TeamViewer AG (TMV) AI Stock Analysis

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TeamViewer AG

(XETRA:TMV)

70Outperform

TeamViewer AG scores well due to strong financial performance and positive earnings call insights, reflecting consistent growth and profitability. The technical analysis indicates bearish trends, presenting a risk factor. Valuation is reasonable, but the absence of dividends may deter some investors. The overall score reflects a balanced view, with financial strengths slightly offset by current market conditions.

Positive Factors

Financial Performance

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.

Negative Factors

Acquisition Reaction

TeamViewer's stock has been hit hard by the market taking a negative initial reaction to the proposed acquisition of 1E.

SMB Business Concerns

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. S&P 500 (SPY)

Market Cap

€1.67B

Dividend YieldN/A

Average Volume (3M)693.27K

Price to Earnings (P/E)12.9

Beta (1Y)0.64

Revenue Growth8.08%

EPS Growth23.39%

CountryDE

Employees1,891

SectorTechnology

Sector Strength80

IndustrySoftware - Application

Share Statistics

EPS (TTM)0.19

Shares Outstanding170,000,000

10 Day Avg. Volume1,310,853

30 Day Avg. Volume693,268

Financial Highlights & Ratios

PEG Ratio2.57

Price to Book (P/B)17.23

Price to Sales (P/S)0.00

P/FCF Ratio7.46

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€15.44

Price Target Upside42.17% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering9

TeamViewer AG Business Overview & Revenue Model

Company DescriptionTeamViewer AG is a global technology company that specializes in providing remote connectivity and digital collaboration solutions. Headquartered in Göppingen, Germany, TeamViewer offers a suite of software products designed to enable remote access, support, and management of computers and other devices. These products are utilized across various sectors including IT, healthcare, and education, allowing for streamlined remote work and technical support.

How the Company Makes MoneyTeamViewer AG generates revenue through a subscription-based model, where customers pay for licenses to use its software solutions. The company's primary revenue streams include subscription fees for its flagship remote access and control products, as well as from its specialized offerings like augmented reality solutions and IoT device management. TeamViewer also benefits from partnerships with hardware manufacturers and other technology companies, which help expand its reach and user base. Additionally, the company offers enterprise solutions, catering to large organizations with custom needs, thereby enhancing its revenue through tailored service agreements.

TeamViewer AG Financial Statement Overview

Summary

TeamViewer AG exhibits solid financial health with strong revenue and profit growth, efficient cash flow management, and a significant reduction in debt, enhancing financial flexibility. While the company's profitability and cash generation are commendable, attention to equity levels could further bolster financial stability.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
206.39M	161.53M	143.72M	117.42M	164.04M
	EBITDA
248.12M	219.68M	196.21M	155.48M	234.37M
	Net Income Common Stockholders
123.08M	114.02M	67.60M	50.05M	103.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
64.66M	82.25M	168.03M	550.53M	87.99M
	Total Assets
1.07B	1.11B	1.17B	1.55B	1.06B
	Total Debt
0.00	529.42M	632.64M	877.47M	522.25M
	Net Debt
-55.27M	456.60M	471.64M	326.94M	438.72M
	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

Technical Analysis Sentiment

Negative

Last Price10.86

Price Trends

50DMA

12.17

Negative

100DMA

11.66

Negative

200DMA

11.81

Negative

Market Momentum

MACD

-0.41

Positive

RSI

33.38

Neutral

STOCH

1.91

Positive

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 10.86 is below the 20-day moving average (MA) of 12.03, below the 50-day MA of 12.17, and below the 200-day MA of 11.81, indicating a bearish trend. The MACD of -0.41 indicates Positive momentum. The RSI at 33.38 is Neutral, neither overbought nor oversold. The STOCH value of 1.91 is Positive, 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	79 Outperform	€658.15M	15.32	16.30%	2.02%	8.63%	-3.90%
VOW3	73 Outperform	€51.72B	5.60	5.52%	8.78%	1.62%	-38.38%
TMV	70 Outperform	€1.67B	12.93	165.16%	―	8.08%	23.39%
Sector *	60 Neutral	$11.62B	10.48	-7.27%	2.93%	7.46%	-10.64%
S92	52 Neutral	€734.25M	5.94	-19.00%	2.29%	-19.65%	-152.17%

* Technology Sector Average

Performance Comparison

DE:TMV

TeamViewer AG

10.65

-1.43

-11.84%

DE:VOW3

Volkswagen

102.85

-8.52

-7.65%

DE:S92

SMA Solar Technology

22.06

-26.02

-54.12%

DE:GFT

GFT Technologies

23.20

-4.07

-14.93%

TeamViewer AG Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: -18.77%|

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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.