Teamviewer Se · XETR:TMV

Teamviewer — Q4 2021 Earnings Presentation

43 slides from Teamviewer's earnings presentation, Feb 1, 2022

  1. Slide 1: Q4 | FY 2021 Results

    Q4 | FY 2021 Results Investor/Analyst Presentation 02 February 2022

  2. 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

  3. Slide 3: Business Overview

    Business Overview Oliver Steil

  4. Slide 4: What we achieved in 2021

    What we achieved in 2021 FY 2021 results fully in line Strong Enterprise business with revised guidance growth recorded Successfully retained COVID-19 Major strategic related subscribers, churn improved partnerships initiated Progress on project 2021 acquisitions ReMax made fully integrated 4 Q4 | F

  5. Slide 5: Q4 and FY 2021 at a glance

    Q4 and FY 2021 at a glance Financials Key developments • Q4 2021 billings growth up compared to previous quarter Q4 2021 FY 2021 • Strong Enterprise growth: 75% YoY to now € 93m billings, more than doubled in Q4 • Enterprise business accounts now for 17% of total billings Billings € 153.7m € 547.6m

  6. Slide 6: Enterprise accelerating and SMB stabilizing in second half of year

    Enterprise accelerating and SMB stabilizing in second half of year 2019 – 2021 Billings Development (€m) 2021 Billings Growth Rate per Quarter and YoY +88 548 134% 45% +135 460 93 55% €12m of the €93m 107% Growth rate converted from 2021 YoY 26% 53 SMB billings 74% 455 64% 75% 325 407 17 32% 12% 308

  7. Slide 7: Very strong finish in Enterprise, accelerated net additions in Q4

    Very strong finish in Enterprise, accelerated net additions in Q4… Quarterly Development of Enterprise Customers1 +44% • Further strengthened enterprise AR ~ x2 platform Frontline by the fully integrated +293 offerings of the acquired companies Upskill +167 and Viscopic +194 +173 • Strong pipeline c

  8. Slide 8: Strong Enterprise billings growth of 75% (LTM)

    … leading to strong Enterprise billings growth of 75% (LTM) Enterprise Billings (€m, LTM)1 Enterprise Billings by ACV bucket (LTM) +75% €10-50k >€50k >€100k >€200k 93 13% 50% 39% 21% 12% 53 11% 14% 61% 50% 18% 31 Dec 20 31 Dec 21 31 Dec 20 31 Dec 21 • TMV’s success in building lasting • Portion of c

  9. Slide 9: Multiple new high-profile strategic partnerships with leading companies

    Multiple new high-profile strategic partnerships with leading companies TeamViewer’s partnerships • Conclusion of major new partnerships with leading businesses in their respective industries in 2021 • Partnerships as major driver for long-term growth due to: • Acceleration of the expansion into var

  10. Slide 10: Covering unlimited use cases for all industries: NSF International

    Covering unlimited use cases for all industries: NSF International Commercial agreement with global food safety organization NSF to drive cutting edge AR-solution based on TeamViewer’s Frontline suite Voice- and eye-controlled AR applications enhanced with AI capabilities as a game changer for digit

  11. Slide 11: Covering unlimited use cases for all industries: Ford

    Covering unlimited use cases for all industries: Ford AR-supported remote troubleshooting of complex vehicle issues through centralized diagnostic team Enhanced support to technicians across global network of Ford dealers to solve problems more accurately Already used by more than 400 Ford dealers w

  12. Slide 12: Covering unlimited use cases for all industries: Erste Bank Oesterreich

    Covering unlimited use cases for all industries: Erste Bank Oesterreich New service: TeamViewer enables virtual branch for Erste Bank Oesterreich Clients can receive online consultation from personal advisor in a video call, share their screen, fill out online forms together, upload documents, etc.

  13. Slide 13: Covering unlimited use cases for all industries: ABB

    Covering unlimited use cases for all industries: ABB Swedish-Swiss multinational remotely supports its clients worldwide with connected devices such as robots and industrial machines Standardize and streamline the global internal remote IT support across all divisions TeamViewer Tensor for highly se

  14. Slide 14: Solid increase in SMB subscribers, good retention and improved churn

    Solid increase in SMB subscribers, good retention of COVID-19 induced subscribers and even improved churn SMB Billings Total and by ACV Bucket (€m, LTM) SMB ASP Development (€) +12% 455 407 728 +32% 308 36% 39% € 1,500 – 10,000 713 710 29% 699 702 37% 37% € 500 – <1,500 43% 29% 28% 24% € <500 Q4 202

  15. Slide 15: Digitalizing small and medium-sized businesses around the world

    Digitalizing small and medium-sized businesses around the world Supplier of turnkey systems for On-demand IT support for the brewing industry relies on With TeamViewer , the team at The Austrian transportation businesses in Norway remote support with TeamViewer VOSS Fluid can remotely access company

  16. Slide 16: Ecosystem remains stable quarter over quarter

    Ecosystem remains stable quarter over quarter Installs per Quarter (m) Av. Monthly Active Devices per Quarter (m) Yearly Active Devices (m, LTM) +2% -2% -8% 51 52 49 48 283 260 As Q4 2020 was a 11 10 lockdown quarter, 73 18 18 66 the drop was to be expected 14 13 76 70 14 13 23 25 134 21 124 19 Q3 2

  17. Slide 17: Sports partnerships boosting our Brand Exposure

    Sports partnerships boosting our Brand Exposure PRODUCT CORPORATE DEVELOPMENT OPERATIONS LOGISTICS FUNCTIONS SALES SERVICE Remote media operations Merchandise Picking Virtual live event Fan service co- (Core, implemented) AR-supported wind solution (Frontline, Remote IT Support support browsing (Eng

  18. Slide 18: Improvement program ReMax fully on track since CMD

    Improvement program ReMax fully on track since CMD MARKETING & SHORT-TERM PRODUCTS ORGANIZATION COST REDUCTION BRANDING BILLINGS Taskforce incrementally EMEA Enterprise sales setup Changes in Mgmt Board, Major cost reductions Non-core product FTE upgrading digital adjusted for efficiency & SLT, 2nd

  19. Slide 19: Financial Overview

    Financial Overview Stefan Gaiser

  20. Slide 20: Financial Highlights

    Financial Highlights Top Line (€m) Profitability (€m) Free Cash Flow and Cash Conversion (€m) FY 2021 Q4 2021 FY 2021 Q4 2021 FY 2021 Q4 2021 547.6 153.7 Billings Adj. EBITDA 257.0 67.7 Levered Free 157.8 68.0 +20% cc1 +17% cc1 (non-IFRS) (non-IFRS)2 -2% -6% Cash Flow -5% +21% +19% +20% 501.1 132.3

  21. Slide 21: 20% cc billings growth with c. 627,000 subscribers by Dec 21

    20% cc billings growth with c. 627,000 subscribers by 31 Dec 21 Billings by Category (in €m) Subscriber Development (in k, LTM) +20%cc +19% +7% 547.6 +17%cc 2.5 -1 460.3 628 627 94.2 584 +20% 2.1 145 125 122.2 190 153.7 128.1 0… 1.6 19.8 450.9 484 502 28.7 336.0 394 133.2 97.9 Q4 20 Q4 21 31 Dec 20

  22. Slide 22: Increasingly loyal customer base after COVID-related dip

    Increasingly loyal customer base after COVID-related dip Net Retention Rate (NRR), past five quarters (overall) New Billings per Quarter (overall, in €m) 35 110% 105% 29 30 28 105% 27 99% 99% 25 100% 97% 20 20 95% 20 90% 88% 15 85% 10 80% 5 75% 0 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 22

  23. Slide 23: Strong year in Americas; EMEA consistent growth; APAC improving

    Strong year in Americas with significant Enterprise acceleration; EMEA with reliable, consistent growth; APAC with improvements towards year end AMERICAS EMEA APAC FY 2021 Billings FY 2021 Billings FY 2021 Billings € 187.9m € 296.0m € 63.6m +19% | +22% cc +20% | +20% cc +13% | +14% cc Q4 2021 Billin

  24. Slide 24: Business again with strong scale effects, brand investments impact margin

    Business again with strong scale effects, brand investments impact margin €m Q4 2021 Q4 2020 ∆% FY 2021 FY 2020 ∆% Billings 153.7 128.1 20% 547.6 460.3 19% Cost of sales (10.0) (9.6) (38.3) (35.9) • Despite strong push of the % of billings -6.5% -7.5% 4% -7.0% -7.8% 7% Enterprise business, the land

  25. Slide 25: Continued strong free cash flow and high cash conversion

    Continued strong free cash flow and high cash conversion Levered Free Cash Flow and Cash Conversion €m Q4 2021 Q4 2020 ∆% FY 2021 FY 2020 ∆% • Pre-tax cash flow FY from Pre-Tax net cash from operating activities (IFRS) 80.0 72.9 10% 237.5 258.0 -8% operating activities mainly impacted by investments

  26. Slide 26: Strong and consistent deleveraging post IPO, strong balance sheet

    Strong and consistent deleveraging post IPO, strong balance sheet with long term secured financing Net Leverage Ratio1 Cash and Cash Equivalents and Net Liabilities (€m) 3.5 3.0 1.7 550.5 1.3 327.0 At IPO 2019 2020 2021 2021 2021 Levered Free Cash Flow (€m) Maturity Profile (€m) 166 158 489 77 193 1

  27. Slide 27: A unique cash profile

    A unique cash profile Low capex, now and going forward Low taxes, particularly until 2023 TeamViewer has a superior and sustainable High margins, and further improving cash profile which is opening multiple avenues Adequate leverage ratio, driven by consistent cash flow generation for further value

  28. Slide 28: Revised capital allocation, major share buyback program to be initiated

    Revised capital allocation, major share buyback program to be initiated Major Share Buyback Program Based on Updated Capital Allocation Rationale of SBB Facts & Figures of SBB • Buyback program rooted in strong and long-term secured • SBB program with a total volume of up to €300m or a financing str

  29. Slide 29: Outlook 2022

    6 TeamViewer Outlook 2022

  30. Slide 30: 2022 Outlook

    2022 Outlook 2021 revised guidance 2021 actuals 2022 guidance Mid-term outlook Billings High teens percentage € 535m – € 555m € 548m € 630m – € 650m (non-IFRS) growth YoY Revenue € 495m – € 505m € 501m € 565m – € 580m Mid teens percentage (IFRS) growth YoY Adj. EBITDA Margin 45% – 47% Further margin

  31. Slide 31: Thank you for your attention

    6 TeamViewer Thank you for your attentio

  32. Slide 32: Appendix

    6 TeamViewer Appendix

  33. Slide 33: Q4 2021 reconciliation from management key metrics to IFRS

    Q4 2021 reconciliation from management key metrics to IFRS Management view Change in Other non-IFRS Accounting view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 153.7 (21.5) 132.3 Cost of sales (10.0) (8.3) 1.0 (17.3) Gross profit contribution 143.7 115.0 % of Billi

  34. Slide 34: FY 2021 reconciliation from management key metrics to IFRS

    FY 2021 reconciliation from management key metrics to IFRS Management view Change in Other non-IFRS Accounting view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 547.6 (46.5) 501.1 Cost of sales (38.3) (33.2) 0.5 (70.9) Gross profit contribution 509.4 430.2 % of Bill

  35. Slide 35: Deferred revenue development in 2021

    Deferred revenue development in 2021 Additions Other Release to Additions Other Release to Additions Other Release to Additions Other Release to €m 1 Jan from Addition / IFRS 31 Mar 1 Apr from Addition / IFRS 30 Jun 1 Jul from Addition / IFRS 30 Sep 1 Oct from Addition / IFRS 31 Dec Billings Release

  36. Slide 36: Non-IFRS adjustments in EBITDA

    Non-IFRS adjustments in EBITDA €m Q4 2021 Q4 2020 FY 2021 FY 2020 Total IFRS 2 charges • M&A related and TLO share-based 14.4 (14.8) (26.4) (48.9) compensation not cash relevant TeamViewer LTIP 1.5 (0.6) 1.2 (1.6) • IFRS 2 gain in Q4 reflects new estimates M&A related share-based compensation (3.3)

  37. Slide 37: Full time employees by functional area

    Full time employees by functional area In FTE 31 Dec 21 31 Dec 20 ∆ Sales 605 495 22% Marketing 86 94 -8% Tech Support 86 85 2% R&D 460 384 20% G&A 239 198 21% Total 1,477 1,256 18% 37 Q4 | FY 2021 Results - Investor Presentation

  38. Slide 38: Financial Statements

    6 TeamViewer Financial Statements ~~"

  39. Slide 39: Profit & Loss Statement

    Profit & Loss Statement € thousand Q4 2021 Q4 2020 ∆% FY 2021 FY 2020 ∆% Revenue 132,252 120,971 9% 501,097 455,614 10% Cost of sales (17,288) (17,465) -1% (70,944) (64,102) 11% Gross profit 114,964 103,506 11% 430,153 391,512 10% Research and development (17,267) (15,439) 12% (62,137) (46,627) 33%

  40. Slide 40: Balance Sheet

    Balance Sheet € thousand 31 Dec 2021 31 Dec 2020 Non-current assets Goodwill 667,224 646,793 Intangible assets 248,159 255,330 Property, plant and equipment 45,484 40,469 Financial assets 4,848 4,516 Other assets 3,824 857 Deferred tax assets 496 159 Total non-current assets 970,035 948,124 Current

  41. Slide 41: Balance Sheet (cont’d)

    Balance Sheet (cont’d) € thousand 31 Dec 2021 31 Dec 2020 Equity Issued capital 201,071 201,071 Capital reserve 394,487 366,898 (Accumulated losses)/retained earnings (276,803) (326,854) Hedge reserve 12 (61) Foreign currency translation reserve 1,320 (343) Total equity attributable to shareholders

  42. Slide 42: Cash Flow Statement

    Cash Flow Statement € thousand Q4 2021 Q4 2020 FY 2021 FY 2020 Cash flows from operating activities Profit before taxation 34,827 46,255 85,389 170,385 Depreciation, amortisation and impairment of non-current assets 13,256 11,455 50,918 41,096 Increase/(decrease) in provisions (265) 890 (399) 753 No

  43. Slide 43: Cash Flow Statement (cont’d)

    Cash Flow Statement (cont’d) € thousand Q4 2021 Q4 2020 FY 2021 FY 2020 Cash flows from financing activities Repayments of borrowings (25,204) (23,845) (77,934) (62,832) Proceeds from borrowings 0 0 400,000 0 Payments for the capital element of lease liabilities (2,236) (1,505) (6,884) (4,863) Inter

TeamViewer — Q4 2021 Earnings Presentation on 6ix