Teamviewer says demand normalises after pandemic surge

BERLIN (Reuters) – German software company Teamviewer said on Tuesday that demand for its remote connectivity was normalising after a surge driven by the coronavirus pandemic, but it still nudged its billings guidance higher for the year.

Billings, a measure of new business, are now expected to come in a range of 450 to 455 million euros ($532-$538 million), up from an earlier goal of 450 million euros, Goeppingen-based Teamviewer said.

Third-quarter billings growth slowed to 29% from 45% in the preceding quarter, while adjusted core profit margins of 55% were little changed on a quarter-on-quarter and year-on-year basis.

“We are very pleased with our performance in Q3 which proves our long-term growth opportunities in a normalized market environment after the pandemic-related extra demand,” said CFO Stefan Gaiser.

Shares in Teamviewer performed strongly after the private equity-backed firm floated in Frankfurt in Sept. 2019, but have fallen from their summer highs as main investor Permira has sold down its stake.

Its shares have also been hit by the latest market optimism on COVID-19 vaccines, which has encouraged rotation out of software stocks and into sectors that stand to recover from the reopening of the economy. ($1 = 0.8452 euros)

(Reporting by Douglas Busvine; Editing by Michelle Adair)