Slide 1: Q3/9M 2022 Results Investor/Analyst Presentation
Q3/9M 2022 Results Investor/Analyst Presentation 02 November 2022
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 provided for information purpos
Slide 3: Business Overview
Business Overview Oliver Steil (CEO)
Slide 4: Resilient business with good Q3 results
Resilient business with good Q3 results Good Q3 Billings of Strong profitability and cash Successful cross- and upsell €144.6m with a +15% conversion with highly accretive campaigns & pricing measures increase yoy EPS development prove quality of TMV core products APAC region with signs of Enterpris
Slide 5: Q3 KPIs 2022 at a glance
Q3 KPIs 2022 at a glance Billings +15% | +7% cc1 Adjusted €60.1m Growth (yoy) € 144.6m EBITDA +42% yoy Enterprise | SMB 18% | 82% Adjusted 42% split +|- 4pp yoy EBITDA Margin +8pp yoy Revenue +12% Cash 105% Growth (yoy) € 143.4m Conversion2 +1pp yoy 103% 0.23€ NRR (LTM) Basic EPS (9M) +7pp yoy +112%
Slide 6: Signs of a turnaround in APAC and significant EMEA uptick
Signs of a turnaround in APAC and significant EMEA uptick Q3: TOTAL BILLINGS AND REGIONAL SPLIT 9M: TOTAL BILLINGS AND REGIONAL SPLIT AMERICAS: AMERICAS: 40.5% (-1pp) 35.8% (+1.9pp) EMEA: € 144.6m EMEA: € 444.2m 47.0% (+0.7pp) (+15% | +7%) 52.0% (-1.5pp) (+13% | +8%) APAC: APAC: 12.5% (+0.3pp) 12.2%
Slide 7: Increasing quality of customer base (LTM)
Increasing quality of customer base (LTM) SMB Billings by ACV Bucket1 (in €m, LTM) Enterprise Billings by ACV Bucket1 (in €m, LTM) 118 480 444 +8% +52% 21 >€ 200,000 € <500 +22% 203 15 167 78 +42% >€ 100,000 € 500 - <1,500 € 1,500 - 10,000 20 >€ 50,000 15 +68% 9 € 10,000 - 50,000 160 +9% 174 13 +52%
Slide 8: Specsavers leverages TeamViewer for remote access to retail store equipment
Eyewear giant Specsavers leverages TeamViewer for remote access to global retail store equipment • Remote support for 2,300 stores worldwide with TeamViewer Tensor • Remotely fixing issues with in-store PCs as well as medical devices, if necessary also leveraging TeamViewer’s AR solution for enhance
Slide 9: TeamViewer helps GlobalFoundries with efficient vision picking
TeamViewer helps GlobalFoundries in supplying the world with semiconductors through efficient vision picking • TeamViewer provides enterprise AR platform Frontline for warehouse vision picking in GlobalFoundries’ “Fab1” – Europe’s largest semiconductor factory • Eliminating printout and manual sorti
Slide 10: New partnership with Hyundai Motor for smart factory innovation
New partnership with Hyundai Motor to support digital innovation in the smart factory • TeamViewer to provide enterprise AR platform and AI capabilities to Hyundai’s smart factory in Singapore • Joint research and development activities around AR- powered smart factory operations, immersive digital
Slide 11: Financial Overview
Financial Overview Michael Wilkens (CFO)
Slide 12: TeamViewer Group with good growth and strong profitability
TeamViewer Group with good growth and strong profitability Quarterly Billings (in €m) and Growth Rates (yoy) Adjusted EBITDA (in €m) and Margin (in %) 153.7 163.5 30% 90% 136.1 144.6 444.2 125.8 150 51% 20% 44% 43% 45% 100 100 34% 42% 20% 40% 18% +13% 15% 10% 201.4 12% 12% 50 83.2 9M 67.7 58.1 60.1
Slide 13: SMB with good billings improvement and higher-value customers
SMB with good billings improvement and higher-value customers SMB Quarterly Billings (in €m) and Growth Rates (yoy) Development of Total SMB Average Selling Price (in €, LTM) 124.4 128.3 773 117.9 109.3 753 107.6 745 728 10% 10% 710 9% 9% 4% 50 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021
Slide 14: Enterprise growth mainly driven by EMEA & improved pipeline conversion
Enterprise growth mainly driven by EMEA & improved pipeline conversion Enterprise Quarterly Billings (in €m) and Growth Rates (yoy) Development of Total Enterprise Average Selling Price (in €k, LTM) 35.2 36.5 134% 29.4 35.8 35.8 26.9 26.7 107% 34.3 18.1 51% 32.2 47% 21% Q3 2021 Q4 2021 Q1 2022 Q2 20
Slide 15: Stable Q3 recurring cost base supporting strong profitability
Stable Q3 recurring cost base supporting strong profitability €m (all adjusted non-IFRS figures) Q3 2022 Q3 2021 ∆% 9M 2022 9M 2021 ∆% Main drivers of Q3 yoy cost development: Billings 144.6 125.8 15% 444.2 393.9 13% Cost of sales (10.3) (8.1) 28% (29.3) (28.2) 4% • Cost of sales: in line with billi
Slide 16: Strong profitability with highly accretive EPS development
Strong profitability with highly accretive EPS development €m Q3 2022 Q3 2021 ∆% 9M 2022 9M 2021 ∆% • Non-recurring items in Q3 2022 Adjusted EBITDA 60.1 42.3 42% 201.4 189.3 6% include an expense of €8.7m Change in deferred revenue (1.2) 1.9 -163% (28.8) (25.0) 15% following a jury verdict in a US
Slide 17: Significantly improved free cash flow
Significantly improved free cash flow €m Q3 2022 Q3 2021 ∆ % 9M 2022 9M 2021 ∆% Pre-tax net cash from operating activities (IFRS) 70.6 51.9 36% 158.3 157.4 1% • Income tax paid increased due to higher tax prepayments Income tax paid (12.6) (10.3) 22% (34.6) (39.9) -13% • CapEx mainly relates to Capi
Slide 18: Further built on attractive financial position
Further built on attractive financial position Cash & Operating Cash & Cash Cash CapEx Paid Net debt Share Other2 Cash Financial Net Fin. Further optimized financial profile incl. M&A Interest repayment Buyback Liabilities3 Liabilities Equivalents Flow1 Equivalents 31 Dec 21 30 Sept 22 30 Sept 22 •
Slide 19: Optimized financial profile to continue our growth path
Optimized financial profile to continue our growth path 1 Full year guidance confirmed 4 Continue adequate cost management 2 Good billings growth & resilient product portfolio 5 Strong financial structure 3 Strong margins and cash conversion 6 Highly accretive EPS development 19 Q3 2022 Results - In
Slide 20: Creating a world that works better
Creating a world that works better
Slide 21: Appendix
6 TeamViewer Appendix
Slide 22: Enterprise and SMB KPI overview
Enterprise and SMB KPI overview Q3’22 Q2’22 Q1’22 Q4’21 Q3’21 Q2’21 Q1’21 Q4’20 Q3’20 SMB Billings p.q. in €m 117.9 109.3 128.3 124.4 107.6 99.3 123.3 113.9 98.7 Billings LTM in €m 479.8 469.5 459.6 454.6 444.2 435.3 428.4 407.2 388.3 Number of subscribers1 615,650 615,531 607,834 614,262 615,584 60
Slide 23: Q3 2022 reconciliation from management key metrics to IFRS
Q3 2022 reconciliation from management key metrics to IFRS Accounting Management view Change in Other non-IFRS view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 144.6 (1.2) 143.4 143.4 Cost of sales (10.3) (10.3) (8.4) (6.1) (24.7) Gross profit contribution 134.3 13
Slide 24: 9M 2022 reconciliation from management key metrics to IFRS
9M 2022 reconciliation from management key metrics to IFRS Accounting Management view Change in Other non-IFRS view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 444.2 (28.8) 415.4 415.4 Cost of sales (29.3) (29.3) (25.1) (6.0) (60.4) Gross profit contribution 414.9
Slide 25: Non-IFRS adjustments in EBITDA
Non-IFRS adjustments in EBITDA €m Q3 2022 Q3 2021 9M 2022 9M 2021 Total IFRS 2 charges (4.8) (11.0) (20.3) (40.8) • IFRS 2 charges decreased in Q3 2022 mainly due to TeamViewer LTIP 0.5 1.3 (0.4) (0.3) • vested shares from M&A RSU (1.2) 0.0 (2.4) 0.0 • new vesting period and vested shares M&A relate
Slide 26: The impact of multi-year contracts on billings and revenues
The impact of multi-year contracts on billings and revenues Example of accounting for a new 3-year contract completed on the first day of a given quarter (illustrative and simplified presentation) • Billings reporting reflects the signing of a contract Billings vs. revenues at quarterly level (assum
Slide 27: Financial Statements
6 TeamViewer Financial Statements
Slide 28: Profit & Loss Statement
Profit & Loss Statement € thousand Q3 2022 Q3 2021 ∆% 9M 2022 9M 2021 ∆% Revenue 143,390 127,684 12% 415,368 368,845 13% Cost of sales -24,744 -16,702 48% -60,402 -53,656 13% Gross profit 118,646 110,982 7% 354,966 315,189 13% Research and development -15,152 -14,873 2% -50,196 -44,870 12% Marketing
Slide 29: Balance Sheet
Balance Sheet € thousand 30 September 2022 31 December 2021 Non-current assets Goodwill 668,530 667,224 Intangible assets 221,930 248,159 Property, plant and equipment 53,714 45,484 Financial assets 8,333 4,848 Other assets 11,013 3,824 Deferred tax assets 1,153 496 Total non-current assets 964,672
Slide 30: Balance Sheet (cont'd)
Balance Sheet (cont’d) € thousand 30 September 2022 31 December 2021 Equity Issued capital 186,516 201,071 Capital reserve 229,082 394,487 (Accumulated losses)/retained earnings (233,932) (276,803) Hedge reserve 2,014 12 Foreign currency translation reserve 5,792 1,320 Treasury share reserve (100,26
Slide 31: Cash Flow Statement
Cash Flow Statement € thousand Q3 2022 Q3 2021 ∆% 9M 2022 9M 2021 ∆% Profit before tax 29,025 11,026 163% 71,038 50,562 40% Depreciation, amortisation and impairment of non-current assets 13,610 13,040 4% 40,103 37,661 6% Increase/(decrease) in provisions 8,196 6 >+300% 8,575 (134) <-300% Non-operat
Slide 32: Cash Flow Statement (cont'd)
Cash Flow Statement (cont’d) € thousand Q3 2022 Q3 2021 ∆% 9M 2022 9M 2021 ∆% Repayments of borrowings (470,376) 0 n/a (470,376) (52,730) >+300% Proceeds from borrowings 184,323 0 n/a 184,323 400,000 -54% Payments for the capital element of lease liabilities (2,200) (1,027) 114% (6,260) (4,647) 35%