TeamViewer Provides Boost for Investors After Stock’s Rough Year

(Bloomberg) -- The news is getting better for TeamViewer AG.

After a rough 2021 when its shares sunk on concern over the impact of economic reopening, the German supplier of remote working software on Wednesday gave investors some reasons for cheer.

Announcing full-year results, TeamViewer provided guidance for 2022 ahead of analysts' estimates. It also said it will start a 300 million-euro ($339 million) buyback program. The shares rose as much as 18%, climbing to the highest since early October.

TeamViewer has had a rollercoaster ride since its initial public offering in September 2019. After more than doubling in the months that followed as the pandemic led to a surge in remote-working equipment, the stock sank 73% last year as people adapted to living with the virus. At a price of 15.64 euros, it remains well below the IPO price of 26.25 euros.

Wednesday's news represents “a further step in the right direction,” according to Morgan Stanley analysts led by George Webb. Still, “we continue to see it as too early to call a fundamental turnaround.”

Positives in the results included the buyback, a “solid” rebound in the net retention rate, good cashflow and margin guidance for 2022 that was about 5% above consensus, Webb wrote in a note.

The buyback, representing nearly almost 10% of the company's shares, is scheduled to start on Feb. 3 with the aim to complete it this year. The company said it doesn't need to take on debt to fund the move.

“We decided in favor a share buyback program because our capital structure, profitability and cash flow allow us to do so,” Chief Executive Officer Oliver Steil said on a media call. While the program provides flexibility for mergers & acquisitions, the company has no concrete plans in place for any deals, he said. Steil declined to comment on earlier speculation that the company was targeted by buyout groups.