On Wednesday, TeamViewer reported an adjusted core profit (EBITDA) margin of 48% for the quarter, exceeding LSEG analyst expectations by 2%.
This positive outcome was partially attributed to TeamViewer's transition from being Manchester United's primary shirt sponsor, a change the company believes will further enhance its margin in the fourth quarter.
The company now anticipates an adjusted core profit (EBITDA) margin of approximately 44% for the full year, an increase from its previous target of at least 43%.
However, it has lowered the upper limit of its revenue forecast for 2024 to between 662 million euros and 668 million euros, down from an earlier range of 660 million to 685 million euros, citing the impact of foreign exchange fluctuations.
In its small and medium-sized business (SMB) segment, TeamViewer experienced a 3% decline in billings year-on-year, totaling 118.8 million euros ($128 million), while billings in the enterprise segment rose by 30% year-on-year to 35.3 million euros.
CEO Oliver Steil informed Reuters that growth in the enterprise sector has taken time, but the company has made significant investments over the past few years, leading to what he describes as a more expected growth trajectory.
Steil noted that the lead-up to the U.S. presidential election had created uncertainty and a slowdown in customer purchasing behavior.
He expressed optimism about the election results, suggesting that a clearer outcome could provide a favorable boost, as Republicans are generally viewed as more supportive of business.
Regarding TeamViewer's operations in the Asia-Pacific region, Steil acknowledged the challenges faced in recent quarters, particularly due to slower economic growth in China.