Does tado use its built-in temperature sensor to control the AC unit?

Hi! I'm trying to confirm if the tado Smart AC Control V3+ will solve the comfort issue i'm currently having. I have a new mini split heat pump / AC unit that causes a wide temperature variation, to the point I'm not comfortable at all. For example, if I set the unit at 20C in heating mode, the room temperature will oscillate between 18C and 22C.

As far as I understand, the tado Smart SC control can sense the current room temperature and display nice graphs / report the information on the app.

My question is: does the tado system use this built-in temperature sensor to order my heat pump to start/stop in order to maintain a precise room temperature, or will it merely relay the setpoint to my heatpump/AC unit, leaving me stuck with the same unpleasant temperature variations?

Thanks in advance!