The company will remain a part of the Manchester United partner ecosystem, though, given the original contract agreement stipulates a five-year term from the 2021/2022 season. This latest release is his most important move yet, allowing the company to be released from a massive >EUR50m/year sponsorship obligation should the club find a replacement sponsor.

With the introduction of new CFO Michael Wilkens last year, TeamViewer appears on course for a reversal of the ‘growth at all costs’ strategy.

With the company revising its EBITDA margin guidance lower throughout 2022, investor sentiment has reached new lows, as reflected in the falling stock price and multiples. While the sponsorship may have increased brand awareness since then, the cost-benefit has been hard to justify. Recall that back in 2021, when a COVID-driven demand spike had driven record profit growth, the company had embarked on a strategic global marketing push, including a costly marketing partnership with the English Premier League football club. TeamViewer ended 2022 with a brief release announcing it had reached an agreement with Manchester United for an added buyback option related to its shirt front sponsorship rights. At ~8x fwd EBITDA (~17x trailing), this is still priced like a growth stock, and any disappointments ahead could lead to a further de-rating.ĭata by YCharts Costly Manchester United Sponsorship Agreement Revised TeamViewer is pinning its hopes on price hikes in Q4 2022, but given the price-sensitive nature of its clients, the company could see higher churn as well. In the meantime, management’s reiterated FY22 guidance could still see downside heading into Q4 amid headwinds from a post-COVID demand slowdown for remote solutions, as well as higher competition across its predominantly small/medium business client base. Whether the club can find an alternative sponsor is another matter entirely given the ongoing pressure on marketing budgets amid a macro/consumer slowdown, I would hold off on underwriting a full P&L impact anytime soon. On paper, drawing the line on what has been a dilutive marketing contract marks another positive step by the new CFO in optimizing the financial profile. Morsa Images/DigitalVision via Getty ImagesĬonnectivity platform TeamViewer ( OTCPK:TMVWF) recently disclosed a potential exit from its Manchester United ( MANU) sponsorship deal, offering the club buyback rights to the shirt sponsorship should it successfully land a replacement sponsor.

Teamviewer replacement