the 14% growth that was expected based on their previous guidance. We’ll be adding shares of TeamViewer in the days to come since our thesis hasn’t changed. If TeamViewer hits that $572 guidance number for 2021, that would mean year-over-year growth of 7.6% vs. We like to focus on annual numbers, and TeamViewer revised their annual revenue guidance for 2021 downwards by 5.7% – from $607 million to $572 million ( all numbers provided in USD). Here’s what we said the day the slide began. When TeamViewer’s stock started sliding, it was largely the result of revised guidance. But losing the faith of investors is a problem, especially when you start omitting information you were presenting before. Heads are certain to be flying internally, and a consistent investor deck was probably the least of their concerns. All the signs were there that targets wouldn’t be met, but they kept assuring analysts they were on track. The management team falls on the sword for a reason. Reading the Q3-2021 initial earnings call transcript, we get the feeling the emperor was just told he’s wearing no clothes. For whatever reason, that “enterprise customers” metric was omitted from the Q3 Earnings Presentation, which is a good segue into our next subject. That’s why enterprise customers become so important as management believes that these higher spending clients will be easier to retain and up-sell. As a consequence of The Rona, TeamViewer’s net retention fell to 88% in Q2-2021 as customers canceled – something that doesn’t bode well for subscription stickiness. That’s where the second metric comes into play.
TEAMVIEWER 12 SLOW FREE
Regarding the first metric, TeamViewer discussed this in their recent earnings call stating that their ability to convert free subscribers to paid is weakening, so they’ll need to focus more on upselling existing clients. Enterprise Customers (Subscribers with Annual Contract Value above €10k).Here’s a look at how three key metrics have changed since the last time we looked at TeamViewer. Similar to PTC, TeamViewer also combines IoT with an augmented reality offering that’s been formed through a number of acquisitions. In that piece, we talked about how remote connectivity would play a key part in the growth of IoT. We first wrote about TeamViewer nearly a year ago in a piece titled TeamViewer – A German Internet of Things Stock. Now, let’s restate our original thesis and look at how key metrics have changed over the past year. We’ve now accomplished our goal of establishing a position in the company and don’t see the need to overweight the position. That dollar value is almost exactly how much money we’ve invested in TeamViewer. Then, we multiply 3.03% times the total value of our portfolio. We determine a position size by first calculating “1 / X” where X is the number of constituents in our portfolio. Right now, we’re down -36% on our TeamViewer holding with one position size worth of capital invested ( roughly 3.03%). Revisit original thesis and key metrics.Assess position damage and establish plan of action – keep buying or wait?.Whenever a stock starts hitting the skids, here’s what we like to do. We’ve asked ourselves “why is TeamViewer stock price falling?” a number of times, and so have our subscribers. People always ask Google “why is stock X falling,” but never “why is stock X rising.” That’s loss aversion on display, and we’re not immune to it. And that’s precisely what’s been happening with TeamViewer AG ( TMV.DE). That’s not a bad thing, but it feels bad, especially if the stock keeps sliding slowly over time in a dramatic fashion. While we can’t explain why, as investors, we all know that this now “feels better.” When a stock keeps falling and falling, there’s a temptation to keep buying and buying. Put as much capital into the stock as your original purchase, and the loss decreases to -15%.
TEAMVIEWER 12 SLOW HOW TO
If a stock you’re holding drops -30%, here’s how to make some of that pain go away. This is referred to as loss aversion, and it wreaks havoc when managing a portfolio. Studies show that the pain of losing is psychologically twice as powerful as the pleasure of gaining.