Integrated AI And Remote Connectivity Will Redefine Digital Workplaces

Key Takeaways

• Strategic acquisitions, expanded AI capabilities, and unified platform integration are set to boost revenue growth, profitability, and client retention across Enterprise and SMB segments.
  
• Enhanced security and industry reputation position TeamViewer to capture premium, long-term contracts in highly regulated and sensitive sectors as digital transformation accelerates globally.
  
• Threats from integrated competitors, customer concentration, pricing pressures, high marketing costs, and necessary product upgrades jeopardize TeamViewer's profitability and market position.

Catalysts

Develops and distributes remote connectivity solutions worldwide.

• Analyst consensus expects substantial cross-selling from the 1E acquisition, but with the rapid integration pace and early traction for DEX Essentials-plus a massive existing client base exceeding 600,000-TeamViewer could far exceed expectations on Enterprise and SMB revenue synergy, leading to structural acceleration in both topline growth and average revenue per user.
  
• While consensus is already positive on AI-driven solutions and automation improving net margins, few appreciate the step-change from TeamViewer Intelligence and Copilot, which could powerfully automate IT support, compressing service delivery costs and elevating margins to the high end of the global SaaS sector, not just incremental improvement.
  
• TeamViewer's unified platform play, combining endpoint management, remote connectivity, AI and DEX, positions the firm to become the "operational core" of digital workplaces as industries globally rush to digitize workflows, enabling multi-year double-digit revenue compound annual growth rate as customers standardize on a single vendor.
  
• The transition to endpoint-based pricing and longer multi-year contract structures for both SMB and Enterprise unlocks revenue visibility and reduces churn, amplifying both recurring revenue stability and long-term earnings growth as remote device proliferation accelerates.
  
• As cyber threats and regulatory pressure intensify, TeamViewer's enhanced security, established reputation, and global footprint equip it to win large-scale deployments in sensitive sectors like government, healthcare, and financial services, unlocking premium pricing and higher-margin contracts over the next business cycle.

TeamViewer Future Earnings and Revenue Growth

Assumptions

• This narrative explores a more optimistic perspective on TeamViewer compared to the consensus, based on a Fair Value that aligns with the bullish cohort of analysts.
• The bullish analysts are assuming TeamViewer's revenue will grow by 12.2% annually over the next 3 years.
• The bullish analysts assume that profit margins will increase from 17.8% today to 26.1% in 3 years time.
• The bullish analysts expect earnings to reach €261.8 million (and earnings per share of €1.63) by about September 2028, up from €126.4 million today. The analysts are largely in agreement about this estimate.
• In order for the above numbers to justify the price target of the more bullish analyst cohort, the company would need to trade at a PE ratio of 14.6x on those 2028 earnings, up from 11.0x today. This future PE is lower than the current PE for the DE Software industry at 33.4x.
• Analysts expect the number of shares outstanding to decline by 0.92% per year for the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 7.97%, as per the Simply Wall St company report.

TeamViewer Future Earnings Per Share Growth

Risks

• Intensifying competition from large tech ecosystems offering integrated, cloud-native collaboration suites may reduce TeamViewer's relevance as a standalone solution, which would pressure long-term revenue growth and market share.
  
• Ongoing customer concentration risk is evident, particularly with the reliance on large U.S. government contracts such as the Department of Veterans Affairs, leading to vulnerability from budget cuts, contract renegotiation, or churn, which could destabilize recurring revenue and visibility.
  
• The increasing commoditization of remote access technology and the rise of open-source and freemium alternatives risk compressing prices, making it difficult for TeamViewer to maintain premium positioning and thus potentially reducing both overall revenue and net margins over time.
  
• Persistent high marketing and sponsorship expenses, combined with uncertainty about the uptake of new offerings like DEX Essentials in SMBs, create a risk that if top-line growth stalls, net margins could come under significant pressure.
  
• Industry trends such as advancements in endpoint security and zero-trust architectures may limit the use of legacy remote access protocols, requiring TeamViewer to invest heavily in product reengineering and integration, which could negatively impact earnings and margins if costs outpace incremental revenue gains.

Valuation

• The assumed bullish price target for TeamViewer is €20.0, which is the highest price target estimate amongst analysts. This valuation is based on what can be assumed as the expectations of TeamViewer's future earnings growth, profit margins and other risk factors from analysts on the bullish end of the spectrum.
• However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of €20.0, and the most bearish reporting a price target of just €11.0.
• In order for you to agree with the bullish analysts, you'd need to believe that by 2028, revenues will be €1.0 billion, earnings will come to €261.8 million, and it would be trading on a PE ratio of 14.6x, assuming you use a discount rate of 8.0%.
• Given the current share price of €8.83, the bullish analyst price target of €20.0 is 55.8% higher.
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.