TeamViewer : QUARTERLY STATEMENT

Quarterly Statement Q2/H1 | 2022

GOPPINGEN, GERMANY, 3 August 2022

Q2/H1 2022: TeamViewer with continued strong profitability and 12% topline growth amid macroeconomic uncertainties

• Double-digitbillings growth in Q2 with 12% yoy (7% cc) to EUR 136.1m, H1 billings growth at 12% yoy (8% cc) to EUR 299.6m
• Q2 revenue up 12% yoy at EUR 137.5m, H1 revenue up 13%
• Q2 adj. EBITDA margin of 42.6% and H1 adj. EBITDA margin of 47.2%, above expectations
• Improved performance in SMB business up 10% yoy in Q2, supported by resumption of monetization campaigns
• Enterprise billings up 21% yoy at EUR 26.9m in spite of increasingly challenging market environment
• Siemens partnership sealed, embedding TeamViewer Frontline and opening new sales channels
• On the back of strong financials: repayment of debt to reduce interest costs and new revolving debt facility with extended maturity
• Overall macroeconomic uncertainty reflected in prolonged customer decision-making and softer order intake

«We have delivered robust results with revenue in line with market expectations and better than expected profitability. Our strong performance in AMERICAS proved the benefits of our globally diversified structure. Further, we are proud to have teamed up with Siemens, thus expanding TeamViewer's strategic partnerships and opening up new sales channels. At the same time, the current macroeconomic environment has led decision makers to apply caution and partly postpone deals, which resulted in a softer order intake. However, fundamental demand for solutions that drive the digitalization of businesses is intact as reflected in a growing deal pipeline.»

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Oliver Steil, TeamViewer CEO

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Results Q2/H1 | 2022

«Our growth and profitability remain very attractive. In addition, our highly cash-generative business allowed us to significantly improve our financing structure. A repayment of higher interest-bearing debt and optimized terms for remaining long-term debt enhance our flexibility going forward whilst reducing overall costs. Looking back at the past quarters, we clearly did our homework, optimized bottom line results and thus preserve our outstanding profitability. Especially in times like these, our balance sheet gives us a competitive edge against peers.»

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Stefan Gaiser, TeamViewer CFO

Key Figures
EUR m, unless otherwise stated	Q2 22	Q2 21	yoy	yoy	H1 22	H1 21	yoy	yoy
					cc1						cc1
Billings (non-IFRS)	136.1	121.6	+12%	+7%		299.6	268.1	+12%	+8%
Adj. EBITDA (non-IFRS)	58.1	57.0	+2%			141.3	147.0	-4%
Adj. EBITDA Margin (%)	42.6	46.9		-4pp			47.2	54.8		-8pp
Revenue (IFRS)	137.5	122.8	+12%			272.0	241.2	+13%
Levered Free Cash Flow	28.2	32.2	-13%			50.1	57.3	-13%
Subscribers (thousand, 30 June)	626	623	+1%
Employees (FTE, 30 June)	1,322	1,472	-10%
1) At constant currencies

In the second quarter, billings were up 12% yoy (+7% cc) at EUR 136.1m (Q2 2021: EUR 121.6m) and came

in at EUR 299.6m in H1 2022, up 12% yoy (+8% cc) (H1 2021: EUR 268.1m). With an adj. EBITDA of EUR 58.1m in Q2, TeamViewer exceeded expectations and achieved an adj. EBITDA of EUR 141.3m in H1, representing an adj. EBITDA margin of 47.2%, thus slightly above the predicted full year range. The subscriber base increased again to 626k (Q1 2022: 620k), mainly supported by the reintroduction of monetization campaigns. Churn Rate developed well, decreasing to 14.0% (Q2 2021: 15.5%) despite the effects of TeamViewer's decision to pull out of Russia and Belarus, while a Net Retention Rate of 97% yoy indicates high and growing customer satisfaction (88% in Q2 2021). On an LTM basis, the NRR stood at 101% (Q2 2021: 95%), again underlining the stickiness of TeamViewer's business.

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Results Q2/H1 | 2022

Business Highlights

TeamViewer recently joined forces with Siemens to innovate in the Product Lifecycle Management (PLM) space with Augmented and Mixed Reality solutions. The partnership focuses on embedding TeamViewer's Frontline spatial module into Siemens' PLM software. This collaboration allows Siemens' global customers to improve their product development process based on immersive experiences with interactive 3D content connected to the digital twin of a product. After SAP and Google Cloud, the Siemens partnership is the third high-profile collaboration of TeamViewer in the Enterprise space set to bolster sales activities and expand access to Enterprise customers around the world.

In July, TeamViewer's Executive Board welcomed Peter Turner, formerly Chief Commercial Officer at Czech multinational and publicly listed cyber security software company Avast plc, as Chief Commercial Officer. As previously announced, Chief Financial Officer Stefan Gaiser will leave the company in mutual consent upon expiry of his contract in August this year. Following a smooth transition, Michael Wilkens will then join TeamViewer as Chief Financial Officer on September 1, 2022.

SMB Highlights

For TeamViewer's SMB business, a solid billings improvement of 10% yoy to EUR 109.3m (Q2 2021: EUR 99.3m) was supported by a resumption of monetization campaigns. Within the SMB business, the higher ACV cohorts continue to grow steadily at 17% yoy on an LTM basis, whilst the entry segment remains under competitive pressure. At the same time, the ASP continues to increase, now reaching EUR 753 (Q2 2021: EUR 702). Overall subscriber numbers in SMB grew to 623k from 617k in the previous quarter, starting to even out a decrease from Q4 2021 at a stable subscriber churn rate of 14% (LTM).

Enterprise Highlights

In the Enterprise business, billings for Q2 increased by 21% yoy to EUR 26.9m from EUR 22.2m in Q2 2021. On an LTM basis, total Enterprise billings rose 62% to EUR 109.5m (Q2 2021: EUR 67.4m). Billings in the segment thus accounted for 19% of total billings. Against the background of the uncertain macroeconomic environment and resulting caution from Enterprise decision makers, pipeline conversion slowed down. However, TeamViewer was nevertheless able to further increase the quality of its contracts, reflecting successful up- and cross-selling activities. Notably, billings for Enterprise customers in the ACV 100-200k bucket more than doubled year on year to EUR 14.4m (Q2 2021: EUR 7.1m). At the end of the second quarter, the number of TeamViewer's Enterprise customers amounted to 3,062.

In the second half of the year, TeamViewer intends to launch a dedicated campaign aiming at transitioning additional SMB customers currently using TeamViewer's core solution to TeamViewer Tensor, the Enterprise edition of the company's remote connectivity software. This will improve functionality for customers by unlocking key Enterprise features included in the Tensor solution. On the back of

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Results Q2/H1 | 2022

TeamViewer's experience from past upselling activities which were based on individual approaches to selected SMB customers, the company expects the dedicated campaign to offer further growth potential.

TeamViewer's solutions are increasingly integrated into different business-critical processes at commercial customers around the world. For instance, global fast food restaurant chain Wendy's is leveraging TeamViewer's enterprise AR platform Frontline to monitor suppliers and improve food safety as well as quality. This results from TeamViewer's existing partnership with NSF International Food Safety, LLC, announced in January.

In addition, railway infrastructure manager DB Netz AG relies on TeamViewer's mixed reality solutions for training employees in maintenance procedures. The enhanced illustration of components, processes and possible malfunctions leads to a better understanding of workflows and helps workers of DB Netz AG to improve transfer between theory and real-world operations.

Regional Highlights

In terms of regional performance, AMERICAS led with a particularly strong yoy billings plus of 22% (8% cc) to EUR 47.6m (Q2 2021: EUR 39.0m) on top of Q1's double-digit 18% yoy increase. This reflects the successful sales motion but also strong FX tailwinds, proving TeamViewer's globally diversified presence a strong asset. Growth in EMEA continued at a stable 8% yoy (8% cc) to a total of EUR 69.2m (Q2 2021: EUR 63.8m). However, macroeconomic uncertainties became evident and slowed down pipeline conversion. In addition, TeamViewer's decision to stop its business activities in Russia and Belarus had an impact on billings growth. Billings grew at a slower yet positive rate in the APAC region at 4% yoy (1% cc) to EUR 19.4m from EUR 18.7m. The leadership team in APAC is continuously working on the transformation of the business. However, new Covid-19 outbreaks and lockdowns in several APAC countries slowed down sales activities, with the most severe impact materializing in China.

Billings and Revenue per Region
EUR m	Q2 22	Q2 21	yoy	yoy	H1 22	H1 21	yoy	yoy
						cc1						cc1
Billings (non-IFRS)	136.1	121.6	+12%	+7%		299.6	268.1	+12%	+8%
EMEA	69.2	63.8	+8%	+8%		162.9	150.6	+8%	+7%
AMERICAS	47.6	39.0	+22%	+8%		100.7	83.9	+20%	+9%
APAC	19.4	18.7	+4%	+1%		36.0	33.7	+7%	+4%
Revenue (IFRS)	137.5	122.8	+12%			272.0	241.2	+13%
EMEA	73.9	65.3	+13%			146.7	128.5	+14%
AMERICAS	47.4	42.1	+13%			93.3	82.2	+14%
APAC	16.2	15.4	+5%			31.9	30.4	+5%

1) At constant currencies

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Results Q2/H1 | 2022

Financial Highlights

TeamViewer achieved a strong adj. EBITDA margin of 42.6% in Q2 and 47.2% for H1, slightly above the predicted range for the full year. Year on year, adj. EBITDA increased to EUR 58.1m from EUR 57.0m as a result of strong operating leverage, the successful implementation of Project ReMax, and lower bad debt expenses - a particularly strong achievement given last year's second quarter reporting did not include any material costs from the marketing partnerships. For the first six months, adj. EBITDA was at EUR 141.3m (H1 2021: EUR 147.0m). The company's IFRS revenues were up 12% yoy for Q2 at EUR 137.5m, while IFRS operating profit rose 16% yoy to EUR 33.8m from EUR 29.0m. For H1 2022, IFRS revenues were at EUR 272.0m (H1 2021: EUR 241.2m) and IFRS profits reached EUR 61.9m from EUR 57.8m. Levered free cash flow was at EUR 28.2m, down 13% yoy (Q2 2021: EUR 32.2m).

TeamViewer continues to operate with very little investment requirements, thus capital expenditures further decreased to EUR 2.4m in Q2 (Q2 2021: EUR 4.5m).

Cash and cash equivalents at the end of the quarterly reporting period were at EUR 383.4m (Q2 2021: EUR

465.6m). The net leverage ratio was at 2.1 as of June 30, 2022 (Q2 2021: 1.5).

TeamViewer's share buyback program, which the company announced with its full year results in February 2022, is well on track. As of July 29, 2022, 19m shares reflecting a value of EUR 249m have been bought back by the company which corresponds to 83% of the EUR 300m maximum buyback volume. The company confirms that the program will be continued until the amount of EUR 300m is fully invested and increases the maximum number of shares to be repurchased under the program to 30m shares in total. Whilst the vast majority of the shares has been cancelled, around 3m of the shares will be used as Restricted Stock Units (RSU) for future employee retention, covering the requirements for the next two to three years.

TeamViewer's strong cash generation and cash position allowed the Executive Board to further optimize the company's financing structure. TeamViewer used its existing liquidity to repay higher interest-bearinglong-term debt and achieved improved conditions for the remaining long-term debt. In combination with a EUR 450m revolving facility (EUR 300m undrawn), this significantly enhances TeamViewer's flexibility going forward whilst reducing cash interest costs. In addition, the maturity profile of the remaining debt could be flattened. The financing is also linked to an ESG component.

Outlook

For the full year 2022, TeamViewer continues to expect revenues to increase in the mid-teens to EUR 565- 580m and an adj. EBITDA margin within the range of 45%-47%. Given the impact of pulling out of Russia and Belarus (accounting for approximately one percent of billings) as well as the operating environment experienced year-to-date, TeamViewer expects billings for the full year of 2022 to be at or around the bottom end of its guidance (EUR 630-650m).

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