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Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the TeamViewer AGQ4 and Fiscal Year 2022 results call and webcast. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star followed by 1 on your touchtone telephone. Please press the star key followed by 0 for operator assistance. I would now like to turn the conference over to Ursula Caret, Head of Investor Relations. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to TeamViewer Q4 and fiscal year 2022 earnings call. My name is Ursula Caret, and I'm pleased to host today's earnings call. I am joined by our CEO, Oliver Steyl, and our CFO, Michael Wilkins. Oliver will kick off the presentation by updating you on the specific business and financial highlights in the fourth quarter and the full year 2022. He will also give a quick update on our product offering and strategic direction. Michael will then go through our financials in detail and will finish on our financial guidance and our capital allocation framework. As always, the presentation will be followed by a Q&A session. Before we start, I would like to draw your attention to our updated important notice and APM disclosure. As you already know, starting in 2023, TeamViewer's financial performance will be reflected in an updated KPI framework, whereby billings change from a primary into a secondary KPI and revenue moves more into focus. This means that the definition of adjusted EBITDA will change from a billing to a revenue perspective, which will be particularly relevant for our full year 2023 guidance that we disclosed on IFRS revenue and the corresponding adjusted revenue EBITDA margin. All our KPI definitions are included in the APM glossary on pages two and three of this presentation. And with that, I hand it over to our CEO, Oliver Stahl.

Thank you for the introduction, Ursula. Good morning, everyone. Thank you for joining our Q4 and fiscal year 2022 earnings call. Let me start with a look at our fourth quarter 2022 on the next slide. Overall, we achieved a very successful year and finished with a strong momentum in Q4. Of course, the overall macroeconomic environment remained challenging, but Intimio once again displayed strong resilience amidst these circumstances, and our entire team was really leaning in. I would like to point out a few highlights of the fourth quarter. Firstly, strong development of our billings. Total billings came in at €191 million in Q4, which is a plus of 24% reported and 20% plus on a constant currency basis. compared to last year's fourth quarter. And in addition, our profitability was again very convincing. For Q4 2022, we reported an adjusted EBTA margin based on billings of 51% compared to previous year's Q4 with an improvement of 7 percentage points. Michael will give you a few more details on this later. Thirdly, we continue to focus on targeted sales campaigns We created additional value by upselling customers into significantly higher value tiers, but also by attracting new customers and thus actually enlarging our global customer base. In addition, we once again proved the stickiness of our business model, as we were also able to successfully implement type adjustments, which we had announced in Q3. Fourth, If we look at our regional split, in the fourth quarter, Billings growth was particularly driven by the strong performances of our EMEA and APEC regions. Our largest region, EMEA, grew by 28% year-over-year. And with an increase of 32%, we also saw clear acceleration in Asia-Pacific, driven by the new management and tour team. I think this quarter proves once again that our regional diversification is clearly paying off. Look at our customers. Our enterprise business retained its growth momentum, showing 47% doing so every year. And the ever-growing ticket sizes prove our continued shift from SMB to enterprise and the relevance and value add of our products for large businesses. And last but not least, also our large regional core business keeps growing. In the fourth quarter, SMB billings were up 18% year-over-year. The increase stems not only from larger ticket sizes and higher pricings with existing subscribers. Actually, our SMB subscriber base also grew slightly again by 8,000 in the last three months of the year to a total of 622,000. If we sum it up, we are actually very satisfied with our year-end finish. I think our solutions are highly relevant for our customers. Even in those times, we help them to securely manage remote operations, increase efficiency and sustainability to overcome also labor shortage. This is particularly visible in our steadily growing ticket sizes. And I would like to take a closer look at this on the next page. Let us look at SMB and enterprise billing split. I think with an overall shift towards higher ACB buckets, we again successfully increased the quality of our customer base. When we look at SMB on the left, the LTM billings in 2022 increased by 11% on a year-on-year basis and amounted to 503 million euros. This was driven by our very successful cross- and upselling efforts. resulting in the higher buckets actually growing stronger. In 2022, our highest SMB bucket, between €1,500 and €10,000, significantly increased by 27% and amounted to a strong €225 million. In addition, we saw again a net upsell from SMB to enterprise, this time of €20.5 million. This was largely driven by shifting larger SMB clients to our Tensor license for enterprise connectivity. And this clearly shows the continued intent of success for larger customers who are looking for more efficient and highly secure solutions. That's the right answer actually in these challenging times. Total 2022 LTM billings in our enterprise segment increased by 42% year-over-year, which is then 132 million euros. And this growth originated across all ACV buckets, as you can see on the chart on the right. Let's go to the next slide, please. I just mentioned the growth among all the SUV buckets of our enterprise business. And as usual, let me give you two examples of recent large enterprise deals in your attention, our enterprise connectivity platform, just to give you an idea on what's happening on the enterprise side. First, let us look at German multinational corporation Henkel. The IT team uses TeamViewer to streamline their global IT support for around 60,000 IT devices running on different operating systems with Tenso. Our solution in that case replaced several others that they were using before, making their workflows simpler and faster. Go to that saying that Tenso meets all the strict security and compliance standards that are mandatory for Henkels. Also worth mentioning that Tensor seamlessly integrated in Henkel's IT infrastructure, consisting of obviously many other software products from vendors like ServiceNow or Microsoft. And this flexibility of our solution is highly appreciated by IT decision makers in global cooperation. Another example, very different, of large Tensor deals that we closed in 2022 was the German global broadcast station Deutsche Welle. They managed all devices of their correspondence in 140 countries with CBO and chose our solution because they need a secure and stable connection to work reliably in breaking new situations. And I think what's interesting, notably, that we won this contract via a European-wide public tender as the Deutsche Welle is a public state or broadcast station bound to the EU's public tender regulations. Next slide, please. So I want to touch upon financial highlights on a full year perspective. So to begin with, we continued our top line growth. Billings and revenue increased by 16% and 13% respectively. With total billings of 635 million euros and revenues of 566 million euros, we fully achieved our guidance for the full year 2022. And the share of enterprise business increased by 4 percentage points year on year. Our products are highly attractive to a wide range of customers from various verticals or industries. We continue to establish DreamViewer as the go-to partner for high-impact strategic investments in digital transformation across various industries. At the same time, we help our customers to increase short-term automation and efficiency. This is key in the current economic environment. All these factors made us achieve a strong net retention rate of 107% on Google level. And compared to 2021, we improved net retention rate by 9%. In addition, TeamView is again growing very profitably. Our adjusted billing CBDA grew by 16% to almost €300 million, and our adjusted billing CBDA margin was stable at 47%. And that's actually the upper end of our guided range from 45% to 47%. This is also a result of our effectiveness and execution. And in turn, we raised our basic earnings per share to 37 euro cents, which represents a 46% growth year on year. This was driven by the strong increase in our net income, obviously, as well as our accretive share buyback program of last year. Michael will elaborate more on the drivers of our net profit in his part of the presentation. In total, We are well positioned to continue our strong performance in the current economic environment as well in 2023 and beyond. And we believe the fundamental demand for TeamViewer solution remains strong. And with that, let's have a closer look at our regional performance on the next slide. And you can see that in 2022, EMEA has proven to be very robust as it delivered the strongest growth of all regions, followed by an accelerating APEC performance. With a billing flow of 28% to 109 million in the fourth quarter, EMEA significantly improved its already strong performance, which we've seen in Q3. And on a full year basis, EMEA billings grew by 15% to 340 million euros. We actually accelerated our sales momentum and further penetrated our well-developed base of satisfied customers. Our business in the Americas The chief billing sold off 16% in Q4 to 64 million euros and 18% to 223 million euros in the full year. Clearly, if you look at performance and at constant currency, it was weaker than we had hoped for, but we remain quite confident in our resilient product offerings. and the further growing IT spend for digitalization in the Americas. So looking at our current market share in the U.S., we believe there's still significant room to grow. APEC further accelerated its growth with a new organizational structure settling in and achieved a 32% billings increase in the fourth quarter. On a full-year basis, APEC billings were up 14%. This growth reflects two very different half years and resulted in APEC billings of 72 million euros for the entire year. So not so strong first half, very strong second half of the year and good acceleration there. And also the easing COVID restrictions towards the year end. They also allowed for more customer interaction, translating into strong pipeline business and enterprise momentum. I think as you can see from the slides, TBO is well positioned for the future. Our global footprint is growing. Our products are highly relevant for our strong and loyal customer base. And we address major customer needs. Next slide, please. Let me now explain our strategic focus area to reach our business goals and growth targets in 2023 and beyond. As you can see from the slide, we're focused on four main segments. First one is our objective to defend our leading position in the remote access and support market. We are currently preparing a major upgrade of our core connectivity product. The new release will come with a new modern user interface to improve usability and overall experience and we will introduce new security and also many other features. We are confident that this will further increase the attractiveness of our products, our core target audiences across SMB and also private users. Second, within remote access and support, we will offer additional features like remote monitoring and management of devices or ticketing functionalities. With these features, we can add significant value to larger SMB customers and also managed service providers. When it comes to enterprise connectivity, the third area, we will focus on remote access and control of operation technologies, in short, OT devices, such as industrial equipment, machines, and other smart and IoT devices. A good example of this are the, for example, coffee machines of the Italian vendor, La Cimbali. I think we've talked about this use case already in one of our previous talks. This is exactly the type of remote connectivity, so-called embedded devices, that becomes more relevant as companies aim to streamline and digitalize support and maintenance processes. And once rolled out to hundreds or thousands of those devices, this becomes very sticky and attractive for us. The fourth area is then our frontline platform for digital workflows with step-by-step instructions and frontline workflow systems. I think with those, we have established ourselves as a key player in the so-called industrial metaverse, which means the digital transformation of frontline work processes, for example, logistics, manufacturing, or after sales, using augmented reality on glasses or handheld devices. And going forward, Our augmented reality offering should be further supported by megatrends like shortage of skilled labor and the need for digital onboarding, training, and more efficient front-line processes. As you can see, we are targeting IT and OT use cases in companies of all sizes to leverage the full potential of our solutions. Next slide, please. Just as a reminder, you can see our product portfolio that matches the strategic focus areas that I just explained. We offer three main product lines. TBO Remote is our core connectivity product for SMB customers and private users. With different license tiers and add-on features, we target different use cases and different company sizes. Then in the middle, for larger companies and critical infrastructure, we offer our enterprise connectivity platform, TensorFlow. that provides relevant security features and can be deployed really at scale. It also includes capabilities to connect to the OT, operations technology, and embedded devices that I just spoke about on the previous slide. And the third product line is Frontline, our AR-based enterprise productivity platform that enables digital workflows and assistance for smart frontline operations. The platform includes cutting-edge capabilities based on mixed reality, but also artificial intelligence to run frontline operations even smarter. And with this, summing on the product, I'd like to hand over to Michael for the financial highlights.

Thank you, Oliver. And good morning and a warm welcome to all of you. I am very happy to guide you through our financials for the full year 2022 and into flow in particular. Before was my first quarter. as the CEO of this exciting company. You had Oliver's remarks on our operational focus areas for 2023. Later in my presentation, I will explain to you how we think about 2023 from a financial point of view. And I will dive deeper into the different elements of our guidance, which you already read about in our press release this morning. Next slide, please. I presented this group over you for the first time in Q3. Back then, I already mentioned the growing relevance of revenue for our business. From Q1 onwards, you will see quarterly revenue and the adjusted revenue EBITDA on top of this slide. Today, I start with billings and the excellent billings growth rate of 24% in Q4 2022. With this strong year-end finish, we delivered on our guidance, and this despite the discontinuation of our Russia and Belarus business, despite the difficult market environment so on a four-year basis their links increased by 16 or 11 percent on a constant currency base to 635 million euros at this point let me say thank you to a great and highly motivated sales team here in germany and all over the world The strong billings performance in Q4 led to a high adjusted billings EVDA margin of 51% in Q4 and 47% for the full year, which was at the upper end of our guidance. Let's move to the revenue perspectives. On the lower left-hand side, you can see that revenue follows billings development in a delayed way with more balanced growth rate. So revenue grew by 14% in Q4, and 13% for the full year. With the full year amount of 566 million euros, we also met our revenue guidance for 2022. Given the numerator-denominator effect and applying the exact same operating cost base to revenue, the adjusted revenue EBITDA margin amounted to 41% for the full year compared to the adjusted billing EBITDA margin of 47%. This adjusted revenue EVDA margin is best in class compared to our wider software peers. It is from now on the profitability reference for our guidance. With this, let's move to the next slide, please, where I will focus on SMB, which accounted in Q4 for around 79 percent of our total billing. Q4 saw a very strong SMB billing improvement, a proof point of our pricing power. Why is that? Part of the growth rate of 18% is the result of the targeted sales campaign, including upsell and overpricing campaign. Free-to-paid played a minor role in Q4. In addition, U.S. dollar exchange rate tailwinds made up 4 percentage points of the Q4 growth. With this strong fourth quarter, full-year SMB billings were 11% higher at 503 million euros. On a constant currency basis, the growth rate was 6%. On the top right-hand side of this slide, you can see our pricing power translating into constantly increasing average selling prices. In Q4, one SMB customer paid €804 on the average per year. Talking about subscribers. At a stable subscriber churn rate, we were able to increase our customer base by 8,000 subscribers year on year. At the end of Q4 2022, we counted 622,000 subscribers in our SMB business without customers from Russia and Belarus. This large subscriber base still holds significant upgrade potential as Oliver outlined before. Next slide, please. Now let's take a more detailed look into our enterprise segment, which in Q4 accounted for around 21% of TeamViewer's total billings. Despite the uncertain macro environment, enterprise billing growth remained at a high growth level of 47% in Q4. This development was particularly driven by the EMEA region and improved pipeline conversion and customers committing to growing ticket sizes. This is also reflected in the high enterprise net retention rate, which increased to 116% in Q4 2022. As there has been an ongoing debate around multi-year deals since our Q3 call, let me tell you, yes, part of these growing ticket sizes are due to multi-year deals. The fact that customers accept or rather ask for this type of contract proves how much they like our products. and that they are happy to commit themselves for more than a year. By the way, our multi-year deals are paid upfront and will convert to revenue over time. The full year 2022 enterprise selling amounted to 132 million euros, corresponding to an increase of 42% or 35% on a constant currency basis. The average selling price increased from 34,000 euros in Q4 2021 to 36,000 euros in Q4 2022, while fueling the enterprise market with strong SMB upsell. This also had a positive impact on the number of enterprise customers. Compared to the end of 2021, the enterprise customer base increased by almost 1,000, amounting to roughly 3,700 customers at the end of 2022. Combined with the large SMB customer base, this brings us to a total of around 626,000 subscribers at the end of last year. Next slide, please. As mentioned before, this large and loyal customer base is in need of high-class remote connectivity and frontline workflow solutions. Our products in this category offer simplification and efficiency in times of increasing complexity and labor shortage. Our increasing net retention rate is proof of this increasing demand and high customer satisfaction. After year-end 2022, our net retention rate was at 107%, 4 percentage points higher than in Q3 and 9 percentage points higher than the year before. This was driven by successful net upselling of our retained customer base including the increased migration from SMB to enterprise. Oliver mentioned already the Q4 ATM net upsell from SMB to enterprise in the amount of 20.5 million euros, a further increase over the already very strong 18.4 million euros in Q3. Additional building blocks of the growing NIR were the favorable US dollar-euro development, our targeted sales campaigns, and upfront paid multi-year deals. Let's turn to the next slide now, where I want to introduce you to our new KPI ARR. The annual recurring revenue stands between billings and revenue and gives a realistic impression of the annual subscription value of our customer base at a given point in time. Multi-year deals do not distort this metric, as they are only accounted for with the annual value. Since we have seen an increasing demand for multi-year deals in 2022, it is now a good time for TeamViewer to implement the ARR as a new metric. In total, we build multi-year deals with full upfront payments of 45.6 million euros in 2022. So while billings increased by 16% in 2022, the ARR increased by 13%. Revenue also increased by 13% with a revenue to billings ratio of 89% in 2022. Next slide, please. Let's now start to move from the top line to the bottom line and take a look at our recurring cost base. On a full year basis, recurring costs consisting of cost of sales and total OPEX increased by 16%. This was in line with billings growth and higher than revenue growth. Hence, the adjusted billings EBITDA margin remained stable at 47%, and the adjusted revenue EBITDA margin resulted in 41%. Let's have a look at some of the 2022 operating cost items in more detail. Main reasons for the increase in sales costs were the extension of the enterprise sales force, higher bonus payments, and currency effects. The growth in marketing costs was due to the first-time full consideration of sports sponsorships in 2022. As you know, this cost item will be significantly reduced once Manchester United exercises the option to buy back the rights to the club's shirt-front sponsorship. The increase in marketing costs was partly compensated by scaling effects in G&A costs. The full-year R&D costs increased in line with Billings, The main R&D focus was enriching our digital workflow offering and enhancing our core technology platform to be able to launch the major remote connectivity upgrade that Oliver mentioned within the next month. Lastly, the strong decrease of other operating costs was mainly driven by lower debt expenses due to a higher share of the enterprise business with better payment behavior. Next slide, please. The table on slide 19 dives deeper into our different profitability metrics. On the top of the table, you can see the difference between our old adjusted billings EBDA definition and our new adjusted revenue EBDA definition consists of the change in deferred revenue. In 2022, the deferred revenue increased driven by strong billings development, especially in Q4. deducting the non-recurring items from the adjusted revenue EBITDA brings us then to the unadjusted EBITDA, which was 17% higher year on year at 197.5 million euros in 2022. Non-recurring items decreased in 2022 mainly due to the positive valuation of U.S. dollar hedges, which partly offset charges for the legal case I already mentioned in Q3. With only slightly increased DNA expenses of 6%, our EBIT increased even by 22% to 143.7 million euros in 2022. The net income increased by 35% year-over-year to 67.6 million euros, mainly due to our strong operating performance and an improved financial result. Our earnings per share increased even stronger by 46% year-on-year from 25 euro cents to 37 euro cents, which reflects the increased effect of our 300 million share buyback in 2022. For the first time, we also displayed the adjusted EPS, which increased by 25% in a full-year comparison. We are adjusting here for share-based compensation PPA amortization, and other non-recurring and related tax effects. With this KPI, we give you a less volatile perspective on the APS growth going forward. Next slide, please. On this slide, you can see that the IFRS pre-tax operating cash flow was up by 6% in 2022, despite the first-time full-year sponsorship payments. Let's go through the items which reside in the 2022 free cash flow. First, cash tax, which increased by 7% to 46.4 million euros. Second, capex. As most of TeamViewer's investments in innovation and partnerships so far are directly expensed in the operating expenses, capital expenditures were relatively low in 2022 and went further down by 42% to 8.8 million euros due to the finalization of a new application landscape in 2021. The lease payments were driven by additional office space and IT infrastructure amounting to 9.5 million euros in 2022, up 37% year-on-year. This results in an unlevered free cash flow of 186 million euros and a high cash conversion in relation to the adjusted revenue EBITDA of 81%. The levered free cash flow, which also takes into account the interest paid, amounted to 171.8 million euros in 2022. The respective cash conversion rate was 75%, and therefore stable year on year. Worth mentioning that we managed to keep the interest paid stable at around 40 million euros, despite a more challenging debt and interest environment. Next slide, please. As the waterfall on this slide shows, Cash and cash equivalents at the end of 22 amounted to 161 million euros. The reduction compared to end of 21 was mainly due to our 300 million euro share buyback program and net debt repayment of 286 million euros offset by net cash inflows. On the back of these measures, our net financial liabilities amounted to 472 million euros as of December 31st, resulting in a net leverage ratio of 1.6 on adjusted billing EBITDA and 2.1 on adjusted revenue EBITDA. With this, we delivered on our capital allocation target of around 1.5 leverage. At the same time, we significantly strengthened our financial profile through the repayment of debt and by balancing out our debt maturity. And we created value for our shareholders by returning cash-through share buybacks. I will come to the new share-by-dex, which we announced yesterday, later in the Outlook section. If you want to take a closer look at the development of our share count, you can find the respective slide in the appendix. Before I come to the Outlook, let me conclude my financial overview section with a summary of the most important takeaways. First, we delivered a strong 13% growth on our new primary revenue KPI. This reflects the strong billings performance in earlier periods. With the continued mixed shift towards higher value customers in SMB and enterprise, as well as higher demand for multi-year deals, we increased the predictability of our business. And high customer retention rates proved the stickiness of our customer base. Third, despite the inflationary environment, continued investments into our business and the first full-year consideration of the sports sponsorships, we recorded a sustainable high margin. And fourth, paired with a continued strong cash flow generation. First, we see significant margin upside following a potential early exit by Manchester United from the shared front partnership, despite some reinvestments into our marketing efforts. Lastly, let me conclude this chapter also with a personal note. I think it is remarkable how well we performed in 2022 despite the current environment. Our business demonstrated strong resilience with the right product portfolio and the right market positionings. Next slide, please. Let's now focus what is in front of us. What you see here is a confident view of our 23 business development. We are operating in an exciting growth market, and our performance is underpinned by a highly recurring and resilient business model. On the back of this, like in 22, we see double-digit revenue growth in 23. In absolute terms, this means that we guide for interest revenues in a range between 620 million and 645 million euros. We also aim for stable profitability reflected in the adjusted revenue EBITDA margin, which is expected at around 40% for the full year 2023. This margin forecast takes into account continued investments into our future. I will come to that in more detail on the next slide. Revenue guidance you see on this slide translates into an expected billings growth of 6% to 11% in our old guidance KPI world. This growth is based on last year's average US dollar FX rate of 105. Let me remind you that we achieved a constant currency billings growth of 11% also in 2022. This corresponds to the upper end of the billings growth rate we expect also for 2023. However, we have to see how the macro environment works out. Hence, the broader growth range between 6% to 11% resulting in an absolute billions range between 675 and 705 million euros. The guided adjusted revenue EBITDA margin translates into an adjusted billings EBITDA margin of around 45%, which also takes into account short-term cost effects. We think these are best-in-class margins which carry significant upside beyond 2023 following a potential early exit by Manchester United from the shared front partnership. Before I turn to the next slide, let me remind you that our official guidance relates on our new KPIs, revenue and adjusted revenue EVTA margin. Next slide, please. The guidance I just outlined and the ambition to achieve stable high margins come with a diligent cost management across all dimensions. We already told you on several occasions that we want to strengthen our high-quality product offering through additional R&D investments. More specifically, we want to reinforce TeamViewer's leading position in remote access and support with a major upgrade of our connectivity platform. At the same time, we want to underline our status as the key player in the industrial metaverse by expanding the frontline platform. This will also require respective infrastructure upgrades and hence additional invests. Besides these investments into our future growth, certain macroeconomic impacts like currency effects on our sponsorships and more general inflationary cost pressures will increase our recurring cost base. In order to compensate for these impacts and save costs, we have taken several actions. For example, we work with our suppliers and partnerships to minimize inflationary cost increases. With our attractive RSU program, We not only increase employee loyalty and strengthen their shareholder perspectives, but we can also partly compensate for cash salary increases. Last but not least, we will apply a cautious hiring approach and an efficient people management. With the combination of these investments and savings, we are very confident to reach our margin guidance. And this brings me to my last slide. On the back of the outlook I just presented, TeamView will remain highly cash generative and deliver in continued strong cash flow conversion. This allows us to reiterate our existing capital allocation strategy and confirm our target leverage ratio of around 1.5 net net to adjusted Billings EBDA. This leverage target provides the company with sufficient flexibility to support organic growth and to pursue tuck-in M&A to extend competencies if needed. And with our high confidence in the 2023 outlook, We will return excess cash to our shareholders by way of a new share by that program and thus remain committed to our capital allocation framework. This program has a volume of up to 150 million euros and will be executed in two charges. We plan to start with the first charge of up to 75 million euros by latest mid of February. I now hand over to Oliver.

Thank you, Michael. So let me summarize today's earnings call. Bottom line is we are very satisfied with our performance in 2022. We achieved our goals and delivered on our targets. We see prominent customer wins across industries and geographies, and we have successfully implemented pricing measures and also campaigns on cross-sell and up-sell over the last year. And this shows that we are able to see our business actively and in a very targeted manner. As Michael just explained in 2022, our financial profile remained very attractive. Our strong profitability and high cash generation are important levels for shareholder value creation, which we were able to deliver with a 46% earnings-to-share increase. Creating value for shareholders will also remain a top priority for us in 2023, and this is why we announced a new share buyback program. Beyond that, we are also looking at 2023 with great confidence. We want to further capitalize on global megatrends in the modern workplace. Our solutions are more relevant than ever for our customers in the current challenging macroeconomic environment. And in light of this, we are confident of generating double digit revenue growth as outlined by Michael. With that, We would like to end the presentation. Thank you all very much for your attention and we look now forward to your questions. Operator, over to you please.

Ladies and gentlemen, at this time we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star followed by 2. If you are using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by 1 at this time. One moment for the first questions please. If you would like to ask a question, this is star and one. One moment for the first question, please. The first question is from the line of George Webb with Morgan Stanley. Your question, please.

Hi. Good morning, Oliver and Michael. Thanks for taking my questions. I'll kick off with three. Firstly, just on the margin outlook, you flagged some of the elements, including careful control of cost base, cautious approach to hiring. Can you give us a sense of how you are set up now with respect to sales and support of the enterprise business segment? How much room is there to increase utilization of those sales staff and how much incremental investment is going to go into that area in 2023? Secondly, on the guidance on growth, you're expecting buildings to grow at a more moderate rate this year compared to revenues. Can you talk through what you're expecting in terms of multi-year deals growth in 2023? And then just lastly, on the enterprise business, 35% constant currency year-over-year growth in 2022. If you were to clean that figure up for the multi-year deals impacts or to look at it through more of an ARR lens, what was the rate of growth you saw there? Thank you.

Let me take the first one and second one. For margin outlook, I think on the enterprise side, As we've said over the last years, we have significantly invested into our support structure and sales structure. So we have enterprise account managers across the world. We opened a few more offices to be closer to regional markets, particularly in APEC. So I would say that the sales force there is very well invested. Obviously, there's always churn in some markets and then replacement. We also have a solution delivery force, which is globally distributed across all offices. So I would say that For the enterprise business, we're very well invested at the moment. And clearly, especially given the environment at the moment, we are not at full utilization of the current circle. So I think we have to be right in pointing towards additional scaling potential because we do have people which joined relatively newly throughout the year, are not at their full quota, they're still ramping. but the costs are already on board. So pretty fully invested sales and service force, but not fully utilized, as you say. Secondly, billing growth. I think the whole question on multi-year and also how that relates to ARR, quite frankly, I think it's a bit too early to project anything very concrete there for this year. Obviously, the more we go into enterprises, the more multi-adds will play a role. Obviously, customers want to secure pricing. So it will continue to be a factor. But I think Michael can elaborate a little bit more on the split there and the growth composition performance.

We see it in the vicinity between $50 million and $60 million. So the multi-year deals become more and more a part of our normal business. This was, I think, one topic. The other one, when you said ARR, we disclosed the ARR in total, which is the 30% growth, but we don't disclose this now on a second basis or even on an NIR basis. We are very happy with our definition of NIR. We are happy to take currency discussions on AR, and I think we have to always disclose currency versus AR, but not also AR. That's clear.

Thank you. Maybe just one follow-up. When you went to customers in Q4, knowing they had these price increases, to what extent were they coming to you and saying, can you give us some discounts, and we'll sign up for a multi-year deal? to kind of counteract some of that price increase. Was that a phenomenon that you saw at all?

You weren't that clear to hear, but I think the question is around the buying and purchasing behavior in the fourth quarter. Yeah, I mean, obviously, this is the nature of the game on enterprise. Customers want to commit for a longer period of time in order to secure a certain price levels. In enterprise, this is one-by-one discussions. I think we have all cases. We have customers who came aboard a year ago, and we haven't increased prices, but also customers that have been with us for longer, and we extend the license count, the number of technicians, the number of seats. It's a new deal, and then we commit to certain prices. It's not necessarily a discounting game. I think in the current environment, it's more a price stability and visibility for them. And obviously, we have the same when we talk to our suppliers. It's pretty clear that it's not a great time to talk discounts, but what you can achieve is that price stability, and that's more the motion that we're going on.

Very clear. Thank you very much.

The next question is from the line of Ben Castillo-Bernaus with BNB Paribas. Your question, please.

Good morning. Thanks very much. I'll take my question. A couple from me, please. Just on the 2023 outlook, as we think about seasonality or phasing, particularly, I guess, on the top line through H1 and then into H2, what are you baking in to your guidance? Secondly, just looking back at the last quarter, could you give us an indication on how much impacted your price increases have in Q4 of 2022? So what contribution did that have to growth? That would be helpful. And then lastly, just on the new guidance framework, shifting away from billings to revenues, will all KPIs shift to revenue and billings eventually be phased out? So you'll detail on things like enterprise versus SMB billings or billings by the ACV bucket. Will they become revenue-based? And if so, will you restate that for us and help us look at that on a more continued basis? Thanks.

Let me start with the first two. I have not heard or understood the third. Maybe we can follow up on that one. On the seasonality of the 2023, so first from a billing perspective, the structure of the seasonality should be more or less the same like it was in the previous years. From a cost perspective, And we don't guide quarterly, so please take this with a massive grain of salt. But what we see is that the first quarter will be, from a cost perspective, in the vicinity of Q4, and the second quarter more or less also in the same vicinity, like Q1 and Q4. But then we expect to see rising cost base. On the pricing perspective, this was the second question, We were actually seeing exactly in Q4 what we expected with the Q3 call, so more or less a high single-digit million number, and this played very well into our overall equation. The third one I have to ask.

The third question is, now that we're guiding with revenue instead of billing, so that we will change all KPIs that we're disclosing, enterprise, SMB, and everything else, on revenue numbers versus billing numbers. Oh, that's the intent, yes.

That will shift to revenues. Okay. And will you help us with restating from prior years just so we can look at it on a look-through basis?

Yes.

Yes. Great. Okay. Thanks very much.

The next question is from the line of Toby Ogg with JPMorgan. Your question, please.

Yeah. Hi. Thanks, Sam. Thanks for taking the questions. A couple from me, just firstly, just on the new billings development in 4Q, looked like it was a little bit lower than the Q3 number. So could you just help us understand some of the drivers there around the new billings and also just how we should think about the mix between existing and new billings into 2023? and then also just how much of a pricing contribution you would expect to Billings growth in 23. And then just on the cost-saving side of the bridge, could you just give us a little bit more detail on the size of the RSU program that you've highlighted as a source of cost-saving? Thank you.

Yeah, I think new Billings Q4 versus Q3, I think clearly the main sales motion that you have in enterprise software towards the end of the year is pipeline conversion with your largest opportunities. And one of the big advantages of us is that we have this large number of existing customers with 622,000 subscribers or so. And there's many companies in this subscriber base that actually qualify for larger deals, larger solutions. wider rollout of Tensor or rollout to embedded devices. So, as you can imagine, towards the end of the year, the sales force is fully focused on these larger opportunities. And it happens that most of the larger deals that we've done towards the end of the year are actually with existing customers. While in Q3, this motion is I would say, less pronounced, and therefore there was new billings, more new billings, new new billings in the third quarter. On that discussion, because we had that before as well, I think it's important to understand that new billings in our definition mean a company is not having a single TeamViewer license anywhere in the world, so not even a €350 business license. Only then we qualify as new Whereas if a customer, and that's quite likely, or a company quite likely has a license somewhere in the world, it's called under-retained. And as you can imagine, when you do enterprise moves and you move customers from 2,000 to 3,000 euro license count or euro to 20,000, 30,000, 100,000, 150,000 euros, This is a massive sales motion and a massive achievement, even though it's falling under the retained market. And that's one of our key motions that we're having. I think very different from other much smaller enterprise software companies that need to actually always win new logos to be able to grow. I think that's important. And for the pricing contribution and the RSU program impact, I hand over to Michael.

Yes. So let me start with the... RSU program and how we think about it. So first, by making the employees to shareholders, we are all sitting in one boat, which is creating shareholder value. This is so important for us. We launched this program, therefore, last year. Why we've mentioned it here as an element of contribution to cost savings is the following. We do the same program also in 2023, so we continue the program. And we have a little bit of a shift between leaders to employees, so now everybody gets the same share of RSUs. But what is important is that we explain to the employees that, hey, we're in the same boat, and we win together and we lose together, and it's not inflationary rises, and we need to have more salary increases. So we think we will be able to balance out expected salary increases with the RSU program. So it's a win-win, and therefore it will also contribute to the overall success. price increases with regard to 2023, or can you repeat the question quickly?

Yeah, it was just how much are you expecting the contribution to be from pricing in 2023?

Yeah, so it will be moderate. We start, as we did, by the way, in Q4, we start chronically into the year. We did that already, obviously, in Q4 so the first cohort for the first quarter are already executed and we will continue very cautiously in our base for the cohort Q1, Q2 and Q2 and then we check it. In total a little bit less for the first quarters than in the Q4. It has to do also with the cohort size.

Can we go ahead with the next question?

I guess so, yeah.

The next question is from the line of Victor Cheng with BOFA. Your question, please.

Hi, thanks for taking the questions. A couple, if I may. On the SMB side, can you talk a bit about how the free base has trended in the last two quarters? And since you mentioned the free-to-pay conversion contribution was lower this quarter, from a billing's perspective. I'm curious as to how much of that 6K net new SMB subscribers are from the free-to-pay conversion. And then lastly, maybe can you give us some updated color on your partnership with SAP, Siemens, and Google, and are they more focused on augmented reality?

Victor, very difficult to hear you, but I touch base on the SMB growth in the context of free-to-pay campaign. So, as I said before, free-to-pay, we do this very moderately. This was a mid-sized million amount in Q4, and this was part of the growth, but not all of the growth, and Oliver mentioned basically all of the elements. Of course, there was a factor of of currency embedded in it, but both of it came from all of the campaigns. And from the free base, this is actually nicely developing now because we see de facto a more or less flattening out between Q3 and Q4 between the active devices, if you refer to this topic.

Yes, so free bases, free user base. kind of stable despite the fact that we are extracting a bit of subscriber growth, as you say. I mean, as you pointed out, this is a small additional subscriber number, mostly at entry level. I think we explained before also, even if we have a few thousand more subscribers on the entry level, that is significantly less relevant than a significant upsell in one existing subscriber to drive the links to the enterprise, the example I made before. So that's the play that's happening here. That ecosystem is largely stable while we're doing this. On your last question, partnerships, SAP, Siemens, Google, I would say mostly focusing on workflows. So part of it is augmented reality, yes, front line, based on glasses or handhelds. That can be part of it, but it's effectively a workflow partnership, workflow integration, SAP and Google specifically. And then Siemens, slightly different. Here we talk about integration into the product lifecycle software of Siemens where we provide mixed reality visualization capabilities to generate digital twins of actual industrial equipment. So it's slightly different.

Yeah, and are there any changes to pipeline conversion and what you're seeing into the next few quarters? On those partnerships? Yes, on those partnerships.

Yeah, so partnerships are now a year in, a bit more than a year in for SAP, Siemens a bit less, and Google a year or so. We had some pipeline conversion in the fourth quarter. So for the first quarter where we saw, say, meaningful deals coming in, one was with a nice deal with a Mexican retailer or logistics company, if I'm not mistaken. So it was a nice six-digit deal. So it's starting to happen. Good pipeline for Q1 and beyond. and the organization working through and progressing. Obviously, these partnerships and these deals and these customer relationships are big, so the sales cycles there are significantly longer than what we would normally see in a classical tensor deal, which converts faster. It's smaller and converts faster, but it looks good.

Yeah, and for Siemens, we are not even done with integration, so we need to be a little bit more patient. From the overall product lineup, it looks good.

Got it. Thank you.

The next question is from the line of James Goodman with Barclays. Your question, please.

Yes, morning. Thanks very much. Firstly, just on the sponsorship situation, I wondered if you could help us a little bit there with how you're beginning to think about the... the margin opportunity versus reinvestment of that as we start to think about the business post, you know, the sponsorships moving away. I guess some of the current investments that you're putting in the business are clearly in the context of knowing that you have that tailwind coming through. The second question from me, just on the buyback, second sort of sizable buyback that you've announced today, is this a fundamental problem shift in how we should think about the business really that you're now just prioritizing almost the complete payout of the free cash flow generation of the business and how do you balance that versus you know the the ongoing leverage in a rising you know rate environment for you thank you

Let me start with the Manchester question. On the margin, we expect a clear high single-digit margin uptake once Manchester decides to take the options back. We also think that we will only reinvest a couple of margin points, so the major bulk will flow down to the bottom end. This is why we things that we will see also going forward. Whenever it happens, a strong margin increase based on this exit. The other one on the share buyback, this is not a change in structure. For us today, it's a reconfirmation of the existing capital allocation strategy, and we love the share buyback. By the way, more than the dividend, because this is always a discussion, Would we do a dividend policy, yes or no? We think the share buyback offers both a shareholder value creation and gives, on the other hand, also a little bit more flexibility. Plus, with the share buyback amount of what we now announce, we still keep all optionalities in our hand, and if there's a small right tuck in M&A coming along the way, we can actually pursue both. And especially with our rethink, wonderful refinancing structure which we have in place, we have a wonderful basket for all and everybody. And we feel super strong about this.

Yeah, that's very clear. Thank you. Just on the ARR, which I think is a really helpful additional disclosure given the multi-year billing effect, are you going to be disclosing that quarterly? I just wanted to check.

Do we disclose what quarterly?

The new ARR metric.

Yes, yes. Oh, this is very important for us and for you in order to create more transparency and to get the distortion and noise out of the multi-year system. We love the multi-year deals, but maybe not everybody, but ARR should close all discussions.

And can you say anything on ARR development in 23? Any view how that should work?

Yeah, James, this is a little bit too early. Give us a little bit more time. I think we gave a strong guidance today on many KPIs. Give us a little bit more time on AR. By the way, it's a brand new KPI also for us. We also learn and grow with this KPI.

Yeah, I think it's helpful. Thank you.

Ladies and gentlemen, as a final reminder, if you would like to ask a question, please press star followed by one at this time. The next question is from the line, and I'm sorry, I think I'm going to put that wrong. Deepshika Agarwal with Goldman Sachs. Your question, please.

Thanks for taking my question. So, like, two questions, if I may. So, first of all, like, on the top line, you've guided on a double-digit growth for revenue for FY23. any color on the expectation around the various elements, which is basically SMB and enterprise, and any comments around the outlook around enterprise IT spending based on the customer conversations you're having. The second one is basically on margins. We're just trying to understand what kind of cost flex do you have. So first of all, on your guidance of 40% on adjusted EBITDA, what would be the variance like? Will it be around tens of BIPs or hundreds of BIPs? Like, how should we think about, you know, in terms of a slowdown or, you know, a better than expected performance? Like, you know, what cost flex do you have? Will, you know, any upside be reinvested back into the business? So those would be my two questions.

Okay, so let me start with the top line. I think generally what we see is enterprise IT spend Very regional development, clearly a bit longer sales cycles and more cautiousness in the Americas, but EMEA and APEC we saw good development and I think from what we see out of Q4 movement into Q1, so what we see first four weeks of the month, early days, but seems to be relatively consistent. When you think about spend, everything which is related to automation, efficiency, remote work, less people, this works well in the current environment. Everything that requires additional investment and has a little bit of time. They can also push the decision out by six to nine months or so. Obviously, companies are trying to do that. So, therefore, I think we know the recipe on what to focus on. And also, in the past, we have always been very resilient through economic downturns because companies need to, in these times, actually focus on efficiency even more. And generally speaking, on our top-line growth guidance for 2023, clear that enterprise will significantly outgrow SMB and will gain share on the base of all the investments we have done in the past. And the second question on margin range, I think your question was when we on that margin range, whether how narrow that range would be or how wide that range would be or what was your question?

Let me repeat the question to see whether we got it correctly. You wanted to understand what is our cost flex in case something goes wrong, right?

Okay. Yeah, cost flex as well as, like, you know, the variance on the margin, like the 40%, around 40%. Yeah.

Yeah, so around 40% is for us, then 39% to 41%, obviously. But most importantly, when we talk about the 40%, first of all, for us it's important that we invest and do the right decisions to grow the business going forward. That is for us super important. The other topic is, and this is what Pete, Oliver, and I do, we steer the business super direct. In case something goes wrong, we, of course, have levers, and we will pull the levers, where we will then adjust so that we manage our cost base diligently. I think this was your question.

And also you should see the margin development of last year we had. At the end, when we were in Q3, we were talking about achieving year-end guidance without Russia, Belarus business. And then we saw overperformance relative in Q4 closing. I think we all would agree that Q4 came out strong. And that is then a fall through to margin, and we saw the margin came out at the upper end. I think the way to think about the guidance for this year is we take a realistic cautious view on the building's development and same so on margin. And I think there is flex on the cost structure to work against adverse developments. But there's also flex to the outside if we would outperform on the billings, then obviously there's a, or revenue, there's a fall through into margin. So that's the way to think about it. It's actually quite a narrow range that you can assume here.

Okay. Thank you.

Ladies and gentlemen, there are no further questions. And with this, we conclude today's conference. Thank you for joining and have a pleasant day. Thank you very much.

Bye-bye.