When Germany’s TeamViewer first aimed to connect people around the globe, no one could have foreseen the immense success it would achieve. Today, the software developer is a leader in desktop sharing and remote control solutions, with more than 2.5 billion installations. From IT admins troubleshooting colleagues’ PCs in small businesses to large enterprises managing fleets of devices or enhancing factory operations with augmented reality, TeamViewer’s solutions are utilized by customers across virtually every industry and country worldwide.
TeamViewer raised its outlook for the entire year on Wednesday after better-than-expected profitability in the third quarter following a scaled-back sponsorship deal with British football team Manchester United. The company posted an adjusted core profit margin of 48% in the quarter, representing a 2% beat compared to an LSEG analyst forecast. The result was partly due to a renegotiated sponsorship contract, which had previously included an appearance fee for the football club’s players.
While billings in the SMB segment, which focuses on IT support for SMEs, remained flat year-on-year, growth in the Enterprise business jumped to 32%, well above consensus expectations. Substantial subscriber gains, as did higher annual contract value and multi-year billings, drove this. During the quarter, TeamViewer expanded its digital ecosystem presence through various partnerships and cooperations. For example, the company has partnered with Google Cloud to make its augmented reality (AR) portfolio available on Google’s platform.
In addition, the company has developed its Industrie 4.0 portfolio by acquiring Bremen-based Ubimax, the market leader for augmented reality solutions for Industrie 4.0. The company now offers the solution under the TeamViewer Frontline brand, which can be used with data glasses to facilitate work on production lines.
On the personnel side, the Supervisory Board extended the contract of Chief Financial Officer Michael Wilkens by three years. At the same time, the Management Board member and Chief Commercial Officer Peter Turner decided not to extend his contract, which expires in July 2025.
With its extensive product range, TeamViewer is ideally placed to support the digital transformation of many industries. The Group continues pursuing this strategy with a more clearly defined product portfolio, focusing on three key areas. The Remote-as-a-Service solution will continue to be offered, with a greater separation of the portfolio into Managed Enterprise Connectivity and Operational Workflow Optimization, focusing on the needs of large companies and critical infrastructure. The strategic goal is to increase customer retention, which in turn should lead to an improvement in revenue.