TeamViewer Sets Medium-Term Growth Targets After 1E Acquisition
TeamViewer, the German software developer, revealed its medium-term revenue growth goals on Wednesday following the completion of its $720 million acquisition of IT firm 1E, resulting in a 5% rise in its shares. The company forecasts that its revenue will reach between 1.03 billion and 1.06 billion euros ($1.07-$1.10 billion) by 2028, with an adjusted EBITDA margin of 44% to 45%.
In the fiscal year 2024, TeamViewer reported revenue of 671 million euros, maintaining a 44% adjusted EBITDA margin. After the announcement of its acquisition of 1E in December, TeamViewer’s shares initially faced a decline of over 20%, but have since gradually rebounded, supported by stronger-than-expected preliminary full-year results.
CEO Oliver Steil highlighted that while acquisitions are never inexpensive, the purchase of London-based 1E provides TeamViewer with blue-chip customers and enhances its presence in the U.S. market, offering strong synergy potential for both short- and long-term growth. TeamViewer’s enterprise business, contributing around 23% of total revenue, has been increasing in importance, with a 37% revenue rise in Q4 2024 to 45.5 million euros, primarily driven by seasonal factors.
The Americas, which account for roughly 35% of TeamViewer’s total revenue, have shown an improvement in customer sentiment following the U.S. presidential election, after a period of slower purchasing and uncertainty.