BERLIN – Teamviewer, a remote connectivity software specialist, announced weaker-than-expected billings growth in the second quarter on Thursday, but maintained its full-year outlook due to robust June sales. Billings growth, the German company’s preferred top-line statistic, climbed about 15% on a reported basis and 18% in constant currencies in the second quarter, falling short of its predictions of at least 20% growth.
When results differ considerably from corporate forecast or market expectations, Teamviewer is compelled by German stock exchange laws to announce them ahead of schedule.
Early in the COVID-19 epidemic, the Goeppingen-based firm benefited from a rush in new business when government lockdowns prompted a rapid transition to home working.
“While the company was able to retain the majority of new subscribers from the first wave of the 2020 lockdown, renewal values in April and May were lower than expected,” Teamviewer stated in a statement.
“Trading momentum increased significantly in June, owing to a high enterprise pipeline conversion and a comeback in renewal values.”
Teamviewer confirmed their forecast for 2021, but at the lower end of the estimated range of 585-605 million euros (US$690-US$714 million in billings). For the year, it still expects an adjusted EBITDA margin of between 49% and 51%. In March, the company lowered its margin projection after signing large sponsorship deals with Manchester United of the English Premier League and Mercedes Formula One and Formula E teams. The company’s stock, which debuted on the Frankfurt stock exchange in September 2019, is down 26% year to date. (1 US dollar = 0.8478 euros) (Douglas Busvine contributed reporting; Riham Alkousaa and Uttaresh.V edited the piece.)/n
