TeamViewer (TMV) Q3 2024 earnings summary

Executive summary

• Revenue grew 8% year-over-year in constant currency for Q3, reaching €169 million, with all regions and customer categories contributing positively despite challenging macroeconomic conditions.

• Enterprise segment delivered 23% revenue growth and 20% ARR growth year-over-year, now comprising 22% of total revenue, reflecting a strategic shift toward enterprise customers.

• Adjusted EBITDA margin reached a record 48% in Q3, up 4 percentage points year-over-year, supported by cost discipline and reduced marketing spend.

• Net income increased 49% year-over-year to €39.5 million, and adjusted EPS rose 30% to €0.29.

• FY 2024 revenue guidance narrowed to €662m–€668m, and adjusted EBITDA margin guidance raised to at least 44%.

Financial highlights

• Q3 2024 revenue: €168.7m (+7% reported, +8% cc); ARR: €669.3m (+7% cc); billings: €154.1m (+4% cc).

• Adjusted EBITDA: €81.0m (+15% yoy); margin: 48% (+4pp yoy).

• Net income: €39.5m (+49% yoy); adjusted EPS: €0.29 (+30% yoy).

• Levered free cash flow: €41.3m in Q3; €143m year-to-date, flat yoy.

• Billings grew 4% yoy in constant currency; multi-year deals with upfront payment reached €70m (+10% yoy).

Outlook and guidance

• FY 2024 revenue expected between €662m–€668m, reflecting 7–8% growth in constant currency.

• Adjusted EBITDA margin guidance raised to at least 44%, up from previous guidance of at least 43%.

• Guidance incorporates FX headwinds of €10–11m for the full year.

• Expect low single-digit billings growth in Q4 due to tough comps and ongoing macro headwinds.

• Pipeline for Q4 and 2025 remains solid, but management remains cautious due to market uncertainty.