Teamviewer Se · XETR:TMV

Teamviewer — Q2 2022 Earnings Presentation

34 slides from Teamviewer's earnings presentation, Aug 3, 2022

  1. Slide 1: Q2/H1 2022 Results

    Q2/H1 2022 Results Investor/Analyst Presentation 03 August 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: Q2 and H1 2022 at a glance

    Q2 and H1 2022 at a glance Financials Key developments • Double-digit billings growth in Q2 with 12%, H1 billings growth at 12% yoy Q2 2022 H1 2022 • Q2 revenue up 12% yoy, H1 revenue up 13% • Q2 adj. EBITDA margin of 43% and H1 adj. EBITDA margin of 47%, above expectations Billings € 136m € 300m •

  5. Slide 5: Strong growth in AMERICAS, particularly benefiting from FX tailwinds

    Strong growth in AMERICAS, particularly benefiting from FX tailwinds AMERICAS EMEA APAC Q2 2022 Billings Q2 2022 Billings Q2 2022 Billings € 48m € 69m € 19m +22% | +8% cc1 +8% | +8% cc +4% | +1% cc1 H1 2022 Billings H1 2022 Billings H1 2022 Billings € 101m € 163m € 36m +20% | +9% cc1 +8% | +7% cc +7

  6. Slide 6: New strategic partnership with Siemens Digital Industries Software

    New strategic partnership with Siemens Digital Industries Software • Strategic partnership with Siemens Digital Industries Software signed end of July 2022 • Embedding TeamViewer Frontline’s Spatial module into Siemens’ Product Lifecycle Management solution • Siemens’ global customers can leverage t

  7. Slide 7: Customer spotlight: Employee qualification at DB Netz AG

    Customer spotlight: Employee qualification at DB Netz AG • Railway infrastructure manager DB Netz AG relies on TeamViewer for training employees in maintenance procedures. • MR enables the projection of technical equipment in training rooms, as well as the display of virtual information on real trai

  8. Slide 8: Customer spotlight Wendy's: AR in the food industry

    Customer spotlight Wendy’s: AR in the food industry • Global fast food restaurant company Wendy’s opts for TeamViewer’s AR solutions to innovate in the food industry • Used to improve in critical areas such as food safety and quality, regulatory compliance and training, employee safety, operations p

  9. Slide 9: Financial Overview

    Financial Overview Stefan Gaiser

  10. Slide 10: Financial highlights

    Financial highlights Top Line (in €m) Profitability (in €m) Free Cash Flow and Cash Conversion (in €m) Q2 2022 H1 2022 Q2 2022 H1 2022 Q2 2022 H1 2022 Billings 136.1 299.6 Adj. EBITDA 58.1 141.3 Levered Free 28.2 50.1 (non-IFRS) +12% +12% (non-IFRS)2 Cash Flow (FCFE) +2% -4% -13% -13% +7% cc1 +8% cc

  11. Slide 11: 12% overall growth, driven by improved SMB performance and robust Enterprise growth

    12% overall growth, driven by improved SMB performance and robust Enterprise growth Quarterly Billings Growth Rate YoY H1 2020 – 2022 Billings Development (in €m) +32 300 Effect of monetization 53% +42 268 campaigns 47% 62 33% 9% 9% 10% 226 45 67% Enterprise1 7% 31 238 SMB 223 SMB 4% 195 H1 2020 H1

  12. Slide 12: Strong Q2 in higher tier ACV SMB buckets

    Strong Q2 in higher tier ACV SMB buckets Absolute SMB Billings Development by Absolute SMB Subscriber Development ACV Bucket (in €m, LTM) by ACV Bucket (in k) 470 435 620 623 59 +20% 71 193 158 +22% 175 +18% 207 154 +12% 173 386 -10% 346 123 -15% 104 Q2 2021 Q2 2022 Q2 2021 Q2 2022 € <500 € 500 – <1

  13. Slide 13: Solid SMB growth across all KPIs, supported by monetization campaigns

    Solid SMB growth across all KPIs, supported by monetization campaigns SMB Billings Total and by ACV Bucket (in €m, LTM) SMB Total ASP Development (in €) 470 753 435 +8% 745 +18% 368 728 41% € 1,500 – 10,000 36% 710 34% 702 € 500 – <1,500 35% 37% 40% 26% 28% 22% € <500 Q2 2021 Q3 2021 Q4 2021 Q1 2022

  14. Slide 14: Enterprise continued to grow by number of customers and ACV size

    Enterprise continued to grow by number of customers and ACV size, despite tougher environment Enterprise Billings by ACV Bucket (in €m, LTM) Enterprise Total ASP Development (in €k) 110 34.3 36.5 35.8 29.9 32.2 +62% 19% >€ 200k 67 13% 19% 16% >€ 100k +66% 41 11% 12% 10% 17% >€ 50k 12% 52% 66% 54% €

  15. Slide 15: Increased strong Q2 adjusted EBITDA, operating leverage combined with cost containment

    Increased strong Q2 adjusted EBITDA, operating leverage combined with cost containment €m (all adjusted non-IFRS figures) Q2 2022 Q2 2021 ∆% H1 2022 H1 2021 ∆% Billings 136.1 121.6 12% 299.6 268.1 12% Cost of sales (9.2) (10.0) (19.1) (20.2) • Q2 adjusted EBITDA growth yoy % of billings -6.8% -8.2%

  16. Slide 16: High free cash flow and cash conversion

    High free cash flow and cash conversion €m Q2 2022 Q2 2021 ∆% H1 2022 H1 2021 ∆ % • TeamViewer continues to operate with very Pre-Tax net cash from operating activities (IFRS) 48.2 59.0 -18% 87.8 105.6 -17% little investment requirements, thus CapEx further decreased Income tax paid (11.6) (17.0) -3

  17. Slide 17: Liquidity position, leverage and update on SBB

    Liquidity position, leverage and update on SBB m€ Cash & Cash Operating CapEx Paid Payments Cash & Cash Financial Net Fin. Further optimized financing profile Other2 Equivalents Cash Flow1 incl. M&A Interest SBB Equivalents Liabilities Liabilities 31 Dec 21 30 Jun 22 30 Jun 22 Refinancing of € 477m

  18. Slide 18: New revolving debt facility with extended maturity profile

    New revolving debt facility with reduced higher interest-bearing debt, extended maturity profile and maintained full flexibility Maturity profile before refinancing (in m€) 509 Optimized financing profile due to reduced cash position, improved commercial terms and an extended RCF 193 100 26 26 22 Fl

  19. Slide 19: Financial profile further improved

    Financial profile further improved Fully funded RSU ReMax program now Optimized financing Fully covered scheme RSUs to cover the effective and structure based on for future employee next ~3 years exceeded its goals: strong financial retention: performance: Flat cost structure in Q2 Significantly red

  20. Slide 20: 2022 Guidance

    2022 Guidance • TeamViewer continues to expect revenues to 2022 guidance Mid-term outlook increase in the mid-teens to EUR 565-580m and an adjusted EBITDA margin within the range of 45%- High teens percentage 47% Billings ~ € 630m (non-IFRS) growth YoY • Given the impact of pulling out of Russia and

  21. Slide 21: Thank you for your attention

    6 TeamViewer Thank you for your attentio

  22. Slide 22: Appendix

    6 TeamViewer Appendix

  23. Slide 23: Enterprise and SMB KPI overview

    Enterprise and SMB KPI overview Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Enterprise Billings p.q. in €m 13.6 7.7 14.2 23.2 22.2 18.1 29.4 35.2 26.9 Billings LTM in €m 40.7 44.5 53.0 58.7 67.4 77.8 93.0 104.9 109.5 Number of subscribers 1,457 1,658 1,885 2,058 2,252 2,419 2,712 2,873 3,0

  24. Slide 24: Q2 2022 reconciliation from management key metrics to IFRS - QTD

    Q2 2022 reconciliation from management key metrics to IFRS - QTD Management view Change in Other non-IFRS Accounting view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 136.1 1.3 137.5 Cost of sales (9.2) (8.4) 0.1 (17.5) Gross profit contribution 126.9 120.0 % of Bil

  25. Slide 25: H1 2022 reconciliation from management key metrics to IFRS - YTD

    H1 2022 reconciliation from management key metrics to IFRS - YTD Management view Change in Other non-IFRS Accounting view €m adjusted P&L1 deferred revenue2 D&A adjustments IFRS P&L Billings / Revenue 299.6 (27.6) 272.0 Cost of sales (19.1) (16.7) 0.1 (35.7) Gross profit contribution 280.5 236.3 % o

  26. Slide 26: Deferred revenue development in 2021 and 2022

    Deferred revenue development in 2021 and 2022 Additions Release to €m 1 Jan 21 Other Addition / Release 30 Jun 21 from Billings IFRS Revenue Subscription Model 212.5 268.1 (4.3) (238.9) 237.5 Perpetual Model 2.7 0.0 0.0 (2.3) 0.4 215.2 268.1 (4.3) (241.2) 237.9 Additions Release to €m 1 Jan 22 Other

  27. Slide 27: Non-IFRS adjustments in EBITDA

    Non-IFRS adjustments in EBITDA €m Q2 2022 Q2 2021 H1 2022 H1 2021 • IFRS 2 share-based compensation predominately not cash relevant Total IFRS 2 charges (10.1) (14.8) (15.5) (29.8) • Lower IFRS 2 expenses due to fade out of TeamViewer LTIP (0.7) (0.7) (0.8) (1.6) M&A related and TLO related share-ba

  28. Slide 28: Ecosystem development reflecting monetization campaigns

    Ecosystem development reflecting monetization campaigns Av. Monthly Active Devices per Quarter (in m) New Installs per Quarter (in m) • TeamViewer’s discontinuation -4% of business in Russia and +4% -10% -6% 52 Belarus affected both monthly 50 50 48 47 active devices and new installs 45 10 10 18 15

  29. Slide 29: Financial Statements

    6 TeamViewer Financial Statements ~""

  30. Slide 30: Profit & Loss Statement

    Profit & Loss Statement € thousand Q2 2022 Q2 2021 ∆% H1 2022 H1 2021 ∆% Revenue 137,484 122,830 12% 271,978 241,160 13% Cost of sales (17,459) (18,573) -6% (35,658) (36,954) -4% Gross profit 120,025 104,257 15% 236,320 204,207 16% Research and development (18,251) (16,182) 13% (35,044) (29,996) 17%

  31. Slide 31: Balance Sheet

    Balance Sheet € thousand 30 June 2022 31 December 2021 Non-current assets Goodwill 668,075 667,224 Intangible assets 229,873 248,159 Property, plant and equipment 47,936 45,484 Financial assets 4,860 4,848 Other assets 9,020 3,824 Deferred tax assets 759 496 Total non-current assets 960,524 970,035

  32. Slide 32: Balance Sheet (cont'd)

    Balance Sheet (cont’d) € thousand 30 June 2022 31 December 2021 Equity Issued capital 186,516 201,071 Capital reserve 223,786 394,487 (Accumulated losses)/retained earnings (250,413) (276,803) Hedge reserve 1,586 12 Foreign currency translation reserve 4,036 1,320 Treasury share reserve (31,333) 0 T

  33. Slide 33: Cash Flow Statement

    Cash Flow Statement € thousand Q2 2022 Q2 2021 ∆% H1 2022 H1 2021 ∆% Profit before tax 19,597 29,600 -34% 42,013 39,536 6% Depreciation, amortisation and impairment of non-current assets 13,362 12,684 5% 26,493 24,622 8% Increase/(decrease) in provisions 266 (1,357) -120% 379 (140) <-300% Non-operat

  34. Slide 34: Cash Flow Statement (cont'd)

    Cash Flow Statement (cont’d) € thousand Q2 2022 Q2 2021 ∆% H1 2022 H1 2021 ∆% Repayments of borrowings 0 0 n/a 0 (52,730) -100% Proceeds from borrowings 0 0 n/a 0 400,000 -100% Payments for the capital element of lease liabilities (2,631) (2,513) 5% (4,060) (3,620) 12% Interest paid for borrowings a

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