Teamviewer Se

Ladies and gentlemen, thank you for standing by. Welcome and thank you for joining the TeamViewer SE Preliminary Q4 full year 2023 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 touch-tone telephone. Please press star key followed by zero for operator assistance. I would now like to turn the conference over to Becerra Grubesic, Vice President in Best Relations. Please go ahead.

Thank you, operator, and good morning, everyone, and welcome to TeamViewer's preliminary Q4 and full year 2023 earnings call. My name is Bicela Grubasic, and I have joined TeamViewer as Vice President of Investor Relations only last week, so at the beginning of February. And I would like to take this opportunity to emphasize that I am looking forward to engaging with all of you present in today's call, of course, but also further strengthening TeamViewer's relationship with our investors and analysts. I am sitting next to our CEO, Oliver. and CFO Michael, who both will update you on our business and financial performance 2023, and will also provide you with the outlook for 2024. And as always, the presentation will be concluded by a Q&A session. Now, a note on some important notice. Please note that you can find the important notice and the APM disclosure on slides two and three. And with that, I hand it over to Oliver to kick off the presentation.

Thank you. Welcome, Visera. Very glad to have you on board. Good morning, ladies and gentlemen. Welcome to our preliminary Q4 full year 2023 earnings call. Let's jump straight into our highlights on slide five. Overall, we are concluding a very successful year with strong momentum in Q4. We achieved results at and above our targets. Furthermore, we once again proved the strength of TeamViewer's business model with its broad diversification across customer segments, use cases, and geographies. Let me start with a look at the 2023 financial year. Our revenues saw double-digit growth with 11% year-over-year to €627 million, and adjusted EBITDA grew even stronger by 13%. This resulted in an EBITDA margin of 42%, which exceeded our guidance. On the back of our continued share buybacks, we were able to significantly increase our basic EPS by 81% year-over-year. Looking at the fourth quarter, our billings exceeded the already very strong prior year quarter with an increase of 8% on constant currency. This strong momentum in Q4 gives confidence in our ability to perform and execute in a back-end loaded enterprise software environment. Speaking about the enterprise business, we saw good momentum in the fourth quarter. The successful conversion of our pipeline led to a 23% constant currency billings growth year over year. This success is important as the rest of the year was a bit weaker in terms of enterprise growth. Especially in the fourth quarter, our partnerships with Microsoft, SAP, and Siemens paid off and contributed strongly to our enterprise business. Moreover, I am particularly pleased that the reorganization in the Americas region is showing tangible results now. In the important fourth quarter, the region returned to double-digit billings growth, the strongest growth of all regions from a quarterly perspective. This was driven by convincing deals in the enterprise space as well as good webshop results. at the end of 2023 we doubled down on our commitment to the digital transformation of the industrial working environment by strategically investing in site machine and cybers two pioneering companies for smart factory solutions we are ensuring that team viewer is at the forefront of the convergence between information and operational technology last but not least we are long-term committed to shareholder return In the fourth quarter, we launched a new share buyback program with a total volume of up to €150 million until the end of 2024. We want our shareholders to participate in our highly cash generative business. The program is scheduled to be completed within 2024. Summing it up, we are very pleased with our 2023 performance and the strong year-end finish. We are succeeding in our core business. benefiting from our strong partnerships in the enterprise space and strategically investing in new areas such as smart factories. Let's now take a closer look at our SMB and enterprise billing split over the last 12 months. You can see that the SMB business in the higher value bucket with contract volumes between 1,500 and 10,000 euro experienced the highest growth rate with an increase of 14%. Last year, we had put particular focus on improving and developing our SMB product and third-party integrations. This enabled us to expand existing customer contracts, win new business, and assert ourselves against competitors. In addition, monetization campaigns and continuous improvement of the webshop experience supported SMB revenues. And looking at the enterprise business, the highest bucket with contracts above €200,000 recorded the strongest increase the last 12 months. This is a very encouraging development compared to the levels we have seen at the beginning of the year. It also shows that while our enterprise business is supported by upsells from the SMB segment, we are closing a significant number of large deals independently. Pipeline conversion has been particularly strong at the end of last year. Let's now turn to our regional performance. For 2023, we saw a good development in revenues and billings across all regions. Our Americas region saw 12% constant currency billings growth in the fourth quarter and grew strongest in that timeframe. This can be seen as a sign of first successes of the reorganization initiated at the beginning of 2023. Clearly, our investment in great new talents and the new leadership under Georg Beischlag are starting to pay off here. Our Americas team has closed some very promising enterprise deals in the fourth quarter, which I will highlight in just a minute. Also on a full year basis, America saw strongest regional revenue growth of 12%. Our largest region, EMEA, reported good results for the full year with revenue growth of 10% and billings up 9% on constant currency. In the fourth quarter, revenue grew even stronger. This is particularly noteworthy because Q4 of the previous year was already very strong, if you recall. and the results were driven by an excellent enterprise pipeline conversion and strong contribution from our tech partnership. Lastly, APEC reported a revenue growth of 8% for the full year. Fourth quarter was affected by a weaker macroeconomic environment and came in with 5% growth. On a billing basis, it was our strongest growing region over the full year, with encouraging new enterprise customer wins and frontline use cases, growing 14% on constant currencies. We've talked a lot in the past quarters and years about how TeamViewer is growing in the enterprise sector and is really providing solutions for a broad range of use cases and industries worldwide. That's why I brought this slide today to give you a glimpse into some of the enterprise fields which we closed or renewed in the fourth quarter. In the first row, there are four deals from EMEA, the second row is from the Americas, and the third one is from APEC. Regarding the deal size, most of these are from the highest and second highest enterprise buckets. And the customers range from multinational corporations to leaders in their national markets to innovation leaders in a particular industry. We can see that we really cover many industries, from engineering, pharmaceuticals, and mining to retail food beverage. to the social and healthcare sector. In addition, we cover use cases along the entire value chain from traditional IT support to remote access into OT devices, to warehouse picking and after sales support and maintenance. And it might be interesting if I highlight just a few of these deals. In the upper left corner, this is one of the Europe's largest engineering companies. They use TeamViewer Tensor to remote into machines at their customer facilities for fast troubleshooting. We renewed this deal in Q4, and the new deal volume now makes them one of the largest customers overall. In the second row, there is a U.S. customer from the food and beverage sector, wholesale business. It is a net new deal, also very high six-digit volume. They use TeamViewer Tensor for multiple use cases, including IT helpdesk. but also vendor support and remoting into OT devices such as food industry refrigerators. And in the third row, I would like to highlight a deal from the mining industry in Indonesia. The company performs daily checks of mining equipment and trucks with TeamViewer Frontline. The workflow for checks is running on smart glasses, meaning the technician is guided through the inspection and at the same time can perform the necessary tasks hands-free. The procedure is accurately documented and safe thanks to an integration into the existing backend. Bottom line, I think this slide helps to understand how broad our business has become in terms of industries, regions, and use cases. I would also like to give an example of how we collaborate with our global tech partners to jointly win new customers. This is a deal that we closed in Q4 with our partner Siemens. The customer is a leading aerospace company with global presence. The customer was looking for a solution to improve remote training and skill development for technicians in around 100 locations worldwide. And what we do with Siemens here is we provide this customer with an immersive interactive 3D solution. It combines Siemens advanced digital twin capabilities and TeamViewer spatial computing capabilities that bring the 3D data to life. Technicians worldwide can access these models via their tablets through the remote training. We have the customer to avoid travel and speed up onboarding. by ensuring that all technicians receive the same advanced high-quality training and onboarding globally. Obviously, this is very important because the aerospace industry is one of the most complex ones from an engineering perspective and at the same time, one with many strict regulations. Additionally, we are in times of skilled labor shortage and retirement of the baby boomer generation that is affecting all industries and increases the need of faster onboarding and development of new staff. Together with Siemens, we help this customer to maintain the same high standards in this demanding industry and take its training to the next level from a technological perspective. Another topic I'm really excited about is our new spatial support app that we've launched only end of last week together with the arrival of Apple's new spatial computing headset Vision Pro in the U.S. Since their announcement in fall last year, the whole tech world has been waiting for these devices to be available in store. And I really have to say, the Vision Pro immersive experience is a step change in the industry. I'm proud that we are among the first vendors that have an app ready from the get-go. Moreover, our app is targeting the B2B enterprise space. And let me explain how it works. Imagine a service technician who needs to repair or maintain a complex object or any type of machinery is stuck in the process. He or she uses TeamViewer's spatial support app on an iPhone to capture detailed 3D models of the device that needs to be supported. And then in a shared session, a remote expert using the spatial support app on Apple Vision Pro can then interact with the precise visual models captured on iPhone. Together, these two then, they have a synchronized 3D experience with the expert guiding the on-site technician via annotation and 3D elements through the repair or maintenance process. This is bringing a new level of fidelity, visual depth and detail to after sales and field service support scenarios. Ultimately, it addresses labor shortages and the need for easy knowledge transfer by bridging the gap between on-site challenges and remote expertise. And with that exciting new use case, I hand over to Michael for the financials.