TeamViewer forecasts continued growth and firm margins in 2021

BERLIN, Feb 9 (Reuters) – German software company TeamViewer (TMV.DE) forecast its business to grow by as much as a third this year while profit margins remain stable as the remote connectivity specialist weathered a strong end of the year year 2020 reported.

TeamViewer offers “anytime, anywhere” technology for remote control of applications. Its stock has doubled since going public in 2019, and the company made two acquisitions last year to add new features to its product lineup.

CEO Oliver Steil told Reuters he wants to expand into areas like augmented reality and smart devices connected to the so-called Internet of Things as TeamViewer looks to strengthen its global footprint.

“We’re confident of continuing to grow at a 30% growth rate,” Steil said in an interview, saying he’s on the lookout for more acquisition opportunities.

Billings are expected to be in a range of 585 to 605 million euros ($707 to 731 million) after rising 44% to 460 million euros last year, the company said, confirming those released in January preliminary results.

TeamViewer operates a so-called “freemium” model, which is free for individual users but charges a subscription fee once it becomes clear that the service is being used in a commercial environment.

The company is focused on building its enterprise customer base and added Siemens Healthineers (SHLG.DE) as a customer in the fourth quarter. Company billings tripled last year, but still only accounted for 12% of the total.

Fourth-quarter revenue rose 32% in constant currency to 128 million euros, with growth slowing as the surge in demand due to the shift to working from home during the coronavirus pandemic eased.

TeamViewer, based in Göppingen in southwest Germany, forecast currency-neutral revenue growth of 29%-33% this year, while its adjusted core income margin would be between 55% and 57% — putting last year’s result at the high end of guidance.

The company has set itself a medium-term goal of increasing sales to EUR 1 billion by 2023.

($1 = 0.8280 euros)

Reporting by Douglas Busvine. Edited by Riham Alkousaa

Our standards: The Thomson Reuters Trust Principles.