Slide 1: Preliminary Q4 & FY 2019 Results
Anyone. Anything. Anywhere. Anytime. Preliminary Q4 & FY 2019 Results (unaudited, IFRS) February 10, 2020
Slide 2: Important Notice
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 informationa
Slide 3: Business Overview
Business Overview CEO Oliver Steil 3
Slide 4: Highlights 2019: Delivering On Our Commitment
Highlights 2019: Delivering On Our Commitment CUSTOMER SEGMENT GEOGRAPHIC USE CASE GROWTH PROFITABILITY COVERAGE EXPANSION INNOVATION • FY 2019 Billings: €325m • Scale effects • Products tailored to • Continued pene- • R&D - additional office (+41% YoY), ahead of customer segments tration in America
Slide 5: Sustained Subscriber Growth Resulting In Billings Ahead Of Guidance
Sustained Subscriber Growth Resulting In Billings Ahead Of Guidance Subscribers (thousands) Billings (€m) 464(1) 325 174 230 271 185 36 Billings Subscribers (thousands) (€m) 136 254 67 74 21 26 68 26 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 New Migrated Retained 1. Restated as of 31 Dec 19 du
Slide 6: Growing Traction In The Enterprise Segment
Growing Traction In The Enterprise Segment Reflected By Increasing Contract Values And A Boost In Larger Customers Customers With Annual Contract Value Above €10k LTM (€m) (1) Top 50 Deals Accumulated Contract Value LTM (€m) (1) +67% +60% 698 714 590 4.2 518 3.4 468 419 2.7 2.8 2.1 2.3 31. Dec 18 31
Slide 7: Delivering Above Market Growth While Maintaining High Adjusted EBITDA Margins
Delivering Above Market Growth While Maintaining High Adjusted EBITDA Margins Billings (€m) Adjusted EBITDA (€m) / Adjusted EBITDA Margin +34% 100.6 +46% 62.6 75.3 42.9 62.2% 56.9% Q4 2018 Q4 2019 Q4 2018 Q4 2019 324.9 +51% 182.1 229.8 +41% 120.6 56.0% 52.5% FY 2018 FY 2019 FY 2018 FY 2019 7
Slide 8: Financial Review
Financial Review CFO Stefan Gaiser 8
Slide 9: FY 2019 Billings Target Overachieved With Strong Contribution From All Regions
FY 2019 Billings Target Overachieved With Strong Contribution From All Regions – Most Noteworthy Americas Billings (€m) 324.9 41.2 +41% 100.6 229.8 +34% 9.9 31.1 109.8 75.3 7.1 32.8 69.2 21.1 174.0 58.0 129.5 47.1 FY 2018 FY 2019 Q4 2018 Q4 2019 EMEA AMS APAC EMEA AMS APAC EMEA AMS APAC +34% +59% +3
Slide 10: Billings Seasonality Starting To Fade
Billings Seasonality Starting To Fade As Perpetual & Migration Contribution Continues To Ebb And New Billings Span More Evenly Billings (€m) FY 2018: €229.8m FY 2019: €324.9m 33 % 31 % 100 24 % 25 % 100.6 22 % 22 % 0.1 21 % 21 % 82.7 23.1 75.3 73.1 0.2 1.2 68.6 1.0 4.5 0.7 28.2 55.2 18.3 48.5 50.8 2
Slide 11: Scale Effects Resulting In Higher Adjusted EBITDA Margin YoY
Scale Effects Resulting In Higher Adjusted EBITDA Margin YoY … Adjusted EBITDA(1) (€m) FY 2018 FY 2019 Q4 2018 Q4 2019 Billings 229.8 324.9 75.3 100.6 Cost of Sales (21.3) (24.2) (5.7) (6.9) % of Billings 9.3% 7.5% 7.5% 6.9% Gross Margin 90.7% 92.5% 92.5% 93.1% Efficient go-to-market model with stro
Slide 12: While Cash Conversion Remains High
… While Cash Conversion Remains High Pre-Tax Free Cash Flow (€m) FY 2018 FY 2019 Q4 2018 Q4 2019 Adj. EBITDA 120.6 182.1 42.9 62.6 Higher net working capital inflow as transition to full subscription model Change in Other Net Working is complete 3.6 6.0 1.3 7.9 Capital Capital Expenditure (11.5) (16
Slide 13: Unique Financial Model – Billings To Pre-Tax FCF 2019
Unique Financial Model – Billings To Pre-Tax FCF 2019 (7)% 94% 100% 93% (12)% Cash Sales Conversion (2) (7)% Marketing (9)% R&D (5)% G&A (4)% Other(1) 2% (5)% 56% 53% Billings Cost of Sales Profit Costs Adj. EBITDA Change in NWC Capex Pre-tax FCF Contribution 1. Includes other income, expenses and b
Slide 14: 2019 Deleveraging Target Achieved
2019 Deleveraging Target Achieved Leverage(1) (€m) FY 2018 FY 2019 Cash And Cash Equivalents (79.9) (71.2) • IFRS 16 first applied in 2019 • FY 2019 capitalized operating leases due to new HQ Financial Debt(1) 683.9 616.8 Loan Facilities 683.9(1) 595.7 • Deleveraging target of 3.0x achieved IFRS 16
Slide 15: Outlook 2020
Outlook 2020 2019 Guidance 2019 Actual 2020 Outlook Billings €310 – 320m €325m €430 – 440m Revenue €386 – 391m €390m €420 – 430m Adj. EBITDA €177– 183m €182m €240 – 250m ~€25m capital expenditure (mainly HQ and new ERP) 15
Slide 16: Q&A
Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: Expansion Of TeamViewer’s Global Footprint
Expansion Of TeamViewer’s Global Footprint FTEs per Function Year End 2019 vs. 2018 Sales Representatives (FTEs)(2) per Region 2019 vs. 2018 +29% Inside Enterprise Channel Total 841 2018 2019 2018 2019 2018 2019 2018 2019 652 322 51 56 17 26 12 14 80 96 EMEA Sales(1) 232 +39% 66 Marketing 36 +83% 54
Slide 19: Q4 2019 Reconciliation From Management Key Metrics To IFRS
Q4 2019 Reconciliation From Management Key Metrics To IFRS Q4 2019 (€m) Management View Deferred D&A Other non-IFRS Accounting View Adjusted P&L Revenue Adjustments IFRS P&L Billings / Revenue 100.6 6.3 106.9 Cost Of Sales (6.9) / (7% of Billings) (6.4) (0.5) (13.8) / (13% of Revenue) Gross Profit C
Slide 20: FY 2019 Reconciliation From Management Key Metrics To IFRS
FY 2019 Reconciliation From Management Key Metrics To IFRS FY 2019 (€m) Management View Deferred D&A Other non-IFRS Accounting View Adjusted P&L Revenue Adjustments IFRS P&L Billings / Revenue 324.9 65.2 390.2 Cost Of Sales (24.2) / (7% of Billings) (25.0) (1.0) (50.2) ) / (13% of Revenue) Gross Pro
Slide 21: Non-IFRS Adjustments in EBITDA
Non-IFRS Adjustments in EBITDA Deferred Revenue Adjustments (€m) Other non-IFRS Adjustments (€m) FY 2018 FY 2019 Q4 2018 Q4 2019 FY 2018 FY 2019 Q4 2018 Q4 2019 Billings 229.8 324.9 75.3 100.6 IFRS 2 Share-based (1.8) (36.8) (0.5) (9.7) Compensation Perpetual Deferred Revenue 92.0 124.5 36.0 28.7 Re
Slide 22: Deferred Revenue Development
Deferred Revenue Development Deferred Revenue Beginning and End of Period (€m) IFRS FY 2018 FY 2019 Q4 2018 Q4 2019 Perpetual Deferred Revenue (BoP) 265.4 173.4 209.4 77.6 Release 121.7 126.1 38.4 28.9 Addition 29.7 1.5 2.4 0.2 Perpetual Deferred Revenue (EoP) 173.4 48.9 173.4 48.9 Subscription Defe
Slide 23: Preliminary Financial Information 2019
Preliminary Financial Information 2019 (unaudited, IFRS) 23
Slide 24: Profit & Loss Statement
Profit & Loss Statement (preliminary, unaudited) For the year ended December 31, in EUR thousands 2019 2018 Revenue 390,191 258,157 Cost of sales (50,228) (46,610) Gross profit 339,963 211,548 Other income 7,723 1,588 R&D (37,934) (23,039) Sales (56,661) (30,458) Marketing (25,641) (17,974) G&A (58,
Slide 25: Balance Sheet
Balance Sheet (preliminary, unaudited) For the year ended December 31, in EUR thousand 2019 2018 Non-current assets: Goodwill 590,445 584,312 Intangible assets 235,831 252,563 Property, plant and equipment 26,480 2,239 Financial assets 4,424 0 Other assets 1,740 745 Deferred tax assets 13,311 0 Tota
Slide 26: Balance Sheet (cont’d)
Balance Sheet (cont’d) (preliminary, unaudited) For the year ended December 31, in EUR thousands 2019 2018 Equity: Issued capital 200,000 25 Capital reserve 320,661 116,312 (Accumulated losses) / retained earnings (422,836) (332,876) Hedge reserve 0 (14) Foreign currency translation reserve 1,081 4
Slide 27: Cash Flow Statement
Cash Flow Statement (preliminary, unaudited) For the year ended December 31, in EUR thousands 2019 2018 Cash flows from operating activities: Profit before tax 95,142 4,499 Amortisation and depreciation 36,442 30,106 (Gain) / loss on sale of fixed assets (5) 0 (Increase) / decrease of provisions 2,1
Slide 28: Cash Flow Statement (cont’d)
Cash Flow Statement (cont’d) (preliminary, unaudited) For the year ended December 31, in EUR thousands 2019 2018 Cash flows from financing activities: Repayments of borrowings (696,373) (5,016) Proceeds from borrowings 610,313 0 Payment of principal portion of lease liabilities (3,836) 0 Interest pa