UPDATE 1-TeamViewer to grow by a third this year, targets enterprise users

(Updates with guidance, context)

BERLIN, Feb 10 (Reuters) – German software company TeamViewer said on Monday it expected revenue and core profit to grow by about a third this year as it targets more higher-paying customers with its remote connectivity products, lifting its shares more than 4%.

TeamViewer, which floated last year and has been admitted to Frankfurt’s mid-cap and tech stock indexes, said it was targeting billings of 430 million-440 million euros ($471 million-$482 million), representing year-on-year growth at 34%.

Core earnings before interest, taxation, depreciation and amortisation (EBITDA) were forecast to grow to 240 million-250 million euros, said the firm, based in the town of Goeppingen.

“This year we will continue to execute at full speed on our growth strategy by expanding use cases, customer segments and global reach,” said Chief Executive Oliver Steil.

The September listing, which valued TeamViewer at 5.25 billion euros, added a rare technology firm to a Frankfurt market heavy with industrial and auto stocks.

Shares, which were up 4.4% in early trade, have risen by a fifth since the float.

TeamViewer, controlled by private equity house Permira, says it could connect “anyone, anything, anytime, anywhere” through uses ranging from remote IT support to video conferencing.

It is focusing on higher-spending enterprise customers to drive growth.

It counted 698 customers at the end of 2019 with an annual contract value of more than 10,000 euros, up 67% on a year earlier. Its total number of paying subscribers rose 71% to 464,000.

The guidance for 2020 implies growth in profits will slow compared with 2019, when billings rose by 41% and adjusted EBITDA rose by 51%.

Fourth quarter billings rose by 34% to 100.6 million euros while adjusted EBITDA jumped by 46% to 62.6 million euros.

($1 = 0.9129 euros) (Reporting by Riham Alkousaa and Douglas Busvine; Editing by Edmund Blair)

Source: https://www.cnbc.com/2020/02/10/reuters-america-update-1-teamviewer-to-grow-by-a-third-this-year-targets-enterprise-users.html

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