German software developer TeamViewer on Tuesday posted first-quarter revenues that were slightly below market expectations as customers signed fewer multi-year deals but reiterated its 2024 forecast.
Revenue in the quarter rose 7 per cent from a year earlier to 161.7 million euros ($174.17 million), slightly below analysts’ forecast of 165.62 million euros, according to LSEG data.
“We delivered growth in both revenue and adjusted EBITDA, a notable success given a persistently demanding macroeconomic climate,” CFO Michael Wilkens said in a statement.
TeamViewer’s shares have declined since the end of the COVID-19 pandemic, during which companies had used its remote connectivity software for employees and customers working from home.
Billings for the quarter were 174.5 million euros, a 1 per cent decrease from last year, mainly driven by the lower contribution from multi-year deals with full upfront payments.
The company reiterated its 2024 forecast, expecting revenue within a range of 660 to 685 million euros and adjusted EBITDA margin of at least 43 per cent, seeing savings from the end of the company’s sponsorship of Manchester United’s shirts. It said their exit from the sponsorship deal should positively affect margins in the second half of the year.
“We are more than confident to fulfill our guidance for the full year 2024,” the company’s CFO added.
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