TeamViewer (TMV) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with 9% constant currency revenue growth year-over-year and a robust adjusted EBITDA margin of 41%.

• Enterprise segment achieved double-digit revenue growth (up to 21% year-over-year in constant currency), with NRR increasing to 116%.

• Americas region saw robust growth and new high-profile customers, while all regions contributed to overall performance.

• Maintained high customer trust and product usage despite a cybersecurity incident, which was contained and had no impact on customer data or product environment.

• Recognized with industry awards and expanded partnerships, including Microsoft Partner of the Year and new strategic alliances.

Financial highlights

• Q2 2024 revenue reached €164.1 million, up 9% year-over-year in constant currency, with adjusted EBITDA of €67.5 million and a margin of 41%.

• Levered free cash flow increased 29% year-over-year to €60.8 million, with cash conversion at 90%.

• Net income was €26.5 million, down 22% year-over-year due to higher taxes after a prior-year one-off benefit.

• ARR based on billings rose 7% to €667 million; total NRR was 102%.

• Adjusted EPS up 8% year-over-year to €0.24, aided by share buybacks.

Outlook and guidance

• Full-year 2024 revenue guidance reaffirmed at €660–685 million, implying 7–11% constant currency growth.

• Adjusted EBITDA margin guidance maintained at at least 43%, with margin expected to rise in H2.

• Billings growth in H2 expected to accelerate to 6–7% in Q3 and Q4, driven by enterprise deals.

• Confident in delivering pre-tax levered free cash flow growth of ~12% for the year.

• Margin improvement in H2 2024 expected from cost savings and growth initiatives.