(new: price development updated, analyst opinions.)
GÖPPINGEN (dpa-AFX) – The software provider TeamViewer wants to become more profitable again after a jump in profits last year. However, in the current economic situation, the company must continue to cope with adversity. “The market environment is still not such that you have tailwind – that is and remains difficult,” said CEO Oliver Steil in an interview with the financial news agency dpa-AFX. Last year, the company met its own forecast and the expectations of experts. The share price rose sharply in the morning, but was only able to partially maintain the very high gains.
The paper recently gained 5.7 percent at the top of the MDax to 14.43 euros. The amounts billed to customers beat market expectations in the fourth quarter, as did sales and earnings development, wrote JPMorgan analyst Toby Ogg. Expert Wassachon Udomsilpa from the Canadian bank RBC emphasized the strong growth in wholesale business in the final quarter.
Before interest, taxes, depreciation and amortization as well as special effects, the group’s profit in 2024 should account for at least 43 percent of sales, as Teamviewer announced on Wednesday in Göppingen. Last year, the operating margin rose from 41 to 42 percent.
In the new year, among other things, the significantly reduced level of sponsorship activity at the English football club Manchester United will give a boost to the operating result. Teamviewer had already put the savings effect for the year at 17.5 million euros. A large part of the savings will only have a positive effect on the margin in the second half of the year. In the first six months, Teamviewer wants to invest more of the money it saves into growth.
The provider of remote maintenance software is targeting an increase in sales to 660 to 685 million euros. That would be a currency-adjusted increase of between 7 and 11 percent. Analysts had a little less than the middle of the range on the list for sales; They saw the margin at an average of 43 percent.
“China is partially failing as a driving force and in the USA the sustained economic recovery and the interest rate turnaround are still to come, and an election year often means further uncertainty,” said CEO Steil, explaining the current outlook. Currency effects have also recently weighed on business.
The picture is expected to brighten again in the coming years. “I think that after 2024 we will have a better view of further development,” said Steil. The sales forecast for this year reflects the current environment, “which, in our view, will not improve quickly in the next twelve months.”
Given the situation, the company delivered in the fourth quarter, said Steil. “In the fourth quarter, it became clear to our major customers that we are on the right topics, with augmented reality in production, for example,” said the manager. “Companies have to come up with something to counteract the shortage of skilled workers. That’s why our offer reaches those companies that are ready to invest.”
In addition to remote maintenance and video conferencing apps, Teamviewer also offers software for so-called augmented reality (AR) glasses. This means, for example, that technicians can have information displayed directly in their field of vision when servicing and repairing machines.
In the current year, growth among large customers should also be higher than among small and medium-sized subscription customers, said Steil. Growth among small and medium-sized customers has recently been significantly slower. Steil also justified this with a strong prior-year quarter in this area.
For the year as a whole, the group achieved its forecast in the lower half with an increase in sales of 11 percent to 626.7 million euros. In terms of margin, he clearly exceeded the target. This had already become apparent over the course of the year. Nevertheless, the business figures turned out to be somewhat better than experts expected.
“We hadn’t expected such a strong finish, so the margin in the end was well above the forecast, even though we paid out more in sales commissions than expected due to the successful deals,” said Steil.
Net profit increased by a good two thirds to 114 million euros. In addition to the better run in day-to-day business, the Göppingen company benefited from lower financial expenses through debt reduction. In addition, taxes were lower. The company wants to further reduce the level of debt in relation to the operating result./men/nas/mis
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