- Wednesday, October 16, 2024
Shares in TeamViewer soared on Tuesday following the company's announcement of better-than-expected earnings and its confirmation of its outlook for the current year.
At 08:36 GMT, TeamViewer's shares experienced an 8.5% increase, reaching EUR16.78.
During the second quarter, the German software company reported adjusted EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) of 63.8 million euros ($70.2 million), surpassing the consensus estimate of EUR61 million.
TeamViewer also witnessed a significant rise in after-tax profit, climbing to EUR34 million from EUR11.7 million in the same period last year, thanks to higher revenue and lower financial costs.
The company expressed confidence in its future prospects.
According to RBC Capital Markets analysts Wassachon Udomsilpa and Richard Chamberlain, TeamViewer has been undervalued compared to its peers over the past three months due to skepticism regarding its growth outlook. However, they stated that consistent delivery on expectations should ultimately restore confidence in the company.
For the entire year, TeamViewer projects an adjusted EBITDA margin of approximately 40% and anticipates revenue growth ranging between 10% and 14%.
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