GÖPPINGEN (dpa-AFX) - Software provider Teamviewer has put in a final spurt in 2024 thanks to orders from major customers. According to preliminary data, sales rose by a good 7 percent last year to around 671 million euros, as the MDax-listed company surprisingly announced on Wednesday in Goppingen. This is more than the management board's forecast of 662 to 668 million euros and more than analysts on average expected. The share price, which had recently been severely shaken, reacted with a sharp rise.
The company continues to target an adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA margin) of at least 44 percent for 2024, it said. CEO Oliver Steil had raised the target for the margin slightly at the beginning of November.
Nevertheless, the share price had plummeted at the time because billings, i.e. invoiced sales, had disappointed expectations in a difficult market environment. Steil did, however, hold out the prospect of a steep improvement, saying, "We are nevertheless satisfied with our results, and the pipeline for the fourth quarter looks good." He added that there was likely to be less uncertainty in the market after the US election.
This seems to have proven to be the case. Teamviewer attributed the surprisingly good revenue development in 2024 to unexpectedly strong billings of around 700 million euros, particularly due to significant contracts signed with major customers and in the frontline environment within the last few weeks of the fourth quarter. Teamviewer plans to release further preliminary business figures as planned on February 12.
On Wednesday morning, Teamviewer shares climbed a good eleven percent to 10.64 euros, taking the top spot in the mid-cap index, the MDax. This gives momentum to the latest stabilization and recovery attempt. In the long term, however, the picture remains bleak. At the end of December, the papers fell to a low since October 2022. In any case, the days of the corona boom are long gone for stocks like Teamviewer. In 2020, the price skyrocketed to a record high of almost 55 euros. The price loss since then: 80 percent.
Analyst Andreas Wolf from Warburg Resesarch sees further upside potential for the recovery. He confirmed his buy vote with a target price of 16.50 euros based on the sales figures./mis/stw/jha/