Teamviewer gives investors hope again

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Dusseldorf Since the IPO a few weeks ago TeamViewer Under critical observation: The stock price of the software specialist has fallen significantly in the meantime. However, the business is in excellent shape, as the figures for the third quarter published on Monday show: The group closed much more orders and increased its profits significantly.

CEO Oliver Steil praised the “very rare combination of growth and profitability”. He also promised that three “strategic initiatives” will continue to drive growth, such as expanding international business. After a plus of at times up to seven percent, the share of Teamviewer was again above the issue price of 26.25 euros.

Teamviewer offers solutions for networking devices. For example, companies use them to remotely maintain employee computers, monitor machines, or hold online conferences. The software is installed on more than two billion devices, according to the company. More than 430,000 customers use a paid version of the software – some basic features are also available to users for free.

As a key financial indicator, TeamViewer considers billings. These are invoices that the company pays and receives during the respective billing period. In the third quarter, this value increased by 63 percent year-on-year to 83 million euros. Revenues grew 39 percent to 102 million euros, but this figure includes royalties that the IT group will have to spend over a period of several years.

The adjusted operating result – Teamviewer speaks of the cash Ebitda – doubled to 46 million euros (plus 95 percent). After-tax earnings were 14 million euros, four million euros more than a year ago, with the company benefiting greatly from tax loss carryforwards.

The economic difficulties, which cause problems for many companies, do not burden Teamviewer – on the contrary: “A worse economic situation can even have a positive effect on our business,” said CEO Steil Handelsblatt. “In the boom few companies change their business processes. In worse economic situations, they think about where they can get better. “The software of the company from Baden-Württemberg helps.

Bet on Virtual Reality

The TeamViewer management does not want to rely on that alone. It is currently investing in corporate customer business and international expansion. “We have to be present locally with sales staff worldwide,” says Steil. “It's important that we visit the customers, that we have an office where to go, and that the national website is made by people who are close to the customer.”

In addition, Teamviewer is expanding its business with new technologies, such as augmented reality. For example, field workers can get advice from experts at the headquarters when repairing machines – they transfer the image with the smartphone's camera. “Customers have learned that our technology works on every device, which helps us get started with augmented reality solutions,” says Steil. Just now the second version has been released.

Since the start, the company has booked about half a million euros Billings. The potential is huge, but he can not yet predict growth for the business.
Teamviewer went public in September with an issue volume of around € 2.2 billion. The income received the financial investor Permira, who bought the company in 2014 for 870 million euros and still holds about 60 percent of the shares.

Despite the interim price declines, analysts say Teamviewer has great potential. The Royal Bank of Canada The company classifies with “outperform” and leaves the price target at 29 euros. The growth dynamics of the new stock exchange is not priced in adequately, it says in a reaction. Goldman Sachs considers 33 euros to be appropriate, the Commerzbank even 36 euros.

It depends on the fundamentals, emphasizes also Steil, who came in early 2018 from Permira to Teamviewer. The software vendor is “a fast growing, profitable company”. Investors, it seems, now also believe this story.

More: Oliver Steil draws a first balance sheet two months after the software maker's IPO – and gives hope for strong growth in Teamviewer.

(t) Software (t) IPO (t) IPO (t) Share (t) Investment Stock Share (t) Permira (t) Goldman Sachs (t) Royal Bank of Canada (t ) Commerzbank (t) Oliver Steil

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