Slide 1: Q3 2023 Results
Q3 2023 Results Analyst / Investor Presentation
Slide 2: Important Notice / APMs
Important Notice / APMs This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding TeamViewer SE (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "TeamViewer"). It is provided for information
Slide 3: Important Notice / APMs (continued)
Important Notice / APMs (continued) • Billings represent the value (net) of goods and services invoiced to customers within a specific period and which constitute a contract as defined by IFRS 15. • Retained Billings means recurring Billings (renewals, up- & cross sell) attributable to retained subs
Slide 4: Business Overview
Business Overview Oliver Steil (CEO)
Slide 5: Continued strong operational and financial performance
Continued strong operational and financial performance Q3 2023 Highlights 10% revenue growth Continued strong SMB Manchester United partnership and high profitability contribution (+9% cc) to with adjusted scope from mid- (+19% Adj. EBITDA growth, billings mix; +6% ENT billings cc 2024 onwards; Adj.
Slide 6: Strong growth in core customer value segments
Strong growth in core customer value segments SMB Billings by ACV Bucket Enterprise Billings by ACV Bucket (€m; LTM) (€m; LTM) +11% € 1,500 - 10,000 +13% >€ 200,000 € 500 - <1,500 >€ 100,000 534.7 133.0 € <500 >€ 50,000 479.8 118.1 22.1 € 10,000 - 50,000 +4% 21.3 254.4 14.8 203.5 -2% +25% 15.2 21.6
Slide 7: All regions with strong revenue growth
All regions with strong revenue growth Q3 2023: TOTAL REVENUE BY REGION EMEA Rev: €84.4m (+11%) – Billings: €73.7m (+8% | +9% cc) EMEA AMERICAS Largest region; trend towards more partner deals 53% (0pp) 35% (0pp) €158m (+10%) APAC APAC 11% Rev: €18.1m (+8%) – Billings: (-1pp) €18.8m (+4% | +15% cc)
Slide 8: Relevant large Enterprise deals across regions
Relevant large Enterprise deals across regions TENSOR TENSOR Large US telecommunications equipment company • Consolidation of 800+ corporate licenses to a single large Tensor license • South Korean market leader for restaurant tablet ordering systems • New license structure led to a more than 6x hig
Slide 9: Upselling remains key growth driver
Upselling remains key growth driver Our Client ACV development Connection of 23,000+ endpoints More than 10,000 connected on-vehicle endpoints • Multinational 450000 manufacturer of First vehicles with TMV agricultural and 400000 integration shipped construction equipment Post contract signing: Proj
Slide 10: Go-to-market strategy underlined by appealing marketing campaigns
Go-to-market strategy underlined by appealing marketing campaigns Find your Better Brand Marketing Campaign Engineered for Enterprise Marketing Campaign TeamViewer | Q3 2023 Results 10
Slide 11: Financial Overview
Financial Overview Michael Wilkens (CFO)
Slide 12: On track to reach 2023 guidance
On track to reach 2023 guidance Topline KPIs Q3 2023 Profitability / cash Q3 2023 (yoy) (yoy) €158.1m1 Adjusted (Revenue) €70.3m Revenue +10% EBITDA +19% €149.8m1 Adjusted (Revenue) 44% Billings +4%/+8%cc EBITDA Margin +3pp €632.5m Free Cash Flow €46m ARR (LTM) +10% (FCFE) -6% 107% €0.22 NRR (LTM) A
Slide 13: Double-digit revenue growth and high profitability
Double-digit revenue growth and high profitability Quarterly Revenue and Growth Rates Adjusted (Revenue) EBITDA and Margin (€m; %) 180 (€m; %) 90% 158.11 154.2 20% 160 80% 150.5 151.3 143.4 140 70% 18% 120 60% 42% 44% 14% 16% 100 41% 38% 41% 50% 13% 12% 12% 80 40% 10% 14% 60 30% 40 20% 12% 58.9 57.3
Slide 14: Continued strong SMB contribution
Continued strong SMB contribution Quarterly SMB Revenue and Growth Rates SMB ASP1 SMB Subscribers2 20% (€m; %) 18% (€; LTM) (k; eop) 127.6 124.7 16% 857 627 629 122.5 122.4 622 622 118.5 14% 840 616 12% 822 10% 804 10% 8% 773 9% 9% 8% 8% 6% 4% 2% 80 0% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022
Slide 15: Meaningful Enterprise growth
Meaningful Enterprise growth Quarterly ENT Revenue and Growth Rates ENT ASP1 ENT Customers (€m; %) (€k, LTM) (eop) 3,956 4,034 29.4 30.5 3,777 28.9 36 36 35 3,666 28.0 34 33 24.9 3,296 38% 33% 30% 25% 22% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q3 2022 Q1 2023 Q3 2023 Q3 2022 Q1 2023 Q3 2023 ENT Qua
Slide 16: Continued disciplined investments
Continued disciplined investments €m (all adjusted non-IFRS figures) Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% Total COGS and Opex increased by only 4% or €3.3m yoy in Q3 2023 with Billings 149.8 144.6 4% 477.2 444.2 7% favourable currency & phasing effects Change in deferred Revenues 8.3 (1.2) -785% (1
Slide 17: Significantly improved net income
Significantly improved net income €m Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% Significantly improved net income and additional accretive effect on EPS Adjusted (Revenue) EBITDA 70.3 58.9 19% 198.1 172.6 15% growth in Q3, mainly due to: Adjustments for non-recurring1 items (10.9) (12.9) -15% (31.3) (38.
Slide 18: Cash Flow in line with expectations
Cash Flow in line with expectations €m Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% 9M 2023 FCFE at 47% growth, despite declining Q3 development. Pre-tax net cash from operating activities (IFRS) 67.4 70.6 -5% 196.7 158.3 24% Main Q3 2023 cash flow drivers: Capital expenditure (excl. M&A) (1.7) (3.2) -46%
Slide 19: Confirming 2023 guidance
Confirming 2023 guidance EUR 463.6m Revenue (IFRS) +12% yoy • Strong revenue development despite 9M challenging macro environment 2023A • EBITDA margin above guidance level 43% Adjusted (Revenue) EBITDA Margin +1pp • Performance underpinned by highly recurring Revenue (IFRS) EUR 620m to 645m1 and re
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix
Slide 22: Overview sales KPIs
Overview sales KPIs Q3’23 Q2‘23 Q1‘23 Q4‘22 Q3’22 Q2’22 Q1’22 Q4’21 Q3’21 SMB Billings p.q. in €m 122.8 121.9 142.8 147.3 117.9 109.3 128.3 124.4 107.6 Billings LTM in €m 534.7 529.9 517.3 502.8 479.8 469.5 459.6 454.6 444.2 Number of subscribers1 622,188 629,302 627,436 622,410 615,650 615,531 607,
Slide 23: Q3 2023: Reconciliation management metrics to IFRS
Q3 2023: Reconciliation management metrics to IFRS Accounting Management view Change in Management view Other non-IFRS view €m adjusted P&L1 deferred revenue2 Revenue adj. P&L D&A adjustments IFRS P&L Billings / Revenue 149.8 8.3 158.1 158.1 Cost of sales (12.0) (12.0) (8.6) (0.2) (20.8) Gross profi
Slide 24: 9M 2023: Reconciliation management metrics to IFRS
9M 2023: Reconciliation management metrics to IFRS Accounting Management view Change in Management view Other non-IFRS view €m adjusted P&L1 deferred revenue2 Revenue adj. P&L D&A adjustments IFRS P&L Billings / Revenue 477.2 (13.6) 463.6 463.6 Cost of sales (33.4) (33.4) (25.5) (0.7) (59.6) Gross p
Slide 25: Non-IFRS adjustments in EBITDA
Non-IFRS adjustments in EBITDA €m Q3 2023 Q3 2022 9M 2023 9M 2022 Total IFRS 2 charges 0.2 (4.8) (16.4) (20.3) • IFRS2 charges lower in Q3 yoy due to: TeamViewer LTIP (0.6) 0.5 (1.3) (0.4) o Decreasing M&A-related vesting and extended TLO vesting period RSU (4.2) (1.2) (11.8) (2.4) o … partly offset
Slide 26: Financial Statements
Financial Statements
Slide 27: Profit & Loss Statement
Profit & Loss Statement € thousand Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% Revenue 158,114 143,390 10% 463,575 415,368 12% Cost of sales (20,751) (24,744) -16% (59,580) (60,402) -1% Gross profit 137,363 118,646 16% 403,995 354,966 14% Research and development (19,581) (15,152) 29% (58,386) (50,196) 16
Slide 28: Balance Sheet – Assets
Balance Sheet – Assets € thousand 30 September 2023 31 December 2022 Non-current assets Goodwill 667,975 667,929 Intangible assets 185,429 212,864 Property, plant and equipment 44,765 50,265 Financial assets 13,428 18,537 Other assets 17,934 11,922 Deferred tax assets 17,271 2,126 Total non-current
Slide 29: Balance Sheet – Liabilities
Balance Sheet – Liabilities € thousand 30 September 2023 31 December 2022 Equity Issued capital 180,000 186,516 Capital reserve 179,771 236,849 Accumulated losses (125,460) (209,203) Hedge reserve 1,399 (1,620) Foreign currency translation reserve 3,188 3,003 Treasury share reserve (147,152) (100,26
Slide 30: Cash Flow Statement
Cash Flow Statement € thousand Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% Profit before tax 40,224 29,025 39% 110,949 71,038 56% Depreciation, amortisation and impairment of non-current assets 14,086 13,610 3% 41,830 40,103 4% Increase/(decrease) in provisions 1,087 8,196 -87% 1,110 8,575 -87% Non-operat
Slide 31: Cash Flow Statement (cont'd)
Cash Flow Statement (cont’d) € thousand Q3 2023 Q3 2022 ∆% 9M 2023 9M 2022 ∆% Repayments of borrowings 0 (470,376) -100% (100,000) (470,376) -79% Proceeds from borrowings 0 184,323 -100% 0 184,323 -100% Payments for the capital element of lease liabilities (2,273) (2,200) 3% (5,165) (6,260) -17% Int
Slide 32: Financial Calendar | Planned Conference Attendance
Financial Calendar | Planned Conference Attendance RBC Global TMT Conference, New York 14 November 2023 MS TMT Conference, Barcelona 15/16 November 2023 Berenberg European Conference 2023, Pennyhill 4 December 2023