TeamViewer share with double-digit price jump: TeamViewer earns a little more operationally than promised

The software provider TeamViewer closed the year 2021, which was dominated by severe setbacks, on a slightly positive note.

Thanks to cost savings in the final quarter, the MDAX company earned a little more operationally than last promised, as it announced on Wednesday in Göppingen on the basis of preliminary figures. Although demand did not gain much more momentum in the final quarter than in the two weak previous quarters, given the recently significantly reduced expectations on the market and the recent price decline, the share on XETRA has risen significantly.

One trader spoke of a better than expected report. The share, which was badly shaken in the past few months as a result of the sharply lower targets in October, temporarily gained 12.94 percent to EUR 13.05 in early XETRA trading.

However, this should be little consolation for many investors, because in 2021 alone the price lost almost three quarters of its value due to the problems surrounding growth and high costs. In the summer of 2020, the title was worth almost five times at a record high at almost 55 euros. Even the issue price for the IPO in September 2019 of EUR 26.25 is currently a long way off. At the beginning of the corona pandemic, TeamViewer benefited from special demand for remote maintenance and video conferencing software, but was not able to keep the growth rate at a high level as a result.

The management around boss Oliver Steil and CFO Stefan Gaiser rated the results from the final quarter as a success. “We ended the fiscal year with a strong fourth quarter,” said Gaiser. “This is particularly reflected in the high number of contract extensions and strong billings growth in the enterprise segment.” TeamViewer expects good business in the coming years, especially with large customers, in the enterprise sector.

The billings are the sales invoiced in a period for the next twelve months. Since the turnover itself has to be distributed over the term of the contract in the balance sheet, the management is of the opinion that it does not adequately reflect the current demand. TeamViewer has had to struggle with many cancellations and expiring subscriptions in the recent past, as many companies returned to a more regulated workflow after the peak of the pandemic.

After several unexpectedly weak quarters in autumn, management then harshly cut the growth prospects – not only for 2021, but also for the medium term. That had caused the share price to plummet because the costs for the already heavily criticized expensive sports sponsorship at the English football club Manchester United and the Mercedes Formula 1 team, but also the expenses for the increased workforce, suddenly contrasted with the drastically lower expected revenues.

The earnings before interest, taxes, depreciation and amortization adjusted for special effects will probably be between 254 and 257 million euros in 2021, according to the company. That is around 47 percent margin based on the invoiced sales (billings) and thus a little more than the last estimate of up to 46 percent. In 2020 the company had achieved a margin of almost 57 percent – in the past year TeamViewer invested a lot of money in expensive advertising contracts and the planned growth.

Billings rose by 19 percent to around 548 million euros for the full year in 2021 and thus met the forecast. In the fourth quarter, the billings increased by 20 percent, adjusted for currency effects by 17 percent. The number of subscribers rose to 627,000 at the end of the year, compared with 584,000 a year earlier.

The company plans to present details of the annual figures and an updated outlook on investment and capital planning on February 2nd.


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