| Marketing | (22,965) | (33,336) | $-31 \%$ | (92,877) | (101,660) | $-9 \%$ |
| Sales | (28,823) | (23,486) | $23 \%$ | (84,858) | (78,151) | $9 \%$ |
| General and administrative | (13,128) | (10,470) | $25 \%$ | (34,413) | (34,521) | $0 \%$ |
| Bad debt expenses | (2,846) | (1,282) | $122 \%$ | (8,045) | (5,233) | $54 \%$ |
| Other income | 414 | 1,402 | $-70 \%$ | 1,536 | 5,248 | $-71 \%$ |
| Other expenses | 2,358 | (5,317) | $-144 \%$ | (3,250) | (6,241) | $-48 \%$ |
| Operating Profit | 65,032 | 45,292 | 44\% | 149,696 | 125,051 | 20\% |
| Finance income | 79 | (438) | $-118 \%$ | 676 | 806 | $-16 \%$ |
| Finance costs | (4,317) | (3,468) | $24 \%$ | (13,502) | (12,136) | $11 \%$ |
| Share of profit/(loss) of associates | (814) | 0 | n/a | (2,909) | 0 | n/a |
| Foreign currency result | 142 | (1,162) | $-112 \%$ | (1,115) | (2,772) | $-60 \%$ |
| Profit before tax | 60,122 | 40,224 | 49\% | 132,846 | 110,949 | 20\% |
| Income taxes | (20,621) | (13,676) | $51 \%$ | (44,457) | (27,206) | $63 \%$ |
| Net income | 39,501 | 26,548 | 49\% | 88,389 | 83,743 | 6\% |
| Basic number of shares issued and outstanding | 158,430,528 | 170,592,360 | 161,384,994 | 173,527,084 | ||
| Basic earnings per share (in $€$ per share) | 0.25 | 0.16 | 60\% | 0.55 | 0.48 | 13\% |
| Diluted number of shares issued and outstanding | 159,737,461 | 171,855,624 | 162,878,109 | 174,285,966 | ||
| Diluted earnings per share (in $€$ per share) | 0.25 | 0.15 | 60\% | 0.54 | 0.48 | 13\% |
Balance Sheet - Assets
| C thousand | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 667,685 | 667,662 |
| Intangible assets | 152,844 | 175,736 |
| Property, plant and equipment | 44,556 | 43,261 |
| Financial assets | 6,952 | 11,866 |
| Investments in associates ${ }^{1}$ | 17,711 | 15,414 |
| Other assets | 22,294 | 19,530 |
| Deferred tax assets | 26,390 | 18,596 |
| Total non-current assets | 938,433 | 952,065 |
| Current assets | ||
| Trade receivables | 12,779 | 21,966 |
| Other assets | 36,805 | 52,366 |
| Tax assets | 3,272 | 2,892 |
| Financial assets | 6,510 | 9,423 |
| Cash and cash equivalents | 24,455 | 72,822 |
| Total current assets | 83,821 | 159,468 |
| Total assets | 1,022,255 | 1,111,533 |
[^0]
[^0]: ${ }^{1}$ Previously shown under financial assets.
Balance Sheet - Equity \& Liabilities
| $\underline{\text { A thousand }}$ | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Equity | ||
| Issued capital | 170,000 | 174,000 |
| Capital reserve | 67,878 | 105,234 |
| Accumulated losses | $(6,799)$ | $(95,188)$ |
| Hedge reserve | 66 | 929 |
| Foreign currency translation reserve | 1,373 | 1,614 |
| Treasury share reserve | $(160,618)$ | $(102,929)$ |
| Total equity attributable to shareholders of TeamViewer SE | 71,900 | 83,660 |
| Non-current liabilities | ||
| Provisions | 566 | 389 |
| Financial liabilities | 331,293 | 432,149 |
| Deferred revenue | 39,966 | 41,367 |
| Deferred and other liabilities | 2,096 | 2,486 |
| Other financial liabilities | 325 | 13 |
| Deferred tax liabilities | 46,138 | 39,693 |
| Total non-current liabilities | 420,383 | 516,098 |
| Current liabilities | ||
| Provisions | 9,552 | 9,503 |
| Financial liabilities | 137,127 | 97,274 |
| Trade payables | 11,772 | 8,016 |
| Deferred revenue | 315,066 | 314,797 |
| Deferred and other liabilities | 52,155 | 73,067 |
| Other financial liabilities | 2,277 | 8,125 |
| Tax liabilities | 2,022 | 993 |
| Total current liabilities | 529,972 | 511,775 |
| Total liabilities | 950,355 | 1,027,873 |
| Total equity and liabilities | 1,022,255 | 1,111,533 |
Cash Flow Statement
| (thousand | Q3 2024 | Q3 2023 | $\Delta \%$ | 9M 2024 | 9M 2023 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Profit before tax | 60,122 | 40,224 | $49 \%$ | 132,846 | 110,949 | $20 \%$ |
| Depreciation, amortization and impairment of non-current assets | 9,061 | 14,086 | $-36 \%$ | 37,644 | 41,830 | $-10 \%$ |
| Increase/(decrease) in provisions | (73) | 1,087 | $-107 \%$ | 226 | 1,110 | $-80 \%$ |
| Non-operational foreign exchange (gains)/losses | 114 | (185) | $-162 \%$ | (14) | 65 | $-121 \%$ |
| Expenses for equity settled share-based compensation | 5,120 | $(1,112)$ | n/a | 15,733 | 14,287 | $10 \%$ |
| Net financial costs | 5,051 | 3,906 | $29 \%$ | 15,736 | 11,330 | $39 \%$ |
| Change in deferred revenue | $(17,806)$ | $(9,877)$ | $80 \%$ | $(1,132)$ | 21,204 | $-105 \%$ |
| Changes in other net working capital and other | 4,755 | 19,239 | $-75 \%$ | 10,837 | $(4,103)$ | n/a |
| Income taxes paid | $(18,395)$ | $(12,900)$ | $43 \%$ | $(44,802)$ | $(30,677)$ | $46 \%$ |
| Cash flows from operating activities | 47,950 | 54,467 | $-12 \%$ | 167,074 | 165,996 | $1 \%$ |
| Payments for tangible and intangible assets | $(1,255)$ | $(1,714)$ | $-27 \%$ | $(4,230)$ | $(4,582)$ | $-8 \%$ |
| Payments for financial assets | $(1,512)$ | 0 | n/a | $(5,559)$ | $(2,038)$ | $173 \%$ |
| Payments for acquisitions | 0 | (250) | $-100 \%$ | 0 | $(8,073)$ | $-100 \%$ |
| Cash flows from investing activities | $(2,767)$ | $(1,964)$ | $41 \%$ | $(9,790)$ | $(14,693)$ | $-33 \%$ |
Cash Flow Statement (continued)
| (thousand | Q3,2024 | Q3,2023 | $\Delta \%$ | 9M,2024 | 9M,2023 | $\Delta \%$ |
|---|---|---|---|---|---|---|
| Repayments of borrowings | $(39,000)$ | 0 | n/a | $(259,000)$ | $(100,000)$ | $159 \%$ |
| Proceeds from borrowings | 4,000 | 0 | n/a | 194,000 | 0 | n/a |
| Payments for the capital element of lease liabilities | $(1,921)$ | $(2,273)$ | $(15 \%)$ | $(7,266)$ | $(5,165)$ | $41 \%$ |
| Interest paid on borrowings and lease liabilities | $(3,502)$ | $(4,812)$ | $(27 \%)$ | $(12,935)$ | $(11,872)$ | $9 \%$ |
| Purchase of treasury shares | $(25,833)$ | $(37,774)$ | $(32 \%)$ | $(120,140)$ | $(115,211)$ | $4 \%$ |
| Cash flows from financing activities | $(66,256)$ | $(44,858)$ | $48 \%$ | $(205,341)$ | $(232,248)$ | $-12 \%$ |
| Net change in cash and cash equivalents | $(21,074)$ | 7,644 | n/a | $(48,056)$ | $(80,945)$ | $-41 \%$ |
| Net foreign exchange rate difference | $(363)$ | 354 | $(203 \%)$ | $(310)$ | $(161)$ | $92 \%$ |
| Net change from cash risk provisioning | 0 | 0 | n/a | 0 | 0 | n/a |
| Cash and cash equivalents at beginning of period | 45,892 | 71,892 | $(36 \%)$ | 72,822 | 160,997 | $-55 \%$ |
| Cash and cash equivalents at end of period | 24,455 | 79,891 | $(69 \%)$ | 24,455 | 79,891 | $-69 \%$ |
TeamViewer
