TeamViewer forecasts revenue of €685 mn

TeamViewer forecasts revenue in the range of €660 million to €685 million for 2024, reflecting the company’s optimistic outlook for future growth.
TeamViewer billing Q1 2024TeamViewer, the German software developer, announced a significant increase in total revenue for the first quarter of 2024.

TeamViewer’s revenue increased by 7 percent to €161.7 million. However, FX headwinds stemming from 2023 Billings posed a challenge, resulting in a combined negative impact of €3.5 million during the quarter.

The company reported total billings of €174.5 million, marking a slight decrease of 1 percent compared to the same period last year. This decline was primarily attributed to a €6.8 million reduction in contributions from multi-year deals with full upfront payments, which amounted to €9.4 million in Q1 2024, compared to €16.2 million in Q1 2023.

New billings exhibited robust growth, increasing by 25 percent, underscoring TeamViewer’s ability to attract new customers even in a challenging macroeconomic environment.

Enterprise revenue rose 17 percent in Q1 2024, driven by a continued upsell motion and the acquisition of new customers over the past twelve months. This growth contributed to an 11 percent increase in the enterprise customer base, which now stands at 4,199. However, enterprise billings saw a decline of 4 percent in the first quarter, primarily due to lower contributions from multi-year deals.

Notably, the highest value segment of enterprise billings, characterized by annual contract values exceeding EUR 200,000, witnessed a remarkable growth of 38 percent, fueled by successful upselling efforts and the acquisition of new customers.

Meanwhile, the small and medium-sized business (SMB) segment achieved an all-time high in subscriber numbers, reaching 636,000 in the first quarter. Supported by strategic pricing measures and effective cross-selling initiatives, SMB revenue grew by 5 percent.

Though SMB billings remained relatively stable, with a marginal decrease of 1 percent compared to Q1 2023, the highest value segment within the SMB category, featuring annual contract values between EUR 1,500 and 10,000, demonstrated a healthy growth of 8 percent.

During the first quarter of 2024, TeamViewer prioritized customer relations and sales enablement, leading to the development of a robust pipeline and the successful closure of significant enterprise deals. The company’s efforts resulted in a record-high subscriber count of 640,000 and a 25 percent increase in billings from new subscribers, highlighting the enduring relevance of TeamViewer’s products and its prominent position in the market.

TeamViewer expanded its brand visibility through new marketing campaigns and participation in industry conferences, laying the groundwork for accelerated billings growth in the latter half of the year. The company also forged strategic partnerships, particularly in the field of augmented reality and spatial computing, to enhance its innovative offerings.

In a strategic move to strengthen its leadership in vision picking software, TeamViewer announced partnerships with Deloitte and Manhattan Associates, aiming to accelerate digital transformation in warehouse logistics. Additionally, the company launched a subscription-based hardware and software bundle in collaboration with Almer, targeting the adoption of augmented reality technology in industrial settings.

Moreover, TeamViewer demonstrated its commitment to sustainability through its c-a-r-e program, which encompasses environmental initiatives, female empowerment, and tech education activities. Notably, the company’s efforts to promote remote work contributed to a significant reduction of approximately 41 million tons of CO₂ equivalents in 2022, as confirmed by a study conducted by sustainability experts from Five Glaciers Consulting.

Overall, TeamViewer’s robust performance in Q1 2024, coupled with its strategic initiatives and commitment to sustainability, position the company for continued growth and innovation in the evolving technology landscape.

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