German software developer TeamViewer laid out its medium-term revenue growth targets on Wednesday after it completed its acquisition of IT firm 1E, sending its shares around 5% up.
TeamViewer forecast revenue in 2028 to be between 1.03 billion and 1.06 billion euros ($1.07-$1.10 billion) with an adjusted EBITDA margin forecast of 44% to 45%.
The company generated revenue of 671 million euros in the fiscal year 2024, while the adjusted EBITDA margin stood at 44%.
Shares of TeamViewer were 5.2% higher by 1046 GMT.
TeamViewer made a strategic acquisition of London-based IT firm 1E for $720 million in December.
Shares in TeamViewer were volatile over the last two months, falling by more than 20% after the acquisition announcement, followed by a gradual recovery on stronger-than-expected preliminary full-year results.
While stock market reaction on the news was initially not good, 1E comes with major blue-chip customers and a focus on the U.S. market, expanding TeamViewer’s global footprint, CEO Oliver Steil told Reuters.
“It is never very cheap to make an acquisition, but it’s important to develop strategically,” Steil said, adding that the combined entity sees good medium and long-term synergy potential.
The enterprise business, which accounts for about 23% of total revenue, has been growing in significance for TeamViewer.
In the fourth quarter of 2024, its revenue rose 37% to 45.5 million euros from 33.3 million a year ago. The growth was largely seasonal as most of the enterprise business occurs towards the year’s end, Steil said.
On the U.S. market, he noted slightly improved sentiment among the company’s customers and partners following the presidential election there. Prior to the election, TeamViewer had experienced uncertainty and slower purchasing from its customers.
The Americas region contributes about 35% of the company’s total revenue.
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