Team Viewer profits up 95% after IPO

TeamViewer TMV.DE, a German-based software company that recently went
public on Monday reported an almost double profit figure as well as
growth in its margins in the third quarter of this year. The tech company’s
initial public offering is so far the largest in the history of Europe’s IPOs.

The company was listed on September 25 after being valued at 5.25
billion euros (circa $5.80 billion). The unique tech stock currently trading on
the Frankfurt market becomes one of the few to trade on a platform
characterized by a heavy presence of industrial and auto stocks.

Shares of the firm have been trading below its IPO price of 26.25
euros, making investors cautious about a company that realized its first net
profit in 2018. But banks such as Goldman Sachs and Barclays have initiated
coverage with buy ratings to boost investors’ confidence in the stocks.

Cash earnings before interest, taxation, depreciation, and
amortization (cash EBITDA) rose by 95% to 46 million euros while billings rose
by 63% to 83 million euros. Meaning, the company expanded its cash EBITDA
margins from 46% to 565 within a span of one year.

Team Viewer, the brand behind an application that enables remote
connectivity between devices, currently enjoys a membership spanning more than 433,000
subscribers. The firm allows free membership for consumers while providing a
subscription package to enterprises.

“Our
first results as a listed company underscore TeamViewer’s strong financial
profile combining high growth with high profitability,” said CEO Oliver Steil.

According to Team Viewer’s majority shareholder private equity
investor Permira, the firm’s billing grew 35%-39% this year while its cash
EBITDA margin jumped 60% up from 2018’s 53%.

Team Viewer was founded in 2005 and has grown from providing local
computer connectivity tools to serving an international clientele drawn from
180+ countries. In its recent strategic plan, the firm disclosed how it
intended to further expand its services in Europe,
Asia, and the U.S., promising to add large corporations to its offerings to
enable them to connect not just computers but also mobile devices, tablets,
wind turbines, machine sensors, and farming equipment.

Team Viewer’s IPO
came at a time when there’s a sharp drop in the companies looking to go public
in Europe, according to a Q3 report by PWC.