Commerzbank German Investment Seminar 2020 - January 13, 2020 - New York Anyone. Anything. Anywhere. Anytime - Investor Relations
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Anyone. Anything. Anywhere. Anytime. Commerzbank German Investment Seminar 2020 January 13, 2020 - New York
Important Notice This presentation as well as any information communicated in connection therewith (the "Presentation") contains information regarding TeamViewer AG (the "Company") and its subsidiaries (the Company, together with its subsidiaries, "TeamViewer"). It is being provided for informational purposes only and should not be relied on for any purpose and may not be redistributed, reproduced, published, or passed on to any other person or used in whole or in part for any other purpose. Certain statements in this presentation may constitute forward looking statements. These statements are based on assumptions that are believed to be reasonable at the time they are made, and are subject to significant risks and uncertainties, including, but not limited to, those risks and uncertainties described in TeamViewer's disclosures. You should not rely on these forward-looking statements as predictions of future events and we undertake no obligation to update or revise these statements. Our actual results may differ materially and adversely from any forward-looking statements discussed in these statements due to several factors, including without limitation, risks from macroeconomic developments, external fraud, lack of innovation capabilities, inadequate data security and changes in competition levels. This presentation may include supplemental financial measures-not clearly defined in the applicable financial reporting framework-that are or may be alternative performance measures (non-IFRS measures). TeamViewer's financial position, financial performance and cash flows should not be assessed solely based on these alternative supplemental financial measures. Under no circumstances do they replace the performance indicators presented in the consolidated financial statements and calculated in accordance with the applicable financial reporting framework. The calculation by other companies that report or describe similarly titled alternative performance measures may vary despite the use of the same or similar terminology. The Company undertakes no obligation, and does not expect to publicly update, or publicly revise, any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward- looking statements attributable to it or to persons acting on its behalf are expressly qualified in their entirety by the cautionary statements referred to above and contained elsewhere in this Presentation. 2
Agenda
1 At A Glance
2 Strategy
3 100+ Use Cases
4 Financials And Outlook
3
1 Introduction To TeamViewer
At A Glance
STRONG ATTRACTIVE SUPERIOR
PLATFORM GLOBAL
GROWTH ECONOMICS FINANCIALS
• Business critical • ~€10bn global TAM as • Accelerating paying • No geographic, • FY 2019 Billings: €325m (4)
connectivity of 2018 subscriber growth of customer or vertical +41% YoY ahead of
platform 72% YoY (4) concentration guidance; Americas FY
• Active in ~180 2019 Billings +59% YoY (4)
• ~100% SaaS countries • 24% TAM (total • >467k subscriptions (4)
(software as a service) addressable market) • Customers with ACV above
business model • >800 employees (3) growth from 2018-2023 • Scalable with gross €10k at 698 (4) by end of FY
across 15 offices profit margin >90% (5) 2019, +67% YoY
• ~340m annually active • Expanding and CLTV / CAC
devices (1) • Worldwide network use cases • Cash EBITDA margin
>30x (6)
with >1,000 routers >50% (3)
• Net revenue retention across 81 locations • Multiple levers for
rate 103% 2019 (2) growth • Cash conversion >90% (7)
1. A device which reported any activity type within 12 month
2. LTM Q3 2019; Net revenue retention rate = 1 - net value churn (gross value churn - expansion); gross value churn as billings lost from customers that had an invoice in LTM-1 but not in LTM
3. 9M 2019
4. Preliminary figure as of 13 January 2020, subject to audit
5. 9M 2019; Gross profit margin excluding D&A and non-recurring COGS
6. FY 2018; CLTV, the expected customer lifetime value, defined as (annual recurring billings (ARB) per customer * gross margin) / gross value churn; CAC, the customer acquisition cost, defined as sales & marketing costs / # new customers
7. Cash Conversion defined as Pre-tax FCF / Cash EBITDA; Pre-tax FCF defined as Cash EBITDA less capital expenditure and adjusted for change in net working capital
4
1 We Have An Experienced And Highly Motivated Team To Deliver
At A Glance
21 14
Oliver Steil Stefan Gaiser
Chief Executive Officer Chief Financial Officer
21 20 21 23 14 25 15
Gautam Goswami Roger Illing Finn Faldi Alfredo Patron Rebecca Keating Karl Markgraf Dr. Mike Eissele
Chief Marketing Officer Executive Vice President President Executive Vice President Senior Vice President Chief Operations Officer Chief Technology Officer
Enterprise EMEA TeamViewer Americas Business Development Human Resources
MARKETING AND SALES CORPORATE TECHNOLOGY AND INFRASTRUCTURE
Industry +170 Years of Relevant 35 / 65 70+
Insights Experience for Management Female / Male Workforce Nationalities
Years of Experience
5
Agenda
1 At A Glance
2 Strategy
3 100+ Use Cases
4 Financials And Outlook
6
2 We Deliver Business Connectivity Across The Enterprise
Strategy
Anywhere
Controller Computer Sensor
TEAMVIEWER PLATFORM
Smartphone
Anything
Anyone
Easy-to- Flexible
Open Secure
Use Device and End-to-end
Travels
Laptop
Deployed across across use
system agnostic encryption
organisation cases
Server
“...”
Virtual Machine Tablet
Anytime
7
2 Remote Connectivity Has Become Business Critical
Strategy
DIGITAL TRANSFORMATION IOT & AI FUTURE OF WORK
$665bn €186bn >50%
Digital transformation market size by 2023 Total IoT endpoint hardware spending Employees globally work outside main
office headquarters at least 2.5 days a week
ROBOTICS & AUTOMATION DEVICE & APPLICATION PROLIFERATION CARBON FOOTPRINT REDUCTION
$210bn 24 40%
Worldwide spending on Average number of devices and connections per EU’s target to reduce greenhouse gas emissions
robotics systems & drones in 2022 household in North America by 2022 by 2030 compared to 1990
Anyone Anything Anywhere Anytime
Source: Company information based on third-party market study and publicly available information, Cisco VNI, IDC, IWG, MarketsandMarkets
8
2 TeamViewer Enables To Connect, Manage And Interact In Any Way
Strategy
Wind
turbines
Fish farms Camera
systems
Device New
connectivity Remote
Unified support use
(IT, customer, monitoring cases
mobile)
Employees Ad.
to company displays
Remote New
control use cases
IT Snow
management cannons
IoT
systems
Lawyers to
their office Enterprise
access Smart
farming New
Easy-to-Use Incident use cases
management
Cost Effective
Astronauts Secure
New
in space
use cases
External Sports
contractors Augmented coaching
Data reality field Elevator
visualisation support maintenance
New SoHo
use cases IT access New
helpdesk Remote
use cases
presentations Flight
control
Expert
New
support
“
use cases
New
Proven Track Record Of Expanding Use Cases use cases Remote
”
operations
Collaboration New
Driven By Customer Innovation use cases
9
2 Our Offering Is Highly Valued By Our Users And Customers
Strategy
Start: Free-to-Use 98%
Brand Awareness
HIGH STICKINESS
Ease-of-Use +47
Net Promoter Score (1)
4.5
Average number of
use cases per user
Fast & High ROI to €335
Customers p.a. Entry Price Level
Open Ecosystems Integration
Into Customer Network
Source: Company information based on third-party market study and B2B customer survey
Note: B2B customer survey with ~1,200 participants (across key markets: US, Brazil, Germany, UK, Spain, Australia, China, India) as of May 2019
1. Based on n=527 participants for TeamViewer
102 We Operate On A Modular And Highly Scalable Technology
Strategy
Stack …
Remote
Meeting
Management
Pilot Monitis
TeamViewer CoreIoT
(1)
Remote Access Tensor
TeamViewer Core
Backbone Connectivity Platform
Large and 100% Cloud Zero High Security Standard Highest Quality Reliable Low Latency
Rapid Network (2) Massively scalable knowledge-based Two-factor authentication 5-star quality seal (3) ~99.9% uptime (4) Strong connection across
~1,000 routers infrastructure principle and end-to-end encryption high and low bandwidth
1. Illustrative only, Monitis is running on a different technology stack
2. Referring to remote connection networks
3. As defined by Federal Association of IT Experts and Reviewers, with 5-stars being the highest possible
4. June 2019 YTD
11 Strategy2 … With A Large & Growing Installed Base With Potential For
Strategy
Future Conversion (1)
~2bn
Installations Enterprise
~340m Up to 45m
Annually Devices >467k (4) SMB
Active Online Subscriptions
For Every New Devices (3) Concurrently Commercial
Installed and Outreaching Device:
4 More Devices
Added Over Its Lifetime (2)
Source: Company information based on third-party market study
1. Latest available figures unless otherwise stated
2. On average a single added device that established a connection once (outreaching) results in 4 more devices installing TeamViewer software as of April 2019
3. A device which reported any activity type within 12 months as of December 2018
4. Preliminary figure as of 13 January 2020, subject to audit
122 The Broad Array Of Use Cases Across All Three Categories
Strategy
Comprised A €10 Billion TAM Already In 2018
CONNECT
MANAGE
Unified Support
~ 60% ~ 30%
OF CASES (1) OF CASES (1)
IT Management
Total TAM 2023 Remote
Enterprise Access €30.2bn Monitoring
SoHo Access
Remote Control
Incident Management
Device Connectivity Total TAM 2018
€10.3bn
INTERACT
10%
INTERACT
~ 10 % ~
OF CASES (1) OF CASES (1)
AR Field Support Expert Interaction
Source: Company information based on third-party market study
1. Current distribution of use cases deployed by TeamViewer users; n=506 with total number of use cases deployed of 2,054
132 We Have A Clear Strategy To Penetrate Our TAM: Tangible
Strategy
Growth Initiatives Along Three Dimensions
Structural Factors & Tangible Initiatives For Continued Potential Growth Expanding # Use Cases
Selective
Further Global M&A
Enterprise / Roll-Out
Full Customer Reach
New Customer Acquisitions
Tensor
Small
Business
India Future
Premium
Japan
Personal
China
Today
Today
Free
Use Case Discovery
Core Monitis Meeting Remote Management Pilot IoT
14Agenda
1 At A Glance
2 Strategy
3 100+ Use Cases
4 Financials And Outlook
153 In Just Over 14 Years, We Developed From A Local Single-Use
100+ Use Cases
Application…
2019
>2,000
TeamViewer
TeamViewer in in >100 Use
Cases
the
theIndustrial Heart
Industrial of Germany
Heart of Germany
2017
Frankfurt 2014 1,602
Localisation
15
2005 Offices Around
900 the Globe
9
Few Use Global Engagement
Cases
~180 Up to45m
Stuttgart
Countries With Devices Online
Paying
“
Concurrently
Munich Customers (1)
From IT Tool to
”
Reach
Connectivity Platform ~340m
Active
Devices (2)
Source: Company information
1. Billings generated in ~180 countries
2. Devices with at least one successful incoming / outgoing connection in the last year
163 …Into A Global Open Connectivity Platform Delivering Significant
100+ Use Cases
Business Value Across A Multitude Of Use Cases
DOWNSTREAM
EXTERNAL USAGE
VIRTUAL REALITY CUSTOMER SUPPORT
IOT / CONNECTING (FIELD SUPPORT)
IT DEVICES
INTERNAL IT MANAGEMENT
REMOTE SUPPORT
PRIVATE WORK
SUPPORT
Direct connection
between doctor
Direct off-
and patient
TeamViewer premise
Integration of applied to customer
devices as part of adjacent areas support
Further roll-out
Used additionally as into the IT customer
IT support tool department network
Organisation
Initiation of starts within the
TeamViewer TeamViewer for organisation
software for private remote work only
use Connect
Manage
Interact
173 Creating Significant Value For Our Customers
100+ Use Cases
Cost Savings Driving ROI New Business Models Helping Revenues Grow
“ Without
“ “ If climate control fails,
“ 30% “ Time required
for remote
TeamViewer,
we would
Registers […] cannot
store data long-term.
we could have 40k
dead chickens
reduction in authentication need about TeamViewer simplified
case resolution decreased from register retrieval and within one hour
10-15
time for in-field 15 minutes to product evaluation […] Without Team-
agents to be
service workers
” 10 seconds
” on-call and management.
”
Viewer, we would
”
have to be on site
”
ready
“ 20% “ It literally saves
“ byIncreasing […] income “
“
Actually, TeamViewer
capacity It saves us us 20% with the cattle is the reason why
increase for $30k thousands behavioural mating
remote support in travel of man hours a we started this [IT
recognition system […].
team vs. expenses per year travelling TeamViewer allows management]
competitor
”
year
” all over the
”
breeders to check business in the first
”
solutions country place.
[their cattle]
”
Source: Company information, Nucleus
183 Our Platform Is Flexible To Support Customers With Highest
100+ Use Cases
Expectations Across A Wide Array Of Industries
TeamViewer enables Fast, remote
Philips’ customers to technical support
access devices from provided through
anywhere, at anytime TeamViewer cuts
time per support
case by 20%
MediTouch offers Medical diagnoses for
patients secure, at astronauts in space
home physical with excellent image
therapy sessions quality and instant
with TeamViewer response times
19 Strategy3 Powering A Global IT Helpdesk
100+ Use Cases
• Solution for centralised internal IT support
TeamViewer • Scalable architecture and highest security standards
Solution
• Open platform enables support of customers
IT support
solution for an • Manufacturer with locations in 7 countries
Customer
Austrian Situation • Need for reliable, safe, and cost-effective IT support
hardware from centralised IT helpdesk for all countries
manufacturer • International expansion requires a scalable solution
with a global Challenge
• Occasional external customer support provided by an
footprint internal helpdesk
“Unlike before, we
MACO Employee MACO IT Helpdesk “With TeamViewer,
“We are very happy now enjoy stable
we feel well-
with TeamViewer. connections every
equipped to handle
The software lets us time, which has
further growth,
handle support allowed us to cut
including on the IT
cases efficiently” the support cost by
Technical support side”
Issues 20 percent”
Source: Company information
203 Centralising Digital Signage Management
100+ Use Cases
• Single platform for Philips clients to manage their
TeamViewer professional signage screens worldwide
Solution
• Pre-installed on many screens by default
• Philips needs solution for its customers to access
Customer commercial screens
Situation
Remote input to • Screens used for wide array of applications
commercially
• Signage screens distributed worldwide, partially in
used screens Challenge limited bandwidth locations
worldwide • 24/7 access needs to be ensured in all locations
Arrivals Screen “You have total
at Airport “We have
control of what is “We can change
embedded […]
happening [on the picture content
Advertising Screen TeamViewer in
in Mall screen] everywhere anywhere across
Customer all our signage
in the network the globe”
Many Other Outlets
Control Room screens”
Around the World globally.”
Source: Company information
213 Enabling Smart Agriculture & Farming
100+ Use Cases
• Pre-installed on Trimble devices for remote fleet
TeamViewer management and monitoring from factory
Solution
• Broad remote management capabilities for farmers
Revolutionising • Agricultural equipment geographically dispersed,
Customer oftentimes in remote regions
agriculture Situation
through • Functioning equipment is business critical
monitoring, • Smart farming equipment increasingly complex
control, and Challenge requiring frequent technical support
technical support • Increasing data intensity of smart farming methods
““We were really
Updates, Support, and Monitoring “With TeamViewer “He logged in from
of Fleet from HQ ecstatic when we
Agricultural customers did not Ottawa which is a 1.5
Farmer, found out that Trimble
Equipment have to explain what hour drive away and
anywhere had partnered with TV
they are seeing [on fixed [the connectivity
Management, Monitoring […] We were just able
their equipment]” issue]”
and Support to log in remotely”
Source: Company information
223 Powering Remote Physical Therapy
100+ Use Cases
• Tele-rehabilitation solution allowing therapist to see
TeamViewer and interact with / give feedback to patient
Solution
• Monitoring of specialised therapy devices
• MediTouch requires interact solution to make
MediTouch offers Customer disruptive tele-rehabilitation possible
Situation
patients secure at • Rehab devices create data and need to be monitored
home physical • Patients with different operating systems / devices at
therapy sessions Challenge home dispersed across country
with TeamViewer • Highest security requirements given data sensitivity
Patient Monitoring of
Computer Rehab Devices “We needed to be
“After we did a trial
able to see the
with TeamViewer we
patients and adjust
Interaction Physical realised it fits our
Therapist Live the rehabilitation in
Rehab Device exact needs”
Feedback
real time”
Source: Company information
23Agenda
1 At A Glance
2 Strategy
3 100+ Use Cases
4 Financials And Outlook
244 Key Financial Highlights
Financials And
Outlook
Top Line
Fully Transitioned Strong Sustainable And
Subscription Model Visibility Accelerating Growth
~100% SaaS >103% Net Revenue +41% Billings Growth in FY2019 (2)
Retention Rate (1)
1
Bottom Line
Highly Profitable and Superior Unit Strong Cash
Scalable Business Economics Conversion
>90% Gross Profit Margin (3) >30x CLTV / CAC (5) >90% Cash Conversion (6)
>50% Cash EBITDA Margin (4)
1. LTM Q3 2019; Net revenue retention rate = 1 - net value churn (gross value churn - expansion); gross value churn as billings lost from customers that had an invoice in LTM-1 but not in LTM
2. Preliminary figure as of 13 January 2020, subject to audit
3. 9M 2019; Gross profit margin excluding D&A and non-recurring COGS
4. 9M 2019
5. FY 2018; CLTV, the expected customer lifetime value, defined as (annual recurring billings (ARB) per customer * gross margin) / gross value churn; CAC, the customer acquisition cost, defined as sales & marketing costs / # new customers
6. Cash Conversion defined as Pre-tax FCF / Cash EBITDA; Pre-tax FCF defined as Cash EBITDA less capital expenditure and adjusted for change in net working capital
254 Highly Efficient Customer Acquisition Resulting In Outstanding
Unit Economics
Financials And
Outlook
Virality on Product
~€250 CAC
(2018A)
High Organic Traffic
>30x
Limited Value Churn
CLTV / CAC
100%
~€8,500 CLTV
Up/Cross-sell (1) (2018A)
>10%
Note: Figures as of 2018A
1. Billings from incremental Up-sells to higher value products + Cross-sales of add-ons / additional products to existing subscribers
264 Strong Growth Track Record Now Accelerating After Shift To
Subscription
Financials And
Outlook
Billings (€m)
2018A – 2019E
growth: +41% (1)
H1 2019A:
✓ Geographic & Product Expansion +37% (2)
✓ Move to Subscription 325 (1)
2017A – 2018A
✓ Re-Ignite Entrepreneurial Culture growth: +25%
230
185
177
Consistent
Growth 152
126
101
91
71
46
26
13
2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A 2017A 2018A 2019A
Source: Company information
1. Preliminary figure as of 13 January 2020, subject to audit Perpetual Subscriptions
2. Growth vs. H1 2018A
274 Billings Ahead Of 2019 Guidance
Financials And
Outlook
Billings (€m) FY 2019: €325m (1) (+41% vs. FY 2018)
Strong operating
momentum continued
since Q3. FY 2019 billings
ahead of 2019 guidance
310 - 320
33%
31%(1)
25%
24%
22%
101(1)
21% 22% 21%
83
75 73
1 69
1 1 28
55 51 18
48 21 26
18 2 18 4
7 8 4
26
13 21
42 50
12 9 7 37 39
12 11 15
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Renewal Migration New Sales (sub) Perpetual % of Annual Billings
1. Preliminary figure as of 13 January 2020, subject to audit
284 Q4 2019 Regional Billings Update
Financials And
Outlook
Billings (1) (€m)
+41% 325 +35%
41
101
230 75 10
31 110 33
7
69 21
130 174 47 59
FY 2018 FY 2019 Q4 2018 Q4 2019
EMEA AMERICAS APAC
EMEA AMS APAC EMEA AMS APAC
+34% +59% +32% +24% +56% +40%
1. Preliminary figure as of 13 January 2020, subject to audit
294 Continuous Growth in Enterprise Segment
Financials And
Outlook
Customers With ACV (1)Above €10k (any product) Top 3 Deals in Q4 2019
+67%
698
(2) 1) Retail: €215k
(Upsell)
590
518 2) Software & Services: €120k
468 (Upsell)
419
3) Industrial Machinery: €120k
(New License)
Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
1. ACV: Annual Contract Value
2. Preliminary figure as of 13 January 2020, subject to audit
304 Unique Financial Model …
Financials And
Outlook
Billings to FCF Bridge (9M 2019)
>90%
(8)%
Cash
100%
92% (13)% Sales
Conversion (3)
(7)% Marketing
(9)% R&D
(10)% G&A(1)
(1)% (4)%
53%
49%
Billings Cost of Sales Profit Contribution Costs Cash EBITDA Change in NWC Capex (2) Pre-tax FCF
1. G&A includes other income, other expenses and bad debt expenses
2. NAL capex (€1,3) not yet included
3. Cash Conversion defined as Pre-tax FCF / Cash EBITDA; Pre-tax FCF defined as Cash EBITDA less capital expenditure and adjusted for change in net working capital
314 … With Significant Scale Effects Going Forward
Financials And
Outlook
Billings To Cash EBITDA Bridge
Billings (€m) 325- 320
310 (3)
(-) Cost of Sales (1)
(-) Sales (1)
230
(9)%
(-) Marketing (1) 185
177 (12)%
(8)% (9)%
(8)%
(-) R&D (1) (12)% (12)%
(9)%
(5)% (7)%
(7)% (8)% (9)%
(-) G&A (1,2) (8)% (8)%
Accelerated 177 - 183
52% >55% (3)(4)
60% 56% Investments In Margin
Margin / Key Transition Pick-up
Cash EBITDA (€m) Year 121 177 – 183
107 103
Note: Margin presented as % of billings 2016A 2017A 2018A 2019E
1. Costs excl. D&A and specific non-recurring items
2. Includes other expense / income and impairment allowance
3. Based on preliminary billings figure as of 13 January 2020, subject to audit
4. Based on the mid-point of the FY2019 guidance, i.e. €180m Cash EBITDA FY2019
324 Cash EBITDA is expected in the mid range of 2019 guidance
Financials And
Outlook
FY2019: €177-183m
Cash EBITDA (€m)
LTM: €163m
Key Developments in Q3 2019
Strong operating Strong increase of Cash EBITDA expected to
momentum continued Cash EBITDA continue to reflect
since H1, Cash EBITDA margin , 56% in Q3 seasonality, with majority
significantly ahead of 2019 vs 46% in Q3 of billings realized in Q4
prior year 2018
(1)(2)
61% 43% 46% 57% 55% 49% 56% ~60%
36% 33%
(1)
28% 26%
20% 21% 20%
17% 57-63
43 38 36 46
33
21 24
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
Cash EBITDA Margin % of Annual Cash EBITDA
1. Based on the mid-point of the FY2019 guidance, i.e. €180m Cash EBITDA FY2019
2. Based on preliminary billings figure as of 13 January 2020, subject to audit
334 Outlook
Financials And
Outlook
FY 2018 FY 2019 Guidance FY 2019 Preliminary Figures
Billings €230m €310 – 320m €325m(1)
Billings
% Y-o-y Growth +25% 35 – 39% growth 41% growth(1)
Renewal (Net Retention) Over 100% Marginally above 100%
Revenue €258 €386 – 391m
Will be published with TeamViewer’s
full year results 2019 (unaudited) on
February 10, 2020
Cash EBITDA €121m €177– 183m
1. Preliminary figure as of 13 January 2020, subject to audit
34Financial Calendar 2020
January 21 Frankfurt, German Corporate Conference, (IR only)
UniCredit & Kepler Cheuvreux, 21-22 January 2020
February 10 Preliminary Full-Year 2019 Results (unaudited)
February 11 San Francisco, Technology and Internet Conference,
Goldman Sachs, (11-12 February 2020)
March 26 Annual Report 2019
May 12 Q1 2020 Quarterly Statement
May 29 Annual General Meeting, Stuttgart
Investor Relations Contact
Carsten Keller
Head of IR & Capital Markets
carsten.keller@teamviewer.com
+49 151 1941 7780
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