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TeamViewer AG (DE:TMV)
XETRA:TMV
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TeamViewer AG
(XETRA:TMV)
Rating:68Neutral
Price Target:
€10.50
▲(12.66%Upside)
Positive Factors
Earnings
TeamViewer has announced FY24 revenues were +9% y/y at c. €671m, above guidance and consensus estimates.
Revenue Growth
TMV’s improving revenue growth trajectory is driven by Enterprise.
Stock Performance
The recent sell-off of the stock on growth fears and capital allocation post 1E acquisition announcement is likely to unwind somewhat.
Negative Factors
Acquisition Concerns
TeamViewer's stock has been hit hard by the market taking a negative initial reaction to the proposed acquisition of 1E.
Investment Needs
The group needs to invest more to boost its competitiveness in the Enterprise segment, re-energise the slow-growth SMB business, and integrate the 1E acquisition.
SMB Segment Challenges
Investors could be concerned about the SMB exposure, the category was already lacklustre in 2023-24 and could prove more sensitive in a potential recession.
TeamViewer AG (TMV) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.51B
Dividend YieldN/A
Average Volume (3M)647.27K
Price to Earnings (P/E)11.3
Beta (1Y)0.57
Revenue Growth8.08%
EPS Growth23.39%
CountryDE
Employees1,891
SectorTechnology
Sector Strength90
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.29
Shares Outstanding170,000,000
10 Day Avg. Volume596,996
30 Day Avg. Volume647,275
Financial Highlights & Ratios
PEG Ratio1.76
Price to Book (P/B)14.03
Price to Sales (P/S)0.00
P/FCF Ratio6.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€15.01Price Target Upside61.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
TeamViewer AG Business Overview & Revenue Model
Company DescriptionTeamViewer AG, together with its subsidiaries, develops and distributes remote connectivity solutions worldwide. The company offers TeamViewer, a remote access, remote control, and remote support solution that works with every desktop and mobile platform; TeamViewer Tensor, an enterprise remote connectivity cloud platform enabling organizations to deploy a large-scale IT management framework to access, support, and control any device or machine from anywhere at anytime; TeamViewer Assist AR, a remote support solution with augmented reality; and TeamViewer IoT, which enables to instantly access, control, and manage connected products from anywhere. It also provides TeamViewer Frontline, an augmented reality productivity solution platform; TeamViewer Engage, a next-gen digital customer engagement platform for online sales, digital customer service, and video consultations; TeamViewer Remote Management that manages, monitors, tracks, patches, and protects computers, devices, and software from a single platform; TeamViewer Servicecamp, a solution for service desk management and remote connectivity; TeamViewer Remote Access, a secure and stable remote access to remote PCs, smartphones, servers, payment terminals and IoT devices; and TeamViewer Meeting, a meeting function that offers video conferencing and VoIP calls, instant chat, screen sharing across devices and platforms. The company was formerly known as Regit Beteiligungs-GmbH and changed its name to TeamViewer AG in September 2019. TeamViewer AG was founded in 2005 and is headquartered in Göppingen, Germany.
How the Company Makes MoneyTeamViewer AG generates revenue primarily through the sale of subscription-based licenses for its software products. The company's revenue model is centered around offering flexible subscription plans that cater to different user needs, ranging from individual users to large enterprises. Key revenue streams include licensing fees from their flagship remote access software, as well as from specialized products like TeamViewer Tensor for enterprise customers and TeamViewer Pilot for augmented reality support. Additionally, TeamViewer engages in strategic partnerships with companies in various industries to expand its market reach and drive sales. These partnerships, along with consistent innovation and updates to their product offerings, contribute significantly to the company's financial performance.
TeamViewer AG Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: -30.29%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strong growth in the Enterprise segment and improved profitability, offset by challenges in the SMB segment, macroeconomic uncertainties, and increased interest expenses. The company's cautious optimism is supported by successful product integrations and innovations.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
TeamViewer reported a 7% pro forma revenue growth in constant currency year-over-year for Q1 2025, with notable contributions from all regions.
Enterprise Segment Growth
Enterprise segment experienced a 21% increase in pro forma revenue year-over-year and 20% growth in ARR, driven by high-value deals and the integration with 1E.
Profitability and Leverage Improvements
Pro forma adjusted EBITDA increased by 20% year-over-year with a strong margin of 43%. Net leverage ratio improved to 3.1 times adjusted EBITDA.
Product Integration and Innovation
Successful integration of 1E technology with TeamViewer's offerings, and launch of new products like TeamViewer DEX Essentials aimed at SMB customers.
Geographic Revenue Growth
Americas recorded a 10% year-over-year revenue increase, EMEA grew by 6%, and APAC by 4% in constant currency.
Negative Updates
Challenging Macroeconomic Environment
Increased macroeconomic uncertainties and reduced visibility affecting customer behavior and sales cycles.
SMB Segment Challenges
SMB pro forma ARR and revenue grew only by 2% year-over-year, with customer churn slightly up to 15.3%.
Legal Settlement Impact on Cash Flow
A one-off payment of €11.6 million was made for the settlement of long-standing legal disputes, impacting cash flow.
Higher Interest Expenses
Interest expenses almost doubled year-over-year, reaching €8.6 million, due to the financing of the 1E acquisition.
Company Guidance
During the TeamViewer Q1 2025 earnings call, the company reported a strong start to the fiscal year with impressive metrics despite a challenging macroeconomic environment. The pro forma revenue grew by 7% year-over-year in constant currency, driven significantly by the Enterprise segment, which saw a remarkable 21% increase. The company's annual recurring revenue (ARR) also rose by 7% on a pro forma basis. Profitability improved, with adjusted EBITDA climbing 20% year-over-year, resulting in a robust margin of 43%. The net leverage ratio was reduced to 3.1 times adjusted EBITDA, indicating an optimized financial structure post-1E acquisition. The Americas led regional performance with a 10% revenue increase, while EMEA and APAC grew by 6% and 4%, respectively. TeamViewer reiterated its full-year guidance, expecting ARR to land between €815 and €840 million, representing a 7.5% to 10.8% growth. Revenue is projected to be between €778 and €797 million, translating to 5.1% to 7.7% growth. The company also highlighted the successful integration of 1E, including the launch of TeamViewer DEX Essentials aimed at enhancing the SMB market offering.TeamViewer AG Financial Statement Overview
Summary
TeamViewer AG demonstrates strong financial performance with robust revenue and profit growth, efficient cash flow management, and significant debt reduction. Despite a low equity ratio, the company maintains impressive profitability and cash generation.Income Statement
TeamViewer AG shows a strong income statement performance with consistent revenue growth over the years, evident in the revenue growth rate of approximately 7.1% from 2023 to 2024. The company maintains robust profitability with a gross profit margin around 88% and a net profit margin improving to 18.3% in 2024. The EBIT and EBITDA margins are also healthy, indicating efficient operational management. Overall, the income statement reflects stability and growth, with a positive trajectory for revenue and profit margins.85
Very Positive
Balance Sheet
The balance sheet of TeamViewer AG indicates moderate financial leverage with a debt-to-equity ratio of 0 in 2024 due to the elimination of total debt, showcasing a significant reduction from previous years. The equity ratio is relatively low at around 9.4%, highlighting a potential risk due to lower equity levels. However, the return on equity is impressive at 122.5%, suggesting effective use of shareholder funds for generating profits. The balance sheet reflects a stable financial position with reduced leverage but highlights areas for improvement in equity levels.70
Positive
Cash Flow
TeamViewer AG demonstrates strong cash flow performance with a positive free cash flow growth rate of approximately 8.7% from 2023 to 2024. The operating cash flow to net income ratio is robust, emphasizing efficient cash generation relative to earnings. The free cash flow to net income ratio remains strong, indicating the company’s ability to convert net income into cash effectively. The cash flow statement reflects healthy cash management and strong free cash flow generation.82
Very Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 671.42M | 626.69M | 565.87M | 501.10M | 455.61M |
| Gross Profit | 590.59M | 544.95M | 484.58M | 430.15M | 391.51M |
| EBITDA | 248.12M | 219.68M | 196.21M | 155.48M | 234.37M |
| Net Income | 123.08M | 114.02M | 67.60M | 50.05M | 103.03M |
Balance Sheet | |||||
| Total Assets | 1.07B | 1.11B | 1.17B | 1.55B | 1.06B |
| Cash, Cash Equivalents and Short-Term Investments | 64.66M | 82.25M | 168.03M | 550.53M | 87.99M |
| Total Debt | 444.63M | 529.42M | 632.64M | 877.47M | 522.25M |
| Total Liabilities | 969.86M | 1.03B | 1.06B | 1.23B | 822.71M |
| Stockholders Equity | 100.48M | 83.66M | 115.28M | 320.09M | 240.71M |
Cash Flow | |||||
| Free Cash Flow | 243.81M | 224.26M | 195.50M | 178.74M | 198.37M |
| Operating Cash Flow | 249.18M | 229.87M | 204.34M | 193.97M | 224.54M |
| Investing Cash Flow | -12.82M | -29.56M | -10.82M | -38.92M | 110.25M |
| Financing Cash Flow | -254.39M | -287.39M | -609.80M | 301.10M | -95.77M |
TeamViewer AG Technical Analysis
Negative
9.32
Price Trends
9.93
Negative
11.05
Negative
11.30
Negative
Market Momentum
-0.13
Negative
38.20
Neutral
38.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:TMV, the sentiment is Negative. The current price of 9.32 is below the 20-day moving average (MA) of 9.56, below the 50-day MA of 9.93, and below the 200-day MA of 11.30, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 38.20 is Neutral, neither overbought nor oversold. The STOCH value of 38.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:TMV.
TeamViewer AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | €1.51B | 11.31 | 165.16% | ― | 8.08% | 23.39% | |
57 Neutral | HK$14.47B | 5.85 | -5.77% | 4.75% | 9.65% | -43.80% | |
| ― | €2.03B | 44.13 | 64.04% | 1.75% | ― | ― | |
| ― | €14.58B | 81.99 | 21.00% | 0.01% | ― | ― | |
| ― | €473.36M | ― | -4.80% | ― | ― | ― | |
| ― | €287.23B | 43.83 | 15.83% | 0.96% | ― | ― | |
73 Outperform | €873.59M | 29.05 | 35.14% | 3.64% | -16.41% | -1.83% |
* Technology Sector Average
Performance Comparison
DE:TMV
TeamViewer AG
9.32
-1.56
-14.34%
GB:0N66
ATOSS Software
122.60
-9.44
-7.15%
GB:0FDT
Nemetschek
126.34
40.10
46.50%
GB:0KUR
PSI AG fuer Produkte und Systeme der Informationstechnologie
30.10
8.90
41.98%
GB:0NW4
SAP SE
245.00
52.66
27.38%
DE:MUM
Mensch und Maschine Software SE
50.80
-7.29
-12.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.