TeamViewer SE (TMV) Earnings Call Transcript & Summary

Welcome to TeamViewer. Welcome to our new headquarter, and welcome to our first virtual Capital Markets Day. We would have loved to engage with you In person, which is not really possible due to COVID like the last 2 AGMs, actually. So we decided to do it here in our headquarter. This is our new headquarter, which we moved into last year and which has now been populated by our people. And we've built a stage in our headquarter to present the content for this discussion. So we look forward to engage with you. It will be exciting 3 hours. We're happy to take your questions, and we're very happy to walk you through our business and through our key financials. So why don't you follow me to my colleagues that will be on stage with you today. So we have here our President Americas, Patty Nagle. We have our Chief Financial Officer, Stefan Gaiser. We have our Chief Product Officer, Hendrik Witt. And we have our Head of IR, Daniel Fard-Yazdani, who I hand over for some initial remarks.

Thank you, Oliver. A very warm welcome also from the whole Investor Relations team to this Virtual Capital Markets Day. Many people have worked intensively over the last couple of weeks to bring this together, and we are really excited and happy that we can do this live and present what we have prepared to you today and take your questions. A couple of housekeeping remarks, as Oliver has said. The first one, we hope that you can, of course, stay with us for the next 3 hours. We know it's a busy season. So in case you can't, and that's the first remark. Of course, that whole day is recorded and will be available as a replay later on. The presentations that you will see today have been uploaded to the website minutes ago, you can download them. I would especially ask you to take a look at the important notice on Slide 2 of the presentation, which contains the disclaimers about forward-looking statements. Secondly -- or thirdly, Q&A. We know that this is an important topic for you, an important element of Capital Market Days, and therefore, we have prepared 2 sets where you can ask questions. The first one is after the remarks from Oliver and Hendrik, the second right at the end of the day. [Operator Instructions] Finally, Oliver mentioned it already, Q&A -- sorry, COVID times, you see us here on the stage without masks. Of course, the whole event has been prepared in line with regulation, a strict hygiene concept. Here, everyone is vaccinated. Therefore, no mask wearing on the stage. And with that, we hope you will enjoy the next 3 hours, and I'll hand the floor over to you, Oliver.

Thank you, Daniel. So again, a very warm welcome. Before we start talking about what TeamViewer is actually doing and all the other agenda items that you see on screen. Why don't we start with a short video just to warm us all up on what TeamViewer is all about. [Presentation]

So this is what TeamViewer is all about. Our purpose is to create a world that works better. And how do we do this? What does it really mean? You've seen some of the examples in the movie. But. First and foremost, if you look at our customers, now 628,000 paying customers on our network, what they do with our products is they digitalize. They take business-critical processes, they change it, they improve it. That's across the value chain and across all verticals. That's why our paying customers. But we also have a very large network of free users. Last year alone 1.5 billion connections by our free users. And why do we do this? We want to enable people to help each other across the world, having access to technology and cross boundaries and bridge boundaries by doing so. So in reality, our people are very proud because they do something good for society. We bridge distances, we reduce environmental footprint. We remove barriers. We enable inclusion. We give people access to global work, and that's all important and improves a little bit the way we work in -- in the world we work in. And one example is the reduction in carbon footprint emissions, 37 million tons of carbon footprint are saved just by the use of our technology because people don't need to travel and they can do this -- do things from the distance. So very important what we do here. And also, for our partners, we improve it because we make our software available to be integrated in other software pieces that allows then those partners to offer new services to improve their processes. And therefore, we are very proud that we have become a very vital part of the ecosystem of other software players that all together try to help to make the world work better. Employees are very proud of what we achieved. We have 1,500 people from 70 nationalities now distributed all around the world, and they really work very hard every day, every night to make sure we deliver on our promise. And last but not least, for shareholders, clearly, we are long term oriented. We want to achieve long term growth, we want to deliver attractive margins and generate cash. And I think we are very well on plan to do so. So with what we do with helping to create a world that works better, we believe we are sitting in the middle of some very, very important megatrends. Future of work. The way we work is changing, and it has changed dramatically since the COVID pandemic. Over the last years is changing, and it has changed dramatically since the COVID pandemic. Over the last years the share of non office work, so to say or workers that work partly from home has increased from 27% to 47% so an enormous step up. There is more devices, per capita devices in the Americas will increase from 8 to 13, just in the few years. So very significantly more devices, smart devices being connected to networks. Carbon footprint reduction, good development, I think a great development that the targets have been increased, it's even more pressure on companies to reduce travel and get better at this and move towards carbon neutrality. Very important driver of our development as well. Robotics automation, digitalization in the broader sense in all parts of the business has increased significantly more than double in terms of projected spent over the last years because it's friend of mine. And last but not the least augmented reality, a significant step up. It has become top of mind for many executives. Many companies look at using augmented reality to upscale workforce and so forth. And that has increased the projection quite significantly. It's a fast-growing market, and we are in the middle of this. So very good trends. We work in the middle of this. And now you can ask what do we actually do? What do we deliver to work on these trends and to help companies. And the answer is as simple as complicated, is we provide remote connectivity. We try to connect everything which is out there, every device, every operating system, people globally in any part of the business anytime very high reliability. And you see a few of the pictures here on what we actually connect to. We connect to vehicles, we connect to household appliances, escalators, elevators, turbines, medical equipment, computers, mobile devices, digital twins, you name it. There is connected devices and connectivity everywhere in today's companies and in today's world, and we allow for all of this. Now this is connectivity everywhere. But the next question is, how do you serve this? What's your offering? And how do you structure what you actually do? And we've got that question quite often. And here's the way how we think about it. We think of it in 3 buckets: which are then also related to our product portfolio. If you sort it -- if you try to sort the connectivity piece, then we believe there is elements which are easy-to-use tools. Instant connectivity, which is on the left here, the blue part, which is computers, mobile, servers, everything which is IT and can be connected very simply. Then there is the middle part which is connectivity into all kinds of devices, machines, robots, engines, whatever you can find in a company. We call that managed connectivity, managed enterprise connectivity because it's significantly more complicated. It requires higher security levels. It requires manageability, access rights and so forth and so forth. And then on the very right side, in the red area, this is workflows. Workflows optimization, where people do the work either in the distance or in the office, they -- or in the warehouse or in a manufacturing plant, and they really want to be more efficient, learn more, get better access to information or instructions and that for us, workflows that go beyond IT and beyond machines that touch people. And if you think about the connectivity in these 3 buckets, then our product portfolio is matching these buckets. And that's how we think about it, and that's also how we present it to the external world. So we have a blue box which you can call the traditional TeamViewer where we're coming from, which we call immediate remote support tools. You can actually download it. You can try it for free often as a free user. You can implement -- install it, implement it, use this and see how you can best make use of it in your environment and then maybe later see where you move from there. The middle part, which is managed enterprise connectivity. This is often a full deployment cloud-based of our remote as a service platform that comes with all kinds of software integrations with security, auditability, feature sets that enterprises need, single sign-on integration. It's an integral part of the software stacks of large enterprises, more complicated, of course, at the premium price positioning and also very scalable for us. And connecting into machines, IT, OT really at the cross-section there. And we enjoy significant success in this area. And then the last bit is the operational workflow optimization. Things that have to do with AR, very often based on glasses or mobile phones or tablets, touching people, touching workflows, more complicated, more complicated to implement, touching very business-critical services in day-to-day operations, often driven by a need to reduce cost or by bringing knowledge to a different place or by helping people to perform their task or by reducing errors. And we have multiple examples of this, which we're going to show later to actually give an idea of what we actually do. This is our product set, our product portfolio all sitting on our global access network, more than 1,100 routers, open APIs, scalable microservices, very well integrated with many other software packages like ServiceNow, Salesforce, Microsoft and the likes and the likes. And Hendrik Witt will take a significant amount of time today to walk you through the different products and solutions that we have and the features and the competitive positioning. So what do customers actually do with these products? Which problem are we solving? And I think it's a combination of the megatrends that we're seeing and how companies react to that. So Future of Work means customers need to set up secure workplaces. Home office setup or central work office setup or shared office spaces. And we have a work-from-home solution and online collaboration to help customers do that. On smart things everywhere. It's very important for customers to be able to handle many different devices. They all want to link it to one platform and be able to manage those and address those on a single platform and our remote support and IT management allows for that. Carbon footprint reduction. Very important, reduced travel wherever possible. That's why we have hybrid solutions for digital sales, customer service, remote access solutions so they really wherever it is possible, the travel time is reduced or the amount of travel is reduced. Robotics and automation. It's all about digitalization and our remote operations suite is important for that. And then augmented reality, the trend there, upscaling frontline workers, making -- trying to overcome skill shortage, labor shortage, a very important trend in many markets, an aging population hits digitalization trends and you need to make sure that people are up to speed with what they need to know on a daily life. And therefore, we have AR-guided workflows, field support. And so we offer a broad set of solutions which are very handy for our customers to react to the megatrends and that makes our positioning so attractive from our perspective. A few words on where we are as a company at the moment. And of course, we had significant discussions, and we're going to touch upon that in quite some detail around the lack of performance and the lack of growth in the last 2 quarters and also the impact of the post-COVID environment on us, and we're going to talk about it later. But I think it's also important to step back a little bit. We believe we are a fantastic company. We operate in very attractive markets. It's a EUR 19 billion market. I'm going to show you the details later. This market is still growing close to 20% year-over-year. So very interesting. It's digital transformation, future of work, sustainability, key priorities, which are important for customers of all verticals and of all sizes everywhere in the world. So we are sitting in a very important part of technology. The whole thing has got a huge leap through COVID. Digital transformation is top of mind. There has been a pull-forward effect on the market, yes, and that has been a help last year, and it's not so much a help this year. But generally, there is more emphasis on those trends and these markets and submarkets are growing very significantly, especially also augmented reality, mixed reality, which is going to be an 11 billion market by 2025. So attractive marketplace. We have the right products there. We have probably the best features in SMB and also for enterprise managed connectivity. We're clearly a recognized market leader in augmented reality. We continue to discover new use cases. The more we work with customers, the more we go vertical by vertical. We discover new use cases that we can power together with our customers. And this has all been working. So we see that we are able to increase our annual contract value with our customers by having more solutions available. So we're selling to these customers more and more, and therefore, ACV is increasing, and hence, the enterprise business is growing. From here, we have a significant branding opportunity. We are working with 2 of the most renown brands, Manchester United and Mercedes to drive our brand. It's an untapped opportunity. I will show you statistics later. We don't have a well-known brand, and, if it's known, it's only known for remote support. So there's a huge opportunity to develop the brand, position it for the broad solution portfolio that we have now and from there enter new segments. What we also did over the last years is to complement our go-to-market model. We were relying a lot years ago on digital conversions actually free-to-paid conversion. Now we have direct enterprise sales force. We have partner -- channel partners -- strategic channel partners. We have an APAC organization. We have inside sales and mid-market sales forces around the world. So our go-to-market model and our sales footprint is very significant to actually benefit from more products, more solutions and the branding effect that we will see over time. And then last but not least, unique financials. Enterprise was one of the examples at IPO, which was almost not existent. It has grown 4x over the last 2 years. So very attractive, very successful motion and we're going to cover that in quite some detail today. The net retention rate in enterprise is above 100%, and it's growing from here based on the new solutions that we have. And what you see now as a company with the margins that we're presenting is a company which is fully invested. We have a significant sales force, as I said. We have baked into our financial model the investments into brand and marketing, which was not the case some years ago. So all of what we need for the years to come to capture the opportunity is into our -- is baked into our cost base. And still, we have very high and leading EBITDA margins. And I think we shouldn't forget that. It's still a company that's growing year-to-date 18% with very high margin in an attractive market despite the fact that we have been investing so much and did M&A over the last 2 years and have really reworked our strategy and broaden our solution portfolio. We have high cash conversion. Clearly, our business model is very strong. But we've also given ourselves now a short-term improvement project in order to push growth even more because we're also not happy with what happened in Q2, Q3, very clearly and also improve profitability short term. This is the team, which will deliver all of this. The Management Board of 3 people. You might have read today that we agreed with Lisa that she would leave the company and step down. We are merging her responsibilities into the newly created board positions where the search is out for a Chief Commercial Officer. So that's going to happen. We have interim solutions in place, of course, focusing on digital, but we will soon get to a new Board member there. And we have a senior leadership team underneath, very experienced for technology, for product, for solution, sales and delivery, business development, regional presidents. Patty is here for the Americas. The President for APAC is going to join beginning of December. And we have Georg Beyschlag as Chief of Staff, leading customer support, HR and also doing the strategy project. So it's a more compact leadership team than in the past. We have taken the opportunity after Q2 and Q3 to streamline a little bit, reduced the positions, start to be more agile and more lean from the top as an example for the rest of the organization, and we were going to implement some of this also in the rest of the organization and streamline and focus and become more agile again coming out of this COVID. In order to do so, we've given ourselves a program. We call it remax, reduced to the max. We have it in different buckets. It's a program that will run over a very -- over different quarters. Clearly, with a strong focus on products. We want to allocate our FTE and our people on the core products. We want to renew the TeamViewer core appeal for small and medium businesses, the area where we're coming from. We have invested a lot into enterprise, into regional expansion, new use cases, M&A. I think we need to step back a little bit and foster our proposition for SMBs, where we see competition. Marketing and branding. We're not happy with the digital marketing at the moment. I'll come to that and talk through some of the challenges and the program we put in place later, but it's an important area to improve. And of course, we need to work on the sports partnerships. We want to leverage them as much as possible and optimize how we use them. Short-term billings. Enterprise in EMEA is an area where we need to improve efficiency. We're not happy with the progress there, and we will address that. And we will talk about that as well later. Patty will cover that. More cross-sell campaigns. We now have all these new products, and we should really drive them through our inside sales and digital marketing into the different regions and customer segments and leverage our strategic alliances now more and more, namely SAP and Google. There's co-selling initiatives with these partners and it's a very important step to address even larger enterprises with even larger projects with our solutions, which are integrated into Google and SAP products. Organization, I just mentioned it, some streamlining and some in the leadership, but also in -- with M&A and also in some of the locations, not much, but for us, it's already a big step if we do temporary hiring freeze is, we are a bit more modest and try to contain our cost. We have hired significantly through pandemic crisis. That was good because talent was available. And from here, we should contain it, freeze it for some time, reallocate, regroup and we will see some significant improvements from this. APAC 2.0. We have to rework APAC for sure, Q3, zero growth. This is hopefully a onetime effect, and we will see improvement from here year coming. However, we need to have better leadership and a better formula, especially in China, and we're working on this. And then lastly, trim some of the discretionary spend, which is always relatively easy, of course. So we will report on this program internally, of course, but also externally to you to give you a sense on how we're progressing so that you can see that we take active steps to learn from the last few quarters and have an accelerated path for margin recovery. So all of this leads me through the topics, which are the key topics from our perspective for today. First of all, a market update. I think it is some time ago that we talked about the market, we have again asked top-tier external consultants to help us with this to size the market, and I'm going to go through some of the results. Then a deep dive on our business composition. Clearly, most of you think about our business, and that's right. We do the same thing in SMB and enterprise. And the disclosure so far was not very detailed on these 2 separate segments. We will provide a deep dive there. Stefan will talk a lot about it. Product range. Key focus for today, you should understand as best as possible what our product range is, the solution portfolio, the competitive context, the dynamics and what we are up to in terms of future innovation and Hendrik will cover that in quite some detail. Brand investments. A lot of questions from you on the sports partnerships. Why, how, what are we going to do with it and what the benefit will be. So we will discuss that as well. And then, of course, last but not least, midterm guidance. We should show you the initiatives that make us confident that we will achieve those targets that we have laid out. And of course, also, we will talk to the levers to adapt our cost structure. So I go first on the list of topics that we need to discuss and start with the market. So what's clearly the case is that COVID has changed quite a bit in our market. Clearly, to our benefit in 2020, a significant additional uptick a bit harder in 2021 because customers had to react to what they've bought last year. And we've talked about that quite a bit about the resizing of licenses. So a mixed picture there, 2020, 2021. In any case, increased awareness, more use cases, more focus on digitalization, there is an urge to digitalize in some segments, in some industries and also in the public sector, of course. And yes, there's increased competition. More players have entered the space, players have become more aggressive, although we would say it's mostly in the entry segment. I'm going to show you some statistics around that. So first of all, pull-forward effect, EUR 300 million pull-forward effect in 12 months. Clearly, our market expectations -- market growth expectations at IPO were very different. We were expecting 24% growth relatively evenly split over the years. What actually happened is 34% growth in 2020 and significantly slower growth this year. It's a little bit of a consolidation that we see this year. So a significant headwind. And that we had, and we saw that in our numbers. But it's important to note the demand was there. It came earlier, and we were benefiting from it. And you were following us during the time. And just to remind us all here, you see on this slide, the penetration step up. So this is the monthly active devices, and you see the pre-COVID level and now the post-COVID level. So we're back to pre-COVID levels. By the way, this is our most relevant market, 80% of the -- 80% of -- the market was 80% of the billings, which I think is a good section. And you see the steep increase around the lockdowns and then the extended period where we had this more devices. So now what happened with these devices. That's a key question. They came to our network. They were using the product. We were actually refraining from monetizing those, if you remember, because we didn't want to create additional hardship for those people that connected to our network. But we were able to monetize quite nicely because we were -- during the COVID period up until December last year, we were able to convert a significant amount into paying subscribers. So this is our monthly new added subscribers. You see there's a 10,000 level pre-COVID levels. We had significant elevated demand during certain periods, pretty much in different waves, in initial wave and then a monetization wave later, and we were also monetizing at the beginning of this year. So very successful on the subscriber side. So the extra demand in 2020 has actually been converted in subscribers, and it also converted into billings growth. We were billing -- we were growing through the cycle, very nice addition. Of course, you see also how it's flattening out now in 2021 after the significant increase during the COVID period. So we've been able to convert the extra demand. So that was the short-term pull forward effect which we benefited from last year. We also raised the guidance twice last year and had significant growth in our business. That's one side of it. The other side is that, in general, COVID has significantly increased awareness for digital solutions. So this is the share of products and services that are fully or partially digitalized. And that was 28% worldwide in May '18, some growth over the 1.5 years almost to December '19 and then a significant jump. And that's what I mean by it's top of mind. Digitalization is important. The spend has gone up, $10 trillion spent on digital transformation from '19 to 2024, growing at 15%, $1 trillion spent on the future of work technologies. 57% of all total spend -- IT spend is on digital transformation in 2024. So a significant shift there. So this is good because it drives our markets. It drives different topics. So it's fundamentally a good thing, but it's also clear that this year 2021 was a tougher year in this respect because many companies were more in weight, consolidation mode from what they bought last year, and that's what we suffered from a little bit. How does the market look today? So we consider our total addressable market to be around EUR 19 billion this year, 48% instant remote support tools, 29% workflow optimization, 22% managed enterprise connectivity, rough cut. This market has been growing 23% in aggregate. We together with the consulting firm see it's growing 18% now going forward until 2025. So it will be a EUR 37 billion market, so very significant TAM expansion for us. The growth will be focused much more than in the past on enterprise. So SMB market, we see growing 12%, the enterprise market growing 24% CAGR. Why is that? We believe SMB had a catch-up effect. SMB was later to the digitalization than large enterprises, and we saw some of that already. And also a lot of the digital transformation topics, use of AR, use of advanced technology, use of connectivity of embedded devices, a more enterprise topic than SMB topics. And therefore, the growth seems to be much higher going forward in the enterprise space, and that's also why we play so decisively in the enterprise space. So this is the market. Now competition. How is competition playing out in this market? And if we go to remote support, our old bread-and-butter business. We've been asked quite a bit about competition and how this has evolved and whether we see increased competition. And the answer is yes, we do. And here, we show our customer segmentation by ACV cluster, so less than EUR 500 a year all the way up to more than EUR 10,000. You see the billings split as well. And we look at the size of the customer or the ticket size that we have with the customer and the complexity of the solution at the bottom. So -- and what is clear is the competition, the very much increased competition is a lower ticket sizes, easier use cases. So things you can do with video or simple screen share. That's where we see increased competition. The more we go up, the higher the ticket size, the more complex the solution, competition is pretty much unchanged from the past, and we are very successful in winning in these segments. And as an indicator for this dynamic, you see the subscriber churn, which is 8% in the upper segments; 12%, which I think is still for a mid-market segment a very good number. And then when we go to the bottom, 17% churn, that's clearly elevated, and that's where the competitive pressure is happening, and we need to deal with it. And we have some of our elements in the remax program are directly targeting this segment. However, we'd like to make a few comments on this competitive situation. We have been often confronted with this slide on the left, which is the global search term interest and the cutover between us and one of our competitors AnyDesk. And while it's true that on in certain markets and mobile downloads, AnyDesk has overtaken us. It's very important to go beyond the obvious when you look at this. And it's important to see the country split. And therefore, we have shown the interest by country on the right side. And what you see is there's a very, very strong bifurcation. The commercially, most relevant markets that we put here, Germany, Australia, U.K., U.S. and Japan, we, by far, lead the crowd with all the other players in terms of search term interest. These are the markets we focus in. And then there is another half or another segment of markets, where we are weaker. But we also learned over the last years that in these markets, it's very hard to monetize traffic. So it doesn't make so much sense to have so much free usage. It's a cost increase and it also is security risk quite often. So we have taken active measures. China is not even included here. We have taken active measures to validate the traffic and to validate the users, and that has reduced the traffic in some markets, and therefore, very important to have that view. The same is true if you look at the traffic split, again, on the right, you see where we are -- sorry, search term popularity. We see the countries which -- where we are in front where we are leading, and those are the commercially most relevant countries to us. In the middle, you see the top 5 countries by paid connections. These are the countries we do care most about. And we should also want to note that despite all the free user growth and the search term interest and all these statistics around it, we are still significantly larger than the other lower-end competitors that do focus quite a bit on noncore markets with their free user ecosystem. But I'm going to talk about more about our free user ecosystem later in the presentation as well. This is the competition in the entry level, and we're dealing with this as part of the program, and we will address it, and Hendrik will also cover it. However, it's also fair to note that the developments, our own organic development and M&A development over the last years was clearly focused on the upper end of the spectrum. TeamViewer Remote Management, TeamViewer Engage, Frontline, Tensor. They are all geared towards larger customers, larger ticket sizes, larger projects, more business-critical applications. For this, we have built dedicated sales force, account managers, partners, we have built mid-market on top of inside sales, and we focus a lot on privacy, feature addition, security and brands. So this has been our predominant target to become better there, have a broader solution portfolio and actively drive the enterprise development. And I think the result is very -- is worth noting. In 2018, our top 50 deals were EUR 2.6 million in billings. Now 2021, it's already EUR 4.1 million . So an increase of 400%. None of the deals in 2018 would have made it into the top deals in 2021. So we've completely shifted the way we operate. The company here, a deal of EUR 50,000 is a very -- was a very singled out event in 2018. Now it's happening regularly. Already this year, we had 30 deals more than EUR 200,000. So it's really moving up the chain, bigger-ticket sizes. We've been very successful in this. And I think it's very important to put those 2 things in perspective, the enterprise motion with. Yes, slightly more competition on the lower end in the SMB side, but we will be able to deal with this. And in the grand scheme of things, Stefan will show it. If you decompose the growth going forward, it works out quite well that enterprise is so dynamic for us. So to conclude, key takeaways on the market section. It's a big market, EUR 19 billion already, 18% growth. And there is a huge leap in digital transformation and some pull forward. So digital transformation is top-of-mind, very attractive place to be in. Clearly, yes, more competition, but mostly at the lower end and mostly in countries which are commercially not as relevant and which are also more exposed to security issues, quite frankly. So we've taken active steps to focus on the commercially relevant markets and we're very successful there. We work in markets that grow very well, especially augmented reality and mixed reality are set to grow significant now -- significantly now to EUR 11 billion in 2025. And we have been very able -- very much able to drive the enterprise markets to move into this market and the market has very good dynamics also. So we fundamentally we live -- we're in the right place. We are well positioned. Q2, Q3 weren't that strong. Clearly, we need to take action. We have a short-term program. We doubled down on this later and detail it out later, but it's a great company to be invested in. And with this, I'd like to hand over to Hendrik, who is going to take quite some time to walk you in detail through our products and solutions by segment.

Thank you, Oliver. Good afternoon, everyone. I'm very excited to be here and talk to you first time about our products. But before I do so, let me briefly introduce myself. I'm an engineer. My background is in computer science, with a PhD on Wearable Computing and Augmented Reality. After academia, I spent years in management consulting and also worked for large organizations, including SAP, before I founded Ubimax. At Ubimax, I served as CEO. I'm a true entrepreneur. I'm a visionary, hands-on person, able to develop Ubimax from zero to one of the leading AR players in the world. And I still remember actually, when Oliver called me first time, roughly 18 months ago, talking about potentially joining forces in order to grow in the augmented reality space faster. And I have to admit it immediately clicked with me because I saw the potential that the 2 companies together have in order to capture significant market share in the AR space. And now I'm here. And since 6 months, I'm not only responsible for AR at TeamViewer, but also took over responsibility for the entire product portfolio. And in my role as Chief Product Officer, my mission is, of course, to maintain the strong heritage of TeamViewer core products, but also make sure we constantly innovate. We constantly broaden our portfolio in order to make it even more valuable to our customers. And I'd now like to start this session on product with a short video showing you how our products already today help create a world that works better. [Presentation]

Like you've just seen in this video, we have truly now evolved into a leading remote as a service platform, like already Oliver introduced in the very first minutes of this Capital Market Day. Now we really have very strong segments around the core, everything around the basis of TeamViewer, evolve this into the enterprise world and then recently, after the IPO, we added a completely new segment all on very modular and very strong technology stack that will also help us to be in good shape for the future for new innovations and to further improve our products. With that product portfolio, we are now a valuable partner to our customers across the entire value chain. Not only have we broadened coverage of the value chain by adding new segments like supply chain or manufacturing, we are also now having more products to up and, in particular, to cross sell into our customer base. And the third element is that we have been becoming more valuable to our customers because now we are a true horizontal platform play. And therefore, we are valuable now if customers is seeking a platform that can support them with multiple different solutions in the different value chain areas instead of going with multiple vendors, each having a single solution only. What does that mean now? That means now we truly have moved beyond IT support. We have made us more attractive to much more buying centers. Of course, our core products remain top of mind for IT side buyers. That won't change. But with the new portfolio additions, we have been able to target now completely new buying centers. Buying centers coming from the business side, including like, for example, head of supply chain, manufacturing or training. All of these are new buying centers we can now sell our products into. And Patty will later on talk more about what this actually means for our go-to-market approach. Let me now instead talk about more how did we get there? How could we develop the product portfolio in such a short term into this completeness. And the answer is it has been able because of both organic developments but also high-impact M&A. You've been seeing us acquiring a company called Xaleon earlier this year, which brought in leading-edge, co-browsing technology, which is now helping in our Tensor product to be even more complete, even more valuable to our customer. But of course, you've also seen us doing a lot more acquisitions, in fact, 3 more acquisitions in the augmented reality space. And we've done this because we wanted to build out this new operational workflow optimization area in our product portfolio. All these 3 players we acquired, including Ubimax, where I'm coming from myself, all having products, software products, helping frontline workers to do better in their jobs. But not only have we acquired product. We also have acquired great talent, really subject matter experts that help us know as we go into the future with in-depth knowledge on augmented reality, wearable computing and business process optimization. And also, like Oliver briefly touched on, we've also acquired proven entrepreneur leadership that is now part of TeamViewer SLT, including my co-founder, Jan Junker, and myself. But now why did we double down so much on augmented reality for this new segment of products? Because we really believe that AR is the key enabler to be successful in order to improve operational workflows for people. Augmented reality without any doubt is the number one megatrend in the tech industry right now. And frankly, long time before Facebook decided to rename into Meta. And before they started talking about the Metaverse vision. And in fact, even there, augmented reality is the key to unlock this vision and make that vision become true. No, we actually wanted to build also on top of our early successes in the AR space with our TeamViewer pilot product, pilot product that delivers remote support powered by augmented reality. But we wanted to get deeper embedded into business processes. We wanted to become more sticky for our customers from our perspective. And we believe we can do this the best if we go for workflow optimization for people working away from the desk, actually working on the shop floors outside in the world because those people, which we nowadays call the frontline workers, those make up actually 80% of the global workforce. So a significant new user base we are able to tap in. And now with all these acquisitions being done, we are looking at a very attractive total addressable market for us in the AR space already of significant size today but even more important, expected over the next 4 years only to grow significantly with a CAGR of more than 40%. And if you eventually now ask yourself what is this augmented reality thing actually all about. I'm not 100% sure. Let me try and show you what it actually is. Augmented reality, you already know from your daily life. Think about your car, maybe with a head-up display. What that head-up display allows you to do is it blends digital information into your field of view. And now you can tap into digital data while you're driving, making you a better driver, making you drive the car way more safely. So a very valuable technology and a great example what augmented reality is. But now think about what would be possible if you could literally take out that piece of technology off the car, make it wearable so that humans could actually use that wherever they are, tap into digital information. It will be a true game changer. And the good news is here -- that technology is today available in the form factor of smart glasses, and it is a game changer already today in the enterprise world. And I'd like to show you next, how much of a game changer it is for our customers, for example. The first one I want to talk about is BMW. BMW is using our augmented reality product in order to improve their aftersales processes. They use remote support solutions from us to really reduce repair and maintenance time. And it is such an amazing value-add to their business that they have now decided to roll out this piece of technology across the entire U.S. dealership, close to 350 dealers in the United States now since a while already benefiting from augmented reality. And if you think the picture in the back of the slide is actually a mockup. No, it is not. This is how it looks in BMW workshops today in the United States. And you can imagine what would be possible in terms of business potential, other countries, other car manufacturers. It is a massive potential we can tap into, and it is truly a game changer for BMW. But I also want to show you another example, different industry. This time retail. Coca-Cola is using our technology to improve order fulfillment processes. With our products, they are able to reach almost 100% accuracy in terms of process quality. In fact that led them to decide rolling out already to 19 different warehouses and the target by the end of the year is to get close to 30 warehouses. But not only have they leveraged 1 solution from TeamViewer. They also have leveraged the platform -- the horizontal platform approach, being able to add more use cases and now they also use us for inspection. They use us for training, and they also use us for remote support cases. Also a great example of a land and expand strategy from our perspective. Today, more than 1,000 people are already benefiting from this piece of technology. So again, a true game changer also for Coca-Cola. But what is now all behind this? What allows to unlock all this potential for our customers? That is our product. Our product TeamViewer frontline is what allows our customers to create the Internet of humans and to really use augmented reality technology in various different business areas in logistics, manufacturing, field service, for standard remote support, and they all do this because they get tangible business benefits out of this piece of technology. Processes get faster, errors get reduced, the entire solution becomes way more flexible because all the technology you need is now worn on body. Faster upskilling is another area of benefit because the technology is so intuitive upskilling just gets faster right now. And for me also, frankly, very important, we get happier employees or our customers get happier employees by just using this piece of technology because people are not perceiving this new type of technology as a burden. They like it because it helps them to do better in their jobs and also to perform in a way more ergonomic style in some operational workflows. And all of these capabilities now have led us to a situation where TeamViewer is a recognized leader in the augmented reality space. We are best in class. We are competing head-to-head with PTC, and there's a lot of other players active in that space, including, for example, Microsoft and Google that are coming into the market from a slightly different angle, eventually more from the hardware side, but they have been actively reaching out to us being impressed by the capabilities we bring to the table in terms of workflow optimization. So that they believe that if we partner up, we can jointly grow much faster. And the same actually also happened for SAP. You have been recently seeing the announcement and the press we brought out on teaming up with SAP around our frontline product. So a great testament from the external world on how good we are positioned in the AR space going forward. But also, are we seeing strong early results internally. We are looking at more than 13 million billings for our AR business Q3 LTM. We have been able to close the largest frontline deal just in December. It was a significant upsell of an existing contract. Now a total volume of more than EUR 1 million, so a 7-digit number. And also, we see not with this 1 contract, we've been able to upsell contracts significantly from around EUR 100,000 to EUR 500,000 and above, which is all great signs. And all of this together makes us believe that we are well positioned in the AR market for the future in order to capture significant market share. With that, I'd like to turn focus over to our core products, to our -- how Oliver called it, bread and butter, this success that made TeamViewer successful in the past and that is still a key element also going forward. And I'd like to start again with a short video -- no, with a short use case, I'm sorry, showing you how our products are actually used today. Atea, for example, is a very classical IT remote support case study that I'd like to share here. They are using us very straightforward, you could argue our core products to really stay on top of their IT landscape complexity. They do more than 200,000 support sessions every year with us. It's a -- you could say a standard use case. But what my point here is the long-term partnership. They are a TeamViewer customer since more than 10 years. And you're only a long-term customer for a product from my perspective, if the organization and the product has proven over that long period of time, that it could constantly deliver the value you want to use that product for. So a great testament here. The second example I want to show is a not so standard use case. It is actually not talking about IT equipment support. It is the use case of Siemens Healthineers. And that use case is twofold. On the one hand side, Siemens Healthineers is using us to remotely maintain thousands of diagnostic devices, in this case, MRI scanners, a remote support case yet for a completely different device category, operational technology or OT devices, how we call them. Here, the interesting piece is that because of the remote control capabilities of TeamViewer, Siemens Healthineers was actually able to bring out a new service to their customers, bring out what they call a remote MRI scanning service, which helps their customers in case they don't have enough resources on site to operate those machines, tap into resources available from remote, which is obviously a game changer because that allows you to drive up device utilization of these very pricy MRI scanners. And on the same time, it allows you to reduce kind of waiting time of patients because of not sufficient amount of resources being able to operate this. A great success story from my perspective, showing that TeamViewer clearly is also able to support beyond the classical IT environment in the OT space. Why is that so important? Because with that capability, we are really in the sweet spot of operational technology, and we will benefit from device proliferation going forward because the world around us is getting smarter from household appliances getting smarter, all the way to the industrial shop floor with Industry 4.0 robots and sensors. And the amount of devices that are smart and smart embedded devices that are being connected is growing exponentially as you can see on the chart on the left side. And this growth of devices is becoming the new installed base also for us because we are well positioned to also run on those devices. We already do today. We are helping fixing outdoor lockers from remote. We help servicing inventory storage vending machines, everything else than the standard and classical IT environment. So all of that said, why are people now choosing TeamViewer also over competitors. I believe it is because of the winning combination. It is on the one hand side because of the product and its feature set, but it's also about what TeamViewer delivers around the product. People can rely on connectivity itself. Our global connectivity network is leading. They don't need to worry on which operating system or device type they are on. We just work. And obviously, they can be assured we have the latest security and data privacy available for them. But there's more around the product. People rely on our 24/7 support, not only can they rely on the support, but we can answer to them in more than 30 different languages, thanks to our global footprint. This is a massive message to our customers. And last but not least. Our customers also can be assured that there is unparalleled experience around our remote support offering because no one else has shaped the market around remote support, remote IT support, like TeamViewer over the last years. All good reasons why companies choose us over competitors. Speaking of competitors, let me -- let's look jointly at our competitive landscape. If you look at the entire product portfolio, there is, of course, competitioning happening across the product portfolio and you would expect so. so no surprises here. However, what is different? There is not a single competitor in this space that is able to deliver the same breadth of product portfolio, the same solution amount that TeamViewer is, which brings us in a unique position. But already Oliver mentioned and touched on, there is competition, strong competition happening on the low end in our most mature remote as a service product segment. And I also want to spend few more words on how well we are positioned from a product and feature perspective compared to competition. Our products remain the most complete solution offering when it comes to all kind of remote support use cases. TeamViewer is able to manage the very simple, more advanced and even the highest complex remote support cases. And we support customers no matter whether they are individuals or small teams, whether they are mid-sized organizations or even large organizations and MSPs where as the organizations are growing, the feature requirements and the functional requirements are growing as well. TeamViewer is well positioned with the product in for all those requirements that we're seeing. And the situation is different with Zoom, Teams and also AnyDesk because they focus more on the low end. But as the future requirements and the customer requirements increase, TeamViewer gets stronger and stronger. Think about helpdesk support, service case management, user management. These things matter as the organizations grow. But I also want to spend some time on another very differentiating and important piece, which is security. And in order to do so, I'd like to show you another short video on what we are doing in terms of security in order to be industry-leading. [Presentation]

Like the video has shown you, our security posture is truly industry-leading, which is a very important criteria in business buying decisions for our products. And our investment in that security space is significant. Around 50 people are working constantly on security and data protection. Over the last 5 years, we have spent more than EUR 30 million on just security and data protection. And now as a result, we also get recognized. We are a top 10% ranked in the tech industry at well-known BitSight Security index and also others are saying our security is industry-leading, which is a very strong message to our customers once it comes to a buying decision. But what are actually our users saying? When we look at the ratings at the different rating portals out there when the actual users are giving a word to how they like our products. Today, we can say we are ranking consistently high across all these platforms. Now you know there was a history in particular in Trustpilot. But you've seen us being able to significantly improve our ratings as we paid more and more attention and now look at the results. We are clearly outperforming our competitors in that regard. And in general, people love our products. Our products are great from their perspective. And we reappreciate all the feedback that we are getting. Also the constructive feedback is important to us because that allows us to better understand where we can improve our products even more as we go into the future because constant improvement is obviously key to remain successful in the future. So all in all, our product is, from my perspective, in a very good shape and ready for the future. That being said, we have to admit that because of the recent enterprise ramp-up, our focus on SMB got diluted. And we know we need to change this. We must change this quickly, and we will do so because we have put in place a concrete action plan to really regain momentum for our core product. And the initiative is kind of twofold. It looks at the outside of the product and at the inside of the product. In the outside of the product, we will be significantly improving short term the customer journey. We will be significantly simplifying the online product discovery process. We need to make sure that we are easy to find that people understand quickly which product helps them so that they can download it and then actually use the product. And we will also review our product packaging, see if we need to do adjustments there. And we will also look into the inside of the product, which is also very important. You will see us changing the user interface design. You will see us changing it to a much more state of the art, much more modern. And by the end of the day, much more premium design, a product like TeamViewer deserves. Not only will we make that sure for one product, we will also make sure we harmonize across the entire product portfolio. We will bring in place a common central design system to stay on top of design long term for all of our products. And for me, the most important aspect, to be honest, is I will specifically focus on improving the user experience, how does it feel when you actually use the product? How do we communicate when you use the product? How easy is it to find functionality in the product. How easy does the product feel. All of this is very important for me as we go into the future because that then by the end of the day will be also a key differentiator of TeamViewer going forward. I don't want to end this product session without speaking on the importance of product innovation. And I'd like to show you a short example on how our ability works around product innovation. And for this, I'd like to talk about our most recent addition to the product portfolio. Just a month back, we released TeamViewer Classroom. A product for the learning and education space where we found, in particular, after COVID or during COVID, unfortunately, that there is a need for really an online learning system, GDPR compliant and also not using any type of U.S.-based services underneath to provide this. And once we saw this, obviously, we looked at our own capabilities, at our own tech stack. And we found that we can build a new product addressing the market needs in a very short amount of time. So we've developed a product at speed. Roughly in only 2 months, we will be able to build this product. Of course, we didn't build it from scratch, which would not be a smart idea. We build it on top of our existing capabilities. In this case, on our web-based TeamViewer Engage online collaboration technology, which was coming in through the Xaleon acquisition, another example of high-impact M&A. And now we are able to tap into an adjacent market, long-term building new business around that product. Obviously, sales cycles in that space are a little longer than the months or 2. So we need to be patient on this one. But it's a great example of high time to market for products. What can you expect now from products in 2022. In 2022, you can expect from us improvements, innovation and also an increased use of artificial intelligence and machine learning, getting into our products, bringing out new services. Specifically, in 2022, we will focus on improving our user journey, like I just told you about UI/UX changes, but you can also expect us deepening third-party integrations. SAP and Google, you already have heard of us, but we will do more. We will more deeply integrate in order to accelerate growth even further. We will go into the area of warehouse management systems or do something for mobile device management. Of course, there is also new solutions and extensions coming. You might be watching out for things happening in the training space or even in the auditing space. And very early on next year, we will be launching already the first AI-powered products and services as an addition or extension to our product portfolio because data-driven services and building out these capabilities and then feeding them into the products is becoming more and more important and actually also a lot asked by our customers. So let me now conclude this session with my 5 key takeaways. We've radically expanded the product portfolio. We can now win in high-growth markets with that portfolio. Our AR product is really best-in-class and also thanks to 3 very smart and high-impact acquisitions. We have the most complete remote support offering when it comes to all the different remote support use cases that they are out there. Our feature set is industry-leading, so are the capabilities around our product. In near term, we will be focusing on improving customer journey and also, like I mentioned, the in-product experience. And with that, I hand it over back to Daniel for the question-and-answer session, number one. Thank you.

Thank you very much, Hendrik. [Operator Instructions] We will have a second session later on, as I said. For the -- in case, we have more questions than time to answer, which I think is very likely to those of you whose question, we don't answer rest assured, we will get back to you separately by e-mail later. Let me start reading out the first question to the speakers, which comes from Andreas Wolf from Warburg Research. And his question is, given the shift to enterprise clients, do you still consider the number of subscribers to be a meaningful figure. How has the number of users, seats developed over the last 2 years and what do you expect for the next years? I don't know maybe Oliver, that's a question for you.

Yes, sure. Thank you. So clearly, the increase in ASP for our customers is clearly more relevant than the number of subscribers. I mean I think as we will touch upon that in much more detail later in the other sessions. But clearly, if you think about most of the new subscribers, if you count the numbers per quarter or per month, most of the new subscribers, they come in at the very low end. So EUR 350 to EUR 500 maybe if you had a discount and even lower into the mix. And of course, you need quite a few subscribers to make a significant contribution to our overall new billings growth. And on the contrary, if we have one big new logo that we're acquiring with a 6-digit number then it's much more relevant. So the mix and the importance will change, absolutely right. It's not so meaningful from our perspective. That doesn't mean that we don't want new subscribers. Very clearly, I will go into this in more detail later how we acquire them. And there will always be a number coming, but I wouldn't overemphasize that number, clearly. And then the more we go into enterprise, yes, absolutely, you're right. User seats. I think that will become more and more of a metric that we should talk about. In the past, it wasn't this metric. It was the channel metric that we were discussing, so a number of concurrent connections. We have changed that logic with the introduction of Tensor. Tensor is not sold by channel, but by users and by seats. But we're not disclosing that at the moment, and we're not planning to do today because enterprise is still at its infancy. But over time, absolutely, we should look into this more. As you can imagine, if you look at the ticket sizes, that the number of larger deals that the share of the top 50 deals versus some years ago, yes, there is a significant increase in number of users or seats or channels because it's almost like, I would say, linear correlation in our pricing.

Perfect. The second question is from Kathinka de Kuyper from JPMorgan. She's asking in which areas do you want to strengthen your product portfolio? And do you plan to develop those technologies, skills organically or acquire them through M&A.? Oliver, Hendrik, yes?

I can take it. So look, I think we have substantially expanded our product portfolio. The product portfolio, in fact, very strong for what we want to achieve next -- over the next period of time. There is right now in a nutshell, I would say, not the need to really expand further the product portfolio. So short term, we're not looking into additional M&A activities because let's not forget we have also the organic ability to grow our products, right? And we have great talent, great R&D talent that has brought us here and is also capable of bringing us further into the future. So right now, my perspective is we have a very compelling and complete product portfolio. So we will stick for this and make this one successful.

I think it's -- if I may add, it's also -- I think verticalization is an important topic. With the product portfolio that we have, for example, augmented reality, we really go vertical by vertical, situation -- use case by use case, and we expand the lot of work that can be done and that customers ask for and that should be the, call it, short-term focus. And I think probably in one of the next discussions then also we will talk more about more strategic additions again. But at the moment, it's all about using it, marketing it, selling it and adapting it to more use cases and more verticals.

Let me take a short -- the third question from [ Christian Gronska ] from case 357. Do you already generate clients and billings with Classroom, but perhaps an indication for country volume, interest.

I can take it. So I think I tried to make clear that this is a great example of innovation. That being said, it has been only released a month ago. So -- and you can expect schools, universities, public authorities, which would lead to significant deal sizes. They typically have a longer sales cycle, right? We are more looking to 3 to 6 months there until something materializes. So it is too early to tell. That being said, there is already first customers, on the one hand side, buying still low in volume. However, there is also great momentum around the product because there's trial periods. There's a lot of trials going on where people are testing our product now. And once they have tested, they will evaluate and then hopefully come to give you more details on any type of regional split there. Of course, Germany is the number one right now where we see a lot of attention around the classroom product.

We did the first sale already in -- through inside sell source, smaller tickets, but it's happening, and it's a nice cross-sell product, not so much for public authorities like school and universities. But it's also a nice training tool -- training and onboarding tool and that was -- it's also happening.

Perfect. There are 2 questions that I would like to group together, one from George Webb from Morgan Stanley and the second from Elias Cohen from Neuberger Berman, both around the topic of the Siemens Healthineers example that has been given. So kind of, A, how does it work? Is TeamViewer reaching out to Siemens? Did Siemens build out the integration themselves? How long does it take to develop a solution such as that? And in connection to this, do you foresee TeamViewer partnering more with clients earlier on in the design phase of products and solutions to optimize remote management experience?

Yes. I think the more we go into enterprise, the more this is a situation that we work early on and think about new business processes, new offers, new solutions and services together, and I think that started some years ago. One of the first examples, I think was, if I remember correctly, was CNHI where we were talking about the co-piloting solutions on their vehicles, and that was then a pretty long development process because developing a next generation of vehicles takes years. And I think in Siemens, significantly shorter. There was an existing relationship already for years with Siemens, and I think it's a matter of joint thinking on how to improve the service and what more is possible. And I think that will happen more and more by going into more verticals and into more customer situations that now digitalized, they have their own road map. Sometimes it's a service that can be developed and rolled out in 3 months. Sometimes it's really a life cycle project, which then takes maybe 1 or 2 years, which doesn't mean we are involved the whole time, but it's just the nature of the development cycle in these companies. So more and more coming. And I think if you look at the recent press releases we do, it's more often these are cases where not just -- it's a customer win for us. We deploy a solution on customer side, but it's often a B2B or B2C situation. We help them deliver something to their customers. I think we just had a banking example just recently, which is kind of the same size -- same type, a new proposition for the end customer of our customer, and that's more and more common.

Next question -- before I come to a question that relates about market growth and our expectations, want to take a question again from Andreas Wolf from Warburg Research, who is asking for a bit more comments and colors about the upcoming departure or the departure of Lisa Agona.

Yes. I think the -- it's related to the fact that when we discussed it with her, I think she recognized, we recognized after the development of the last 2 quarters that the job profile -- job description for the CMO or the commercial function has probably changed quite a bit. I think at the outset, we're thinking a lot about the branding and the global rollout of branding and not so much about the improvement of the digital marketing, digital performance marketing, so the direct-to-customer commerce and also lead generation. I think what we learned now, clearly, we see where we have the most work to do, and that has -- is clearly in the digital. I'll talk about it later, what we're going to do there with the task force. And we want to have somebody who has that profile more because on the other side of the equation, we learned that our project team and also our partners doing a lot of work in the brand partnerships leveraging, activating themselves and help us a lot, I'm going to show an example later. And therefore, there is a shift in work content, and that has led Lisa to also say, "well, I don't think I'm the right person there." and I think Supervisory Board and us we agreed to that, and we really tried to have a new crack at that.

Thank you. Coming back to the question, and it's from Ben Castillo-Bernaus from Exane BNP. He is asking, your high-teens billing growth guidance is equal to the TAM growth expectation 18%, implying you do not expect to take market share. How does that square with your leading footprint in remote access support and also in OT solutions? Shouldn't you be growing faster than the market as a leading provider?

I will take it.

Sure.

Thanks for the question. Look, I think important today was for us to update you on the overall TAM growth because clearly there were some different numbers, which you had in mind from the past, right? I think it was important to reset expectations here. It's still a very healthy growing market of 18% growth. And yes, clearly, our ambition would be to at least achieve that, but at the same time, we want to make sure that, obviously, going forward, we hit those numbers and are basically more modest in our capital markets communication. So -- but clearly, we want to at least achieve the market growth. What I think we have to set up is, especially in our core markets, some of the other markets are relatively new for us, right? So there, it might take a bit longer for us to grow in line with market share. But generally speaking, I think that's our ambition.

Perfect. I think what I'm suggesting to do, we'll take one more kind of question complex. And then there are a couple of questions that have been sent over which we will cover partly with the presentations in the second part of the section. So they are not forgotten, but I suggest we kind of save them and then answer them after the second section. Before we go there, again, I want to group 2 people, if I may say, together, [indiscernible] Capital and one question from [ Gianni Conti ] from Deutsche Bank, who are basically both addressing the topic of how do we compare to competition, so entire product range we have, what are your main competitors, how do we differ. And [ Gianni ] is specifically asking about explanation on the top end of customers. Again, how do we differ and what are the competitors? Maybe can Oliver and Hendrik, if you want to take this.

Okay. So, yes, thank you. Good question on competition. I think I'm reading the question. I think there's the low end where we -- I think which we discussed. I think on the higher end, so to say, and you're naming BeyondTrust and Citrix as competitors, maybe also LogMeIn. Yes, they are at the high end of the ACV with customers but they are not at the high end of the solution space. So in these situations, our differentiation is really the connectivity into all different devices and all operating systems, so cases where we go beyond the office environment, and that's key. And that can be with augmented reality, with workflows, as Hendrik discussed it, or it can also be the core product. We really focus on making sure that any device, any operating system or device with screen, without screen, keyboard, no keyboard, that -- legacy devices, they can all be connected to the same platform. So our ambition to work -- when we work with customers is if we're faced with the situation that a customer wants to change business processes, remote controlling something, remote managing something, whatever the thing is, vehicle, engine, turbine, robot, we make it happen. We make it work. Sometimes security protocols are very important factor of that, for example, in the Siemens case, but there's many other cases in many other situations, verticals and subindustries and subsegments, where this is much more complex than connecting office equipment to office equipment. And that's where we excel, and that's where we put our R&D effort on, and that's where very good solutions which are recognized by customers. So that's the key point. And hence, the competition in the upper end, I think it's more bifurcated because it's either use case, which is fitting to what we are good at or it's a use case which is very traditional that may not even really go there. We don't actively look for competitive scenarios where we lift out LogMeIn or BeyondTrust, for example. It makes no sense for us. We have -- there's an ample space that we can go and provide our solutions to, and that's what we do. I think there's a few more questions when I'm reading it here. Where do you cut on R&D.? that's clearly not the idea. We refocus. We don't want to significantly support a stand-alone meeting product, which we always said, already IPO meeting collaboration stand-alone. It's not a key point for us. We also have a ticketing system, which we're not going to support to that extent anymore. We consolidate a little bit. And also, on IoT, we really bring it down to embedded devices, remote control, the core of what we're good at versus thinking about significant parts of data analytics, dashboarding and so forth. There's many solutions out there. They can all plug onto our platform. And there, we will focus and streamline.

Yes. And I think to add, Oliver, yes, we are definitely not cutting into the AR business. And in terms of R&D efforts, of course, I think that would have been a misunderstanding here. It is core to our business, so not essentially meaning the core business. So it is core to our business, so we will actually increase focus on those products. And you've been also asking around whom do we compete with. I think there's this nice chart in my presentation part showing this, in particular, for the AR side that might be not as familiar with. The key here is really PTC from the United States where we are competing with. That being said, we're coming in from a different angle to AR because PTC is coming out and has grown this business out of the cat world, so the computer, and the design world where their heritage is, and they do a lot in that space, whereas we are coming much more about process integrations, optimizations in these pieces, but we are competing with them.

Well, then I suggest we do it this way. We save a couple of questions. There will be more material in the second question that we can then also use to answer questions. And let's go right in the second part of the presentations. And Oliver, the floor again yours for branding and marketing.

Yes. Thank you, Daniel. So again, I think what I've read in the questions, there is good coverage of that in the later sections, and I think it makes sense to take them when we have gone through the other material. So let me cover branding and marketing before we then go into go-to-market, sales by Patty and then the financials. Marketing at TeamViewer. Let me introduce it to you what's happening and what we do because there's very different things that we work on, and I'd like to put them in perspective. Marketing in TeamViewer is an evolution from the viral marketing, the viral free user ecosystem with, call it, forced free-to-paid conversion to then digital demand generation by performance marketing as a second step. And then in the third step, we talk about brands. It's almost like an evolution of the company in horizons. The beginning was the reality led, then there was a lot of digital, and we should work on it, continue to use that, but then there is the third phase. What is important, I think, in maturing market, the bigger we grow, the more that's going on, the reality, the free user effect on our billings growth is less and less important. And I think that's an important point to understand, also to the previous question. The ASP of these entry customers is just small, and therefore, the bigger we grow the smaller the impact. The second piece, digital performance marketing, very important to us. We need to improve there. We will have a short-term action plan. I'm going to describe it to you because that's something where we haven't had full focus on, to be honest, because of the enterprise motions and many other things we did. But that should be reignited, and I'm going to cover that. And then I will talk a lot about brand to help you understand why and how we're going to use the brand partnership. So if we take one by one. First topic, free-to-paid conversion. This is the way to think about it. Our funnel flow in this respect is downloads of our product then an install to use the product, and then it's an active device, and it can very active or not so active. Where do we get the downloads from? From download sites, by recommendation sites, personal recommendation, a person A telling a person B to please now download the product, just device-device connectivity. I have one device and now a new one, and I want to connect, so I need to install another version. And of course, also paid campaigns. Sometimes we need paid campaigns to trigger downloads, especially in new markets. So that's already then, the question is, does that make sense we pay for free downloads to then acquire a free user. So then we go from downwards to install. And then after a certain period of usage and usage pattern, as you all know we have the paid wall. After the paid wall, what's happened either user buys a license, mostly at entry level, as I said before, or by then, and that happened a lot during COVID, they got a license through their employer maybe or through another provider. So they are somehow part of another group, which is licensed, and therefore, they can convert their free usage into paid usage but under a different license or very simply, they bounce back either to free because they find out they don't need it that much. If they ask to pay, they retract their usage or reduce their usage. Or they land with a competitor, a lower competitor. What we're trying to achieve, and that's important, is we have inflow and we have outflow, and we try to make sure from whatever we monetize, we keep a relatively stable ecosystem and stable ecosystem in core markets -- in core relevant markets. We have changed quite a bit our approach to that because some years back, we had rapid growth in free users. Some of it in markets which are not very easily monetizable but that have a significant fraud risk, and we have cut back a little bit on this one. And let me show where the ecosystem is. So again, it's important to balance in an outflow. This is where we are with our yearly active devices, around the EUR 300 million mark if you look at the white line. Now the white line is -- are the active devices, excluding China. Why do we show that? Because we've taken steps to reduce free user base and traffic in China. We have seen that there was ID reuse and many other tactics to use our product, never monetizable, actually a security risk. So we introduced account validation first. You had to have an account and make yourself known to us. We then saw that there is circumventions. So we actually added account validation with phone numbers and the likes and the likes, and that has really cut the free usage in China, which is a good thing for many other customers in other markets. The message overall, if you look at this, February 29, '19, September '21, roughly stable. You see the peak of free users during COVID, then we monetize part of it, and now it's back to the level that we had before. And that has been the situation for a while. So now the formula is, if you wish, let's make sure we get inflow, let's monetize and let's make sure the ecosystem stays relatively stable, and that's what we're optimizing for. Currently, if you look at the very end of the chart, ecosystem is in recovery remote. We have done free-to-paid campaigns at the beginning of the year, frankly, to also compensate for some of the downsell that, I think, Stefan has explained quite a bit from last year. Now there is no campaigns running. We let the ecosystem recover, hence relatively low subscriber addition in Q3 and also for Q4. Also, what we shouldn't forget is the free ecosystem is stable, but of course, the share of paid traffic has increased over the years. So more and more of the connections are actually paid, which is a good thing. And the weaknesses that we saw and that we see where we can get better will be addressed through product enhancement, UI/UX enhancement to have a better user flow, as Hendrik has presented before. So this, the ecosystem plays a role, EUR 15 million to EUR 20 million maybe new billings contribution, as you've seen on the previous slides. If you want to track it, we will disclose numbers on this one. This is what you can look out for, installs Q3 '21, EUR 51 million; yearly active devices at the end of Q3, EUR 283 million, again, looking at the relevant markets by region. So we're happy to disclose going forward more of these statistics. But again, please keep in mind, it's about stability of the ecosystem while we're monetizing part of it. So that's the viral piece, viral marketing, free-to-paid marketing in TeamViewer. If we go to the second piece, performance marketing, digital performance marketing, very important to know. We still have a top position. We are #1. We have the #1 search position in key markets for the main keywords. Yes, there is always statistics where it doesn't show up, but it's important to always search incognito, not with cookies set to different competitors and get a skewed result. If we do the analysis in the most relevant commercial markets, we are very well ahead of competition. Also, 75% of our traffic -- of the total traffic is organic. So that's also a good thing. And 36% of our new billings are coming from webshop or have been coming from webshop. So it's an important area to look at. And that's why we're absolutely open to the feedback that it hasn't worked well over the last quarters, and we need to improve because if we see what happened, here is the billings split between inside sales, the other well-oiled machine that we're having; and webshop, then you see that the share has been moving quite significantly since January 2019. Inside sales is very strong across all regions, highly educated people. Patty will talk about it quite a bit. And we are able to convert customers at good ASPs, cross-sell into new products, all good. The webshop itself where we do the performance marketing, we show content, we try to get people in through free trials and then convert them. This is not good. Reasons, suboptimal user flow, inefficient campaigning, more competition arguably as well. So we identified the problem. It's something we need to work in. It's a digital turnaround, if you want, and we have launched a digital task force that will specifically address that problem. And that's also, back to the question, the change in the job profile. A, the CMO has to focus a lot on this more than on the branding piece because, as I said, on the branding side, we have a lot of help from our partners, and I'm going to cover that later. What is the scope? It's very concrete, short-term measures to very actively turn it around. So we need better SEM targeting of our prospects in -- across countries. We have an APAC organization. We have APAC markets, but we're not very good at prospecting in APAC. So we need to strengthen the marketing in this region and also in other core markets to get prospects closer and get the prospects which have the highest propensity to buy. I think in the past, we have done lots of campaigns, lots of leads, but the lead quality not good enough, so we need to get much better in this. We also need to have a wave of SEO improvements. So we need to rank better. We're still good, but we need to rank much better on the relevant search pages for all relevant keywords in key markets. And it's always easy to get your home market, Germany and then maybe Americas, U.S. But we need to cover more markets and be more better and more fine-tuned and optimized on this, and we will address that. Then we get to user experience. If customers -- if users find us, the user experience, the ease of downloading, installing, call to action, direct purchase need to be much better. We have overcomplicated it in the last quarters, partly also because we had a significant infrastructure change from the old application landscape to the new application landscape. Not all of this is optimized to how it should be, and we're going to work on it now as fast as we can. We need simple tools also on our website that help prospects to identify the right product; for example, a license assistant to really understand the difference between channel users, seats, as was mentioned, the functionalities, what do I need, how do we run with it. So that's something which we need to do more and more. And then also trials and support, chat interaction for those who need more help. So this is a short-term orientated program, 2 to 4 months, and then, of course, continuous improvement afterwards, but we will give it a burst because we're not happy with the performance at the moment very clearly. Then we go to the next phase. All of the Horizon 1 and Horizon 2 are great, and we work on it. But as you can imagine, from the number of products and the solutions we have and the different verticals we go into, there's really a need to position TeamViewer much broader. For too many people, TeamViewer is the remote support tool from the past. And now we have so much more to offer, and we need to make that known to the world. And hence, it's very important for us to go into strategic brand development to drive consideration, to drive awareness and also have certain other positive effects, which I'm going to talk about. So this is an important part of it. Why? It's an obvious opportunity for us. This shows you our brand values, which we're going to track, awareness, consideration, purchase in our core use cases, call it, IT support for the benefit of this chart and then also in AR to take the very other end of the spectrum of our offering. And what you see is even in our core use cases, the unaided awareness is only 7%. The aided awareness is 16% because people have been using it, and if we remind them, then they reconnect. And then the consideration is only 10%. We are better than our IT support peers by quite a margin. But if you take aided and compare with Zoom, for example, who have spent a significant amount of money into brand building early on, hundreds of million, their aided awareness is much better, although they're much a younger company. So -- and then if you take, of course, somebody like Microsoft, this shows you what a global brand can carry in terms of unaided and aided awareness. And then you see how the consideration number differs and how the purchase number differs. So 4x the purchase on -- it's not directly comparable, of course, but it shows you how strong brands are when they have invested into it companies over time. And then if you take AR, there's 0 unaided awareness and 9% aided, very low consideration, small purchase. And there's all the smaller brands, they're also running at 0. So you can look at it say, "Yes, but it's already 16," but the right way to look at it is, in most use cases, we are not known. There is ample opportunity to grow the brand and benefit from the positive effect there because if your brand is known and if you continue to have the right products, there will be commercial success. That's a known fact, and that's why we're investing in it. And it's actually, what all tech players have done at some point, and the reasons are clear, as I said before, it's on the awareness side. You want to dominate the clutter. You want to stand out as one of the brands that's going to be there to stay with the broad solution portfolio and an attractive positioning because there is tech brands, there's hundreds of tech brands. And there's tech brands coming and going and brands coming and going. You want to position yourself as somebody who stays and is there to stay as a trusted partner and that people know of and think of for certain solutions, number one. Number two, positioning the solutions, work with use cases, have the ability, the platform, the content, the channels to talk about different things. If you're not out there in platforms together with use cases and content around it, people will only, only remember you for what you have been offering 10 years ago, and that's something we need to actively address. Purchase. A strong brand gives you pricing power. At the very end of a decision process, very clearly, people will sort the cheap brands with the expensive brands, premium brands positioning. People have been around, if you front of mind for your solutions, you have the ability to have higher prices, and that's what we want to build over time. And last but not least, build relationships because a brand engagement gathers people around it. There's events, people come to your events. If you are and nobody and you invite for a user conference, probably not many people will come. If you are a leading brand, many people will come, interesting people will come, decision-makers will come, and you can make something out of it. So that's why companies of all segments, all industries at some point in their life cycle invest in brand. We do the same. Of course, it's not a new idea. And it's also, in tech, we also haven't chosen things which are completely wild. We have chosen platforms, which other people have chosen as well for good reason. And if you look at, for example, tech brands, enterprise software companies specifically are leveraging motorsports to build their brand. If you look at the different names here, Cognizant, Kaspersky, CrowdStrike, Darktrace and so on and so on, just to name a few. Why is that? It's performance in tech environments where you meet decision-makers. So it's very attractive to be in this space. And hence, we've decided the same with a leading team, which can really also help us to continue to develop our solutions and develop more use cases. So this is maybe more the obvious one. But also team sports, we're getting there. We're getting, we're having more technology companies also going into team sports, especially football, basketball. And why is that? Maybe not so much which happened some years ago. Why is that happening? Because tech in sports is the future. It's clear what tech companies benefit from. It's reach, it's audiences, it's good content, it's players, it's testimonials and the like, and it's attracting talent because it's actually also attractive for our internal people. I think that's the easy part. But also, the clubs, the sports, as a business, they go tech. They need to digitalize. They need to analyze more data. They need to have different fan interactions. They need to get people closer in social media, in interactive formats. They want to appeal for younger audiences, younger target groups. They need to have digital innovation. They also need to automate themselves. Everything they do about stadium management and the likes and the like needs to become digital as well. It's like a business. It's like any other business. The use cases are there as well. But they're a bit late to this. And then there's an obvious motion there. So there's big synergies to do something together between the tech brand and the club, and that's also why there's so much movement in tech companies and sports coming together. So now we've chosen clearly, we don't need to go into the details, but if you choose Manchester United, Premier League Football on the one hand and Formula One, Mercedes-AMG, I think it can't get better. These are the best branding platforms that you can have at the moment. These sports have the highest number of followers and lots of impressions, coverage, decision-makers engaging in this, just one -- Formula One, I think, has 87 million TV viewing audience per race, and that's every second week. So that's like a Super Bowl every second week, across the world in all the regions. So you can also go very local because there's APAC region races. There's American races. So a lot going on there in these 2 sports, and we have the leaders or 2 of the leaders in the sports or at least fighting for leadership, which makes it all interesting and intense. And then also, there were questions also around, yes, but the sum you pay for the sports partnerships. And it's a logo on the shirt and why is it worth so much. I'd like to give you a little bit of a snapshot of what is actually in this thing here. And as an example, the partnership with Manchester United. Yes, it's the logo. It's is the best shirt launch ever that happened to the new partner. Of course, it was great already then massively helped by Ronaldo, clearly. But we also have -- we can get decision makers to Old Trafford. There's hospitality there. We can have joint appearances on conferences. We can do co-branding for digital assets, social media assets. There's already things that have been launched. We can do joint events and event centers. We have 10% of every home game in the Premier League of digital advertising in the stadium, which is very remarkable for a 90-minute football game. And of course, we position new products like [indiscernible] and so forth. All of this is included and more, actually, and more, and there's 200 marketing people in Manchester United that some of them is -- a large number of them helps us develop our branding, positioning and so forth. And I'm going to show you later what that all means. I mean that's all included. And that's why we also feel we get great support externally from these partners. Then, of course, what can we do together? What are the use cases? And I think it's important. You can take the same framework from product development to service for any sports club, for a racing team, for Manchester United, in particular, and you can develop use cases together, for product development, wind tunnel, user frontline, operations, logistics. They all have merchandising, sales. They have warehouses; corporate functions, of course. That's an easy one. But also virtual live event support, virtual sales support, fan service co-browsing, digital ticketing and so forth. So we have identified a large number of use cases already, by the way, before we signed the deal, of course. And now we're getting them into action one by one and make them stick and deploy our solution in the club, then create content around it and then be able to showcase it to other industries and other customers and invite customers to see it. So it's a closed loop, so to say, which is now starting to kick in. And all of the content creation, the testimonial with players, all of this is part of the deal, and we don't need to worry about it, which is very different than if you do it all on your own in other channels outside of a partner. So question was, of course, how do you track success. And we said multiple times, that will take time because, ultimately, it's paying into our brand values. Developing a brand takes time, as you could have seen. As you saw, Microsoft unaided awareness 23%. It took them quite some time to get there. So it is a long-term game, and I said at the beginning, we want to be a long-term growing company. And therefore, we need patience. But we can, of course, track as we go along the way, and here are some initial statistics, which might be interesting. They don't answer the question that you have, okay, the brand, how did that develop because it's too early days. Manchester United is like 90 days, 4 month. 3.4 billion impressions of the TeamViewer logo, 3.4 billion. That is massive. 200 million plus estimated cumulative TeamViewer audience -- TV audience, sorry, quite significant in all the matches. 173 million digital impressions of TeamViewer content. So these are huge numbers, given that it's only a short period of time. And it's -- we are the most mentioned partner during a launch period in recorded history. So you see other partnerships here between other football clubs. We stand out. It's really almost double because it's such a great fit between Manchester United and TeamViewer. Their fan base, our user base, but also the work, I have to say, the work that our team. And more importantly, the Manchester United team has put into this to make it a success, and they are very committed to make it a success. And we're very confident that this will be a great journey over time. On the other side, Mercedes-AMG, different logic. What they did for us, they did an estimate of the media value that has been created, qualified media value, so kind of really adjusting for size, logo, where it's positioned and so forth, $23 million already for 7 races, which is normally just 1/3 of the season. We came late to the season. And $3.4 million in social media. So together, say, a media value of $27 million. So 1/3 of the season in the launch where we're not even present on all the different assets that we have acquired has already made up for the annual cost that we would have. So it's a very significant coverage, clearly, benefiting from the fact that it's the record Formula One season, very intense racing, but we were going to see more of that. So off to a good start, but ultimately not what you want to see and what you want to track, fully understood. So this is the framework we will use, the one that I showed you before, use cases, the classical use cases where we see the progression then and the newer use cases and probably also more details to come, more use cases and so forth. But let us work on this. We will do that regularly probably once a quarter and update you on the development. But as I said, it takes some time. But rather than just going through the slides, allow me to show you a video. It's maybe a bit of the fact base, but I think I'd like to give you a sense of what we're working on, how Manchester United, in this case, thinks about that journey, how the launch worked and what the use cases will be in action just to give you a glimpse of this. So let's please play the video. [Presentation]

So this is the vision. This is marketing at its best from my perspective. This is really bringing use cases, fans, audience, interactivity, liveliness, emotions together with content that we can use everywhere, players' testimonials that we can use everywhere. We're at the beginning of this, clearly, only 90 days, as I said, but we have the use cases, and we're getting into communication, and you can expect significantly more out of this. So key takeaway, marketing at TeamViewer, again, from viral to digital performance marketing now to brand marketing. The reality is still important, as is our top digital position, and we will improve that. We have to do work there, understood, and we do it. Brand equity is a critical element and a massive opportunity going forward, and it goes across SMB and enterprise, and it's for years to come. And therefore, we invest there, and we'll leverage this. We have the best assets there from our perspective, reach, rights, use case opportunities, very engaging partners. And we have promising launches already, and we will come back and track the success and carry you along as we see the numbers evolve. And with this, I would like to hand over to Patty, who is changing gear into go-to-market and sales.

Thank you very much, Oliver. So first, I'd like to thank everybody who's in the virtual world right now for sharing some time with us. A long day today, but we appreciate your time. And I'm really pleased to have an opportunity to talk to you a little bit about our sales execution strategy. I'm new to TeamViewer, so let me give you a little bit of insight to my background and why I'm here. And 20 years in High Tech, heavily focused in on sales and business development execution. From a sales point of view, did quite a bit in terms of inside sales, mid-market, enterprise and, on the business development front, grew ecosystems that really embraced, if you will, large-scale strategic alliances, systems integrators and channel resources such as distributors, resellers and the MSP market. And in my last stint, couple of years with OpenText, I was actually the Chief Marketing Officer. And what I did is it really kind of brought together the demand generation to the delivery side of the equation and all the factors that go in between. So demand to revenue, brand to revenue, really balanced kind of view of the world. So you might say, "So why TeamViewer?" When I first looked at the opportunity, it was this amazing culture, this scrappy spirit and energy, and frankly, I still related to it. And I'm going to be honest with you, when I looked at the growth opportunity, it was amazing. We have an ability to define a new market and actually dominate it. So -- and honestly, today, listening to Oliver, the vision, the strategy just reminds me why I came here. So that's why I'm here at TeamViewer. So job #1 for Patty Nagle is actually all about the expanded sales motion. And what we're talking about here is to be able to take advantage of new customer segments and new markets, right? And what is sort of fundamental to all of this is the platform. You heard Hendrik talk about it earlier, like evolution, right, through both organic innovation and strategic M&A. And we now have a platform that addresses different market segments that, frankly, is going to catapult us into the next wave of growth. So we still take care for the viral, that market, which were velocity, volume, net new logos that we bring on board, the ability to really be sort of automated, low-touch and high efficiency to now being able to extend into the horizontal market, which is all about expansion. And when you think about the increased number of users and devices and complexity, it gives us an amazing opportunity to be able to tap into just an expansion capability within our core IT market. And we kind of launched that at IPO, but we've gotten a better discipline in terms of how we're going to drive that growth. Vertical. These are new markets for us, adjacent business use cases that we can land and expand with and being more proactive. So from automated to just-in-time, automated being the end user and the individual consumer to just-in-time from departmental to global deployment to being proactive with really helping customers redefine their business process optimization in terms of digital supply chains, bringing technology to the front line worker and managing intelligent devices. So it's all about the platform. And this is what our true competitive differentiation is and how we're going to be able to build and scale for growth. So I think there's 2 vectors we need to look at, right, both internally and externally. Internally, have we developed an organization? So the platform evolved. We now need to evolve our sales execution strategy. And internally, are we fit for purpose? Do we have the right people, the right talent, the right roles? Externally, we need to look at building a very rich ecosystem that can -- that truly can provide that forced multiplier effect in terms of all of our routes to market. And I think in terms of how we have to evaluate this, we have to look at a diversified strategy. We've had sort of a platform of inside sales, our core market, but now we need to look to where we can extend to and evaluating these markets come down to looking at the way that people consume, right? And across the different routes to market today, it's changed. You have different buyers. You have different decision-making processes. You go from a transactional sort of net new focus to where we land internal -- in terms of capacity expansion, oftentimes, an RFP scenario here where it takes a longer time and all the way through to sort of where we're redefining new business strategy for companies on an operational point of view. And they need to actually test this out. We've got to make sure that we're not going to be disruptive to their implementation. So when we look at it in terms of how we go to market and how we have to look at our organization to support this from a sales point of view, we have to embrace sort of the way that all of our customers want to consume, which is different. So where we've landed. We have 4 routes to market. It starts with inside sales, and this is our primary go-to-market. This is where we built our business, high velocity, net new logos, end user, consumer, now to enterprise. And from an enterprise point of view, we have a team that's dedicated to IT, which is that expansion model, which is geographically based, and we have an IT model or an OT model, which is vertically oriented. These give us differentiators in terms of how our teams are structured and where and how they go to market. We overlay that with a channel sales organization, which is dedicated to really helping them expand and accelerate the business. And lastly, strategic partnerships. And frankly, this is the game changer for us. When we look at what we can do, where we engage in an entirely net new ecosystem, it's not just us building the ecosystem. It's actually us entering an ecosystem. These companies have large-scale operations, large-scale customer bases and partners. And we get the opportunity to engage with them in a completely different way. So companies like SAP, Google and Microsoft, this is the next wave of where and how we can grow. So 4 primary go-to-market organizations, inside sales, velocity, enterprise sales, land, expand, grow, net new markets, channel sales to overlay on that and a whole new net new go-to-market in terms of strategic partnerships. So when we overlay this on our funnel, we have one of the best machines in terms of developing net new logos from our inside sales organization. We marry that up now with how we are really creating a discipline and a muscle in terms of how we can increase our capacity and our expansion with just in our traditional IT market. We marry that up with operational business process capabilities in terms of our vertical market, and we layer on top of that our partner structure. This is a whole new extension to our funnel. So we're going way beyond our traditional funnel. We're going way beyond IT. And I would -- if there's one takeaway, it would be look at the 628,000 customers and subscribers. These are paid subscribers. Frankly, what customer would not die for 628,000 customers? This is our next generation of growth is going to come from, and this is where we need to really explore and extend what we're doing with our customer base. So, look, we -- over the last year, you've heard Oliver chat about this earlier on. When you're in hyper-growth mode, sometimes you have to take a pause and look at what works, what doesn't work, what are the best practices. And so some of what we've been able to evaluate this year because we didn't necessarily deliver on all of our performance as we would have liked. But what's emerged from this is really looking at how we can establish better practices across the organization overall. Bar none, our inside sales organization can deliver at high efficiency with high return. And frankly, EMEA is the benchmark for that, and I'm going to talk about that in a minute a little bit more. From an enterprise point of view, the Americas has actually cracked the code in looking at a different structure where we have dedicated IT and OT folks and looking at where we get maniacally focused on business use cases that are relevant to establishing industry prominence and really looking at scale and reputation. And lastly, when we look at [ APJ ], more of a structural alignment, right, very fractured environment there, multiple countries, culture, languages. And we have an opportunity, frankly, to put a new leadership that will drive a different level of success. So we're going to put in a hub in Singapore. We're going to add leadership, and we're going to look to really leverage best practices across the region. So these are some of the areas where we feel we could improve, and our action plan will translate effectively with these items that we've talked about. Let me also give you some insight relative to inside sales, again, because this is one of -- it's one of our best practices, if you will. We've -- we established 4 points of demand, originating in Göppingen, Germany. We also added Tampa Bay, along with Adelaide and soon to be Singapore. And why is this important? This is an organization inside of TeamViewer that is able to cover multiple countries, multilingual. They're able to really create that viral effect in bringing in net new logos or net new customers that we can parlay into from the free to paid into enterprise. And so this gives us a massive opportunity in terms of our global reach. And just to give you a proof point here. When we look at the EMEA inside sales team, which, bar none, is the benchmark for this, thinking of a couple of things exceedingly well. Number one, they bring in really intelligent, educated people that are able to ramp in an incredibly quick time frame. And what they ultimately do is they get highly productive in a short amount of time where they deliver close to EUR 300 per year per rep. Now what does that mean to us? We actually -- that translates to an ROI of anywhere from 6% to 6.5% ROI for us. That's, frankly, top of quartile in industry. When we look at the enterprise side of the equation, we started to build capacity given the IPO, and now we're a little bit at scale. We now have 140 reps that's boots on the ground in 27 countries. We're able to actually integrate and engage, if you will, with -- directly with our customers so that we can actually support that engagement model that we believe is the next phase of growth for the company. From an Americas point of view, the reason we feel we've cracked the code, 4 key drivers, right. First and foremost, talent, right? We needed to get the right people with the right kind of experience, domain expertise, verticalized, where they understand solutions selling. From a commercial economics point of view, we really needed to look at different ways of packaging our solutions, pricing, packaging, creating a more agile way to go to market. A one-size-fits-all just doesn't suit the enterprise market. From a contracting point of view, we needed to look at different terms and conditions. So we're more conducive to the way that our enterprise customers just wanted to engage with us. And lastly, on the engagement side, we're moving from a point solution to a platform solution. We're moving to a customer journey where we can produce and deliver a more long-standing, long-term ROI. So I know it's early days, completely early days, and this is what we learned over in the Americas. But in a couple of months, we've seen our ability to really condense the ramp relative to our new hires from 9 months to 3 months, getting a 60% increase. That's productivity right out of the gate. In terms of ASP, we've grown over 30%. I have a bigger ambition of growing this, and I think there's a ton of upside here. And lastly, we've taken and grown to 34 accounts in terms of ACV over 100,000. When I first came in, it was 16 accounts. In 5 months, we went from 16 to 34 accounts that could deliver over EUR 100,000 ACV. And lastly, our win rate is up. And I think it's all tied into the way that we're looking at a different way to engage with our enterprise. So I'd like to actually kind of step back and take a look at our entire base. And interestingly enough, we have an incredibly large installed base. That's 628,000 accounts, which, as I mentioned before, which is where I think our next wave of growth is going to come. When we look at this, it actually creates -- we're ready for verticalization. So when I talked about the viral to horizontal to vertical markets, we have an opportunity to really capitalize on some industry leadership within our vertical markets, and I'd pull out 2 of them. I'd look at sort of the retail and logistics side of the equation and the industrial automotive. Why -- and why? Because there's a strong correlation to our net new business use cases that we're bringing forward through our AR side of the equation. So 3 examples I'd like to give you. On the automotive side, from a field service management, see what I see, we've gotten traction with companies like BMW, Toyota, Ford, Audi. And why? We're able to provide technology that really democratizes the expertise that they can push into the field. We're talking about thousands of users because they're delivering it to their dealer communities. And it allows them to be innovative, to provide up-to-date insights and allow that field service engineer to be more educated about what they need to do. From a 3PL point of view, from a visioning, I call it picking, packing and palletizing. And one of our key accounts in that regard is DHL. DHL has actually ingested our technology. It's part of their core delivery capability. Month-to-month, they outsource -- companies outsource their supply chain to DHL, the clicks, if you've seen the commercial. DHL is the gift that keeps on giving from our perspective because we grow our ACV and our revenue on a month-to-month basis with them. Lastly, from a manufacturing and a maintenance point of view, we are literally working with the intelligent devices in the field and maintaining them. So the uptime is at almost semi-100%. [indiscernible] Coca-Cola, Medtronic. And this is literally business process change for these companies, right, mission-critical kind of capability, where we're able now to provide that technology to them through our whole platform capability. Emerging markets coming, and we'll certainly keep an eye on it. But I think one of the things that we've done from the Americas point of view is we're maniacally focused on a couple of key business use cases because this is where we want to grow, referenceability, we want to grow scale, and we want to be in a dominant position. And so what's the so-what in all of this, okay? Well, the value of the platform, right? We want to monetize each and every aspect of how we bring technology forward. First and foremost, on the horizontal IT. This is straight-up expansion, capacity increases, increased devices, end users, increased complexity. So we have a $30 billion technology customer who started in 2019 at less than $150,000 in terms of ACV. Today, it's 400. If I do my job correctly in Q4, that's going to materially increase. And that's just within our core market of IT. And then when we look at sort of net new adjacent markets where we can play, we have an opportunity just with frontline, right? We start with the POC type of model. I talked about the different aspects of the way people buy. When you're literally creating business transformation in a company, they're not just going to implement something without doing a POC and without really understanding how it will impact overall. So started in 2020, $100 billion automotive company. You can probably guess who it is. And now we did our single largest deal, well over $1 million, and that's Phase 1. That's Phase 1. So we went from proof of concept to full deployment. And lastly, in the manufacturing space, it's a medical device company that we work with. Started off with Tensor. We were able to sell them on a proof of concept with frontline. And then we brought that forward to a combined implementation, whereby now they're using the entire platform. So we can monetize our entire platform all in one with one company. So look, I've given you some insights relative to why companies buy, why they decide on TeamViewer. But I think it would be good if you heard directly from them. So I'm going to let you hear a few comments from our customers. [Presentation]

So when we look at that, what did we hear? Innovative, trusted, long-term ROI. This is why our customers are selecting us. So that said, let's go to the second dimension. We had -- we talked about the internal dimension in terms of how we needed to restructure from a sales execution point of view. Secondarily, we have to look at our external market. We need to ensure that we have a rich ecosystem that's going to be able to wrap around what we do from all of our segments. And from that perspective, just to give you a smattering of sort of where we're at, distributors and resellers, we will continue to engage with. They provide great velocity in terms of reach in market from a reseller point of view. They give you local expertise. But I will tell you from my own personal experience, this is all about -- it's a quality issue and not a quantity issue. So we're going to be mindful of that. We want high-quality partners that we engage with from a distributor and a reseller point of view, but what's even more interesting is the opportunity for us to land with strategic partner engagement, okay? And what I mean by that is, look, we have to have a certain book of business where you get systems integrated, interested, right? Market dominance, a certain presence in the market, and therein lies where we're now getting a lot of interest from our systems integrator partners. Tech Mahindra in the automotive space, Accenture, Deloitte, retail and in several other industries. And lastly, sort of the Holy Grail, right, is where we actually are partnering up with leading application providers, SAP, Google, Microsoft. Microsoft, long-term partner. Those integrations with Microsoft are a huge competitive differentiator. Google, which we announced a couple of weeks ago, huge opportunity in the retail space out of the gate. More to come on that. And there's 1 partner I really want to take a few minutes on, which is SAP. So we announced SAP a couple of months ago, and we've gone sort of live, if you will, 30 days or so. So we're in their marketplace. We're fully -- full throttle, ready for engagement. I want to take a moment and just pause and say, so from my personal experience, having worked at OpenText, one of my first remits was with the company was to really grow the relationship. We went from 0 revenues to over $3 billion top line. Drop the mic. It was really heralded as one of the best-in-class, both by financial and industry analysts alike. And why? They take a very concerted approach where it is all about customer value. It's all about what they can deliver in terms of ROI to their customers. And they do it through deep product integration. You don't know where their product starts and ours ends. It gives us an opportunity to be -- and they do premium qualification, which is a rigorous process with which you get sort of the good house seal of approval. And frankly, customers will not buy your product in the SAP landscape, if you don't have that kind of certification. And in regards to the vertical orientation, this is where and how and why we are actually organizing vertically. Not only do we want to do it to address our customers, we want to do it to address our partners. And then lastly, from a joint marketing engagement point of view, this provides -- we have an -- the way you actually engage with SAP, you do monthly pipeline calls, they bring you into the customers, you do collaborative events. That joint engagement is all important. It's not about necessarily top of funnel marketing development. It's about mind share with their sales folks. And when you consider, right, that 400,000 customers, they have over 400,000 enterprise class and grade customers, and they have over 25,000 sellers, this changes your world. So I think if TeamViewer does this correctly, we can actually see a material impact to the way we want to grow our business. Lastly, I want to just put a little bit of a spin on partnerships here with sports partnerships. You heard from Oliver all of what we're doing. And I was really kind of a negative Nelly when I first came here, and I saw the partnerships. But I'll tell you, we call this the virtuous circle or what I would call the circle of life, right? You got to get big deals to get the attention of partners. You've got to have partners to get greater market prominence. We've actually started to create this spin cycle here with the wind beneath our wings, where by having large accounts that we've established some level of presence with, we've attracted the likes of Google, SAP, Microsoft. And now we layer into this, the ability to partner with iconic brands, iconic brands in the form of Mercedes and Manchester United. I'm going to give you 3 quick examples. A couple of weeks ago, I went to Formula One in Austin, Texas. There's a little picture up there of the folks that attended. We had 20 C-level executives that joined us. We had a weekend with these guys. When and how do you get a weekend with C-level executives from your top accounts? Not only could we network with them, and not only did they see our technology in action in relation to Mercedes, but their peer groups were there. And frankly, our peer groups on a technical basis were there. So it was an amazing event. And as a CMO, as a prior CMO dollar to pound here, one of the most amazing events I've seen. Another example with what we're doing, Manchester United, they brought all their sponsors together. No customers, just sponsors, and they brought them together a week ago. And this actually allowed for us to look at where and how we could collaborate with those partners. Manchester United has a large merchandising partner. They're now looking at using our technology for picking, packing and palletizing. And lastly, GITEX, right? Huge customer electronics forum in Dubai. We were there about a week ago. Now we weren't able to put it onto the floor, but what we did do is Mercedes allowed us to create a like experience around the pit. And what we did is we put this pit outside. And I'm talking about the car and all of the folks that go in the zzz, they change the wheels and they really give you the full experience. We had literally over 1,000 leads just through to that particular forum at the event. So I think when you look at this, right, it's the wind beneath the wings in terms of where and how we can create not only relationships with our peers from a partnering point of view, but also in terms of what business sponsorship can do for you. So let me pull this all together for you. The Holy Grail of a SaaS company, right, is NRR. So when you look at what we can do, we're roughly 100% right now NRR, let's look at what we can do strictly in terms of the increase in our global IT expansion. Let's look at what we can do in terms of our net new adjacent business cases from an application expansion. Let's look at what we can do from our partner extension. And basically, it's more sticky, more upsell, more cross-sell, more NRR. So from that perspective, I'll leave you with this. We have created a world-class global sales force that's ready for prime time. We have now the ability to really address cross-pollination across all of our routes to market with a platform bar none that Hendrik has talked to you about. And we have vertical focus, which is going to give us leverage not only with our partners, but our customers. We're going to transfer best practices so we get organizational alignment. And lastly, we're going to leverage our strategic alliances to be truly force multipliers in our growth. So I thank you for your time today, and I'd like to pass it over to Stefan Gaiser, my colleague.

Thank you, Patty. And actually, it's great to have on board, Pat and Hendrik. I think lots of very positive things going on, I have to say. Actually, also good to hear you talk about all of the go-to-market activities. Now frankly, the world has changed also how it opened up again, and we can see our customers again and tell them about our solution portfolio. So very good. 2.5 hours into the CMD, it's actually getting a bit warm in here. But anyway, so final section, yes. Let me quickly introduce myself, Stefan Gaiser, Chief Financial Officer at TeamViewer since more than 4 years. As you might know, my tenure comes to an end. However, that's only in summer 2022. So still plenty of time that gives us ample of headroom actually to find my successor and probably onboard him or her. And therefore, clearly, I will focus on during the remaining time of my tenure we'll focus on the action items which we have clearly laid out today in which I will also reiterate again, that's clearly significant focus on the short-term action items, especially around the cost containment because that's clearly a key focus area for me going forward. So with that, let's get started. Clearly, I think you have heard now enterprise is a relevant part of our business. You can see on the left-hand side of this chart how the business evolved from a predominantly SMB-oriented business, EUR 230 million of billings in 2018 now up to EUR 460 million in 2020. Back in 2018, very little enterprise revenue. That was really the start of the enterprise business. 2019, actually good start. Early successes in the enterprise business, EUR 17 million. 5%, now in 460 -- sorry, in 2020, already more than EUR 50 million, 11%. And now, where are we after 9 months 2021? Already at 16%, EUR 64 million out of EUR 394 million. So clearly, enterprise has become a key part of our business. SMB is still also a nice growing business and actually significant upsell potential for us as we'll talk about. Those businesses are clearly on different growth profiles, as you can see on the right-hand side of this chart. Upper one shows the enterprise momentum and the lower one shows the SMB momentum. I think the picture why enterprise is becoming more relevant, it's actually even more visible on this chart here. You see based on the left-hand side, the incremental billings, how we generated them between the various -- between the 2 segments. So in 2019, EUR 325 million. And then we added roughly EUR 135 million of incremental billings in 2020. Clearly, significant pull forward demand, corporate-related pull forward demand, which benefited the SMB and the enterprise, 1/3 -- sorry, 1/4 already coming from enterprise, but 3/4 coming from the SMB business. If you take a look at the right-hand side, actually of that graph, that has significantly changed, right? The enterprise business in the last 3 quarters has already accounted for 40% of incremental billings. So clearly becoming a very relevant part of our business with very different growth trajectories. And that's why actually we want to break out those 2 customer segments in much more granularity than we did in the past. Overall, it's clearly a very simple billings model for both customer segments, and I want to show you the key drivers behind both of those. On the left-hand side, the SMB business, very easy. It's starting -- it's the number of subscribers. You bring in new subscribers, you have churn subscribers, and that obviously gives you your ending number of subscribers and you multiply that with the ASP and that gives you your overall SMB billings. Clearly, going forward, ASP will be a big component of this growth. On the right-hand side, enterprise, clearly, more complex, 3 pillars, I would say. You have the existing enterprise customers, and you heard Patty talk about how we actually cross and upsell those customers. We have a significant billing stream from taking SMB customers and move them into the enterprise pocket. And finally, we are able to win new customers, and that obviously gives us the total enterprise billings. So let's start with the SMB billings. This chart shows the trajectory of our subscriber growth over the last couple of quarters. Clearly, a very strong growth, as you can see, we started off with 300,000 in Q1 2019. Quite a significant growth, yes. You might remember during that time, we have also gone through the business transformation from a perpetual license model to a subscription model. So we saw quite some benefit from taking old perpetual customers and move them to subscription customers. But on top of that, we've been able actually to win a significant amount of new customers driven by free-to-paid campaigns, expanding our sales motion across the globe, et cetera. But yes, that growth has come down, as you all are aware of that. And why is that? Take a look at 2019. We added overall 192,000 of subscribers, clearly also a tailwind from the migration. In 2020, net additions of 120,000 subscribers, clearly also benefiting from the uplift from the COVID demand. And where are we right now after 3 quarters? We added 43,000 net subscribers. So even with all of the tailwinds, we -- sorry, the headwinds we experienced in 2021, we've been able to generate more than 40,000 subscribers or net additions to our subscribers. And that's clearly also our goal in the midterm to continue to have a nice inflow of new subscribers. There are 2 ways basically to deal with that, one is obviously winning new customers, and I think you heard us talk about what we are doing to actually increase our attractiveness in the SMB segment. But there's also another possibility, and that's reducing churn. Those are the reported churn numbers of our SMB business. You can see clearly, early days in Q1 2020 or first half 2020. Subscriber churn was only high digit, then it went up to 15%. And since then has actually stayed pretty flat. What happened here? I think clearly, in those -- in 2019, we brought in the long tail of our migration customers. We had more free-to-paid conversion. So those 2 customer types, I would say, have been a higher tendency to churn. And that's exactly what we experienced then in the following quarters. And on top of that, as you all know, we had a significant intake of new subscribers due to the COVID pull forward demand. So -- but despite that, we've now been able actually to keep our churn at this 15% mark. And in fact, it came actually slightly down to 14.7%. So I think we've actually been able to keep most of the subscribers also which we won during the COVID time frame, yes, at lower price points. but we've been able to keep them and hopefully have them as an up and cross the potential going forward. I think even as important on the right-hand side is how is actually subscriber churn tracking by region. APAC, highest subscriber churn, 20% to 25%. Very different by country, very loyal customer base in Japan, Australia, more tricky in China and India and in mix, it's 20%, 25%, but also actually trending slightly down. Americas 14% to 17%, yes, I think here, we had historically higher exposure towards the SMB business and less enterprising. I think you heard Patty talk about how that's going to change, yes? And the churn is in the 14% to 17% range. In our most mature market, EMEA, which has also been growing north of 20% in the last couple of quarters, churn is actually only into 10% to 12%, even in that more competitive SMB environment. So churn has come down quite nicely. So what's the other element of our SMB business? We covered subscriber dynamics. And now let's take a look at ASP. Here, you can see actually a very nice and consistent increase in our ASP over the last years in 2019 to 2020, 5% increase in the ASP, and clearly also supported by COVID demand, yes, which came in without lots of discount, et cetera. But also for the last 4 months in Q3 on an LTM basis, we've actually been able to increase our ASP by 5%, if you strip away FX impact, which is actually pretty solid development from my perspective. So what are the 2 key factors for this ASP development? Obviously, 1 factor is what happens within the installed base. And I do have to say, I think I like this chart personally very much because it shows the strong stickiness of our customer base and how they like the product and how they actually intensify the usage of the product. So this cohort shows you customers, when they joined us, for example, in the lowest bar, customers who joined us in 2016 have by now increased ASP by 36%. Customers who joined us in 2017 have increased ASP by 40%. Customers in 2018 by 35%. So regardless of which customer cohort I look at, it is a very consistent upsell behavior and higher ASP over the years. So very strong and loyal customer base, which we are actually increasing in ASP because they have more usage cases for our products. The second element of ASP is obviously what happens with new subscribers you bring in. And here also, again, a very healthy development, demonstrating the pricing power we are having reflecting the premium brand and the premium product. So new subscribers, which we have brought in over the last 12 months, their ASP was actually 7% higher compared to the churn subscribers, i.e., subscribers, which have left, so also a very healthy development. And I think the benefit of this ASP subscriber growth is actually very important for a variety of reasons. Let me explain the slide. This is not a customer cohort, but this is a breakdown of billings by ACV cluster basically. So if we start on the left-hand side, 2018, that's a split of the billings in the SMB segment. So the billings split roughly ASV or ASP of less than EUR 500 28% between EUR 1,500, 43%, and above EUR 1,500 up to EUR 10,000 is 29%. So why is that important? You can see that we've been able actually to increase the ASP, and we have increased the portion of customers who spent more than EUR 1,500 with us by nearly 10 percentage points from 29 percentage points in 2018 up to 38% on an LTM basis. And actually, that is a very strong indicator for lower churn. So you can see on the right-hand side, the churn in that segment is only 8%. The churn in the middle segment, 12%; and the lower segment, 17%. So the higher we move our ASP, the lower our churn gets. I think we've been consistently very successful in moving our customers into higher ASP regions. I think the highest portion of this is actually really relevant, the EUR 1,500 to EUR 10,000 bracket because that's the enterprise -- sorry, that's the SMB pool, which you then transform into larger enterprise accounts, but we'll talk about that later on. So in a nutshell, we talked about subscriber development and how we should be able to decrease churn. We talked about the ASP developments. And clearly, our ambition is to get back to market growth of 12%. On the right-hand side, you see how this can be decomposed into 2 pillars, basically ASP growth and new subscribers. I think in a nutshell, ASP growth will be much more relevant for us going forward than adding new subscribers. I think we've been able to show you that we've been growing ASP around 5%. We will add new subscribers, and that should result in the market growth. But just to put that in perspective, only 50% -- sorry, EUR 0.50 ASP increase already equals 1,000 net new subscriber additions. So I think that really shows you that it's all about ASP and growing ASPs. So that's SMB. Let's move on to enterprise. I think a real success story for us. You can see here the number of subscribers, how that evolved 2019, a few hundreds, frankly. Then clearly, in Q1 and Q2 2020, a step change in our enterprise business, nearly doubling compared to a year ago. So a very nice step change. And since then, actually, we've been able to consistently increase the number of subscribers in that business. So we've been able to retain the enterprise customers who we won during the COVID pandemic, yes, sometimes at lower prices, but we kept up and cross the potential. But despite that step change, we've been able to grow the subscriber count quite nicely. So what are the 3 pillars of our enterprise growth? On the left-hand side, you can basically see how that growth is decomposed, and it's a very well-balanced growth, frankly. We have 3 pillars. It's obviously the retained business, i.e., existing business from existing subscribers. Then a big chunk is clearly taking SMB customers and transforming them into enterprise customers. And that's not only done through account executives. That's also done through inside sales in our channel business. And on top of that, we win new customers. So if we take a look at the left-hand side of the chart from the EUR 17 million in 2019 to EUR 53 million in 2020, basically, each of those elements contributed roughly 1/3. What's the current status? You see it on the right-hand side. We are now at EUR 78 million. As you would expect, with a growing enterprise business, the existing enterprise customers play a larger role. They already account for 60% of our business. We still have a very nice inflow of taking SMB customers and moving them up the value chain roughly contributing 20%. And then, again, we are able to bring new customers, new logos, and it also contribute about 20%. So let me talk about those 3 pillars of growth. Pillar 1, clearly, the key metrics Patty called it the holy grail of enterprise NRR. So where are we with that? I think clearly, you have now heard that the enterprise business is scaled enough to make NRR a relevant metric. In the past, we called it NRR on the overall customer base. I think now it's important to break this out. We did the calculations or we are actually setting up the systems and have run the numbers. The NRR is significantly above 100% on an LTM basis, driven by both upsell and cross-sell. Here, clearly in the enterprise business upsell and more importantly, cross-sell plays a major role. Actually, if I include the benefit of the SMB upsell, i.e., taking SMB customers and moving them into the enterprise business, that would add another 20 to 25 percentage points on our NRR, so really moving them towards the 130 range. What -- how did that evolve? Was quite a volatile development, this NRR coming from a low base, then got a significant boost in 2020 due to the immediate demand, which was COVID related. Then we had the reductions in Q1 and Q2, as we all talked about, but that has now normalized and the numbers are north of 100%. Now given that importance of the NRR going forward, you should expect that this will become a several reported item as per FY 2022. So that's pillar number one. Pillar number two, the SMB upsell potential. This is basically showing our subscriber base. As you know, we have 628,000 subscribers. I think there's a misconception out there that most of those subscribers, except our enterprise customers, are pure SMB customers, that's actually not the fact. If we take a look at our subscriber base and cut them by sizes, and basically here, we took customers with more than 500 FTEs or employees as a potential to spend more than EUR 10,000 with us. I think it doesn't take a whole lot of imagination that the customers, 500 employees or more can spend more than EUR 10,000 with us on a yearly basis. So that's our potential. 20,000 customers in our already existing installed base, which we can convert into enterprise customers. And actually, in fact, we've been doing so. We know how to do this. I think that was a key sales motion, especially for the inside sales team and now also for the enterprise team. We've been very successful because nearly 60% of the current enterprise customers were actually previously in the SMB market, right? So we've taken them with an ASV of less than 10,000 and significantly upsold them. And that's why now they are part of the enterprise business. So in a nutshell, we've only tapped into less than 5% of our customer SMB potential and to move them into the enterprise bracket. So significant headroom to grow from the SMB side of things. And then lastly, pillar number three, new customers and the deal sizes for new customers, again, also a very nice development. In 2019, new logos came in at EUR 20,000. Nice increase in 2020, yes, many of those came in at undiscounted prices came in at a rush, yes. That's why we saw a nice increase there in 25 -- of 25%. But what I find quite remarkable is the current ones actually showing a 40% increase of ASP of new customers. So very significant increase from 25,000 to nearly 35,000 on an LTM basis. So we've now discovered or discussed the SMB business, the key growth levers for the SMB business and as well as the enterprise business, and that basically wraps it up. What do we have at hand here? I think we have now a very relevant enterprise business. We have a very attractive SMB business, which is growing itself quite nicely and serves as a nice platform actually to move customers into the enterprise space. Those 2 businesses are actually performing at very different growth rates. And if they continue at this growth trajectory actually, we will be able to achieve high-teens growth going forward. So that's the billing section of the finance section. Let's move on to costs and profitability. Clearly, some concerns out in the market, how TeamViewer will be able to recover some of the margins. Basically, in a nutshell here, I've shown you our Q3 expense lines. So in Q3, we spent EUR 83 million across all of the line functions. Run rate effect would be closer to EUR 90 million. Full sales commissions, et cetera, people which we hired towards the end of the quarter, so roughly sitting on EUR 90 million. We have installed Project Remix, Oliver talked about that, to really contain costs and actually reduce them. We will commit to savings of at least EUR 10 million per annum saved through this Project Remix. That has already been kicked off. So we have implemented an FTE containment. That means pretty much a hiring freeze. We have also shifted personnel to higher growth areas. We talked about it. For example, if you take R&D, yes, that's a big change there, how we shift personnel. More importantly, we have cut back on discretionary marketing spend. We have now higher ROI spend with our marketing, sports marketing partnerships. So we can actually cut back on some of the brand equity investments, which we started a year ago when we didn't have those marketing partnerships, significant impact there. Those partnerships -- or sorry, those marketing initiatives will run out in Q4 and Q1, and we'll obviously not renew that because we have the marketing partnerships in place. I always expect better sales productivity, frankly. So I think we do have the full capacity in our P&L from a sales perspective. And now it's up to us to better leverage that. We will also take cost out. We streamlined the organization. Oliver has mentioned that we also changed the SLT layer, senior leadership team layer. And obviously, we have already identified a few redundancies in the organization and actually will take some of those redundancies as an opportunity to reduce costs. That will also come along with some nonrecurring charges of up to EUR 10 million. Which we'll spread across Q4 this year and then Q1 2022. So that's EUR 10 million savings at least starting in Q4 and then pretty much realized by the end of Q1. On top of that, we will actually start capitalizing commission costs. That's the variable part of our sales expenses. Very common in the software industry, especially in the subscription software industry. I think 95% plus of software companies do so. Why have we not done so in the past, A, we've transformed to a subscription business model, then COVID came our way. We didn't know how churn will frankly evolve. Now we're starting to capitalize those commissions, and that will probably account for another mid-single-digit million contribution each year. So -- but that's coming on top of the Remix savings. How will this affect the various cost lines? I think there was also a question in the Q&A. How do you cut back? And what does it mean? Cost of sales, look, right now, we are running at 93%, 94% GP margins. I expect that to remain constant. I think that's very good, given that we are moving forcefully into enterprise business. We've still been able actually to keep our GP margins at 93%. I think we expect modest improvement in sales, frankly, better utilization and productivity. The sales department, marketing costs slightly coming down as we take out some costs, which I talked about, R&D probably also coming slightly down in the same with G&A. From a timing perspective, as I said, most of those effects will kick in Q4 and then by the end of Q1. So clearly, there will be a phasing impact. I think this should just illustrate -- this chart illustrates how a cost containment actually will impact margin going forward. So for example, if you take the left-hand side, EUR 100 million of billings or 100%, adjusted EBITDA margin of 45 means cost base of EUR 55 million. If you increase that by 10% and you have a cost containment, your margins will actually pick up by 5 percentage points. So I think it's very visible how our margins will pick up, because clearly, our margins are very sensitive to quarterly billings, as you can see here. The recovery of the margins will be weighted towards the second half of 2022, yes, as billings growth outstrips the cost growth. Why is that? Project Remix fully kicking in by the end of Q1. And obviously, in Q1 and Q2 next year, you will see the impact of the marketing partnerships, which were not part of our P&L in Q1 and Q2 this year. So that covers profitability. What happens to cash flow? We continue to have very strong levered free cash flow. Actually, you can see that on the left-hand side. In 2019, we converted roughly 42% of adjusted EBITDA into free cash flow, so to say. Then in 2020, also significant improvement for the year as a whole. It was mid-60s, so very nice improvement, lower CapEx, lower interest payments as we restructured our leverage in 2022 and 2021. And now in 2021, in Q3 at 77%. Overall, I expect to have a high 60s conversion ratio going forward. There are no underlying changes in our working capital. CapEx has come down and will continue to come down as we have just moved into those new headquarters, was a big CapEx item in the past, and leverage has come down and hence, interest expenses have also come down. So very healthy free cash flow development overall and resulting in a very nice free cash flow yield actually. Now what does it mean from a capital structure and allocation? At the end of September, we sit on pretty much EUR 0.5 billion of cash. Gross debt of EUR 900 million, very cheap gross debt, on average, slightly above 1 percentage point interest we are paying. So I think we made use of the very good environment, which was out there, and we have a net leverage ratio of 1.5, clearly showing the business remains well capitalized with plenty of liquidity. Obviously, we continue to be fully focused on execution. M&A is not on the radar screen right now. We clearly post our activities. I think we've done quite some good M&A transactions over the last couple of quarters, frankly, as you heard Hendrik talk about and Patty. But we will only consider M&A opportunistically, so not on the radar screen right now. For the moment, there is no change to our capital allocation or returns policy, yes. Clearly, we are focused on our execution, but the full toolkit actually remains at our disposal, and we are obviously very regular review any changes in our capital allocation. So with all of that, what you heard, we are very confident that we can deliver on our guidance, which was unchanged from Q3 results. We feel very confident that we can deliver on the high teens percentage growth as well as the margin recovery. That's the guidance which we've put out. I think you've now heard a lot about how the market developed, how we are addressing this market with our products, that we pushed significantly into branding and really moved the TeamViewer brand into those new areas. And you heard Patty talk about the go-to-market routes. So a very strong basis for the high-teens percentage growth. So to wrap it up, key takeaways from the finance section. We have 2 large both growing business. We have the SMB business and the enterprise business and we have multiple growth levels for both of those. Within the SMB, yes, new ads have decelerated, but you heard us talk about how we want to reignite our ecosystem, how we actually want to reignite our core business. But more importantly, there is a continuous increase in ASP for all of the various reasons I mentioned most notably significant upsell and very strong cohort behavior, and that's becoming the more relevant aspect of the SMB growth going forward. Within the enterprise business, already sitting comfortably we're above 100% excluding the very strong contribution from SMB. And that obviously remains a key pillar of our growth going forward. So very strong traction in the enterprise business, as shown -- as we've shown you, 16% already overall and growing at more than 60%. We have a fully invested cost base. We have invested into R&D, sales and marketing. Despite that, we have an industry-leading EBITDA margin. And clearly, to address the short-term cost overrun, we've installed Project Remix, which we have already kicked off. I think we are all very much committed to get this executed and we report regular progress on this going forward as well. And with that, I would hand back to Oliver.

Thank you, Stefan. Thank you, Patty. Lots of questions that we want to answer. So therefore, just a quick summary from our perspective. I think what you've learned today, hopefully, is quite some details around our positioning. We think our positioning is very compelling. We are in great markets, and we do the right things for customers, free users, and we're sitting on mega trends. So we believe that's a very, very interesting place to be in. We have adjusted and developed -- strategically developed also through M&A, our product portfolio to really cater for these trends, our immediate remote support tools, managed connectivity, workflow optimization. We believe it's an industry-leading solution portfolio in the segments where we are in. Great positioning, great products. Also learned from what didn't go that well over the last quarters and the need to readjust. We've given ourselves a short-term improvement plan, and we actively work on it. The whole organization is fully committed to execute, as Stefan said. Clearly, performance Q2, Q3 was a wake-up call. Everybody understands we need to gear up and deliver on those short-term improvements, and we're on it. But all in all, if you put everything together from our perspective, we believe it's in a very attractive place, a very attractive company. We are in a growing market, 18% growth. Yes, slower than we thought at IPO, but still 18% growth. We have more than 10 products now leading in the AR space to tackle the different areas and pockets of growth in the market. We're operating from a brand which is only at 7% awareness even in our core segment and not even strong awareness in other segments, and we're really investing into it now, and that's fully baked into the cost structure. So there's a significant acceleration potential there already in our P&L that embedded, which I think is attractive and we think is attractive. We have developed our sales motion away from viral more into key account partners, strategic partners and mid-market, and we have added a successful enterprise business. And we have proven success in this. We have a 75% ASP growth for new enterprise customers, very significant. And we also have 75% LTM growth in enterprise. So enterprise is a big pillar of our story going forward, but we also have a resilient SMB business, and we're working to improving it even further as we have shown in the short-term action plan. Significant upsell cross-sell potential. We have, as Patty pointed out, 628,000 customers. Many of them are large and not SOHO and, therefore, can be developed into larger customers, enterprise customers with much larger deals. And we've only converted less than 5% of these customers and these logos into real enterprise customers with a bigger ticket item, and we're working actively on leveraging that going forward. And all of that, good financial profile, high margin, more than 45% margin by the end of 2022. So we believe this is an attractive business. We need to work some short-term downsides and performance deficiencies in Q2 and Q3, but we are on it. We are committed. We have a strong team. We streamlined the team and we work hard to deliver on our promise and guidance. And with this, I think I hand over to Daniel to walk us through the second part of the Q&A. We're actually a bit over time, but we will continue a bit longer so that we have full 20 minutes for Q&A, I think.

Perfect. Exactly. Thank you, Oliver. So -- and I will try to the extent possible and again, group a couple of questions so that we can cover a bit more in one go. Starting off with the first one from Miro Zuzak from JMS Invest. Regarding the reduction of your midterm growth outlook, was the reduction ticket by actual changes in the market and competitive landscape or rather by your judgment about it? Are opportunities unchanged and you are just more conservative? Or do you really think the opportunity has shrunk in this magnitude?

Yes. Let me take this. Look, I think it's quite clear. And hopefully, we bring this across -- or we brought this across today that there was a significant change in our market. I think Oliver mentioned quite clearly how there was a -- hope you can hear me better now. There was a significant change in our markets, especially a significant pull forward. And I think this pull forward clearly happened in our key markets, remote access and support, yes. And that's why we also felt the need actually to do an updated TAM study. And I think the new TAM study shows now 80% going forward. I think we here at the table feel very confident with the TAM study and the market growth out there. Yes, there's maybe more competition in the low end. I think we talked about it, yes, but low end is becoming a less relevant part of our business going forward. I think the opportunity in the OT and AI side of things are actually very realistic. I mean take a look at the customer wins, we are on a very good traction here. We have won already lots of customers. And therefore, I feel pretty bullish about -- especially about this segment.

Thanks, Stefan. The next question is from Mohammed Moawalla from Goldman Sachs. Can you elaborate on the land and expand strategy further? What are the net renewal rates you are achieving or help us quantify the quantum of upsell and cross-sell you have achieved?

Do you want to go first and [indiscernible]?

Yes. I'll go first and -- but I'll turn the real numbers over to you. I can tell you that in the last 5 months since I've been here, we are doubling down on all of our renewals. We have an opportunity to really not only take the renewal, but expand it in terms of their capacity and their expansion. So most of the renewals right now we're doing 2x on. I can only speak for the Americas, so I would hand it back to Stefan to give you a more sort of global perspective. But this is a key -- it's a key catalyst for how we engage with the customer, and we look at their broader needs. So I'm pretty bullish on what we're doing from a renewals point of view.

Let me put that in numbers. I mean, you've seen Patty talk about the customer wins which we had. We said that our NRR is north of 100%, excluding the SMB impact of 20%, 25%. I think in the past, the NRR was very much driven by expanding from IT-based solutions into OT-based solutions that really take a departmental solution outside of the IT department and moving towards the shop floor was a big horizontal driver of our NRR and basically if you add this up, it's somewhere between 120 million, 130 NRR rate, which is quite good, frankly. Very much upsell driven now over the last 1 or 2 years. That has changed. We have significantly expanded our solution portfolio and cross-sell will become a more relevant feature going forward as you have also seen by the showcases or by the use cases Patty has mentioned, right, how she took certain customers and actually moved them from an IT-led business case into an OT or AR-led business case, which was a significant impact on our overall NRR.

Thanks. The next, well, to wind up questions -- 2 questions both relate to enterprise and they are from [indiscernible] from JPMorgan again. First one our contracts still 1 year and paid up front or have you started off a multiyear contracts as Enterprise segment is becoming more meaningful. And then related to this, midterm, where do you see the mix between SMB and enterprise billings going?

Yes, very good question. Look, the vast majority of our contracts is still 1 year contract, auto renewal in place and upfront payments. That being said, I think Patty also mentioned it, clearly, the more you move into enterprise, those customers run certain processes, and they want to lock in for 3 years. We see that more and more. So far, it doesn't really play a meaningful role in us. We also see actually sometimes the other way around. The customers want to have less than 1 year contracts because they are ramping up their products and want to lump it into a larger contract than in a year down the road. So in a nutshell, the impact of multi-years and less than 1 yearly contract is very minimal, and the vast majority continues to be yearly upfront. And sorry, the second question was? The mix.

Th SMB enterprise segment one.

I think a couple of quarters ago, we said it's going to be 1/3. I think that's going to be tough. I expect that in the maybe 2 years out to be in the 25% to 30% range. I think for this year, we said it's going to be in the 15% to 20% range. We are now after 9 months already at 16%. I think so we've clearly delivered what we committed. And I think from a 2-, 3-year perspective, it should be at around 1/3, maybe a bit lower, maybe a bit higher.

Actually just going a little bit in the enterprise segment, because some questions came in still related to this one. One from Mohammed Moawalla again from Goldman Sachs, one from Ben Castillo from Exane BNP. First one, why should TeamViewer succeed in delivering enterprise growth with this current cost metrics when other enterprise software companies have much higher sales and marketing intensity? Second one, 20,000 customers that have potential to graduate to enterprise, the chart we showed, is that primarily by selling Tensor platform? What percent of those could your augmented reality portfolio serve?

Yes. So maybe first question, if I take it. I think the cost metrics that you see now is blended, right? So we have still a significant share in our SMB segment and with very efficient go-to-market models. And even in the enterprise, yes, we have the enterprise account manager. We have the channel partners. They are costly. That's true, but we also have our mid-market teams that are the most qualified inside salespeople that we have promoted into a mid-market team. And they approach customers, which are larger organizations, have been customers for us for long and convert them into enterprise customers by selling enterprise product, which is what Stefan has said in the SMB contribution to the enterprise motion. And this one is significantly more efficient than enterprise senior enterprise account reps on the field, and you see a mix of this. And we see it working very well. And of course, we have done upfront investment. So part of our kind of reduced margin, yes, it's the marketing yields, but to a small extent, it was also the overinvest or the upfront invest in our sales force, and we see that come to fruition now. The second question I think enterprise customers have potentially graduate to enterprise, is it primary selling Tensor platform? No, I wouldn't say so. It's really a mix of different offers. If it's IT-led, then Tensor is most often the next natural best product because they take it from a certain department and then they need managed connectivity, single sign and auditability, more devices, and then they move from the corporate license plus add-on channel to a more secure and more feature-rich Tensor product, which also comes with the integration into ServiceNow, Salesforce, many other software products. So it's a software game, if you know what I mean. But it could also be that they look at our solutions in other places. And in reality, our AR portfolio. I think by now is probably covering at least 60%, 70% of customers because there is use cases in warehousing, in manufacturing, in field engineering, field service, which can be covered. So only purely office work will not be catering to AR at this moment in time, but most customers have a mixed footprint. And retail, for example, is a pretty new example. Probably some time ago, I would have said AR in retail, I'm not so sure. But now it's a big trend because more and more retailers have to prepare for click and collect and have to have more instructions and more advice for their employees. And therefore, we're also now covering that segment.

I'll move away from enterprise segment for the moment and over to SMB. And Stefan, the next question probably for you again. SMB ASP, you highlighted Q3 LTM, new SMB subscribers are coming in at 7% higher ASPs. Again, there's a chart in this presentation on that versus churn customers. How much of this is -- how much of that is driven by higher capacity requirements versus changes in like-for-like pricing versus taking a broader set of products? Any indication you can give?

I know the chart, Daniel very well. So look, I think it's actually pretty much a mix of all of those. A, I would say, more upsell, more need of the product, also better mix in products. We have more remote management throwing into the ASP. And I think generally saying, it just shows that we are able to sell more of our products at higher prices into the SMB base. And I think it's a tough to really nail it down to 1 or 2 of those. I think all of those 3 items you mentioned actually contributed to the ASP growth. I think that will remain the case going forward as well.

Perfect. Another one, again, for you from [indiscernible] from RBC. If we take the Q3 marketing spend extrapolated, this would imply EUR 140 million marketing spend for financial year 2020. Is that a reasonable way to look at marketing spend budgeted for next year?

Look, a, we haven't done the budget for next year, but I think extrapolating the Q3 numbers in terms of absolute spend is, per se, not a bad assumption, yes. At the same time, you heard me talk about that we want to cut back on certain areas. But let's see, I think we're not here to give guidance right now on specific line items for 2022, but directionally, that thinking means that we now have a fully loaded marketing function, and that's by and large, correct.

Going to bundle 2 again. They both relate around the partnerships, 1 from Gian Conti from Deutsche Bank, the second from [indiscernible] from Cyrus Capital. First, are you able to quantify value add in billings from the Microsoft partnership, which is a bit more long-standing relationship or not quantifiable or not to be disclosed? Second, you started to work with Vernon providers such as SAP, Microsoft, Google. Can you give us more color for which business areas you want to work with these partners in the future? And which market share you want to open up or expand with those partnerships?

Yes. I can take that, maybe let's start with the second one or let's sort it. They're different. SAP and Google partnerships, they relate to effectively simply put co-selling for enterprise customers. There is an integration of our augmented reality solutions suite into their product suite. So in the case of SAP, for example, it's an integration into the SAP ERP system into the asset manager. So we have, as a customer, you have a seamless integrated solution to dispatch plan, dispatch, manage and then also document your service force, for example. And there's more to come around it. It's just the start. So this is product integration, joint selling to joint leads or SAP leads. The same is true for Google and other spaces where we actually work together. So this, we will manage, so to say, we will measure -- I'm sorry, we will measure this by converted leads over time. So we will actually then see from the leads that are created through this partnership. We will then convert those leads, and we will measure the contribution on enterprise billings on this -- I'm sorry, phone ringing here. So that's one. The Microsoft partnership works different. We have an integration in intense. This is a joint product offering, so to say. This is not co-selling, but it is a bring-your-own license logic. So if a customer wants to use the integrated version of the product, they've Microsoft customers and then they come to our website -- sorry, to our sales organization and they buy a license to have that. SAP, Google, at the start, as we said before, so it will take a while. We can then report win rates or contribution from that as we go along. Microsoft, we haven't disclosed the contribution of that. I'd say over the years, it has grown to an annual contribution of mid-teens or so million through this bring your own license logic.

Perfect. One more question or one question from Hannes Leitner, UBS. If we look at the slide in the presentation that covers the go-to-market model, it's evident that direct website sales makes up about 34%, which seems to be down versus the 40% disclosed at IPO. Enterprise efficiency seems to have remained stable. How should we think about the different channels going forward midterm, the relevant import?

Yes, happy to take this. Yes, you're right. The web shop performance has come down. I think we talked about in Oliver's section that we clearly need to improve the actual performance. That's why we also actually have initiated the digital marketing, action item which we discussed about, so to really drive webshop performance going forward. That being said, I think as our business evolves, we will have more direct touch points with our customers through either the inside sales business as well as the enterprise account executive team. So therefore, I would expect that webshop billings as a percent of overall billings will actually continue to decrease, yes. That being said, I think there's potential for us to improve the performance overall. The other -- the split between inside sales and enterprise market, look, I think that's a bit speculative right now. I cannot really judge. I think one of the beauties here is really that enterprise billings are not solely generated through enterprise sales team. They're also generated through the inside sales team as well as the mid-market team that Patty talked about. So we have a very efficient go-to-market model to really bring SMB customers into the enterprise space and then take it from there.

Could have a few minutes left, I probably can take 2 or 3 more. One question from Victor Cheng, Bank of America. How do we reconcile the 1.5 billion total connections per year disclosed today and the 340 million annual active devices during IPO. What are the number of active devices today? Maybe, Oliver?

Yes, I can take it. And I think it was on one of the slides that the number at the moment is 283 million active devices. And we're going to, as I said in my presentation, we're going to report on it as we go along. So it's down. Don't forget we've taken measures to reduce number of users in some markets, primarily China, which was a huge chunk, and we've also converted a significant number over -- since IPO into paying customers. And we're now seeing for quite some time, if we take the China effect out, a stable ecosystem. But we -- again, we're going to report on it on an ongoing basis.

I would actually say, I think the chart shows that if you take away those countries which Oliver just mentioned, I think the ecosystem was actually pretty flat over the last couple of years since IPO.

Good. Then 1 more question from Mohammed Moawalla from Goldman Sachs. How important are acquisitions in your midterm strategy? And if then, what is more important for you, acquiring product or distribution?

Yes, I would say midterm strategy now, as Stefan said, we're fully focused on execution of the more short-term program and the midterm plan, as we had laid out is an organic plan. So I wouldn't account for any acquisition plans at the moment. If we were to revisit acquisitions, of course, speculative what it really means. But I would say from today's perspective, we have made very good experience with acquiring product and enhance our solution portfolio and partner for distribution, right? The flow that we had is, okay, we go into AR, we go into engage, we go into new areas to serve more. That has made us interesting for distribution partnerships. And I wouldn't know why that could not be a good recipe for future success as well if we were to engage.

Super. Last 2 minutes or so. I want to go back because there are still a couple of questions that came in late in the first section and also after that. Going back to augmented reality, I'll pick and mix a little bit from Thomas, Tim Jake, Hannes Leitner. Maybe first one, could you briefly elaborate on your moat, on the moat that we have around our business in that segment? And then secondly, a couple of questions on view back on the acquisitions that have taken place, how have they developed business-wise?

And maybe I'll start. Do you want to go first? Okay, go.

I want to take the latter one and then you can start in the moat if you want to. So look, I think, first of all, with Ubimax, which we acquired in summer 2020 during COVID times, we said back then the business is expected to grow 40%, 50%. Therefore, last year, I think, on an annualized basis, contributing high single-digit million. This year, I think LTM, we disclosed the EUR 30 million. So we are well on track actually to achieve that 40%, 50% growth, which we outlined. A little bit of a slower start. Integration took us a bit longer than we expected, yes, and it took us a bit longer to also move our own salespeople into this direction. But again, also the COVID backdrop, didn't really help nobody around and tougher to educate own people on new products. But by and large, very happy and in line with our expectations. The other acquisitions which we have done are fairly small and haven't contributed a significant amount of billings as expected, but they are performing nicely and in line with expectations, but they are not material.

On the moat maybe?

Yes, I think on the question -- reading the question just now, I think with AR and IR, we have very strong tools at hand right now that make us strong for the future with the product portfolio, and I think we will stick to this first, make this an even better offering than it is already today and then eventually go forward because by the end of the day, like I mentioned, AR is one of the megatrends, and there is so many things around augmented reality. In fact, I do believe being in that field already for more than 17 years, AI and IR are going to change the world, and we can be part of it, right? And the enterprise space is just the beginning that will evolve into the consumer space quickly. Not exactly sure when this is going to happen. But I think with that portfolio right now, I think we're in a very good spot.

And I think if the moat specifically per customer, I think it's all about workflow integration. When customers engage in AR, we really talk about workflows. You connect it to the workers, to the systems. Look at the back office -- the back-end integration with SAP, for example, you collect data. So you really understand the business process. And with every additional customer, you understand more of a business process, if you have 20 retailers, you understand more of it. And because in this area, it's not horizontal, but it's vertical experience that creates a significant moat because you cannot really get into this that fast because you need to learn it from the start.

So just because of the time restrictions, I think that concludes the Q&A. Before I hand it back over to Oliver, just one call out to those whose questions are still unanswered. There are tons of questions. So we will get back to you. Bear with us for a little while. It might take 1 or 2 days given the amount of questions we received. Thank you for those questions, nonetheless. And with that, Oliver, floor is yours again.

Yes, thank you very much for your time. It was, I think, very, very good that we spent the time with you. Thank you for your questions. Again, as Daniel said, we will answer them as we go along. We hope we could show you what we actually do, how we have developed the business over the last years and how well we are positioned now for the future trends. And also operationally, we will get things in order where they are not. And we commit to you to update you regularly quarter-by-quarter to give you an idea on how we develop and rebuild trust in our ability to execute. So thank you again for your time. Sorry for the slight overrun. And hopefully, we can talk soon again in person to discuss the business. Thank you very much. Goodbye. Have a great day.