TeamViewer is a software company that specializes in remote access software and online collaboration products. The company was founded in 2005 with the aim of providing easy-to-use remote control solutions to both consumers and businesses – but how do they make money? This is the question we’ll answer in this article. We’ll explain in detail the business model of TeamViewer and uncover the different ways that it uses to make money.

TeamViewer offers a family of software products for IT-based remote support and collaboration. TeamViewer makes money by licensing its software technology on a per-seat basis and billing customers annually. It is free for personal use.

About TeamViewer

TeamViewer is a secure, remote access software system developed by a German company, TeamViewer AG, founded in 2005. TeamViewer software is used by an IT technician to provide tech support via remote control of the device.

The company makes other software tools, such as TeamViewer Meeting for global collaboration, TeamViewer Tensor for secure SaaS Enterprise remote connectivity, TeamViewer Assist AR for augmented reality, and TeamViewer IoT to connect, monitor, and operate IoT devices.

How Does TeamViewer Make Money?

TeamViewer is free for personal use, limited to connections between one person and the computers of friends and family.

There are three levels of paid commercial use which are:

• Business Level: One user, with up to three devices, accessing up to 200 computers with up to 10 meeting participants, for $610.80 per year.
• Premium Level: Up to 15 users accessing up to 300 computers with up to ten meeting participants, for the cost of $1,234.80 per year.
• Corporate Level: Up to 30 users accessing up to 500 computers with up to ten meeting participants, for the cost of $2,482.80 per year.

The company offers a 14-day free trial for paid subscription plans.

• TeamViewer Remote Management add-ons cost $22.92 per year each. Support for mobile devices (iPad, iPhone, and Android) is an additional $394.80 per year.
• Servicecamp Service Desk with ticket management is $118.80 per agent per year.
• TeamViewer Assist AR add-on with augmented reality is $468.00 per technician per year.

TeamViewer has more than 200 million global users and more than 2.5 billion installations on IoT devices. The software is offered and supported in more than 30 languages.

Auto-Renewal

The paid subscriptions are advertised, showing the equivalent of a monthly rate; however, the billings are done on a prepaid annual basis. The annual subscription renews automatically unless the customer cancels the contract by giving 28-days advance notice before the annual subscription renewal date.

The company intentionally makes it difficult to cancel an automatic contract renewal. If a customer does not cancel the contract in advance of the renewal date by 28 days, the customer’s credit card is automatically charged for the next year’s subscription.

This auto-renewal policy of the company has been the source of many complaints made with the Better Business Bureau. It is also the reason why a class action lawsuit has been filed in California _‑ Gershfield v. Teamviewer US, Inc. (Case No.: SACV 21-00058) _‑ claiming the auto-renewal charges are unauthorized and illegal under California law. The plaintiff in the class-action lawsuit is seeking US$6.5 million in statutory damages.

TeamViewer Financials

TeamViewer AG is a German company and reports its financial results in Euros. The company has been profitable since 2019.

Here is a table that summarizes the key elements of the company’s financials for the past three years (shown in thousands of Euros):

The number of subscribers in 2020 was 584,000. This figure was considerably higher than the 2019 subscribers of 464,000. Subscribers increased in 2020 by 26%. The net customer retention rate in 2020 was 103%, compared to 102% in 2019.

The equity ratio as a percentage of total assets in 2020 was 23% compared to 10% in 2019.

The company had 1,256 employees in 2020, compared to only 841 in 2019. This represents an increase of 49%. The increase in employees was the company’s response to the positive impact of the pandemic on sales.

Reuters reported that enterprise customers, with an annual contract value of more than €10,000, increased by 153% to 1,183 customers in 2020 compared to the previous year. Earnings per share remained the same at €0.52 for both 2019 and 2020.

2021 Quarterly Reports

The first quarter of the calendar year 2021 was a strong one for TeamViewer. The company continues to prepare for growth over the long term with the completion of two more acquisitions, Xaleon (customer engagement) and Upskill (industrial AR solutions).

TeamViewer added two more sports teams, Mercedes racing teams and the football club Manchester United, as promotional partners. The new Chief Marketing Officer, Lisa Agona, and the new President Americas, Patricia Nagle, plan to drive the sales for the global brand with expansion in the Americas region.

TeamViewer achieved record levels of billings in the first quarter of 2021, which even surpassed the increased billings experienced in the first quarter of 2020.

The company secured 300 million Euros as an ESG-linked loan on very favorable terms. An ESG-linked loan also called a Schuldschein loan, is debt financing with incentives for the borrower to meet sustainability objectives, such as receiving a better Environmental Social and Governance (ESG) rating.

Highlights from the 2021 first-quarter report, released on May 4, 2021, include:

• A 26% growth in billings, to €146.6 million when compared year-on-year with the first quarter of 2020.
• Adjusted EBITDA was up 22% to €90.0 million when compared year-on-year with the first quarter of 2020.
• The adjusted EBITDA margin was 61.4%.

The company gave its projections for the full year of 2021 to reach from 585 million Euros to 605 million Euros in billings with an adjusted EBITDA margin of 49% to 51% and revenue projections of 524 million Euros to 540 million Euros.

The second quarter 2021 report will be released on August 3, 2021.

TeamViewer AG Market Valuation

In 2014, TeamViewer was acquired for €870 million by the private equity firm Permira Holdings Ltd., based in Europe.

In preparation for the company going public in 2019, the company changed from selling licenses for its software to a subscription model. This made users with legacy versions of the software, who bought perpetual licenses, furious. TeamViewer received many complaints about this and even let them be posted on the TeamViewer Community forum.

The legal entity changed from TeamViewer Germany GmbH to TeamViewer AG for the IPO in September 2019. The initial listing of the stock was placed on the Frankfurt Stock Exchange.

The volume issued for the IPO was 84 million shares at the IPO price of €25.25, raising €2.2 billion and valuing the company at €5.25 billion. At that time, the IPO was the largest one for a German company since 2000 and the largest IPO in Europe during 2019.

SiliconAngle notes that the IPO gave Permira Holdings Ltd. a return of more than six times over what Permira paid for the company a mere five years before the IPO.

Currently, the stock trades as the stock symbol TMV.F on the Frankfurt Stock Exchange. The share price of around 28 Euros (July 30, 2021) gives the company a market cap of €5.7 billion. The P/E ratio is 60.62, with a 52-week high for the stock price of 49.64 Euros and a 52-week low of 27.03 Euros.

Owler says that TeamViewer AG raised €300 million in debt during March 2021.

Market Share of TeamViewer

Enlyft reports that the market share for TeamViewer, as the market leader in this technology, is 34.45%. Its biggest competitor is DameWare, with a market share of 14.11%, followed by BeyondTrust with an 11.39% market share.

TeamViewer claims that 90% of Fortune 500 companies use TeamViewer software.

The global distribution of TeamViewer’s customer base is 42% in the United States, 9% in the U.K., and 5% in Canada, with 44% of its customers from the rest of the world.

The percentage of companies using TeamViewer that are small, with fewer than 50 employees, is 35% of the TeamViewer subscribers. Of the medium-sized companies with more than 50 employees but fewer than 1,000 employees, these companies represent 39% of TeamViewer’s subscribers. 25% of the TeamViewer subscribers come from large enterprise companies with more than 1,000 employees.

One notable large organization that uses TeamViewer is The American Red Cross, with more than 10,000 employees.

Pros and Cons of Using TeamViewer

TeamViewer is very useful for the tech support of remote workers. It is frequently used to share a desktop with an IT technician and let the tech support worker install new programs or update software and troubleshoot any problems.

The pros are that this software is very useful for guided training, online meetings, virtual conferences and can accomplish remote file transfers and backups.

The cons are the price of using TeamViewer for commercial purposes and the additional cost of add-ons.

Features of TeamViewer

TeamViewer has excellent features which make it the best remote desktop software out there. These features are really helpful for users and businesses:

• Access Control
• Real-time Chat with Screen Sharing
• Remote Access, Printing, and Support
• Session Recording and Session Transfer
• Wake-on-LAN
• Diagnostics Tools, Reporting, and Analytics
• File Sharing and Transfer
• Collaboration, Meetings, and Presentations
• Mobile Access

The innovative add-ons are the TeamViewer Assist AR that uses augmented reality for frontline technical support, and TeamViewer IoT to connect, monitor, and operate IoT devices.

Augmented reality uses real-time photo overlays captured by remote technicians as visual guides for tech support to assist the worker in making repairs.

TeamViewer is Cross-Platform

TeamViewer provides remote access software and solutions for online collaboration, desktop sharing, IT administration, helpdesk, computer support, and home office use.

TeamViewer works with all devices and platforms, including Windows, Mac, Linux, iOS, iPhone/iPad, and Android devices.

Deployment and use of TeamViewer can be done using a web browser, via a download of the software, or as SaaS cloud services.

Conclusion: How Does TeamViewer Make Money?

In conclusion, TeamViewer is a popular remote access software that earns money by selling Business licenses, Premium licenses, and Corporate licenses to use its product. It is among the most popular remote access software on the current market due to its ease of use and being free for personal use.

There’s even a free trial period that gives you a pretty good idea of what it would cost to start hosting your own screen-sharing software.

And honestly, TeamViewer deserves every bit of praise it receives – not only are their business practices sound but they boast a global community of customers and partners that say positive things about them.

Thanks for spending time to read this. Hopefully, you learned something from this blog post and if you did, make sure to share it with your friends or anyone that might be interested in learning about how does TeamViewer make money.

Have a nice day!

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Airtable is a tool that many small businesses are using to organize their business data. The software allows users to create a variety of different database structures that can be used for various business purposes. The company recently raised $270 million from investors, and that has led us to wonder, how does Airtable make money? What is the business model of Airtable? Let’s find out.

Airtable is a SaaS company and operates on a freemium business model, which means that it makes money by charging for premium features. Airtable has a free plan with limited functionality and three paid plans: Plus, Pro, and Enterprise. 

About Airtable

Howie Liu, along with Andrew Ofstad, and Emmett Nicholas, founded Airtable in 2012. The company offers cloud-based software that allows users to create and share highly functional, yet, easy-to-use online databases.

This private company is not yet profitable. The company worked on the software for about two years in stealth mode and grew rapidly with the support of angel investors, including the actor Ashton Kutcher. The flagship product launched in 2014, along with the iOS app.

The process of scaling up a business has changed significantly with the advent of cloud computing services. Most businesses today rely heavily on cloud technology for their core infrastructure.

Airtable is one such service, which offers an array of features to meet all your database management needs. It is not just about hosting your data in the cloud; it also allows you to collaborate easily with people regardless of their location and provides you with the agility to grow your business without compromising on any feature.

Handling sensitive commercial data requires you to be extra careful about security, redundant systems, and safety measures to ensure that only authorized individuals can make changes. All these aspects are provided by Airtable at a lesser cost while allowing you to scale up as your business requires.

How Does Airtable Make Money?

There is a limited free version of the software. The paid Plus version is $12 per month (discounted to $120 annually) per user. The paid Pro version is $20 per month (billed annually) per user.

Annual revenue estimates for Airtable range from $47.9 million, reported by GrowJo, to $65 million per year, reported by LATKA. The company is private, so it does not release any financial information. The current user base is estimated at 250,000+ companies, paying at least $120 per year per user if not getting an enterprise-level discount.

Airtable has 417 employees (August 2021). The Airtable employee count nearly doubled from a year ago. Estimated annual revenues per employee are $114,748.

The biggest customers for Airtable are the enterprise-level tech companies, like Tesla, that pay an annual subscription fee for its 70,000+ Tesla employees.

The annual reoccurring revenue (ARR) from enterprise customers is negotiated on a case-by-case basis by the sales staff of Airtable. Other large companies using Airtable include A-E Networks, Autodesk, Buzzfeed, Condé Nast Entertainment, Cole Hann, Expedia, Medium, Netflix, Shopify, Time, and many others.

Airtable Valuation

Notable investors Airtable include Grade-A Investments (Aston Kuther’s fund), CRV, Caffeinated Capital, Freestyle Capital, Data Collective, Founder Collective, CrunchFund, and the Box Group.

Business Upside reports that Airtable raised $3 million in seed capital in February 2015, followed by Series A for $7.6 million in May 2015. Series B in May 2018 was $52 million. Series C in November 2018 was $100 million, giving the company a valuation of $1.1 billion at that time.

Airtable raised $185 million in September 2020 as Series D, increasing the company’s value from $1.1 billion to $2.585 billion. Series E in March 2021 was a whopping $270 million, making the company worth $5.8 billion. That is an incredibly high valuation for a private company that the founder, Howie Liu, says has no intention at any time in the near future of going public.

LATKA rates Airtable as one of the most successful software as a service (SaaS) companies. Revenues for 2021 are estimated to be $65 million from over 250,000 users.

To put this into perspective, if the annual reoccurring revenues (ARR) are $65 million, the valuation of $5.8 billion is 89x ARR.

Here is how the valuation of Airtable compares to its top ten competitors:

Competitors of Airtable

Competitors of Airtable include Trello, ClickUp, Monday.com, Wrike, Teamwork, and others. The Airtable API is able to connect with the output of most of its competitors and integrate their functions within the Airtable system.

Becoming a Unicorn

A unicorn is a company that reaches $1 billion in valuation. Airtable reached this milestone in 2018 with about 80,000 regular users. It helped that the angel round of investment included an investment by the high-profile celebrity actor Ashton Kutcher.

Besides being an actor, Kutcher is known for his savvy investments in technology companies through his A-Grade Investments venture capital firm. Kutcher was also an early investor in Skype, Spotify, Uber, Airbnb, and others.

Kutcher’s investment increased the popularity of the software. However, it was Airtable’s usefulness that was truly responsible for its rapid adoption.

How Does Airtable Work?

Airtable is a cloud-based offering, so everything is online and runs from the Airtable cloud servers.

The one disadvantage of using Airtable is that the software cannot be used offline, except for downloads of CSV format spreadsheet files, which are used to be imported into simple spreadsheet software. Without an Internet connection, there is no way to use the software fully because of its collaborative nature.

The concept of Airtable is to give users an easily recognizable format of the table from a typical spreadsheet like Excel and make the table cells be able to do all kinds of interesting things. The category of these tools is called “no-code.” The users add fields to a flexible relational database model that can use what is in the fields for further processing.

The field can hold almost anything from text, media, attachments, links, barcodes, calculators, tags, checkboxes, multiple selections, and outputs from more than one thousand automatically integrated systems.

Views

Common uses are to make a content calendar, a product roadmap, and an event planner. The user decides how to view the data in multiple ways.

Examples of views include:

• Grid: The grid layout is like a classic spreadsheet with a big difference in that everything can be color-coded and organized by date and priority.
• Calendar: The calendar view is organized by month and date. Each calendar entry can also link to other media.
• Gallery: The gallery view is a visual representation of project management with color-coded tags shown for the departments involved.
• Kanban: The Kanban-style is organized by columns that are low, medium, and high priority, plus an extra column for a wish list.

Publishing Views

Views can be published in many ways, including:

• Gant: This is a project flowchart based on steps, timelines, and phases to complete a project.
• Web Page Design: This is a what-you-see-is-what-you-get (WYSIWYG), drag and drop, graphical user interface (GUI) design tool. It is very intuitive and easy to use without needing much instruction.
• SendGrid: This feature gives the user the ability to send the output of a grid to another person or people by email. This feature makes it easy to manage email campaigns and send bulk emails.
• Scheduler: This feature tracks multiple users’ calendars to find available options for appointment scheduling for multiple parties.
• Custom Solution: It is easy to build a custom app for any particular team’s needs.

Airtable has a vibrant community forum of active developers who are using the tools to create custom apps. Users are encouraged to share what they are building and get help from other Airtable developers.

Business Process Automation

Business process automation is one way to increase human efficiency by having mundane tasks performed automatically. An example of this is when a new piece of created content is submitted, a notification sent to all the involved parties is made automatically.

Another way to move projects forward is to use the feature of Create Task to create a work task based on a trigger automatically. An example of this would be using the approval of an advertising campaign to trigger a final legal review for compliance and forward the ad for placement in the campaign when it passes legal approval.

Triggers can also cause custom programming code to run, such as an API to connect to one of the many integrated apps.

Airtable Integrations

Airtable was designed with support for most of the popular apps. It has a resilient API. Airtable works with Automate.io, Integromat, Workato, and Zapier to connect Airtable to more than a thousand websites and other apps. 

Some of the most popular apps that work with Airtable include Asana, Basecamp, Dropbox, Google Docs, and TheSound. Airtable integrates with most of its competitors.

Market Risks for Airtable

When it first started, Airtable did well with small- to medium-sized organizations of 100 employees or less. Then, it turned its focus on the larger enterprise organizations with thousands of employees. The company successfully captured some six-figure deals with brand-name companies such as Tesla and Netflix.

The challenge is the acquisition cost of these large enterprise customers is probably very high. Right now, all the revenues coming in are being used to pay for the operational costs of Airtable and the likely, extensive sales and marketing efforts.

With no access to the company’s financial records, we can only speculate about its ongoing monthly cash burn since it’s a private company.

The company has raised a total of $356 million so far. It may need to raise more capital as the company may lose more money over the next few years. This is the pattern of a growth company that focuses on building up a customer base instead of short-term profits.

One helpful thing is the effect of the pandemic on companies that make online collaboration tools was a huge increase in their customer base. Airtable, like many others in the tech sector, experienced a positive effect from the pandemic.

If the company can keep its customers happy and the churn down low enough, it has a good chance to continue to increase its customer base.

Conclusion: How Does Airtable Make Money?

In conclusion, we have seen that Airtable makes money through a freemium business model. They offer their basic services free of cost but charge a fee for using their plus, pro, and enterprise versions. 

Airtable is powerful and easy-to-use database software that allows you to store, display, and sort your data in an intuitive interface. 

We explained the business model of Airtable in detail, which drew heavily from existing research, and a bit of our own digging. You must have gathered a lot of information about this company, their services, their online presence, their earning potential, and the positives as well as the negatives about the company.

If you are still reading this, we’d like to thank you. Hopefully, by now you have a better idea of how Airtable makes money. If we missed anything or if you have anything to add, please don’t hesitate to share it via email. 

 If you found some value in this post, please share it on social media.

Have a nice day!

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