Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Q1 2023 Earnings Presentation
24 slides from Pexip Holding Asa's earnings presentation, May 4, 2023
Slide 1: Quarterly Presentation Q1 2023
Quarterly Presentation Q1 2023 May 4, 2023
Slide 2: Important notice and disclaimer
Important notice and disclaimer These materials have been produced by Pexip Holding ASA (the "Company“, and with subsidiaries the “Group”). The materials have been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representati
Slide 3: Q1 highlights and key areas of focus
Q1 highlights and key areas of focus Transformation underway Revenue and ARR development Results and cash • Company transformation is • EBITDA of NOK 35 million, up starting to deliver tangible results, • Q1 revenue of NOK 261 million, 87 million y-o-y on both profitability and cash flow up 17% y-o-
Slide 4: Powering video everywhere with unique multi-platform video technology
Powering video everywhere with unique multi-platform video technology Patented transcoding architecture Run on any compute platform Centralized data processing Works in all environments, including self • Gives improved interoperability & hosted and sovereign clouds browser experience • Enables total
Slide 5: Strategic partnership with Poly powering Poly's new video infrastructure solutions
Strategic partnership with Poly powering Poly’s new video infrastructure solutions PrivateConnect CloudConnect FedConnect Powered by Pexip Powered by Pexip Powered by Pexip Offerings will be available through Poly’s sales channels, improving Pexip’s market reach “We're thrilled to work with Pexip, a
Slide 6: Pexip Government Cloud Achieves FedRAMP Authorization
Pexip Government Cloud Achieves FedRAMP® Authorization Pexip achieved official FedRAMP approved status in April 2023 and now offers a FedRAMP Authorized solution for Microsoft Teams Cloud Video Interop (CVI). This makes it easy for federal agencies to join a Microsoft Teams meeting from the office –
Slide 7: Several new products and features launched in Q1
Several new products and features launched in Q1 Introducing SIP Guest Join. Pexip now available on Genesys Join any Teams meeting. Even external ones. AppFoundry Pexip partners with RealWear to enable Version 31 of Pexip Infinity secure video for frontline workers • End-to-end encryption • In-confe
Slide 8: Strengthening our position in both business areas
Strengthening our position in both business areas Connected Spaces Secure, customized solutions ARR: ARR: 60m 33m USD USD • Market and technology leadership strengthened • Pexip offers unique solution for self hosted and private through Q1 cloud deployment–enabling complete privacy and security • In
Slide 9: Turning around to a profitable company in 2023
Turning around to a profitable company in 2023 Full Year Adj. EBITDA1 YTD NOK million 100-150 Transformation highlights 76 • Have adapted cost base to 56 current revenues, giving 35 positive EBITDA and cash flow • More focused strategy has enabled Pexip to strengthen -52 differentiators in core mark
Slide 10: Sales update
Sales upda Jpexip[
Slide 11: Total ARR base at USD 98m in Q1 2023
Total ARR base at USD 98m in Q1 2023 Total ARR ARR split USDm Q1 2023 106.4 105.6 106.1 99.8 100.7 99.6 98.3 Self-hosted Software 92.7 87.2 46% 54% Pexip as-a-Service APAC EMEA 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 54% 38% 2021 2021 2021 2021 2022 2022 2022 2022 2023 Americas Legacy Underlying ARR Booked An
Slide 12: Breakdown of ARR development
Breakdown of ARR development Churn development continue to be impacted by the large US Development in ARR portfolio last twelve months Government contract that were not USDm renewed in Q3 2022. Excluding this -3% -14% customer, churn is somewhat up +10% -7% compared to the previous quarter 3.1 (USD
Slide 13: Connected Spaces
Connected Spaces ARR • Continuous innovation ongoing to increase technology leadership in USDm Connected Spaces 61.9 61.5 61.3 61.2 59.9 • Continue to win major customers with our leading technology, in particular on Teams interoperability • Large US federal government agency – Social Security Admin
Slide 14: Secure and custom solutions
Secure and custom solutions • Continued momentum for our Secure Collaboration products with recurring revenues in Secure Spaces growing 5% in Q1, and ARR underlying y-o-y growth of 69% USDm 34.7 • Increased awareness on cyber vulnerability and privacy gives Pexip 31.9 32.1 32.7 an attractive positio
Slide 15: Financial update
Financial up Jpexip[
Slide 16: Clear progress of return to profitability
Clear progress of return Revenue to profitability NOK million +17.2% 260.4 260.6 222.5 195.0 189.2 Positive revenue increase of 17% compared to Q1’22, of which 11 p.p. are driven by currency effects Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 Continued positive EBITDA development, driven by realized eff
Slide 17: High gross margins across the business areas
High gross margins across the business areas Gross profit by segment NOKm Q1 2023 Q1 2022 YoY dev. Revenue from Connected Spaces 158 149 6% • COGS are mainly related to Connected Spaces, however COGS of Connected Spaces 18 21 -14% both business areas with Gross Profit from Connected Spaces 139 128 9
Slide 18: Improvement in OPEX from cost reductions
Improvement in OPEX from cost reductions Quarterly OPEX development NOKm Salary and personnel expenses Decrease in salary and personnel driven by reduction in employees, although not 290.3 seeing the full effect in Q1 from the Q4 26.8 250.2 downsizing 248.5 229.5 59.5 5.3 29.2 60.4 204.5 10.9 62.7 5
Slide 19: NOK 47 million in positive cash flow in Q1
NOK 47 million in positive cash flow in Q1 Cash flow bridge Q1 2023 NOKm +47 • Positive EBITDA, net working capital and exchange gains from 24 26 receiving payments at a more 19 15 466 9 1 favourable exchange rate main 419 35 positive contributors to positive cash flow • Negative NOK 15 million in s
Slide 20: Q1 2023 Financial results
Q1 2023 Financial results Profit and loss NOKm Q1 2023 Q1 2022 • 17% increase in year-on-year Q1 revenue, driven by currency exchange changes and stronger Software- Revenue 260.6 222.5 as-Service revenues Cost of goods sold 21.3 25.8 • COGS is mainly relating to sale of Pexip-as-a-Service Gross Prof
Slide 21: Outlook and 2023 targets
Outlook and 2023 targets Generally positive market outlook Target 2023 EBITDA of NOK 100-150 across the business areas million We aim to become a profitable business, with targets supported by the solid progress on the cost reduction Poly partnership and FedRAMP program Progress after Q1: On track A
Slide 22: Upcoming dates
Upcoming dates Q2 2023 & Half-year Presentation August 10, 2023 Q3 2023 Quarterly Presentation November 2, 2023 Q4 2023 Quarterly Presentation February 14, 2024 22
Slide 23: Q&A
Q&A Investor.pexip.com
Slide 24: Thank you for listening!
Thank you for listening! Investor.pexip.com