Q1 2025 TeamViewer SE Earnings Call Transcript
Key Points
- TeamViewer SE (TMVWF) reported a strong pro forma revenue growth of 7% in constant currency year-over-year, with significant contributions from all regions.
- The enterprise segment showed robust performance with a 21% increase in pro forma revenue and a 20% growth in ARR, driven by high-value deals and new projects.
- Pro forma adjusted EBITDA increased by 20% year-over-year, achieving a strong margin of 43%, largely due to optimized marketing spend.
- The integration with 1E is progressing well, with new products launched and a promising pipeline, enhancing TeamViewer's enterprise focus.
- The company improved its net leverage ratio to 3.1 times adjusted EBITDA, indicating effective financial management post-acquisition of 1E.
- The macroeconomic environment remains challenging with increased uncertainties, impacting visibility and customer behavior.
- SMB segment growth was modest, with only a 2% increase in both ARR and revenue, and customer churn slightly increased to 15.3%.
- There is a risk of deceleration in ARR growth in Q2 due to tough comparisons with large deals from the previous year.
- Marketing costs are expected to rise in Q2 due to new brand campaigns, which could impact margins.
- Cash flow was affected by non-recurring cash outflows related to the 1E acquisition and a legal settlement, impacting the cash conversion rate.
Thank you, operator. And good morning, ladies and gentlemen, and welcome to Team Viewer's Q125 earnings poll. I am Bisera Grubesic, Head of IR, and today I am joined by our CEO, Oliver and CFO, Michael.
As per usual, Oliver will run you through the quarterly business highlights, and Michael will present the financials. And the presentation will be concluded by a Q and A session. If we move to the next slide. Today, we will present non IFRS pro forma top line and adjusted EBITDA performance. Pro forma figures are prepared for better comparability and transparency following the combination of TeamViewer with 1E on January 31, 2025.
Historical pro forma financials are not prepared below EBITDA and the cash flow. For details on how we prepared pro forma figures, please refer to the press release and the appendix of the presentation. Please note that you can find the important notice and the APM disclosure also on Slides two and three of the presentation. With this, I hand it over to Oliver to kick off our presentation.
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