By Eva Orsolya Papp
(Reuters) -German software developer TeamViewer on Tuesday posted first-quarter revenue slightly below market expectations as customers signed fewer multi-year deals, sending its shares down over 8% at 0805 GMT.
TeamViewer's shares have declined since the end of the COVID pandemic, during which companies had used its remote connectivity software for employees and customers working from home.
The company expects revenue this year of 660 to 685 million euros and an adjusted EBITDA margin of at least 43%, seeing savings from the end of the company's sponsorship of Manchester United (NYSE:MANU)'s shirts. It said their exit from the sponsorship deal should positively affect margins in the second half of the year.
Revenue in the quarter rose 7% from a year earlier to 161.7 million euros ($174.17 million), short of an LSEG consensus estimate of 165.6 million euros.
Chief Financial Michael Wilkens was upbeat, saying the company was "more than confident" in its ability to meet its goals for 2024.
"We delivered growth in both revenue and adjusted EBITDA, a notable success given a persistently demanding macroeconomic climate," he said in a statement.
Billings for the quarter were 174.5 million euros, a 1% decrease from last year, mainly driven by the lower contribution from multi-year deals with full upfront payments.
"If business picks up in H2, the FY24 outlook would still be achievable, but we believe the lower end of the guidance seems more realistic now," mwb research analyst Harald Hof told Reuters.
($1 = 0.9284 euros)