TeamViewer cuts guidance on disappointing growth in enterprise deals

The logo of software company TeamViewer AG is pictured during TeamViewer's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 25, 2019. REUTERS/Ralph Orlowski

BERLIN, Oct 6 (Reuters) - German software development firm TeamViewer (TMV.DE) cut its full year guidance as it reported quarterly results below its own expectations on Wednesday, saying the contribution from large enterprise deals grew more slowly than expected.

Shares in TeamViewer slumped over 18% by 1245 GMT.

TeamViewer saw a huge increase in demand for its remote connectivity software last year as many companies were forced to ask their staff to work from home. Fewer of these new customers than expected have renewed their contracts, though.

TeamViewer said it now expects 2021 billings between 535 million and 555 million euros ($617-$641 million) compared to its previous forecast for the lower end of the range from 585 million to 605 million euros.

It also cut 2021 revenue guidance, expecting it between 495 million and 505 million euros, compared with previous guidance at the lower end of the range from 525 million to 540 million euros.

TeamViewer also said its preliminary third-quarter billings grew 18% to 126 million euros, below the company's guidance for growth of at least 20%.

($1 = 0.8663 euros)

Reporting by Zuzanna Szymanska; Editing by Riham Alkousaa and Maria Sheahan

Our Standards: The Thomson Reuters Trust Principles.