TeamViewer Q1 revenue slightly short of forecasts, shares drop (updated)

TeamViewer SE

07/05/2024 07:59

(Recasts with share move)
    By Eva Orsolya Papp
       May 7 (Reuters) - German software developer TeamViewer
 TMV.DE  on Tuesday posted first-quarter revenue slightly below
market expectations as customers signed fewer multi-year deals,
sending its shares down nearly 4% in early trade.
    Revenue in the quarter rose 7% from a year earlier to 161.7
million euros ($174.17 million), short of an LSEG consensus
estimate of 165.6 million euros.
    But Chief Financial Michael Wilkens was upbeat, saying the
company was "more than confident" in its ability to meet its
goals for 2024.
    "We delivered growth in both revenue and adjusted EBITDA, a
notable success given a persistently demanding macroeconomic
climate," he said in a statement.
    TeamViewer's shares have declined since the end of the
COVID-19 pandemic, during which companies had used its remote
connectivity software for employees and customers working from
home.
    Billings for the quarter were 174.5 million euros, a 1%
decrease from last year, mainly driven by the lower contribution
from multi-year deals with full upfront payments.
    The company expects revenue this year of 660 to 685 million
euros and an adjusted EBITDA margin of at least 43%, seeing
savings from the end of the company's sponsorship of Manchester
United's  MANU.N  shirts. It said their exit from the
sponsorship deal should positively affect margins in the second
half of the year.
($1 = 0.9284 euros)

 (Reporting by Eva Orsolya Papp in Gdansk, Editing by Michael
Erman and Edwina Gibbs)
 ((EvaOrsolya.Papp@thomsonreuters.com;))