Slide 1: Q1 2023 Results
Q1 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) • Adjusted EBITDA (definition from FY 2023 onwards, also referred to as Adjusted (Revenue) EBITDA) is defined as operating income (EBIT) according to IFRS, plus depreciation and amortisation of tangible and intangible fixed assets (EBITDA), adjusted for certain bu
Slide 4: Business Overview
Business Overview Oliver Steil (CEO)
Slide 5: Well on track to meet 2023 guidance
Well on track to meet 2023 guidance Q1 Revenue growth of 13% and Increased SMB growth momentum Strong underlying profitability strong driven by successful up-/ underpinning leading position in supported by diligent cost cross-selling, resulting in a the core remote business and management leading to
Slide 6: Continued strength in up- and cross-selling (LTM Billings view)
Continued strength in up- and cross-selling (LTM Billings view) SMB Billings by ACV Bucket (in €m, LTM) Enterprise Billings by ACV Bucket (in €m, LTM) +13% € 1,500 - 10,000 +25% >€ 200,000 € 500 - <1,500 >€ 100,000 517.3 130.8 € <500 >€ 50,000 459.6 20.4 € 10,000 - 50,000 104.9 -6% 237.5 16.0 185.2
Slide 7: Customer journey from SMB to Enterprise
Customer journey from SMB to Enterprise Our Client ACV development CAGR: 20% 14,000 Tensor upgrade 12,000 • German “hidden Initiation of business Migration to subscription relationship champion” active in 10,000 model 1 Premium licence the plastic processing industry 8,000 • More than >3,000 employe
Slide 8: Enterprise examples across use-cases
Enterprise examples across use-cases Tensor Frontline • Samsung SDS uses TeamViewer’s AR • Australian luxury cosmetics brand solution to digitally transform their Aesop relies on TeamViewer to warehouse picking operations for remotely manage in-store IT spare part shipping in Europe devices • ~90 pi
Slide 9: Double digit revenue growth in all regions
Double digit revenue growth in all regions Q1 2023: TOTAL REVENUE BY REGION EMEA Q1: €79.7m (+10%) EMEA AMERICAS APAC 36% (+2pp) 53% (-1pp) Q1: €17.6m (+12%) €151m (+13%) APAC 12% (+/-0pp) AMERICAS Q1: €54.0m (+18%) TeamViewer | Q1 2023 Results 9
Slide 10: Consistent trading in EMEA and APAC
Consistent trading in EMEA and APAC EMEA Q1 2023: TOTAL BILLINGS BY REGION Q1: €101.4m (+8% | +9% cc) Business well on track; solid start into 2023 driven by up-/cross-sell campaigns and price increase motion AMERICAS EMEA 32% (+/-0pp) 57% (+/-0pp) €177m (+8% | +8% cc) APAC 11% (+1pp) APAC AMERICAS
Slide 11: TeamViewer Remote: major product upgrade
TeamViewer Remote: major product upgrade “Time for a New View”: Launch Event, 10 May 2023 – London Modern user experience New design language and clear customer focus in most important user journeys for ease-of-use Improved security Mandatory account creation for supporters, scam protection and enha
Slide 12: Financial Overview
Financial Overview Michael Wilkens (CFO)
Slide 13: Q1 well on track to meet 2023 guidance
Q1 well on track to meet 2023 guidance Topline KPIs (yoy changes) Profitability / cash (yoy changes) €151m Adjusted (Revenue) €64m Revenue +13% EBITDA +18% €614m Adjusted (Revenue) 42% ARR (LTM) +12% EBITDA Margin +2pp €177m1 Free Cash Flow €51m Billings +8% (FCFE) +135% 107% €0.22 NRR (LTM) Adjuste
Slide 14: Topline growth with strong profitability
Topline growth with strong profitability Quarterly Revenue (in €m) and Growth Rates (yoy) Adjusted (Revenue) EBITDA (in €m) and Margin (in %) 180 90% 20% 160 80% 150.5 151.3 143.4 140 70% 18% 137.5 120 60% 134.5 42% 16% 100 40% 43% 41% 38% 50% 12% 12% 80 40% 13% 14% 14% 14% 60 30% 40 20% 12% 59.4 58
Slide 15: Increased growth momentum in SMB
Increased growth momentum in SMB Quarterly SMB Revenue (in €m) and Growth Rates (yoy) SMB ASP (in €k, LTM) SMB Subscribers1 (in k, eop) 20% 627 822 18% 16% 804 622 120.0 122.4 14% 115.7 110.6 111.7 12% 616 616 773 10% 11% 753 745 8% 608 8% 6% 6% 6% 4% 4% 2% 80 0% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2
Slide 16: Slow start into the year in the Enterprise business
Slow start into the year in the Enterprise business Quarterly ENT Revenue (in €m) and Growth Rates (yoy) ENT ASP (in €k, LTM) ENT Customers (eop) 3,777 3,666 30.5 28.9 37 25.8 27.7 36 36 36 23.9 35 3,296 3,062 65% 53% 45% 2,873 71% 21% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q3 2022 Q1 2023
Slide 17: Diligent cost management …
Diligent cost management … €m (all adjusted non-IFRS figures) Q1 2023 Q1 2022 ∆% Billings 176.8 163.5 +8% • Total COGS and Opex increased Change in deferred Revenues (25.5) (29.0) -12% by 9% or €7.0m yoy Revenue 151.3 134.5 +13% • Some operational savings due to Cost of sales (10.8) (9.8) +9% phasin
Slide 18: … leading to strong profitability
… leading to strong profitability €m Q1 2023 Q1 2022 ∆% Adjusted (Revenue) EBITDA 64.1 54.3 +18% • Lower non-recurring cost mainly due to completed ReMax Adjustments for non-recurring1 items (10.0) (13.1) -23% • Improved financial result mainly EBITDA 54.1 41.2 +31% driven by lower interest expense
Slide 19: … paralleled by high Cash Conversion
… paralleled by high Cash Conversion €m Q1 2023 Q1 2022 ∆% Pre-tax net cash from operating activities (IFRS) 66.8 39.6 +69% • Net cash from operations +69% due to strong operational Capital expenditure (excl. M&A) (1.1) (1.3) -16% performance and positive NWC Lease payments (1.4) (1.4) -4% effects •
Slide 20: Q1 2023 Leverage in line with target
Q1 2023 Leverage in line with target m€ Further optimized financial profile Cash & Cash Operating CapEx Paid Net debt Share Cash & Cash Financial Net Fin. €100m debt repayment RCF, leading to … Other2 Equivalents Cash Flow1 incl. M&A Interest repayment Buyback Equivalents Liabilities3 Liabilities •
Slide 21: Update on capital allocation
Update on capital allocation Capital Allocation Framework Share Buyback Program • New share buyback program of up to EUR 150m Prudent Approach to Leverage • Tranche I (up to €75m) started on 15 February • Confirmed target leverage of around 1.5x (translating into 1.75x Net Debt • 1.7m shares repurch
Slide 22: Confirming 2023 guidance
Confirming 2023 guidance EUR 151m • 13% revenue growth clearly in line with Revenue (IFRS) +13% yoy expectations – despite continued Q1 headwinds in the Americas region 2023A • EBITDA margin +2pp yoy to 42% – above Adjusted (Revenue) EBITDA Margin 42% FY2023 guidance due to cost phasing EUR 620m t
Slide 23: Key takeaways Q1
Key takeaways Summary Q1 highlights On track towards guidance … Stronger core business with momentum 1 4 New business stabilizing from TMV Remote Launch 2 Transition to Enterprise continues 5 Diligent cost management Up- and cross-sell continues to be our High cash generation and accretive 3 6 stren
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Overview sales KPIs
Overview sales KPIs Q1‘23 Q4‘22 Q3’22 Q2’22 Q1’22 Q4’21 Q3’21 Q2’21 Q1’21 SMB Billings p.q. in €m 142.8 147.3 117.9 109.3 128.3 124.4 107.6 99.3 123.3 Billings LTM in €m 517.3 502.8 479.8 469.5 459.6 454.6 444.2 435.3 428.4 Number of subscribers1 627,436 622,410 615,650 615,531 607,834 614,262 615,5
Slide 27: Q1 2023: Reconciliation management metrics to IFRS
Q1 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 176.8 (25.5) 151.3 151.3 Cost of sales (10.8) (10.8) (8.4) (0.3) (19.5) Gross pr
Slide 28: Non-IFRS adjustments in EBITDA
Non-IFRS adjustments in EBITDA €m Q1 2023 Q1 2022 Total IFRS 2 charges (9.2) (5.4) • IFRS2 charges increase yoy due to: TeamViewer LTIP (0.5) (0.1) o New employee share program launched in 2022 RSU (3.8) 0.0 o Vested shares for TLO portion (pre-IPO M&A related share-based compensation (1.3) (3.3) ma
Slide 29: Financial Statements
Financial Statements
Slide 30: Profit & Loss Statement
Profit & Loss Statement € thousand Q1 2023 Q1 2022 ∆% Revenue 151,309 134,494 13% Cost of sales (19,486) (18,199) 7% Gross profit 131,823 116,295 13% Research and development (18,900) (16,793) 13% Marketing (33,084) (31,838) 4% Sales (27,889) (22,864) 22% General and administrative (12,427) (12,734)
Slide 31: Balance Sheet – Assets
Balance Sheet – Assets € thousand 31 March 2023 31 December 2022 Non-current assets Goodwill 667,852 667,929 Intangible assets 203,648 212,864 Property, plant and equipment 46,923 50,265 Financial assets 17,551 18,537 Other assets 14,566 11,922 Deferred tax assets 2,257 2,126 Total non-current asset
Slide 32: Balance Sheet – Liabilities
Balance Sheet – Liabilities € thousand 31 March 2023 31 December 2022 Equity Issued capital 186,516 186,516 Capital reserve 242,188 236,849 (Accumulated losses)/retained earnings (186,053) (209,203) Hedge reserve (1,791) (1,620) Foreign currency translation reserve 2,528 3,003 Treasury share reserve
Slide 33: Cash Flow Statement
Cash Flow Statement € thousand Q1 2023 Q1 2022 ∆% Profit before tax 35,729 22,416 59% Depreciation, amortisation and impairment of non-current assets 13,700 13,131 4% Increase/(decrease) in provisions (38) 113 -134% Non-operational foreign exchange (gains)/losses 156 2,355 -93% Expenses for equity s
Slide 34: Cash Flow Statement (cont’d)
Cash Flow Statement (cont’d) € thousand Q1 2023 Q1 2022 ∆% Repayments of borrowings (100,000) 0 n/a Payments for the capital element of lease liabilities (1,368) (1,428) -4% Interest paid for borrowings and lease liabilities (5,136) (4,540) 13% Purchase of treasury shares (25,584) (148,857) -83% Cas
Slide 35: Financial Calendar
Financial Calendar Product Deep Dive TeamViewer Remote, London 10 May 2023 Annual General Meeting 24 May 2023 Q2 2023 / Half-Year Results 1 August 2023 Q3 2023 Results 31 October 2023