(Reuters) -TeamViewer said on Tuesday it expects full-year revenue to be at the lower end of its prior outlook of 778 million euros to 797 million euros ($907 million-$929.5 million), driven by weakness in its recently acquired 1E business.
Standalone annual recurring revenue at 1E, a December 2024 acquisition, which develops products that detect IT issues, was below expectations due to "ongoing transformation and persistent macroeconomic challenges", the company said in a statement.
In the third quarter, overall revenue grew 4% on a constant currency basis, while sales from 1E slipped 8%.
In addition to the muted macroeconomic environment in Europe, "ongoing macro challenges" in the United States, 1E's traditionally strongest market, affected sales by slower customer decision-making and reduced deal volumes, it said.
"Ongoing initiatives to turn around this part of the business will take time to materialize, affecting our short-term growth outlook," TeamViewer CFO Michael Wilkens said.
Overall annual recurring revenue is now expected in the range of 780 million euros to 800 million euros, from 815 million euros to 840 million euros previously. Revenue growth expectations for 2026 have also slowed to 2%-6%.
The company will implement more cost-cutting measures to partly offset the hit to revenues, it said.
TeamViewer, however, increased its forecast for 2025 adjusted earnings before interest, taxes, depreciation and amortization margin to 44% from 43%, saying it managed to keep a lid on costs.
($1 = 0.8575 euros)
(Reporting by Chandni Shah in Bengaluru, Chris Thomas in Mexico City; Editing by Alan Barona)
