Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Q1 2024 Earnings Presentation
31 slides from Pexip Holding Asa's earnings presentation, May 6, 2024
Slide 1: Quarterly Presentation Q1 2024
Quarterly Presentation Q1 2024 May 6, 2024
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: Pexip at-a-glance
Pexip at-a-glance Selected Customers 2011 founded 293 employees across 25 countries Niche video conferencing player Market leading interoperability and secure video meetings provider Software only Selected Technology partners Develop and deliver software and SaaS Unique tech partnerships Partner wit
Slide 4: Q1 highlights
Q1 highlights Continued positive development Major wins in Secure & Custom Solid Q1 results in Connected Spaces with HP|Poly • Q1 revenue of NOK 292 million, • USD 1.1 million in ARR growth in • Major expansion with the US Social up 12% y-o-y the quarter for Connected Spaces Security Administration
Slide 5: Mission: seamless video communication for all organizations
MISSION To make seamless video communication available to all organizations regardless of technology platforms and security requirements Pexip Connected Spaces Pexip Secure & custom Spaces Video meeting interoperability Video meetings for self hosting or private clouds When several video technologie
Slide 6: On a journey to connect any meeting room to any meeting
On a journey to connect any meeting room to any meeting Rooms Meeting Rooms Meeting Rooms Meeting Rooms Meeting SIP end-points ROOMS MEETINGS
Slide 7: First Zoom interop cooperation - Improving interoperability for Zoom-registered devices
First Zoom interop cooperation - Improving interoperability for Zoom-registered devices Rooms • Have enabled Zoom-registered systems to use Pexip’ SIP Guest Join capability • This enhances the Teams meeting experience for organizations that are primarily using Zoom • Pexip to drive sales of this cap
Slide 8: Starting a partnership with Cisco to deliver Connected Spaces solutions to US Federal customers
Starting a partnership with Cisco to deliver Connected Spaces solutions to US Federal customers • Scope: Provide Pexip interoperability solutions to U.S. Federal and U.S. Department of Defense customers (focused on GCC High IL4, GCC DoD IL5, and higher environments) • Fully integrated Pexip and Cisc
Slide 9: Mission: seamless video communication for all organizations
MISSION To make seamless video communication available to all organizations regardless of technology platforms and security requirements Pexip Connected Spaces Pexip Secure & custom Spaces Video meeting interoperability Video meetings for self hosting or private clouds When several video technologie
Slide 10: Complementary video services cater to differing security & privacy requirements
Complementary video services are used to cater SECURE & CUSTOM SPACES to an organization’s differing security & privacy requirements Private Cloud Government Cloud Global SaaS Services Sovereign Cloud On- premises Air- gapped 10
Slide 11: AI features in Video meetings
AI features in Video meetings Noise cancelling Examples of how it can be used Picture composition and Video avatars optimization Translation Voice optimization and gaze correction Transcription & meeting summaries 11
Slide 12: Pexip has a strong partnership with NVIDIA
Pexip has a strong partnership with NVIDIA and is one of the pioneer users of their new capabilities + • Pexip is working with NVIDIA to take advantage of their Maxine AI developer platform • Pexip is featured as one of the early adopters in the NVIDIA press release • Pexip provides access to NVIDIA
Slide 13: Pexip has developed its own AI Media Server architecture
Pexip has developed its own AI Media Server architecture to enable new AI features Cloud Pexip Self-hosted • Customers requiring data privacy and architecture architecture control prefer self-hosted solutions Live Translation Live Translation • Delivering an AI feature is more complex in a self-host
Slide 14: Four quarters of consecutive growth and improved profitability
Four quarters of consecutive growth and improved profitability Total ARR Adjusted EBITDA1 Free Cash flow2 USDm NOKm, Last twelve months NOKm, Last twelve months +3.0 +2.0 +0.4 +1.1 102.8 104.8 164 98.3 98.7 99.8 143 113 105 76 69 25 9 99.4 102.0 92.7 94.1 96.0 -97 -105 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1
Slide 15: Sales update
Sales upda Jpexip[
Slide 16: Connected Spaces
Connected Spaces ARR USDm • Growth in Connected Spaces in Q1 benefiting from improved product differentiation, increasing momentum in Poly|HP 63.1 64.2 partnership and BlueJeans sunsetting their CVI solution 59.9 59.6 60.4 • Seeing increased customer activity on Pexip Connect for MTRs and Zoom • Won
Slide 17: Secure and custom solutions
Secure and custom solutions ARR USDm • Secure and custom solutions growing 4% in Q1 and 15% y-o-y, driven largely by strong upsell across several accounts in Secure 37.7 35.5 36.3 and Custom 34.5 32.7 • Secure spaces was the main source of growth, with 27% growth y- 12.4 13.4 14.7 o-y. Significant r
Slide 18: Financial update
Financial up Jpexip[
Slide 19: Total ARR base at USD 105m in Q1 2024
Total ARR base at USD 105m in Q1 2024 Total ARR Legacy ARR split USDm Underlying ARR 102.8 104.8 98.3 98.7 99.8 Self-hosted Software 48% 52% Pexip as-a-Service 99.4 102.0 92.7 94.1 96.0 APAC EMEA 9% Q1 Q2 Q3 Q4 Q1 50% 2023 2023 2023 2023 2024 41% Americas Booked Annual Recurring Revenue (ARR) develo
Slide 20: Growth in both business areas
Growth in both business areas USD million, quarter-over-quarter Connected spaces and legacy Secure and Custom +3.9% -0.9% -2.1% 0.9% +1.5% 2.8% -0.7% 3.7% 66.4 67.0 2.6 0.6 1.4 Quarterly net retention of 97% (98% excl legacy) 36.3 37.7 0.5 1.0 0.2 Quarterly net retention of 102% Q4 2023 New Net Upse
Slide 21: Continued improvement in revenue and EBITDA
Continued improvement in revenue and EBITDA Revenue NOK million +31 (12%) 285.2 292.0 260.6 232.9 214.9 Positive revenue increase of 12% compared to Q1’23 – Combination of self-hosted software and as-a- Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 Service driving growth Adjusted EBITDA increase of NOK 30
Slide 22: Q1 2024 OPEX base 2% below Q1 2023
Q1 2024 OPEX base 2% below Q1 2023 Quarterly OPEX development NOKm -2% 204.5 200.7 Salary and personnel expenses 199.8 197.9 179.1 Stable salary and personnel expenses, with 45.0 42.8 36.7 39.1 somewhat lower fixed salary and higher 9.8 35.4 10.8 9.4 variable compensation achievement from 8.8 7.6 st
Slide 23: NOK 105 million in positive cash flow in Q1
NOK 105 million in positive cash flow in Q1 Cash flow bridge Q1 2024 NOKm +105 623 628 9 3 1 6 112 101 • Positive EBITDA, improved working capital 523 and positive impact of exchange gains contributing positively to Q1 cash flow • Reduced investment and lease cash flow • NOK 6 million from exchange
Slide 24: Q1 2024 Financial results
Q1 2024 Financial results Profit and loss NOK millions Q1 2024 Q1 2023 Y-o-Y • 12% increase in year-on-year revenue, driven by Revenue 292 261 31 stronger Software and Software-as-Service revenues Cost of goods sold 27 21 6 • COGS is mainly relating to sale of Pexip-as-a-Service Gross Profit 265 239
Slide 25: Outlook and targets
Outlook and targets 25
Slide 26: Improved stronger ecosystem position going into 2025
Improved stronger ecosystem position going into 2025 2023 2024 2025 26
Slide 27: Market outlook
Market outlook 2024 outlook • Continued positive market outlook across the • 5 to 10% ARR growth business areas • 13-18% EBITDA1 • Partnerships expected to continue to drive growth Mid-term targets • Q2 2024 ARR expected 105-108 USD millions Consistently deliver: • Above 10% ARR growth • Above 20% E
Slide 28: Upcoming dates
Upcoming dates Q2 2024 Quarterly Presentation August 15th , 2024 28
Slide 29: Q&A
Q&A Investor.pexip.com
Slide 30: BACKUP
BACKUP Supporting materials
Slide 31: Summary of key figures
Summary of key figures KPI Unit Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Y-o-y Q-o-Q Comments Q1 2024 ARR ARR Connected Spaces MUSD 59.9 59.6 60.5 63.1 64.2 4.3 1.1 • Delta ARR Q1 of 2 MUSD Secure & Custom MUSD 32.7 34.5 35.5 36.3 37.7 5.0 1.3 • Annual ARR growth of 7% p.a. (10% excl legacy) Legacy M