By Geoffrey Smith
Investing.com -- Shares in TeamViewer (ETR:TMV) spiked to a new nine-month high before retracing most of their gains on Wednesday, after the remote German tech support specialist reported stronger-than-expected fourth-quarter numbers.
The company, whose pandemic-era sponsorship deals with English soccer club Manchester United and the Mercedes F1 racing team raised its profile but angered investors, said billings had risen 20% on the year in the three months through December, adjusted for foreign exchange swings. That was in line with its full-year guidance and offered some reassurance to those who have expressed concern about the management's lack of focus since its foray into sports sponsorship.
As such, full-year revenue is expected to come in at €566 million (€1=$1.075), with billings at €630M, up around 11% in constant currencies from 2021.
The company was also upbeat on its underlying profitability, saying its adjusted margin before interest, taxes, depreciation and amortization is likely to be at the top end of its 45%-47% guidance range "despite the full effect of sport sponsorships and increasing inflationary cost pressure."
CFO Michael Wilkens said the company still sees macroeconomic "uncertainties" ahead but pledged to plow on with additional investment in research and development.
Investor sentiment toward TeamViewer has improved in recent weeks after it negotiated a way out of a €250M five-year shirt sponsorship deal with Manchester United that many thought was beyond its means. Activist investor Petrus Advisers, which holds a stake of around 3% in TeamViewer, had gone public with its criticism late last year, calling the Man United and Mercedes deals signs of "hubris and appalling judgment."
The soccer club now has an option to buy back the sponsorship rights - an event that seems likely given that it can probably strike a better deal now that the pandemic is over. That will be doubly true if the club's current owners - the U.S.-based Glazer family - complete their plans to sell it.
Analysts at Barclays kept the stock at 'overweight' after the news, although it kept its price target at €14, less than 6% above current levels. Goldman Sachs and JPMorgan however left it at 'neutral'.
By 08:45 ET (13:45 GMT), TeamViewer stock was up 2%, having earlier gained as much as 7%.