TeamViewer’s Stock Shoots to New Record High

By Marko Vidrih on The CapitalThe software provider TeamViewer raises its outlook due to the strong demand for remote maintenance and home office software in the Corona crisis. The company from Göppingen was able to significantly increase the number of paying customers in the first quarter, and the income expected from subscriptions climbed even more than TeamViewer had already announced in March.Now sales and operating profits are likely to be higher in the current year. The shares, which were only put on the stock market in September, have meanwhile reached a record high. TeamViewer is one of the few winners on the stock exchange in the Corona crisis.Annual forecast is below market expectationsRBC analyst Sherri Malek spoke of a strong first quarter. However, the new annual forecast is below the recently increased market expectations. She assessed the new targets for the billed income as careful.In the current year, the group now expects billings of around 450 million euros, so far the target has been up to 20 million euros less. TeamViewer uses this key figure to clarify the level of demand over a period, even if the subscription contracts only lead to higher sales over the term of the contract. The billing refers to the expected income within the next 12 months.Sales should now amount to at least 450 million euros in 2020. Adjusted for special effects, the margin on earnings before interest, taxes, depreciation and amortization is now expected to be 56 percent, which is equivalent to a calculated 252 million euros. That is also somewhat above the previous goals.Analysts already had slightly higher values ​​on the slip than the company previously. CFO Stefan Gaiser pointed out that the continuing uncertain macroeconomic situation made the outlook difficult.Between January and March, the billings climbed 75 percent year-on-year to 119.7 million euros. So far, TeamViewer had indicated an increase of at least 60 percent for the period.“Teamviewer’s long-term growth drivers are still intact and have gained momentum due to the increasing demand for our solutions as part of the global measures to combat the COVID-19 pandemic,” said CEO Oliver Steil.Teamviewer increased the number of subscribers to over 514,000 paying customers by the end of March. At the end of 2019 they had 464,000 customers. According to Steil, TeamViewer was also able to score more with large customers. The number of customers with a contract value of more than 10,000 euros per year more than doubled. The new customers kept up with existing customers, who now had higher contract amounts due to increased use.The strong demand resulting from the pandemic continued into April. It then weakened towards the end of April and largely normalized in May.Author: Marko VidrihFeatured image credit: UnsplashFintech MarksThe Capitalhttps://medium.com/media/3b6b127891c5c8711ad105e61d6cc81f/hrefTeamViewer’s Stock Shoots to New Record High was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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Author: Marko Vidrih

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