ANNUAL REPORT
2020

“Using technology in a smart way, digitalising processes, working remotely, sharing knowledge worldwide – all of these are the building blocks of digital progress.” Oliver Steil
Chairman of the Management Board

The management board’s video message

Letter from the Management Board

Dear Shareholders,

Looking back over the year 2020, we can certainly all agree that it was extraordinary in many respects. From the end of January onwards, the trend of the TeamViewer software usage almost mapped the spread of the COVID-19 pandemic from Asia through Europe to the Americas in real time. Global demand for our products surged, and we were able to provide remote support to many businesses with our solutions for the operation of business-critical processes. Our support went beyond the often-referenced WFH (working from home) and video conferencing. It became, in fact, vital to access back-end systems remotely, to digitalise business processes and to enable experts to tackle complex problems regarding industrial equipment or machinery from a distance. In this context, we took the decision not to review the commercial use of our software for a while. This meant that anyone around the world who wanted to access TeamViewer for flexible working from anywhere could do so during the intense phase of the crisis. We also made our online meeting solution available for online teaching to schools and other educational establishments free of charge.

At the same time, we enabled our entire workforce to work from home – an experience which was also new to us, but which TeamViewer mastered with ease thanks to the impressive efforts and strong dedication of our employees. We would like to express our heartfelt thanks to our team for their fantastic commitment. It is impressive to see how our colleagues continue living the truly unique TeamViewer culture day by day, no matter the limited opportunity for personal meetings and physical interaction at the office.

Many conversations with our customers during this intense year convinced us that the pandemic has brought a fundamental rise in awareness leading to a fundamental shift of paradigm. COVID-19 became a wake-up call for digitalisation, accelerating many of the global megatrends already in place. Automation, robotics, Industry 4.0, and digital transformation are more relevant than before. The digital momentum goes far beyond the positive experience of WFH, it has extended to the industrial value chain and from there to the interface of Information Technology (IT) and Operational Technology (OT). This is precisely where TeamViewer’s strengths lie.

Augmented Reality support for the frontline worker

It is in this context that the first acquisition in our company history should be seen. We acquired Bremen-based Ubimax, the leading provider of augmented reality (AR)-based software for wearables and smart glasses for the frontline worker. The innovative solutions under the new TeamViewer Frontline brand support workers outside the office environment at many points of industrial value creation. For example, in production and logistics through step-by-step instructions on smart glasses and mobile devices such as tablets. During the Ubimax integration, which we completed in record time, it had already become clear how well the Frontline solutions complement our applications in the augmented reality and Internet of Things (IoT) areas. Integrated sales among our major customers are off to a remarkable start. Many sector-specific solutions for Industry 4.0 are already at the development stage.

High Innovation Speed

Beyond this, we also set a high pace of innovation in 2020. We realised important developments across the entire solutions portfolio, all the while remaining in constant dialogue with our customers. We added a mobile SDK (software development kit) and a co-browsing functionality to our TeamViewer Tensor enterprise suite and thus, entered the fast-growing market for digital customer interactions. Both expansions offer remote customer support in line with data protection regulations which have the capacity to supplement or even replace sales or service conversations on site.

Important partnerships underline our importance in the global technology ecosystem.

In the IoT segment, we are working on implementing self-learning algorithms which use artificial intelligence (AI) as part of predictive maintenance and alert the customer if machinery is at risk of failing. Our online meeting and video conferencing solution blizz was renamed TeamViewer Meeting and, as such, it is now a core functionality of the TeamViewer platform. Several new, deepened integration partnerships, including with Apple, Google and Microsoft, underscore our steadily growing importance in the technology ecosystem and provide us with additional fields of application as well as growing brand recognition. Our latest acquisitions at the beginning of 2021 also strengthen our portfolio: With the Austrian startup Xaleon, we will further develop the customer engagement offering with co-browsing from a single source. And US-based AR pioneer Upskill complements our Frontline product with complementary use cases in additional industries.

To maintain our high pace of innovation, we have invested significantly in our development team. In Ioannina, described as “Greece’s Silicon Valley”, we opened a new development hub in January 2020, which now hosts more than 40 committed software engineers.

Nearly 500 new employees

We also welcomed many new colleagues in other departments. As a result, our team grew to more than 1,200 employees worldwide at the end of 2020. We expanded our senior leadership team to include Ubimax founder Dr Hendrik Witt for Augmented Reality and Jan Junker for Solution Delivery. Our IoT expert Lukas Baur has taken on the Solution Sales division at management level. We also recruited experienced specialists to strengthen the IT Security and Legal & Compliance divisions. The onboarding of the vast majority of our almost 500 new colleagues was virtual on account of the coronavirus pandemic. We are therefore very much looking forward to getting to know them in person at our new headquarters. To be able to host the growing number of new colleagues, after a modern extension, we moved into a new building in late summer provided by the city of Goppingen, despite the ongoing pandemic. We would like to take this opportunity once again to express our sincere gratitude to all involved, especially to the city of Goppingen for creating space for TeamViewer to ensure its further development in the city.

By consequently driving forward our strategic growth initiatives, we have delivered on our promises.

2020 was TeamViewer’s first full year as a listed company following our successful IPO in the fall of 2019. We delivered what we promised at the time of the IPO by consistently driving our strategic growth initiatives. Now we can look back on a successful year:

In 2020, the number of our contract customers rose by 26% to 584,000, we almost tripled the units of contracts from 698 to 1,885, with the annual volume of more than EUR 10,000 included in this figure. Our unique profile of strong growth, high profitability and strong cash flow is also reflected in the financials for the fiscal year. The billings of EUR 460.3 million exceeded our forecast, which we had increased in spring in the wake of the exceptional coronavirus-related demand and once again in autumn, rising by 42 % compared to the previous year. Our attractive business model is exemplified by an adjusted margin of 57 % and an adjusted EBITDA of EUR 261.4 million.

Ambitious Goals

On this outstanding basis, we have set ourselves ambitious targets for 2021 once again. In the current year, we aim to increase billings to a range of EUR 585 to 605 million and in the mid-term, we are aiming to reach a volume of around EUR 1 billion by 2023. To achieve this, we want to expand our solutions portfolio both horizontally and vertically. A particular focus here will be on AR technology as we seek to exploit its immense potential across the entire range of customers from private use to industrial use in large corporations. We see the intelligent integration of these AR innovations with IoT and AI applications as the strategic key for our claim to leadership in Industry 4.0. The aim here is to support the entire value chain through technology and to make meaningful use of machinery and process data to increase productivity and effectiveness. In all mentioned fields of the future, we are on the look-out for suitable acquisitions which supplement our solutions portfolio and thereby increase our target market. We are deeply confident that TeamViewer will be able to make another great leap forward in 2021 thanks to its organic growth and strategic add-ons. On this basis, we aim to push forward along our sustainable long-term growth path as the megatrends of digitalisation remain as relevant as ever in the much-talked-about “new normal”.

Our strong growth, particularly in the key account segment, and the IPO led to a significant increase in TeamViewer’s global brand awareness. Over the coming months, we will expand this position by stepping up with intensified marketing activities. Our message here is clear: We translate technological innovation into concrete, simple and cost-effective solutions. Our software connects devices worldwide and allows rapid remote problem-solving and support by experts. TeamViewer overcomes geographical distance across borders and dismantles technological barriers to ensure that genuine progress is made for the benefit of all – whether in the digitalisation of businesses or when it comes to the increasing technologisation and digitalisation of private life. Last, but not least, the environment also benefits from this, due to working productively from a distance and not travelling can avoid CO2e emissions to a considerable extent. TeamViewer is thus in an excellent position to play a decisive role in shaping the ongoing digitalisation of business and society worldwide.

Working productively remotely and not travelling can avoid significant amounts of greenhouse gas emissions.

One highlight at the end of the year was our company’s 15th anniversary. We are extremely proud of what TeamViewer has achieved since its foundation. Conscious of this, we seek to shape the future in a likewise manner. We hope that the coronavirus pandemic will soon be overcome and look forward to an exciting and successful 2021 – with our employees, our customers as well as partners and, of course, with you, dear shareholders.


Best wishes, stay safe!

Oliver Steil
Chairman of the
Management Board
Stefan Gaiser
Chief Financial Officer

Please note: After the reporting date, TeamViewer signed a marketing partnership and revises its adjusted EBITDA margin guidance for the fiscal year 2021 to 49–51% of billings. Within the planned budget and this revised guidance, further partnerships are planned. More information

Smart technology for digital progress

As a leading technology company, TeamViewer provides software to connect people and devices worldwide. Our solutions transcend geographical distance and allow problems to be identified, examined, and solved immediately and remotely – along the entire value chain in industry, as well as in private life. It allows digital progress to be realised on a broad front in business and society. And incidentally, the environment also benefits from the saved travels and the CO2e emissions avoided as a result.

There are many ways to use the TeamViewer software: from helping friends to overcome IT problems to solving complex industrial machinery and equipment disruptions in a business context. All those fields of application have a common factor: TeamViewer enables processes to be faster, of better quality, and smarter, thus providing immediate substantial added value for its users and costumers through the delivered solutions.

Over its successful 15-year history, TeamViewer has developed into an innovation driver for the major issues of our time: flexible working from anywhere, digital transformation of business processes, enabling people through technology, and enhancing global collaboration in a connected world. TeamViewer offers a variety of necessary tools to effectively address these issues by usage of simple, fast, and inexpensive software solutions, while holding on to the highest industry security standards and the possibility to additionally benefit from forward-looking technologies like augmented reality, artificial intelligence, and the Internet of Things.

Machine
inspection
IT support for companies
Internet of Things
Video conferencing
Control of
industrial plants
Augmented Reality Support
Augmented Reality in Industry
Digital twins
Distance learning
Digital collaboration
IT Management
IT support for private users

Success in figures

(Fiscal Year 2020)

Billings EUR 460 million (+42%)

Adjusted EBITDA EUR 261 million (+44%)

Adjusted EBITDA margin 57 (+80 bps)

Employees 1,256 (+49%)

TeamViewer at-a-glance

  2020 2019 + / - in %
Group performance indicators      
Billings (in EUR million) 460.3 324.9 + 42 %1
Adjusted EBITDA (in EUR million) 261.4 182.1 + 44 %
Number of subscribers (LTM) 584,000 464,000 + 26 %
Annually recurring billings of existing subscription customers/net retention rate 102 % 102 %  
       
Group earnings position      
Revenue (in EUR million) 455.6 390.2 + 17 %
EBIT (in EUR million) 164.1 153.1 + 7 %
EBIT (in % of revenue) 36 % 39 %  
EBITDA (in EUR million) 205.1 189.5 + 8 %
EBITDA margin (in % of revenue) 45 % 49 %  
Adjusted EBITDA (in EUR million) 261.4 182.1 + 44 %
Adjusted EBITDA margin (in % of billings) 57 % 56 %  
       
Assets and financial position of the Group      
Equity ratio (in % of total assets) 23 % 10 %  
Cash flows from operating activities (in EUR million) 224.5 143.6 + 56 %
Cash flows from investing activities (in EUR million) (110.2) (20.9) > 100,0 %
Cash and cash equivalents (in EUR million) 83.5 71.2 + 17 %
       
Other key figures      
R&D expenses (in EUR million) (46.6) (37.9) + 23 %
Employees full-time equivalents (as at the reporting date) 1,256 841 + 49 %
Basic earnings per share (in EUR) 0.52 0.52  
Diluted earnings per share (in EUR) 0.51 0.52  

1 At constant currency: +44%

  • >2.5
    billion

    installations

  • >
    580,000

    Subscribers

  • >
    1,880

    Enterprise customers

HIGH-GROWTH BUSINESS MODEL

  • Global technology company and leading provider of a highly scalable connectivity platform
  • Access to any kind of device - from laptops and mobile phones to industrial machines and robots to control, manage, monitor and repair from anywhere at anytime
  • Supports all major operating systems
  • Digitalisation of industrial work processes along the entire value chain
  • Renowned partners such as Microsoft, Apple, Google, Salesforce and ServiceNow
  • Combination of high number of private, free users and business subscription customers who benefit from individualised services for more complex applications
“Climate change is the central challenge of our time. To preserve our planet, we need to cut CO2e emissions. Creative, innovative and digital solutions are the key to more sustainability – in business but also in everyday life.” Stefan Gaiser
Chief Financial Officer

At TeamViewer, sustainability is part of the business model and corporate culture. In numbers, this translates to:

37

megatonnes
CO2e-savings

per year through the use of our products

At TeamViewer, sustainability is part of the business model and corporate culture. In numbers, this translates to:

Climate neutral latest by

2030

Net zero, Scope 1–3 from server to end user

10

principles

of the UN Global Compact have been integrated into our sustainability strategy as an official signatory (August 2020) together with the Sustainable Development Goals

»AA«

Rating

of TeamViewer AG in the year 2020 by MSCI ESG Ratings (on a scale of AAA – CCC)

At TeamViewer, sustainability is part of the business model and corporate culture. In numbers, this translates to:

483

employees

have been hired in 2020 (FTEs)

>70

nationalities

can be found among our employees. We live, breathe and thrive on diversity

>2.5

billion installations

Of which a large portion comes through private, free use. We connect people to help others

Breakdown of employees by function

As at 31 Dec 2020 in FTEs; change vs. previous year in percent

Breakdown of employees by regions

As at 31 Dec 2020 in FTEs; change vs. previous year in percent