Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Pexip Hldg — Q4 2024 Earnings Presentation
36 slides from Pexip Holding Asa's earnings presentation, Feb 13, 2025
Slide 1: Quarterly Presentation Q4 2024
Quarterly Presentation Q4 2024 February 13, 2025
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: Software only specialist video conferencing player
Software only specialist video conferencing player Serving large enterprises and public sector organizations Strong financial performance ARR 113m USD EoQ3 10% ARR growth Y-o-y Unique partnerships with the technology leaders in our industry 91% Gross margin LTM margin +7p.p EBITDA expansion LTM marg
Slide 4: Q4 2024 highlights
Q4 2024 highlights • Continued improved ARR, revenue and +3.5m MUSD 113.1 EoQ4 ARR Q-o-Q EBITDA growth • Closed 2024 in the upper range of our initial outlook • Strong growth in Secure & Custom 88.2m MNOK 207 FY 2024 Adj. EBITDA1 Q4 2024 • Closed first Pexip Private AI sale • Launched Zoom ISV partn
Slide 5: Continued growth and further improved profitability
Continued growth and further improved profitability Total ARR Adjusted EBITDA1 Free Cash flow2 USDm NOKm, Last twelve months NOKm, Last twelve months +3.5 +2.3 +2.5 207 +2.0 113.1 (18%) 209 107.1 109.5 196 102.8 104.8 178 191 170 (17%) (16%) 164 143 (14%) 113 (11%) 105 107.7 111.3 99.4 102.0 105.0 Q
Slide 6: Pexip's two business areas
Pexip’s two business areas Pexip Secure & Custom Spaces Pexip Connected Spaces Video meetings that are self-hosted on-premises Video meeting room interoperability or in a private cloud When complete privacy and control When several video technologies need over data is required to work seamlessly tog
Slide 7: Our key market beliefs
Our key market beliefs SECURE AND CUSTOM SPACES SECURE AND CUSTOM SPACES CONNECTED SPACES 1. Some meetings are more 2. Growing demand for 2. Video interoperability is private than others custom video workflows increasingly important • All video meetings are not the • In client and citizen engagement
Slide 8: AI productivity tools in video meetings create new compliance challenges
SECURE AND CUSTOM SPACES AI AI productivity productivity tools tools in in video video meetings meetings create create new new compliance compliance challenges challenges Every video meeting can become a document • Who has access? Global SaaS Services • Where is it stored? • When is it deleted? • Wh
Slide 9: Complementary video services cater to specific security & privacy requirements
SECURE AND CUSTOM SPACES Complementary video services cater to specific customers’ security & privacy requirements Private Cloud Government Cloud Global SaaS Services Sovereign Cloud On- premises Air- gapped 9
Slide 10: Closed first major sale of Private AI for Secure Meetings
SECURE AND CUSTOM SPACES Closed first major sale of Private AI for Secure Meetings Private deployment with complete data control Customer-specific language libraries Built on NVIDIA AI models 10
Slide 11: Our vision is to connect any meeting room to any meeting
CONNECTED SPACES Our vision is to connect any meeting room to any meeting Rooms Meeting Rooms Meeting Rooms Meeting Rooms Meeting SIP end- points rooms meetings 11
Slide 12: Launching Zoom ISV partnership
CONNECTED SPACES Launching Zoom ISV partnership • Pexip joined Zoom’s ISV program in December 2024 • This enables Zoom customers to buy Pexip Connect for Zoom Rooms from Zoom • Will increase Pexip reach towards Zoom’s customer base and simplify buying journey for customers ISV • First orders already
Slide 13: Sales update
Sales update 13 13
Slide 14: Secure and Custom Spaces
Secure and Custom Spaces Secure Meetings continue to be the +3.9m ARR change Q-o-Q USD main growth driver, and is now over 50% of Secure & Custom ARR USD Closed first Private AI closed captions sale 44.9m End of Q4 2024 Great traction in Defense vertical – 70% 24% Y-o-Y growth Q4 2024 growth year-on
Slide 15: Good traction for vertical solutions driving 20%+ growth in Secure & Custom
SECURE AND CUSTOM SPACES Good traction for vertical solutions driving 20%+ growth in Secure & Custom Justice Defense Healthcare • Used at scale by some of • Used by several major • Used by some of the largest the largest and most defence forces and alliances telemedicine providers complex justice sy
Slide 16: Justice use-case: Ontario Ministry of Justice
SECURE AND CUSTOM SPACES Justice use-case: Ontario Ministry of Justice The Ontario Ministry of Justice is the PRODUCT largest justice system in Canada, and one of the PEXIP SECURE MEETINGS largest in North America. Use case: • Secure & Custom Meetings and Courtroom solution • More phases to come as
Slide 17: Defense use-case: Large Defense Organization
SECURE AND CUSTOM SPACES Defense use-case: Large Defense Organization • 8000+ employees • Global operations PRODUCT • Operates across multiple technologies and domains PEXIP SECURE MEETINGS Use case: • Secure Meetings on-premises and in isolated instances + Customs capability for Scheduling • Needed
Slide 18: Private AI use-case: Large Health Organization
SECURE AND CUSTOM SPACES Private AI use-case: Large Health Organization PRODUCT PEXIP SECURE MEETINGS Use case: • Private AI captions for Secure Meetings Key winning USPs • Complete data control. All of customer’s secure meeting media and AI data is processed on their private servers with absolutely
Slide 19: Connected Spaces
Connected Spaces Continued strong momentum with new -0.4m ARR change Q-o-Q USD Connect for Zoom Rooms product with another major win in Financial Services Closed two new Fortune 500 accounts 66.4m ARR USD End of Q4 2024 on Connect for Teams Improved pipeline following launch of 5% Y-o-Y growth Q4 20
Slide 20: Customer use-case: Native room solutions
CONNECTED SPACES Customer use-case: Native room solutions PRODUCT PRODUCT CONNECT FOR CONNECT FOR ZOOM ROOMS TEAMS ROOMS Use case Use case • Enable +1,000 rooms with Pexip • Enable 1000+ rooms with Pexip Connect for Zoom Rooms to join Connect for Teams Rooms to join Teams meetings with a any meeting
Slide 21: Financial update
Financial update 21
Slide 22: Subscription-based revenue model with total ARR base at USD 113m in Q4 2024
Subscription-based revenue model with total ARR base at USD 113m in Q4 2024 Total ARR ARR split USDm USDm Legacy Secure & Custom Connected Spaces Legacy 2% +10% 113.1 107.1 109.5 104.7 Secure & Custom 102.8 40% 41.0 44.9 +24% 59% 37.7 39.7 36.3 Connected Spaces APAC EMEA 8% 63.1 64.2 65.3 66.8 66.4
Slide 23: Strong growth in Secure & Custom
Strong growth in Secure & Custom USD million, quarter-over-quarter Connected spaces and legacy Secure and Custom 3.2% -0.6% -2.9% -0.7% 3.8% 7.4% -1.4% 9.7% 68.6 68.1 2.2 0.6 2.0 Quarterly net retention 44.9 of 96% 41.0 1.6 3.0 0.6 Quarterly net retention of 106% Q3 2024 New Net Upsell Churn Q4 2024
Slide 24: 17% revenue growth and 49% EBITDA growth
17% revenue growth and 49% EBITDA growth Revenue Adjusted EBITDA1 NOK million NOK million (margin) SaaS Software Quarterly revenue increase of 17% y-o-y +49% 17% – Strong growth of 23% on Software as 88 333 (27%) a Service, increase of 12% on 285 59 Software Quarterly 144 (21%) 118 – Estimated reven
Slide 25: High conversion of revenue growth to EBITDA in 2024
High conversion of revenue growth to EBITDA in 2024 Revenue and gross margin EBITDA excl. other gains and losses NOK million NOK million +125 (+13%) 1,119 +93 994 105 (7 p.p.) 207 COGS 99 1,013 113 Gross 895 (91%) margin (90%) 0 FY 2023 FY 2024 FY 2023 FY 2024 Converted 74% of revenue growth to EBIT
Slide 26: Increase in operating expenses year-on-year tied to variable compensation and lower capitalization
Increase in operating expenses year-on-year tied to variable compensation and lower capitalization Quarterly OPEX development NOK million Salary and personnel expenses 218.1 NOK 15 million increase y-o-y, driven by 204.5 199.8 197.9 200.7 202.5 179.1 185.6 40.5 – NOK 11 million higher variable salar
Slide 27: NOK 21 million in free cash flow in Q4
NOK 21 million in free cash flow in Q4 Cash flow bridge Q4 2024 NOK million 628 14 15 614 38 3 1 • Positive Operating Cash Flow despite 21 593 seasonal build-up of working capital – Q4 is a strong invoicing quarter, leading to a large increase in trade receivables that are due in Q1 2025 • NOK 14 mi
Slide 28: Q4 2024 Financial results
Q4 2024 Financial results Profit and loss NOK million Q4 2024 Q4 2023 Y-o-Y • 17% increase in year-on-year revenue Revenue 333 285 47 • Reduced COGS despite revenue increase from Cost of goods sold 26 28 -2 underlying efficiency improvements Gross Profit 306 257 49 • EBITDA excluding other gains and
Slide 29: FY 2024 Financial results
FY 2024 Financial results Profit and loss NOK million FY 2024 FY 2023 Y-o-Y • 13% increase in year-on-year revenue Revenue 1119 994 125 • 1 p.p. improvement in gross margin from cloud service Cost of goods sold 105 99 6 operational efficiencies Gross Profit 1013 895 119 • EBITDA excluding other gain
Slide 30: Outlook and targets
Outlook targets Jpexip[
Slide 31: Outlook
Outlook • Continued positive market outlook across the Near-term targets business areas driven by market trends • Need for private video meeting platforms Consistently deliver: • Custom video work-flows are growing • Above 10% ARR growth • Interoperability increasingly important • Above 20% EBITDA1
Slide 32: Will recommend a NOK 2.5 per share dividend to AGM in April 2025
Will recommend a NOK 2.5 per share dividend to AGM in April 2025 2024 dividend recommendation of NOK 2.5 per share, up from Capital distribution policy NOK 1.1 for 2023 • Distribute 50-100% of free cash flow • NOK 2.0 dividend per share as an ordinary divided (~95% of generated to shareholders as a
Slide 33: Upcoming dates
Upcoming dates 2024 Annual Report March 27th, 2025 Annual General Meeting April 25th, 2025 Q1 2025 Quarterly Presentation May 7th, 2025 33
Slide 34: Q&A
Q&A Investor.pexip.com
Slide 35: BACKUP
BACKUP Jpexip[
Slide 36: Summary of key figures
Summary of key figures KPI Unit Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Y-o-y Q-o-Q Comments Q4 2024 ARR ARR Connected Spaces MUSD 63.1 64.2 65.3 66.8 66.4 3.3 -0.3 • Delta ARR Q3 of 3.5 MUSD, driven by good growth Secure & Custom MUSD 36.3 37.7 39.7 41.0 44.9 8.6 4.0 in Secure & Custom across new a