TeamViewer forecasts further growth, firm margins in 2021
BERLIN (Reuters) - German software company TeamViewer forecast its business would grow by up to a third this year while profit margins would hold firm, as the remote connectivity specialist reported a strong end to 2020.
TeamViewer provides "anytime, anywhere" technology to control applications remotely. Its shares have doubled since it floated in 2019, and the company did two takeovers last year to add new features to its product range.
CEO Oliver Steil told Reuters he wanted to expand into areas such as augmented reality and smart devices connected to the so-called internet of things, as TeamViewer seeks to strengthen its global presence.
"We are confident of continuing to grow at a rate of 30%," Steil said in an interview, saying he was on the lookout for further takeover opportunities.
Billings are forecast in a range of 585-605 million euros ($707-$731 million) after growing by 44% last year to 460 million euros, the company said, confirming preliminary results published in January.
TeamViewer operates a so-called "freemium" model that is free to individual users but charges a subscription fee once it becomes clear its service is being used in a commercial setting.
It is focusing on building up its enterprise customer base, where it landed Siemens Healthineers as a client in the fourth quarter. Enterprise billings trebled last year but still accounted for just 12% of the total.
Fourth-quarter billings grew by 32% at constant currency to 128 million euros, with growth moderating as a demand surge arising from the shift to home working during the coronavirus pandemic ebbed.
TeamViewer, based in Goeppingen, southwest Germany, forecast billings growth of 29-33% this year at constant currency, while adjusted core profit margin would be between 55% and 57% - touching last year's outturn at the top end of its guidance.
The company set a mid-term target of increasing billings to 1 billion euros in 2023.
($1 = 0.8280 euros)
(Reporting by Douglas Busvine and Nadine Schimroszik, Editing by Riham Alkousaa, Kirsti Knolle; editing by David Evans)
