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Thank you, operator, and good morning, ladies and gentlemen, and welcome to TeamViewer's Q2 2026 Earnings Call. I am Bistra Rubicic, head of IR at TeamViewer, and today I am joined by our CEO, Oliver Steyl, CFO Michael Wilkins, and CRO Mark Banfield. Oliver and Mark will run you through the quarterly business update, and Michael will present the financials, and the presentation will be concluded by a Q&A session. Please note that you can find the important notice and the APM disclosure on slides two and three as per usual. And with this, I'd like to hand it over to Oliver to kick off our presentation.

Thank you, Vizsera. Good morning, everyone. Welcome from my side as well. And thank you very much for joining our call today. The second quarter marked a real inflection point for TeamViewer. The strategic and operational progress we saw building in Q1 is now really translating into tangible business outcome. The DEX turnaround is fueling growth. Churn improved to its lowest level since the one-year acquisition. And importantly, major enterprise customers recommitted to larger multi-year agreements. At the same time, we are seeing customers increasingly consolidate remote connectivity, DEX, and AI capabilities on TeamViewer One. This draws double-digit year-over-year constant currency growth in our highest value enterprise AR bucket, and I think it underscores the growing customer buy-in to TeamViewer's integrated platform for autonomous endpoint management. Our momentum was further reinforced by recent external recognition from leading industry analysts and by our landmark partnership with ServiceNow. Combining TeamViewer's endpoint technology with the ServiceNow AI platform and backed by long-term commitments and joint investments, this strategic partnership is built to grow and shape the future of autonomous IT operations. We also saw encouraging progress in SMB, where churn is starting to stabilize as expected. Targeted retention initiatives and improving sales execution are taking effect here. We expect S&D headwinds to continue moderating throughout the second half of 2026. And while the top line growth in the second quarter continued to reflect the previously disclosed headwinds, these effects are unwinding as expected. And more importantly, the key leading indicators across the business all improved during the quarter. Profitability remains strong with an adjusted EVGA margin of 43.2%. And at the same time, we continue to invest in innovation in AI and go to market capabilities, which really demonstrates our ability to balance growth investments with financial discipline. And taken together these developments reinforce our confidence in accelerating the business dynamics during the second half of 2026. And we are therefore reaffirming our four year guidance. Next, we will zoom in on the most relevant results of this quarter. Let me spend the first few minutes on what I think are the most important developments which we saw in Q2. The improvement in enterprise momentum driven by the DEX turnaround and the rapid adoption of TeamViewerOne. Let's start with the chart on the left which shows the quarter-over-quarter change in enterprise ARR in constant currency. As we explained last quarter, enterprise growth in Q1 was temporarily impacted by one-off 1E churn. These effects are now leveling off, as we expected. You can see a clear inflection point in the second quarter. This reflects the debt's turnaround, stronger customer engagement across the board, and growing expansion activity. And that brings me to the chart on the right. What I find particularly encouraging is the continued acceleration in TeamViewer 1 you can see how momentum builds steadily throughout the quarter, reaching its strongest levels in June. Customers are increasingly embracing the TeamViewerOne platform and the value proposition behind it. Importantly, this momentum is broad-based and demonstrates growing demand for a unified approach to remote connectivity, digital employee experience and automation. taken together, the DEX turnaround and the accelerating adoption of Team VO1 provides strong evidence that our platform strategy is gaining traction. Let me show you what this means for the broader enterprise picture on the next slide. The key message on this slide is simple. Our platform strategy is gaining traction and we see that intangible commercial benefits. Total enterprise ARR grew plus 8% year over year in constant currency supported by improving customer engagement, expansion activity, and the recovery of the DEX business, which I just walked you through. Enterprise NRR improved sequentially to 94% and to 98% if you adjust for SMB to enterprise upsell. What is particularly encouraging is what we saw in our highest value customer segment. Customers with more than €200,000 in ARR grew 11% year-over-year in constant currency. Several strategic DEX customers expanded onto Team Year 1 during the quarter, generating meaningful ARR uplifts and validating the rationale behind the 1E acquisition. Let me now turn to SMB on slide 8. As expected, SMB ARR remained under pressure in Q2 and was down 4% year over year in constant currency. This continues to reflect the lagging effect of the strategic cost correction measures that we implemented to improve the quality of the customer base and thereby strengthen our long-term economics. But the important message is the underlying improving trends that we saw in SMB. The chart on the right shows that SMB ARR momentum improved sequentially in the second quarter and SMB churn stabilized in June, consistent with the trajectory we outlined earlier this year. We are seeing early benefits from targeted retention initiatives, pricing actions, and improving sales execution. There's clearly still work to do, but the key operational indicators are moving in the right direction, and they support our expectation that SMB Headwinds will continue to moderate throughout the second half of 2026. Michael will explain our respective financial results later in a call in more detail. Let me now walk you through some of the strategic highlights from the past quarter. The most important one we announced just a couple of days ago, our multi-year strategic partnership with ServiceNow. This is a landmark endorsement of TeamViewer's technology, our strategy, and our position in the market. It's worth spending a moment on why it matters. The logic is very straightforward. This partnership brings together ServiceNow AI orchestration layer and TeamViewer endpoint execution layer. And that means we help ServiceNow to bridge the gap between identifying issues and then resolving them. Together with their own agentic AI offering, this enables automated and ultimately autonomous IT workflows for ServiceNow's customers. Among them, of course, many of the largest enterprises in the world. As Bill McDermott, the Chairman and CEO of ServiceNow, has put it, ServiceNow and TNU are closing the loop from inside at the edge to outcomes at scale. And the partnership has both a commercial and a technology dimension. On the technology side, our DEX and remote connectivity which extends the reach of our solutions into one of the most widely adopted enterprise software ecosystems in the world. And on the commercial side, we agreed on dedicated joint investments across sales, marketing and channel activities. This significantly expands our access to ServiceNow's global customer base, their partner network and their enterprise relationship. This creates a really powerful route to market for our platform. And just as importantly, this is designed as a long term strategic partnership. So ServiceNow and TeamViewer have committed to exploring deeper integrations, additional use cases and future innovation opportunities together. That gives us confidence that this partnership can create meaningful value over time and scale well beyond its initial scope. For us, This announcement is about more than a partnership. It's a strong external validation of the product strategy and technology investments we've been making over the past year. Let me stay with the ServiceNow partnership for one more moment because there is a piece of recent Gartner research which I think is worth putting alongside it. Just this month, Gartner published its innovation insight on the remote support. And you can see the key points on the left-hand side of the slide. recently published research discussing the emerging category of agentic remote support and digital workplace operation automation. We believe these research pieces together highlight themes that are becoming increasingly relevant across enterprise IT organizations. TeamViewer continues to invest in capabilities designed to help customers address these opportunities and challenges of autonomous IT. And then we look at the building blocks that each side brings. We believe our agentic remote support, digital employee experience and endpoint management capabilities combined with ServiceNow's IT service management and agentic AI orchestration put us in a really strong position and that there are very few players who can offer that combination. So we think we're on the right track and the ServiceNow partnership isn't the only proof point we picked up this quarter. Let me show you on the next slide. Here's an overview of some important external recognition we received during the quarter, which spans our entire portfolio. Starting with DAX, DARPA again recognized TeamViewer as a leader in its 2026 magic quadrant for digital employee experience management tools, making this our third consecutive year of recognition. shortly thereafter, IDC also named TeamViewer a leader in its worldwide DEX vendor assessment. Together, these recognitions reinforce the strength of our DEX platform and our position in a highly strategic market. Two other flagship reports from leading analyst firms focus on TeamViewer Frontline, which you can see on the right-hand side of the slide. Frost & Sullivan recognized TeamViewer as a visionary leader, while PAK once again named us as the sole best-in-class vendor in its innovation radar. These reports highlight both the maturity of our technology and our ability to deliver differentiated value for customers. And when it comes to our remote and tensor solutions, the picture is really encouraging, as you can see in the middle of the slide. On peer review platforms such as G2 and Trust Radius, we continue to hold leading positions across multiple categories. These platforms are particularly relevant because they reflect direct customer feedback and they often play an important role in software buying decisions, especially in the SMB segment. Taken together, these recognitions are valuable proof points that are focused on innovation, product quality and customer value continues to translate into market leadership across multiple parts of the portfolio. Beyond partners and industry analysts, we also received an important recognition our largest market, the United States. This one is a bit different in nature because it opens access to a significant new market opportunity. Let me show you what I mean on the next slide. We achieved a significant milestone on our path forward towards TATRAMP authorization, the Federal Risk and Authorization Management Program for TeamViewer DEX. That is a key gateway into the US federal market where security, compliance, and operational resilience requirements are among the highest in the world. In June, TVO Dex received the FedRAMP in progress, in process, sorry, designation, and was officially listed on the FedRAMP marketplace. This reflects the significant progress we've made together with our sponsor, which is the US Department of Veterans Affairs. creates access to a market with very high barriers to entry and long term demand for trusted software platforms. Once we are authorized, federal agencies can leverage the certification, which significantly expands our ability to serve this customer segment. And the opportunity extends well beyond the public sector, because the standards required for Saturn are also highly valued by customers in regulated industries, such as financial services, healthcare and defense. So we believe this investment strengthened our position across a much broader set of customers and use cases. The authorization process is still ongoing, but this milestone represents an important step towards expanding our addressable market and further strengthening TeamViewer's position as a trusted enterprise platform. Ultimately, however, the most important validation comes from our customers. Let me give you a few examples here as well. The feedback of our customers remains one of the most important indicators for us. It gives us an early view into the value customers are realizing and how our AI capabilities are performing in real-world environments. What is particularly encouraging is how consistent that feedback is across different industries and customer segments. Whether it's reducing manual effort, accelerating issue resolution, improving visibility into IT environments, or proactively identifying risk, Customers are reporting tangible operational benefits from using TeamViewer's AI-powered capabilities. For us, this is an important validation of the strategy we've been executing against. It reinforces our conviction that AI is becoming a meaningful competitive differentiator for TeamViewer, while creating additional value for customers and supporting the long-term opportunity around TeamViewer One and autonomous endpoint management. This customer value is not only reflected in testimonials. We continue to see it translate into commercial success and new customer wins across our business. Mark will now walk you through some of recent customer wins and how TeamViewer One adoption continues to gain traction across our customer base.

Thank you, Oliver, and a warm welcome for me also. Se Se Se Se Se to manage and optimize some 60,000 endpoints that underpin mission-critical airport and passenger processing operations. They ran a rigorous head-to-head evaluation against a broad field of vendors and chose to replace a competing major digital employee experience platform they had in place for many, many years. For them, a degraded endpoint is not just an employee problem. It can delay flights and disrupt airport operations. Analytics alone do not protect uptime at scale, and that is exactly where TeamViewer's DEX separates itself. Real-time automation at the edge that remediates issues rather than just dashboarding them. That is clear evidence of the strength of our enterprise DEX offering and our ability to displace long-standing incumbents in the most demanding uptime critical environments. The second example is GTS, a growing managed services provider, and it is a good illustration of how TeamV1 is resonating with customers that are looking to consolidate their tools, improve automation, and scale their operations through a single integrated platform approach. And finally, on the frontline side, we continue to see strong demand for digitizing frontline and warehouse operations. This customer deployed Frontline across multiple warehouse locations and integrated it directly into their existing SAP workflows, which helped increase productivity and operational efficiency. While these customers operate in very different industries and environments, they ultimately bought TeamViewer for the same reason, to remove operational friction, improve productivity, and enable more efficient workflows through a trusted platform. The upsell engine is working and the numbers back it up. Increasingly, some of our largest DEX customers are choosing to move to TeamViewer 1 at renewal. And that momentum accelerated further during the second quarter. What is especially encouraging is that these customers aren't simply renewing. They are expanding their relationship with TeamViewer as they consolidate vendors and move towards a broader platform approach. In many cases, we are replacing solutions that only ever address part of the workflow, while TeamVR1 offers a much more integrated proposition. The reason we are seeing this growing platform pool becomes clear on the next slide, where I will talk you through the innovation roadmap behind TeamVR1. So let's take a closer look at our innovation roadmap for this year and how we are advancing our autonomous endpoint management vision. Just to briefly recap, the power of our AEM approach lies in its self-reinforcing nature. Every support interaction generates new insights. Every resolved issue expands the knowledge base, and every proven resolution can ultimately be operationalized at scale. As a result, the platform continuously evolves, helping customers move from reactive support towards autonomous IT operations. During the quarter, we made really good progress in bringing this vision to life. A key milestone will be our upcoming August release, which introduces new automation capabilities and marks another significant step towards autonomous endpoint management. I will show you this innovation in more detail on the next slide. For TeamViewer, this further differentiates our platform, expands our addressable market, and contributes to the accelerating platform pool we are seeing for TeamViewer One. The innovation we will introduce is automations, a new capability that turns proven resolutions into scalable workflows and brings us another step closer to self-healing IT. These automations are built on insights captured across more than 2.8 million AI-powered support sessions that happen so far, with hundreds of thousands added each month by now. They let IT teams transform recurring fixes into repeatable actions that can be executed automatically whenever a known issue reappears. Put simply, IT teams no longer need to solve the same problem twice. Instead of repeatedly diagnosing and resolving recurring endpoint issues, they can capture a successful resolution once and apply it consistently across their entire environment at scale. Ultimately, this is about turning knowledge into action. Every resolved issue makes the platform smarter, every automation increases customer value, and every step brings organizations closer to autonomous IT operations. What makes this structurally different from anything a competitor can offer is that we are the only company that owns both data streams natively at scale. Expert remote session data and real-time endpoint telemetry. As you can see on the slide, the benefits are clear. Less manual effort, faster resolution times, and greater operational consistency. At the same time, customers will remain fully in control through approval workflows and policy-based governance. So this release really is about tangible examples of how TeamViewerOne combines AI, endpoint intelligence, and automation. The mechanism I just explained is the reason why AI adoption generally and the number of AI sessions specifically has become one of the key metrics for our success. The scale of this adoption becomes really concrete when you look at a single month. In June alone, customers ran more than 500,000 AI-powered support sessions on our platform. That compares to over 300,000 in March, which we highlighted last quarter. The trajectory is steep, and it compounds. Every session strengthens the data foundation and makes our platform harder to replicate. This adoption is broad-based. We are seeing customers incorporate AI capabilities into their everyday support and IT operations workflows, creating tangible productivity gains and operational efficiencies. From a commercial perspective, this matters because adoption drives expansion. Customers that actively use our AI capabilities increasingly recognize the value of a more integrated platform approach, which creates additional opportunities around TeamViewerOne and our autonomous endpoint management proposition. Overall, the adoption trends we see today give us real confidence that AI is becoming an increasingly important driver of customer value, platform engagement, and future growth. AI adoption is accelerating an unprecedented pace. As organizations deploy more AI agents, autonomous workflows, connected devices, and edge systems, managing these environments becomes significantly more complex. What we increasingly see is that customers need more than visibility. They need intelligence, control, and automated remediation capabilities to operate these environments safely At the same time, they need greater transparency into how AI tools are being used across the organization, including workloads, performance, costs, and potentially unapproved applications. This is particularly relevant in highly regulated industries and mission-critical environments where reliability, governance, and operational resilience are becoming more and more important. We believe this creates a structurally growing demand for autonomous endpoint management. And importantly, this is not a future concept anymore. Through the increasing adoption of TeamView 1 and the conversations we are having with customers every single day, we are already seeing organizations beginning this journey towards more autonomous IT operations. So the question becomes, how do organizations actually make that transition? And that brings me to our vision for the self-healing agent for IT. At its core, autonomous endpoint management is about moving from reactive support towards intelligent, proactive, and ultimately autonomous operations. What you can see in this slide is what we call the self-healing agent for IT. The platform continuously observes activity across every endpoint, application, device, workflow, and increasingly AI agents. It detects friction early, it understands the underlying issues, and it takes action before productivity is impacted. In other words, we are moving from a world where IT teams react to problems towards a world where issues can be increasingly predicted, prevented, and resolved autonomously. This is the vision that shapes our innovation roadmap and increasingly is defining our go-to-market approach for TeamViewerOne. TeamViewerOne is the commercial vehicle that brings this vision to customers, while our investments in AI, endpoint intelligence, and automation continue to strengthen the underlying platform. In a market that is moving in this direction, we believe TeamViewer is uniquely positioned to lead is transition. What differentiates us is not a single product or feature. It is the combination of several advantages that come together on one platform. We operate the world's largest remote connectivity platform in the world. We have deep expertise at the endpoint and we benefit from proprietary data that is generated through millions of support interactions and we are embedding AI directly into our platform. At the same time, we have aligned our urbanization around this opportunity. Over the last quarters, we have sharpened our enterprise motion, evolved our go-to-market model, and built an operating model designed around platform selling. The accelerating adoption of TeamViewerOne and the momentum we are seeing across our customers are encouraging signs that this approach is paying off. Combined with our large installed base, our proven upsell engine and expanding ecosystem of partnerships, these advantages create a strong foundation for long-term growth. Ultimately, we believe autonomous endpoint management represents a significant market opportunity and that TeamViewer is exceptionally well positioned to help shape and benefit from this transition. With that, let me hand over to Michael, and he will take you through the financial results.

Thank you, Mark and Oliver, and good morning, everyone. Let's look at our key financials for the second quarter of 2026. Popline growth continued to reflect the effects of previously disclosed headwinds in SMB and the one-off 1E churn in Q1 2026. More importantly, the key leading operational indicators improved throughout the second quarter. And as a result, we saw improving growth trends sequentially month by month, providing encouraging signs of improving momentum as we reached the end of Q2. ARR was broadly stable year over year in constant currency and reached 737 million euros. Revenue was 183 million euros, around 1.4% year over year in constant currency. We delivered adjusted EBTA of 79 million euros and maintained a strong margin of 43.2%, demonstrating continued financial discipline despite temporary weakness in the top line. Net income increased by 33% year over year and adjusted EPS was €27 this quarter. Net leverage ratio was 2.5 times, and we remained firmly on track for our around 2.3 times year-end target. Before I share the details, as Oliver and Mark already explained, the leading indicators all moved in the right direction during the quarter. Enterprise momentum strengthened as the DEX turnaround fueled Team Year 1 adoption, and showed signs of stabilization. This gives us confidence in the expected ARR growth acceleration that we have committed to for the second half of 2026. Let me now go through our key financials in more detail on the next slide. And let me start with the P&L. As I mentioned earlier, revenue growth in Q2 as a lagging indicator continue to reflect the effects Se Se Se Se Se SMB revenue decreased by 3% year-over-year in constant currency to 124 million euros, and this reflects the continued impact of the SMB strategic measures mentioned earlier. Enterprise revenue showed positive momentum and increased by 3% year-over-year, reaching 59 million euros. Gross profit was 168 million euros, with a gross margin of 92%. year over year and reflecting the high quality of our subscription revenue base. Cox decreased by 2% year over year, reflecting lower variable costs in line with top-line development and lower front-line related implementation costs. Total OPEX decreased by 3% year over year to 89 million euros. which shows our disciplined cost management even as we continue to organically invest in growth and innovation. Sales cost increased 5% year-over-year driven by investments to strengthen customer acquisition capabilities and to support long-term customer retention. This is intentional and ongoing. Marketing cost decreased 28% year-over-year to 22 million euros. As previously indicated, Marketing activities increased sequentially from Q126, supporting brand and demand generation. R&D costs were up 12% year over year, which reflects continued investments in product innovation, AI capabilities, and the expansion of the combined platform. We are investing in our innovation capabilities to fuel our next leg of growth. G&A expenses increased 12% year over year, primarily reflecting timing effects between quarters. On a year-to-date basis, G&A expenses were down 2% year-over-year. Other expenses amounted to 740,000 euros compared to a gain of around 600,000 euros in Q2 2025, which reflects lower positive impacts from derivatives. The adjusted EBITDA was 79 million euros, down 6% year-over-year. This decline mainly reflects lower revenue and a 5.4% point FX headwind in the quarter. Adjusted EBDA margin was strong at 43.2%. Excluding the negative effect from the FX headwinds on the margin, adjusted EBDA margin would have been at 44.4%. Net income was up 33% year-over-year. Total interest expenses where 10 million euros in Q2, down half a million euros as we have reduced our net debt position. And the adjusted EPS was 27 euro cents this quarter. Then, moving on to leverage. Net debt was 833 million euros at the end of the quarter, which is an improvement of 37 million euros quarter over quarter. And the net leverage ratio remains stable at 2.5 times. As mentioned, we have a clear path to reach our year-end net leverage target of around 2.3 times. The details of the free cash flow will follow on the next slide. Level 3 cash flow conversion in the quarter was 52%. Let me give you a clear picture of cash flow drivers of this quarter. Free tax cash from operating activities was 66 million, down 21% year over year, primarily due to lower top-line growth and even more or less by upfront paid multi-year deals compared to last year and compared to our internal expectations. We are seeing fewer customers opt for upfront payments on multi-year deals, which may reflect a more cautious spending environment likely caused by current macro uncertainty. Interest cash outflows increased by 7% year-over-year due to quarterly phasing effects of fee payments between periods, offsetting the benefit of lower average debt levels. This was partially offset by lower expenses for CapEx, lease payments, and income taxes. With the free cash flow seasonally stronger in the second half of the year, we will continue investing in growth while staying committed to bringing the leverage down to around 2.3 times by year end. Let me now move on to the next slide. Beyond the operational progress, we also continue to strengthen our financial position. During the quarter, we extend the maturity of our 75 million euros revolving credit facility to 2031. We secured a new 40 million euros bilateral financing agreement and we initiated a new social placement. The European Investment Bank backed bilateral facility support us in further diversifying our funding sources, while also providing attractive financing conditions. Together with the above-mentioned new short-term placement, which is progressing as planned and expected to be closed by mid-August, the proceeds will be used to repay the 1E acquisition-related BCM Bridge facility and further optimize our financing structure. These actions enhance our financial flexibility, support future growth investments, and keep us firmly on track with our deliberating objectives. With that picture of Q2 in full, let me close with the guidance on the next slide. In summary, Q2 was a quarter of disciplined execution and ongoing strategic progress, underlying leading indicators being DEX turnaround, accelerating TeamVR1 adoption, strengthening enterprise momentum, and stabilizing SMB churn, growth sequential monthly growth improvement throughout the second quarter. This supports our confidence in the expected growth acceleration in the second half of 26 and we reiterated our full year 26 guidance. We expect a constant currency revenue growth in the range of 0 to 3% versus pro forma 25 revenue. Current trends support the expectation of ARR growth acceleration in the second half of 26. At the 30th June 2026 spot rate, the expected total FX impact is negative 2.1 percentage points for Q3 2026. The expected total FX impact on full year 2026 revenue growth is negative 2.4 percentage points. Further details are provided on slide 31. We continue to guide for an adjusted EVDA margin of around 43%. We continue to demonstrate disciplined executions while investing in our strategic priorities. Our strong and industry-leading margin performance in the first half of the year supports our confidence in achieving the full-year adjusted EVDA level of around 43%. With that, I would like to hand back to the operator to open the Q&A, please.

We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. You will hear a tune to confirm that you have entered in the queue. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use only headsets while asking a question. Anyone who has a question may press star and 1 at this time. The first question comes from the line of Victor Cheng from Bank of America. Please go ahead, sir.

Questions. Maybe three, if I may. I guess, first of all, looking at the guidance, obviously, we're expecting a true reacceleration. I think about easier comps in SMB and index continue to grow strongly. But can you give us some sense of... where you see you might land in the guidance range, and what scenarios give you confidence on the higher end, and maybe kind of what needs to work to get to the low end as well. That'd be great. And then secondly, just want to talk about the ServiceNow partnership, clearly still very early days, but can you talk about kind of any tangible benefits you would expect from this partnership, both in terms of maybe our contribution down the line, but also, you know, the pipeline that reached the customers and other non monetary benefits and potential there. And then last question is on customers using AI. very strong growth jumping 49 K versus 26 K and Q1. But can you provide us some more color on kind of the split of these customers are more enterprise customers using it? Where are you seeing more momentum? And where do you think that can be? Maybe 12 months down the line? Thank you.

Yeah, thank you, Victor. Let me start with the first one on on the guidance for the top line here to free. I mean, it's too early today to see a landing point between the zero and the free. This is why we have the range. But as you pointed out, there are lots of driving factors to get us up from now on in Q3 and in Q4. Number one is, of course, the improving trends in SMB. We saw a stabilization in churn. And in July only, we see already an improving in churn on the SMB side. plus continue with SMB obviously the high demand in the upper end of the SMB side of the house for AI capabilities and the move into our platform game which is clearly showing a testament of our strategy that also from the upper end of the SMB side we move now into a team we are one these are some leading indicators which are needed and which we see The second one is if we move then on to Enterprise. I mean, it's a big basket of various indicators on the Enterprise. Number one is, of course, again, TeamVR1 here on the Enterprise side. We had some really nice deals, big ones, existing customers who moved from DEX only now to DEX and Tensor. So a reverse TeamVR1. And we see from the PI perspective, additional big prospects out of our base who might do that in Q3 and also in Q4. Another one is from the pipe standalone on new customers. We have very few but very massive deals or prospects which we are working on, which is, of course, another ingredient to make it in H2. And last but not least, It's not only the ARR momentum which needs to kick in and will kick in. It's also so-called one-off revenues, be it professional services, be it from the frontline deals which have a different revenue recognition, and obviously also some hardware sales which might continue in the frontline business. So it's a very broad basket of diverse and meaningful ingredients. And with that, we have full confidence that we will accelerate in H2O.

Yeah, thanks Michael. Maybe it will be a second question around the NAMO partnership, ServiceNow partnership. Clearly very interesting. I mean, primary goal or target is to have an end-to-end proposition. So the workflow engine, the intelligence of the ServiceNow ITSM workflow platform combined with our Endpoint intelligence, what we see on endpoints, what we learn from interactions with the endpoints through our remote sessions and then with our large automation and remediation platforms. So if you put that together, you have the sensing on the endpoint to understand what's going wrong and the state and what could be better than the workflow orchestration and then actually the action on the endpoint through our remote capabilities and the automation. And very interesting for us because it's it's I would say the partner which is closest to what we've been doing in the past and therefore very happy to have a more integrated approach there clearly customer reach will be enormous service now is serving more than 8,800 very large enterprise customers would be very much the upper end of what we typically do and that adjustable base will increase significantly for us. I think it's a massive endorsement of our solution towards the customers. It's also the most critical vertical, federal healthcare defense, where we also have strong customers. We will work now on building pipeline together. Clearly, there will be no short-term AR impact because this is enterprise sales cycle. There is use and play on both sides where we can see whether we combine the offering in the short term, but generally, I would think about a more typical enterprise sales cycle. go to market. Mechanics are very interesting. We will integrate our service now with introducing your product as cues into their platform. So a very direct way of being able to offer our platform solutions to to service our customers, which I think is the most the most efficient way that you can do and that their settlers will sell our proposition as part of the platform with full composition and so forth. And we're working on either side into marketing development. So to your question, Victor, there's a lot of non-short-term, tangible, non-tangible short-term effects, I should say, in terms of market positioning, endorsement, joint thinking through the innovation pipeline, how to improve the platform from both sides. And that's why we're so excited about this partnership. And then maybe AI, some color on AI. Yes. So third question, adoption is quite rapid. For me, effectively, the way we work is we have here the senior intelligent agent, that agent is orchestrating the learnings from session insights, the code generation and then bringing this into the automation library. and we're adding functionality with every release. There will be a next big release coming in a few weeks from now to really continue to build this infinity loop of self-reinforcing and self-learning to get us to self-healing IT. We expect a good continuation of the growth, so adding first-time users to the platform, as you said, Abel, to 49,000. I think we quickly reached 50,000. towards the end of this month and then from there adding adding during having day by day and then also increasing the usage of kia and within the usage of kia the depth and of the functionalities within cpts we don't have a an outlook in terms of how the numbers will grow but it's a significant addition that we're seeing day by day urf fragments it's across all I would say segments SMB upper part of SMB so every customer that has regular usage in the IT sphere in our product so not very occasional use at the prosumer side but really like day-to-day users of the product whether it's SMB or the largest enterprises it becomes part of their usage very clearly and especially on the enterprise side. The feedback is very encouraging because you saw some of the quotes. They really see the improvement in productivity that's coming from that and I think that's the ultimate measure that we need to watch.

Very clear. Thank you.

The next question comes from the line of Alice Jennings from Barclays. Please go ahead.

Hi, good morning. Thank you for taking my question. I'd certainly just like to understand a bit more about the weakness in SMB ARR. So it was slightly weaker than last quarter, I believe. How much of an impact, for example, did the commercial measures that were taken last year have? Or have you seen any kind of change in the competitive environment or any change in customer decision making, particularly in that lower bucket? And then also just with reference to that lower bucket, do you expect that to remain a drag in H2 and the improvement in SMB is largely driven by that higher end? Or how should we think about that? And then I just have a second question as well on enterprise. How does the pipeline look? I know you mentioned that there's a few deals. Is this largely relating to kind of TeamViewer standalone or are they 1E DEX-related deals? and what kind of level of pipeline conversion are you assuming for the rest of the year? Thanks.

Yeah, thanks, Alice. Let me start with the SMB question. First of all, yes, it's shrinking in Q2, but it's less shrinking in Q2 vis-à-vis Q1, and this is why we also brought the page 8. So clear stabilization, which we indicated in Q2 already for Q1 on churn, that was important and we delivered on that one. And not only that, we project also a improvement on churn and insurance for Q3 and for the remainder of the year. And very early indicators in July actually show us that we are actually improving already on churn. So that's That's maybe message number one. And of course, it's important. On the lowest end in the SMB side of the house, we cannot do much, right? It's the base. It's the licenses between 200 and 300. And there's lots of competition. There's less so interest in any AI features. And if we would ever consider any price changes, the demand supply curve would not work. So Let's stick with the lowest end of the SMB part as it is. More importantly, from the upper two segments, 500 to 1,500, and especially 1,500 to 10,000, here is, of course, accelerating interest also in AI features, especially in the upper end. And in the middle block, this light blue block, if you would adjust for the movers within SMB from light blue to purple the minus six percent would be close to zero so stabilization there as well and there are lots of positive trends actually which give us an encouraging feeling for the remainder of the year which is which is one ingredient also for for the acceleration in H2 and therefore for full year.

Maybe to add on the SMB before you go on enterprise, Mark. The competitive landscape, you asked, has anything changed in the competitive landscape? No, I mean, it's effectively kind of same type of players, kind of the same activity on the competitive side, but with one major exception, of course, and you can see that in our Team U01 acceleration. we deliberately shown the team you're one standard and advanced. There's also team you're one enterprise, which we had the big deal that Mark talked about that standard and advanced is very much focusing on the SMB and we have a much much better offering now. So our team you're one offering where we combine the good proposition with a strong position that that position and I is giving us really a very strong product to compete in the marketplace against R&M players and against the smaller platform players to differentiate ourselves from remote pure play, so to say. And that's starting to work. You clearly see on the numbers. If you take Team Bureau 1 standard in advance, Q1 versus Q2, there's very significant growth. now it's not translating yet in SME growth because it's a smaller number relative to the big base and we have these churn stabilization topics which we need to get to and starting to see as Michael mentioned But it's going to come. It's a new product, which comes with very good upsell into the SMB base. And as this is working through the base, we will see improvement there. And that's a much better strategic positioning, competitive positioning than we ever had before on SMB. So that's why we are very confident for the second half of the year to see acceleration there. Mark on enterprise pipeline.

yeah sure thanks oliver um yeah alex specifically to that question around the type of pipeline the volume of pipeline and then and then the conversion expectation second half there's a couple of points to make first off one of the things underpinning our confidence around pipeline development is around scene deal one so if you think about these large enterprises um Every single one of them uses remote control every single day to resolve employee issues. Most of that data is lost directly after a remote control session is completed. And of course, the TeamViewer One vision not only takes that data, understands it, turns it into autonomous capabilities, It really helps them become sort of really realize this autonomous endpoint management vision. So whilst many organizations use remote access, remote control alongside a DEX platform, no one has this vision of bringing the two together where one feeds the other. So that's really resonating, and that's definitely fueling our pipeline, both in terms of the volume of pipeline, but also the conversion expectations in the second half. The second kind of major tailwind, I'd say, is around AI. So, you know, obviously AI is being deployed at an alarming rate across every enterprise organization at the endpoint. You know, I mean, it's being deployed all over the place. And the reality is, is that most enterprise organizations have realized that they have a lack of control and governance and management of what's happening across those devices. We showed that slide in the deck there, which talks about this. This is a major tailwind is what we're seeing. We're seeing increased demand for a platform that can manage and govern AI across the enterprise. And that's specifically what we're doing with TeamViewer Dex. So really, we're creating this control layer above the endpoints, which is key. And the last point to make is just really all around sales execution and productivity. So as you know, as we've communicated in previous quarters, we've significantly transformed the go-to-market engine in terms of investments made around certain leadership and talent that's come into the organization. In terms of the go-to-market strategy and approach, you know, we're clearly very focused now on platform selling, land and expand, as we shift customers left from reactive support to proactive IT autonomous capabilities. That requires, you know... a very specific kind of solution sale methodology, and we continually enhance that on a day-by-day basis. And you're starting to see, I think, the results of those investments we've made around go-to-market start to play out in Q2, and I expect it will go up and up from there as we go into the second half. So that really underpins how we view and how we look at pipeline for the second half of the year.

Great. Very helpful. Thank you.

The next question comes from the line of Ben Castillo from BMP Paribas. Please go ahead.

Hi, good morning. Yeah, thanks for having me on here. Question, just some nice examples of the debt in Team Deal One, deal wins. How can we think about the impact of selling more on endpoints and platform adoption on the impact on your enterprise ARPU? Is it possible for you to help us with some color on the typical impact on deal sizes you're seeing? and I guess a follow-up just on slide 15 with those deals that you've mentioned there. How should we think about how endpoint price contracts work? If I just, again, maybe it's oversimplifying, but if I look at the sort of price per endpoints on the ARR, it seems like quite a wide variance. So is there a rule of thumb, or can you just give us a sense on how those contracts are structured? Thank you.

Yeah, I'm happy.

Okay, so then go first, Matthew.

You go first on this.

No, no, go.

Okay, sure. So, look, I think, yeah, obviously, there's a couple of things to say here. One is the slide 15 that you're talking about. Clearly, where we migrate and upsell people to the platform, we're achieving a higher endpoint price because we're combining DEX and Tensor together with this TeamViewer 1 vision, and we are achieving uplifts. Now, you know there's varying levels of uplift across those across those customers it very much depends on the particular sales situation what price point we sold out in the past where they're at in terms of a contractual standpoint so yeah we're we're being um you know we're sort of taking it on a case-by-case basis but we are seeing uplift across the board um and i say that it's helping us also become more it's certainly helping us become much more competitive um in new logo opportunities as well as expansion because effectively you know we're bringing together two technologies that no one else is able to bring together so it's allowing us to offer different outcomes to customers i think that's the key point here is that you know this is outcome-based selling we're able to offer different outcomes to customers and therefore i think over time we'll be able to command a better price point oliver yeah so generally general direction travel ban is

significantly larger deal sizes when we go to endpoint based pricing. Why is that? The value of the platform is coming through if you roll it out across the company, across the footprint, so to say. Now that requires companies, customers to take a view of managing devices regularly. And if you look at TeamViewer historically, there has always been a combination of managed devices and non managed devices. So I'll talk remote support, we have an environment. And from a team viewer perspective, old world, we would see that, I don't know, 10,000 devices are managed devices that are registered. So we see them in our registry. And then there's lots of remote report sessions that happen to other devices, which is ad hoc support without, without really registering the devices and paying for these devices. But therefore the pricing logic is per technician because we charge per seat or per technician independent of whether it's a managed device or unmanaged device. With TeamViewerOne as a proposition we really addressing those customers that want a managed platform consistently across their environment and that then requires to register all the devices and in that sense we move to a pricing logic which is the pricing logic of a platform player or a remote management player or other decks players or other endpoint oriented players. And therefore, we typically see, as Mark just said, a significant uplift in the view size and the view volume. And that's quite consistent now actually across TeamViewer 1 standard, TeamViewer 1 advanced and TeamViewer 1 enterprises.

Thanks very much. If I could squeeze in a follow-up, just on this sort of selling environment, what you saw through Q2, obviously lots of puts and takes in terms of geopolitics and conflicts and so on. Just any comments on what you saw in sales cycles, pipeline conversion, customer decision-making?

Yeah, I can go first. Clearly, from the geopolitics, we have seen better times and at least some of the customers, especially on the bigger ones, they tend to become a little bit more cautious, especially on upfront paid multi-year deals. And some of the deals take a little bit longer in decision-making. We don't know whether there's a direct combination or correlation between GEO and them, or whether it's partially AI topics or other problems they have to cope with. But it tends to take a little bit longer in some of the deals. Definitely.

I mean, the thing to add, Ben, I think is... Why see is there's a growing anxiety in in the enterprise environment To get control and management of its proliferation of AI across the enterprise and and you know, that's really what we're offering with TV one and and with decks is the ability to automate the whole workflow on how you manage IT and But it provides a level of governance and control. And certainly, it's even more accelerated with our partnership with ServiceNow, who's the AI control tower for the enterprise. But you combine what we're doing on the endpoint at the edge with what ServiceNow is doing. I think we're seeing a lot more acceleration in terms of, I think it will help us with buying cycles because it really is kind of a necessity to move very, very quickly for enterprise organizations now.

Okay, thank you.

The next question comes from the line of Toby Ogg from JP Morgan. Please go ahead.

Yeah, hi, good morning, and thanks for the question. A couple from me, just firstly on the free cash flow. as you mentioned down year over year, you talked about various drivers there, including that lower upfront contribution from multi-year deals than expected. Could you talk a bit about your expectations for that dynamic in the second half and just confidence levels around cash conversion evolution for the full year in light of that multi-year deal dynamic? And then just on the SMB churn, you mentioned Michael, you'd seen an improvement in July on the SMB side. Can you help us understand, you know, what you think have been the biggest drivers that have contributed to that improvement in churn? And yeah, which of those you think is sort of having the biggest impact on that improvement? Thank you.

Yeah, clearly. Hi, Toby. Let me start with two. Clear drivers are certainly the massive price increases and the commercial blocker of last year, which is clearly washing out now. This is the main driver, which we see already for Q3, and it will continue for Q4. When we do price ups now, it's a more formal logic. It's an offer to the customers, and they get AI ingredients and features and the customers opt for it or they don't and then they don't get a price up. And this is obviously helping tremendously into customer satisfaction and therefore less also churn. That's the main driver. And the other one is obviously with our platform gain in the context of TeamViewerOne, once you combine the product features into a suite and once you're in, you have obviously lesser and lesser reasons to think about others because you de facto get all of one basket. These are the two main drivers I think I would leave potentially remaining ones to Mark. On the first one, on cash flow, yes, indeed, as mentioned, cash flow a little bit softened in Q2 for various reasons. This is why we are also confident that that will change for H2. Number one is the upfront paid multi-year deals. This is what we can change. We had an expectation there. It didn't work out. This is certainly related to a macro. And hopefully this will ease now in H2. Number two, that is a technical one. Some of the former, sorry, the former 1E customers needed to change their addresses, their data in the system in order to become TeamViewer customers. And that caused a technical delay in their payment This alone is rough cut 5 million, and this will come now in Q3. So it's only a delay and not a change. And last but not least, to your question on cash conversion, yes, we were at 52. Now we guided or we said we didn't guide on cash, but we said something around 60. And this is clearly what we see, whether it's now 56 or 57 or 58, doesn't matter for us, especially as it is very important to us also to keep on investing into growth. Remember, 26 is the transformation year, and the growth is important for us, especially as we walk into 2027. Super important. And in the end, the name of the game is our net debt leverage ratio, which we indicated to be around 2.3, and this is what we can clearly see as we're heading towards the end of the year. So all in all, all good.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Oliver for any closing remarks.

Yeah, thank you. Thanks for the questions all. So as you see, I think Q2 was really all about moving the plan and building momentum. And it's clear that the developments that we were expecting at the beginning of the year are now materializing. So that's really good. We have the DEX turnaround that's taking hold. We have SMB churn stabilizing as it was anticipated for all operational indicators across the business moves in the right direction throughout the quarter or towards the end of the quarter. So that's really good. We're very excited, particularly encouraging if the momentum on team year one across the segments really, that's why we showed the number and disclosed the numbers. We see continuation acceleration there and adoption. And customers do really embrace the platform approach. So I think from a strategic development of the company where we were like two years ago and where we are now in terms of platform pay and seeing that the largest DEX customers are expanding and moving on to Team U01 is a very, very attractive one. And then yes, there's the AI discussion or has been the AI discussion clearly. But I think what we see on our end is AI adoption continues to scale rapidly. And that's strengthening the foundation behind autonomous endpoint management. So we believe we're getting stronger and stronger with our innovation pipeline around AI. Customers, analysts and not the least ServiceNow are validating our position there. So our competitive position significantly improving. and therefore we believe we have a clear plan we've differentiated platform we're executing and second half of the year will be important as always but we feel really good about the momentum and the pipeline that's building here so with this thank you very much for your time and speak again soon thank you have a good day