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Pro Forma Revenue Growth: 7% in constant currency year-over-year.
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Enterprise Revenue Growth: 21% in constant currency year-over-year.
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ARR Growth: 7% in constant currency on a pro forma basis.
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Pro Forma Adjusted EBITDA Growth: 20% year-over-year.
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Adjusted EBITDA Margin: 43%.
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Net Leverage Ratio: Improved to 3.1 times adjusted EBITDA.
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Americas Revenue Growth: 10% year-over-year.
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EMEA Revenue Growth: 6% year-over-year.
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APAC Revenue Growth: 4% year-over-year.
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Enterprise ARR Growth: 20% in constant currency year-over-year.
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SMB Revenue Growth: 2% year-over-year.
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Pro Forma Adjusted Basic EPS: EUR0.29, a 30% increase year-over-year.
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Levered Free Cash Flow: EUR44.5 million, up 10% year-over-year.
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Cash Conversion Rate: 54% in the quarter.
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Net Financial Liabilities: EUR1 billion at the end of Q1.
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Interest Hedge Ratio: Over 70%.
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Full Year ARR Guidance: EUR815 million to EUR840 million.
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Full Year Revenue Guidance: EUR778 million to EUR797 million.
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Full Year Adjusted EBITDA Margin Guidance: Around 43%.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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TeamViewer SE (TMVWF) reported a strong pro forma revenue growth of 7% in constant currency year-over-year, with significant contributions from all regions.
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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.
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Pro forma adjusted EBITDA increased by 20% year-over-year, achieving a strong margin of 43%, largely due to optimized marketing spend.
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The integration with 1E is progressing well, with new products launched and a promising pipeline, enhancing TeamViewer’s enterprise focus.
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The company improved its net leverage ratio to 3.1 times adjusted EBITDA, indicating effective financial management post-acquisition of 1E.
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The macroeconomic environment remains challenging with increased uncertainties, impacting visibility and customer behavior.
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SMB segment growth was modest, with only a 2% increase in both ARR and revenue, and customer churn slightly increased to 15.3%.
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There is a risk of deceleration in ARR growth in Q2 due to tough comparisons with large deals from the previous year.
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Marketing costs are expected to rise in Q2 due to new brand campaigns, which could impact margins.
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Cash flow was affected by non-recurring cash outflows related to the 1E acquisition and a legal settlement, impacting the cash conversion rate.
Q: Can you provide insights on the outlook for Q2, considering macroeconomic factors and the impact of last year’s large deal on ARR growth? A: Michael Wilkens, CFO: It’s too early to provide specifics for Q2, but we are seeing cautious customer behavior with longer sales cycles. We are on top of relevant deals, and June will be decisive. Regarding DEX Essentials, it’s an add-on module with pricing details to be announced soon. It’s expected to provide a meaningful uplift to a normal TeamViewer license.
