Slide 1: Quarterly Presentation Q1 2021
Meet the world with video communication as it should be Quarterly Presentation Q1 2021 May 6, 2021
Slide 2: Recent highlights
Recent highlights Executing on growth 54% y-o-y strategy; resulting in NOK 180 million in growth in ARR to -30% EBITDA margin - revenue for Q1 2021 USD 87 million NOK 13 million in positive operating cash flow Recognition from Frost & Increased sales and R&D Launch and commercial Sullivan, capacity,
Slide 3: Addressing a global market with a recurring revenue business model
Addressing a global market with a recurring revenue business model Booked Annual Recurring Revenue (“ARR”) portfolio per year end, USD million 82 • Users in ~190 countries CAGR • Over 300 partners in 70+ countries • Over 400 employees in 20+ countries 70% • ~97% of revenue from subscriptions EMEA Am
Slide 4: Video communications as it should be
✓A better way to meet with business-quality audio/video Video communications as it ✓Securely join from anywhere across multiple should be technologies ✓Customize the platform to meet the unique needs for the organization and IT ✓Full control of data privacy and sovereignty, and compliance with data
Slide 5: Large organizations choose Pexip for three main use cases
Large organizations choose Pexip for three main use cases High-quality video Vertical market Expanding access to meetings with focus applications and Microsoft Teams and on privacy and integrations Google Meet security 6
Slide 6: Pexip's differentiated customer offering is underpinned by unique technology
Pexip’s differentiated customer offering is underpinned by unique technology Smart transcoding Cloud agnostic Private Cloud On-premise SaaS Self-Hosted • Proprietary real time media engine • Proprietary technology allows Pexip’s experience to be delivered on • Unique interoperability any existing pl
Slide 7: Customers need for video will continue and evolve as they return to the office
Customers need for video will continue and evolve as they return to the office Conference rooms The new normal will be hybrid working • People combining working from home and the office • “Every” meeting will be a video meeting • “Every” room in the office will have a video device • Need to connect
Slide 8: Pexip's product and go-to-market model designed for large organizations
Pexip’s product and go-to-market model designed for large organizations Generate demand internally Partners executing sales and integration services Targeting Large Organizations System integrators Pexip Scale through Audio / Video sales partners specialists teams Sales and go-to-market Equinor team
Slide 9: Solid growth path to long-term value creation
Solid growth path to long-term value creation 6 1 Massive, high-growth market Solid growth path to reach with unique position towards USD 300m by end-of-2024 large organizations 5 2 Massively scalable business Industry recognized video model with high sustainability communication platform with impac
Slide 10: Pexip is targeting USD 300 million in ARR by end of 2024
Pexip is targeting USD 300 million in ARR by end of 2024 Revenue growth ARR of USD 300 million by end-of-2024 2025 EBITDA of +25% with +25% revenue growth Long-term profitability Plan for negative 25-35% EBITDA margin in 2021/2022, neutral to positive EBITDA in 2023 Market recognition Recognized lea
Slide 11: Clear commitment to ESG - Pexip achieves carbon neutrality in Scope 1 and 2
Clear commitment to ESG - Pexip achieves carbon neutrality in Scope 1 and 2 Pexip is proud to submit its first sustainability report • Pexip has identified material topics using the GRI standards and met the Sustainability Accounting Standards Board (SASB) disclosure requirements for Software and IT
Slide 12: Q1 Operational update
Q1 Operational update
Slide 13: Pexip continues to win the trust of new large enterprises and public organizations
Pexip continues to win the trust of new large enterprises and public organizations Selected by a range of large organizations Large organizations driving growth Selected customer wins in Q1 2021 Share of ARR by account size in ARR, USD 87M YoY growth: +54% 24% 31% 57M 23% 32% 28% 27% 53% 83% 45% Q1
Slide 14: Good customer traction for key product updates
Good customer traction for key product updates EPIC integration and Best Telehealth Platform Award First Pexip Private Cloud Customer Closed in Q1 Pexip Private Cloud Control Manage Customize 30% 600.000 your data easily, for your virtual in 20221 visits per week2 and privacy scale quickly needs 1)
Slide 15: Pexip recognized as a leading challenger in the Frost Radar
Pexip recognized as a leading challenger in the Frost Radar for Cloud meetings and Team Collaboration Services Frost perspective: INNOVATION INDEX Deployment flexibility, AI-based meeting experience and integrations into workflows GROWTH INDEX Strong and consistent growth of usage and recurring reve
Slide 16: Expanding our technology collaboration with NVIDIA
Expanding our technology collaboration with NVIDIA 17
Slide 17: Continue to build growth capacity and culture
Continue to build growth capacity and culture Scaling the team Number of employees Strong team and culture is key for future growth Other R&D Sales and Marketing • Strengthening the team is a key enabler for 416 building stronger growth capacity +93% 361 41 307 34 • Main focus continue to be on inve
Slide 18: Sales and financial performance
Sales and financial performance
Slide 19: 54% growth in Annual Recurring Revenue – Added 5.4 million in Q1 2021
54% growth in Annual Recurring Revenue – Added 5.4 million in Q1 2021 Booked Annual Recurring Revenue (ARR) development Q-o-Q growth in ARR USD million USD million 87 • Q1 2021 growth in ARR of +54% 82 USD 5.4 million, compared 9.5 73 to USD 9.5 million in Q1 66 2020 and USD 2.0 million in Q1 2019 +
Slide 20: Strong growth contributions from all geographies and product lines
Strong growth contributions from all geographies and product lines ARR per geo ARR per product USD million USD million APAC AMERICAS Pexip as-a-Service EMEA YoY growth: Self-hosted Software YoY growth: 87 87 +54% 82 82 9 36% 73 8 73 66 7 66 35 82% 29 48% 33 57 7 28 57 27 6 25 24 23 19 20 39% 49 61%
Slide 21: New sales is the main driver for ARR growth
New sales is the main driver for ARR growth with 50% in the last twelve months Development in ARR portfolio last twelve months USD million +13% -9% +54% +50% • Continue to increase last twelve 7.5 5.3 87.2 months new sales 28.3 Net retention of 104% – New sales increased with USD 2.3 million compare
Slide 22: ARR growth driving revenue growth
ARR growth driving revenue growth Quarterly revenue development Comments NOK million Self-hosted Software Operating revenues – Pexip as-a-Service Pexip as-a-Service • Overall growth of 88% Q1 2021 over Q1 2020 to NOK 72 million due to strong ARR growth. Some negative impact from NOK/USD exchange rat
Slide 23: Increase in operating expenses from planned investments in Sales and R&D capacity
Increase in operating expenses from planned investments in Sales and R&D capacity Quarterly OPEX development Comments NOK million IPO-related costs Other operating expenses Salary and personnel expenses Other Operating expenses • Increased investments in marketing in order to capitalize on the incre
Slide 24: Executing on communicated growth strategy
Executing on communicated growth strategy Cash flow from Significant investing activities investments per quarter in sales-related headcount, impacting EBITDA Comments NOK million, cash outflow 124 additional people • Significant investments into growth -10 and Sales and acceleration, as indicated a
Slide 25: Capitalized investments
Capitalized investments Cash flow from investing activities per quarter Comments NOK million, cash outflow PPE and intangibles Software dev. 39.1 (17%) • CAPEX on PPE and intangibles related to spend for servers and office fittings, as well as payments related to announced 26.7 customer base acquisi
Slide 26: Cash flow bridge
Cash flow bridge Cash flow bridge Q4 2020 Comments NOKm +47 • Positive operational cash flow for Q1 2020 due to strong working capital development 1,147 following strong sales in Q4 2020 7 7 1,101 72 27 • Positive cash flow of NOK 72 million from 53 55 March employee option share issue • Cash positi
Slide 27: Summary and Outlook
Summary and Outlook
Slide 28: Q1 2021 in brief
Strong top line growth • Continued strong ARR growth with USD 5.4 million in Q1 2021/54% y-o-y growth • NOK 180 million in revenue for Q1 2021, +20% compared to Q1 2020 Q1 2021 in brief Executing on the acceleration plan • Announced Pexip Health and NVIDIA collaboration • Continue to build sales and
Slide 29: Outlook
Positive outlook for video communication • Majority of enterprises shifting to hybrid working • Organizations looking to embed video into their workflows towards customers • Pexip’s technology is uniquely positioned to meet these new customer needs Will continue to execute on growth plan • Increase
Slide 30: Upcoming dates
Upcoming dates Annual General Meeting May 20, 2021 Update on Annual Recurring Revenue July 8, 2021 Q2 2021 quarterly presentation August 12, 2021 31
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