Germany’s TeamViewer trims revenue forecast on FX headwinds
FRANKFURT Germany’s TeamViewer on Thursday trimmed its full-year revenue forecast, blaming the strong dollar and saying the software maker expects organic revenue growth of around 4% this year, down from the 8%-10% growth it had predicted previously.
The company, which allows remote access to computers and devices, now expects revenue of 660-680 million euros ($720-740 million) for 2023, down from 690-730 million euros it forecast in February.
Despite the reduction, TeamViewer confirmed its outlook for an adjusted operating profit margin (EBIT) of between 34%-36%.
“Given the ongoing macroeconomic volatility, the unfavorable currency environment and increased uncertainty in several key markets, the company has made a cautious adjustment to its financial outlook,” TeamViewer said.
“Nevertheless, TeamViewer remains optimistic about its ability to deliver long-term growth and profitability driven by a focused product portfolio and commitment to innovation,” it added.
Shares of TeamViewer were down more than 10% in early trading, taking the year-to-date loss to more than 40%.
Germany has been particularly exposed to currency fluctuations given the strength of the dollar against the euro, which hit a new 20-year low in May.
This has created problems for companies such as TeamViewer, which have large overseas operations but report their earnings in euros.
However, several analysts and investors remain optimistic about TeamViewer’s long-term prospects.
Some see the company’s recent share price drop as an opportunity to buy into a company with a strong market position, robust balance sheet, and attractive growth potential in areas such as the internet of things (IoT) and remote workforce.
“Despite the current weakness in the stock, we remain bullish on TeamViewer’s long-term prospects,” wrote analyst Johannes Schulz of HSBC, adding that he expects the company to continue growing its revenue organically in the high-single digit percentage range in the coming years.
While the latest revenue forecast revision has raised concerns, TeamViewer still remains optimistic about its long-term growth potential and expects to continue delivering value for its investors.
