Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Investor Day (December 2021)
97 slides from Pexip Holding Asa's investor day presentation, Dec 9, 2021
Slide 1: Capital Markets Day 2021
Capital Markets Day 2021 December 9, 2021
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: Game-Changing Pandemic
Game-Changing Pandemic
Slide 4: Climate Consciousness
Climate Consciousness 4
Slide 5: Geopolitical Complexity
Geopolitical Complexity 5
Slide 6: Cyber Vulnerability
Cyber Vulnerabilty 6
Slide 7: Mega Trends Shaping Pexip's Business and Product Strategy
Mega Trends Shaping Pexip's Business and Product Strategy - addressing the needs of our customers Game Changing Climate Geopolitical Cyber Pandemic Consciousness Complexity Vulnerability 7
Slide 8: Powering the Video Economy
Powering the Video Economy 8 ]pexip[
Slide 9: Presenters
Presenters Michel Sagen Øystein Dahl Hem Nico Cormier Åsmund O. Fodstad Chair of the Board Interim CEO and CFO Chief Technology Officer President Global Sales & Marketing Ingrid Woodhouse Jordan Owens Peter McCarthy Chief People Officer Vice President Architecture Vice President Public Sector Sales
Slide 10: Agenda
Agenda 01 02 Break 03 04 Strategy Technology & Execution & Q&A Target Markets Culture 10
Slide 11: Strategy
Strategy Presenter: Øystein Dahl Hem
Slide 12: Pexip is a global technology company
Pexip is a global technology company 535+ Employees in 35 countries 4,400 Enterprise and public sector customers 370 300+ Channel partners 100 100% Net revenue retention rate 2021 $100,000,000+ annual recurring revenue 65 Challenger in Gartner Magic Quadrant1 Ranked #1 in Wainhouse user survey2 Entr
Slide 13: Pexip represents the Norwegian video communication heritage
Pexip represents the Norwegian video communication heritage Cisco acquires Pexip founded in Tandberg for 2011 USD3.3bn1 in 2010 Pexip represents knowledge, talent and culture built up over 30 years 1) At the time of acquisition 13
Slide 14: Solid and strong business momentum
Solid and strong business momentum 100% reinvested in sales, marketing, products & engineering Booked annual recurring revenue (“ARR”) portfolio ARR per geography per year end, USDM 100 65% 82 CAGR 2013 - 2021 9% 47 36 29 36 % 55 % 21 12 5 2 2013 2014 2015 2016 2017 2018 2019 2020 2021Q3 Cash flow p
Slide 15: Proud to serve the most demanding organizations
Proud to serve the most demanding organizations Selected by a range of large organizations Large organizations driving growth Share of ARR by account size in ARR, USD +37% 100M YoY growth: 22% 20% 73M 25% 22% 32% 24% 56% 47% 51% Q3 2020 Q3 2021 USD >100,000 USD 30,000-100,000 USD <30,000 Currently ~
Slide 16: COVID-19 fueled the hyper adoption of video
COVID-19 fueled the hyper adoption of video 3 Years 5.4x Global adoption acceleration From 13% to 70% end-user video Digitization of customer adoption over the period in interactions* the western world *Source: McKinsey & Company 16
Slide 17: Enabling business innovation
Enabling business innovation Empower people to be MEETINGS The world MISSIONS Powering the video seen and engage with massively adopts economy each other in a better video way 17
Slide 18: Pexip's core markets represent a massive market opportunity
Pexip’s core markets represent a massive market opportunity Pexip intends to have a leadership position in a Well-positioned to benefit from mass adoption 5 BUSD segment by 2024 of video communication 5.4x End-user video 70% Video-centric Unified 20+ BUSD Communications (UC) market adoption in the w
Slide 19: Unique technology drives our success in three core markets
Unique technology drives our success in three core markets Video infrastructure Critical video meetings Video enablement including interoperability to Microsoft Teams for secure environments for healthcare, judiciary, government, retail and and Google Meet finance 19
Slide 20: A strong and growing ecosystem of partners
A strong and growing ecosystem of partners Technology Partners Solution Partners Strategic Partners Development Partners Channel Partners 20
Slide 21: Outstanding team with a great culture
Outstanding team with a great culture Professional & Fun Freedom & Responsibility No Bullshit One Team 21
Slide 22: Why we win
Why we win Technology Ecosystem Culture 22
Slide 23: Technology
Technology Presenter: Nico Cormier
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Slide 25: Study on the Effect of Delay on Human Voice Perception
Study on the Effect of Delay on Human Voice Perception “ if delays can be kept below 150ms, most applications, both speech and non-speech, will experience essentially transparent ” interactivity Source: 2003 International Telecommunication Unit T G.114 25
Slide 26: 150ms - the magic number for innovation in our industry
150ms - the magic number for innovation in our industry 150ms 26
Slide 27: Transport - a significant chunk of 150ms
Transport - a significant chunk of 150ms Transport 27
Slide 28: Compute – where the magic happens
Compute – where the magic happens Capture AI Compression Algorithms Render Compute 28
Slide 29: 180 R&D engineers, 52 patents
180 R&D engineers • experts in signal processing • 34 nationalities; 20-30% relocations • 3-4% turn-over 52 patents in real time video processing and highly distributed real time systems One strong engineering culture 29
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Slide 31: Core Transcoding, Agnostic Infrastructure, Built as-a-platform
1 Core Transcoding 2 Agnostic Infrastructure 3 Built as-a-platform 31
Slide 32: Core Transcoding
1 Core Transcoding Switching Core Transcoding Compute done on end-user device Compute done in the network Heavyweight client architecture Lightweight client architecture 32
Slide 33: Core Transcoding – implications & benefits
1 Core Transcoding – implications & benefits Download application Lightweight, no download experience Limited to one protocol Unique interoperability AI and compression on the end-user device AI and compression in the network 33
Slide 34: Core Transcoding – implications & benefits
1 Core Transcoding – implications & benefits Mixed reality and augmented reality on low power devices. 8 hours with AI on Pexip vs 30 minutes for competition AI in the network on any device/browser with no download Sustainability thanks to lower bandwidth usage, extended equipment lifetime and impro
Slide 35: Core Transcoding, Agnostic Infrastructure, Built as-a-platform
1 Core Transcoding 2 Agnostic Infrastructure 3 Built as-a-platform 35
Slide 36: Agnostic Infrastructure
2 Agnostic Infrastructure Proprietary Shared SaaS Agnostic Infrastructure Tightly bound to a single cloud Runs on all cloud providers and on-prem Runs only on the public internet Can by-pass the internet Customers’ data mingled together Customer controls data exposure 36
Slide 37: Agnostic Infrastructure – privacy and security benefits
2 Agnostic Infrastructure – privacy and security benefits Security and Privacy • Compliant with GDPR and ISO 27001 • All media encrypted by default • HIPAA compliance for US Healthcare • Highest US military security certifications • JITC-certified, FIPS 140-2 and 508 compliance Secure and Reputable
Slide 38: Core Transcoding, Agnostic Infrastructure, Built as-a-platform
1 Core Transcoding 2 Agnostic Infrastructure 3 Built as-a-platform 38
Slide 39: Built as a platform
3 Built as a platform Built as an end-user application Built as a “technology inside” platform Technology and applications tightly coupled Decoupled technology and applications Very limited branding/customization License technology allowing total customization 39
Slide 40: Target markets
Target markets Presenters: Nico Cormier, Åsmund O. Fodstad
Slide 41: Unique technology powers our success in three core markets
Unique technology powers our success in three core markets Video infrastructure Critical video meetings Video enablement with interoperability to Microsoft Teams and for secure environments for healthcare, judiciary, government, retail and Google Meet finance 41
Slide 42: Enterprise Room Connector
Enterprise Room Connector Pexip upgrades existing rooms to the cloud Customer is moving to a SaaS and has incompatible meeting room equipment. Equipment registers against the Pexip cloud, making them easy to manage, able to dial into meetings (such as Teams or Meet) and upgrades their experience wit
Slide 43: Core Transcoding used to connect incompatible protocols
1 Core Transcoding used to connect incompatible protocols Core transcoding allows Pexip to talk all protocols • Translate any real time media signal on the fly • Leverage our media and protocol expertise • Added end user value with AI • Consumable both as a SaaS or self-hosted 43
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Slide 45: Linked fi] & AIRBUS
Linked fi] & AIRBUS Gu ae on @ (\\ ™& Commonwealth KF Jpexip[ Office
Slide 46: Standards-based Video Infrastructure
Standards-based Video Infrastructure Why Pexip? Core Transcoding allows us to transcode on the 3 Certified by MSFT and Google. Tight commercial, GTM 1 fly incompatible protocols and support brand both new and engineering relationship and upgrade old equipment 2 Agnostic compute allows customers to G
Slide 47: Future opportunity
Future opportunity Increase in Interop is here Independent complexity to stay 47
Slide 48: 48
48
Slide 49: Unique technology powers our success in three core markets
Unique technology powers our success in three core markets Video infrastructure Critical video meetings Video enablement with interoperability to Microsoft Teams and for secure environments for healthcare, judiciary, government, retail and Google Meet finance 49
Slide 50: Pexip for Critical Meetings
Pexip for Critical Meetings Video meetings for environments with stringent privacy & security Customer is government or large organizations with clear focus on privacy Pexip provides a self-hosted (on-prem & cloud native) platform optimised for critical video meetings 50
Slide 51: Agnostic infrastructure guarantees complete privacy
Agnostic infrastructure guarantees complete privacy 2 Agnostic Infrastructure Runs on all cloud providers and on-prem Can by-pass the internet Customer controls data exposure 51
Slide 52: The growing market for critical infrastructure
The growing market for critical infrastructure “ By 2024, 80% of critical infrastructure organizations will abandon their existing siloed security solutions providers in order to bridge cyber-physical and IT risks by adopting hyper-converged solutions. ” Predicts 2022: Cyber-Physical Systems Securit
Slide 53: Ministry
a Ministry of Justice pa | w FORSVARET US. Department of Veterans Affairs WL so JN Bundeswehr GSA DISA (A Northwest Territories CANABA 53 Jpexip[
Slide 54: Pexip is finding great success in ultra secure meetings segment
Pexip is finding great success in ultra secure meetings segment APAC use cases: 1 Deliver Ultra secure / highly private platforms to the Americas use cases: EU use cases: military and governments 1 Deliver Ultra secure / highly 1 Deliver Ultra secure / highly private platforms to the military privat
Slide 55: Critical video meetings
1 Core Transcoding allows us to support brand both new and upgrade old equipment 2 Agnostic compute allows customers for total privacy Critical video meetings 3 Branding & Customisation. Meetings your way. Your brand. Your customer experience. What do we deliver to CIO/IT Security. In and beyond the
Slide 56: Critical video meetings
Critical video meetings What do we deliver to CIO/IT 56
Slide 57: Critical video meetings
1 + + 2 + Critical video meetings What do we deliver to end users 3 AI 4 57
Slide 58: Governments choose us because of privacy but also flexibility
GOVERNMENTS choose us because of privacy but also flexibility. They have a very complex environment with very complex use cases needing both interop and custom workflows
Slide 59: Future opportunity
Future opportunity Predicts 2022: Cyber-Physical Systems Security — Critical Infrastructure in Focus Gartner Published 17 November 2021 - ID G00757423 59
Slide 60: 60
60
Slide 61: Unique technology powers our success in three core markets
Unique technology powers our success in three core markets Video infrastructure Critical video meetings Video enablement with interoperability to Microsoft Teams and for secure environments for healthcare, judiciary, government, retail and Google Meet finance 61
Slide 62: Pexip for Video Enablement
Pexip for Video Enablement Help digitalizing critical services Customer is a Healthcare provider, Justice court or large organizations in Retail or Finance – Pexip delivers a video enablement platform tailored for delivering these customers’ services over video 62
Slide 63: Leveraging key technological differentiators
Leveraging key technological differentiators 2 3 Agnostic Infrastructure Built as-a-platform Runs on all cloud providers and on-prem Decoupled technology and applications Can by-pass the internet License technology allowing total customization Customer controls data exposure Vanilla experience easil
Slide 64: Enabling business innovation
Enabling business innovation Empower people to be MEETINGS The world MISSIONS Powering the video seen and engage with massively adopts economy each other in a better video way 64
Slide 65: Virtual Hearings, Online Public services, Online retail
Virtual Hearings Online Public services Online retail Telehealth Web banking 65
Slide 66: medcom
medcom
Slide 67: Bundesagentur für Arbeit
Bundesagentur fur Arbeit
Slide 68: Betreuer(in) um 15:49 Uhr
Betreuer(in) um 15:49 Uhr Wir kénnen das Formular geme gemeinsam ausfiillen. Ich gebe Ihnen dazumeinen Bildschirm frei 68 Jpexip[
Slide 69: Success results & customer feedback
Success results & customer feedback Was the video Would you What format would you consultation recommend video chose for your next easy to use? consultation? organization 87% 95% 73% 87% found video consultation 95% would recommend video 73% prefer or are open to easy to use and had no technical con
Slide 70: HMCTS – Judicial sector
HMCTS – Judicial sector (Her Majesty's Courts and Tribunals Service) True to life experience Virtualized the existing Court flow and integrated into existing scheduling and Gov authentication system through API’s Tailored interfaces Fully branded to increase trust and comfort level Accessibility Ser
Slide 71: Virtual Hearings for Crown & Magistrates' courts
Virtual Hearings for Crown & Magistrates’ courts Central Briefing Multiple User Roles with Multiple Room Types, Workflow Automation Rules & Fully secure and or Court room defined access rights configurable sub-rooms or Configurations for users and supported on the Infinity discussions rooms rooms pl
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Slide 74: Remote engineering
Remote engineering Drones Underwater ROV Microscopes Thermal Imaging Medical Cameras 74
Slide 75: Assisted and Mixed Reality
Assisted and Mixed Reality Remote Expert Remote Inspection Remote Audit Training Health & Safety Telehealth Remote Sales 75
Slide 76: Virtual Hearings, Online Public services, Online retail
Virtual Hearings Online Public services Online retail Telehealth Web banking 76
Slide 77: Pexip acquires Skedify.me
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Slide 78: Sales Engagement Platform
Sales Engagement Platform • Easy to schedule ‘meet your expert’ web plugins • Primarily towards finance and retail • Extensive CRM & CMS integrations 78
Slide 79: Pexip and NVIDIA
> + ]pexip[ NVIDIA.
Slide 80: NVIDIA SDKs: Video, Augmented Reality, Audio Effects, Jarvis
Video Effects SDK Augmented Reality SDK Audio Effects SDK NVIDIA Jarvis SDK Super resolution Face tracking Noise removal Conversational AI (transcription and translation) Artifact reduction Face landmark tracking Room echo removal Video noise removal Face mesh Virtual background Body pose estimation
Slide 81: Video Enablement – Why Pexip?
Video Enablement Why Pexip? Complex environment means a lot of existing API & SDKs allows customers to build in no time their 1 incompatible equipment/protocols/integrations a own apps – with a time to market lower than competition Agnostic Infrastructure translates into total privacy Guest experien
Slide 82: Virtual Hearings, Online Public services, Online retail
Virtual Hearings Online Public services Online retail Telehealth Web banking 82
Slide 83: Core Transcoding, Agnostic Infrastructure, Built as-a-platform
1 Core Transcoding 2 Agnostic Infrastructure 3 Built as-a-platform 83
Slide 84: Execution and culture
Execution and culture Presenters: Øystein Hem, Ingrid Woodhouse
Slide 85: Pexip has successfully solved the complex video needs of large organizations
Pexip has successfully solved the complex video needs of large organizations since its inception Booked Annual Recurring Revenue (“ARR”) 100 portfolio per year end, USD million 82 CAGR 2013 – 2020 • Investing raised capital for growth in 2020 and 2021 70% • Accelerated ARR growth and 47 normalized i
Slide 86: Strong underlying performance in three core focus areas
Strong underlying performance in three core focus areas Video infrastructure Critical video meetings Video enablement Other areas Market size 2024E ~700 ~1,000 ~3,000 N/A MUSD ARR1 58 10 18 14 MUSD ARR growth LTM1 54% 160% 90% -37% Percent of ARR Churn LTM1 7% 5% 3% 26% Percent of ARR Typical custom
Slide 87: Customer size development show strong performance among large customers
Customer size development show strong performance among large customers Share of ARR by account size in ARR YoY growth Churn LTM Number of USD Percent Percent p.a. customers +37% 100M 22% 20% 20% 3800 73M 25% 22% 32% 14% 420 24% 56% 47% 5% 178 51% Q3 2020 Q3 2021 USD >100,000 USD 30,000-100,000 USD
Slide 88: Approaching the next phase of investment plan
Approaching the next phase of investment plan Booked Annual Recurring Revenue (“ARR”) portfolio per year end, USD million 300 • Investing raised capital for growth in 2020 and 2021 • Accelerated ARR growth and normalized investment level in 2022 improving profitability • Return to profitable growth
Slide 89: Robust underlying profitability in line with long-term ambition
Robust underlying profitability in line with long-term ambition of growth + EBITDA above 50% Illustrative EBITDA build-up NOK million last twelve months (Percent of revenue) +36% • Last twelve months 769 revenue growth of 36%, (100%) 693 OPEX assuming normal (90%) gross margin of 90% and 75 investme
Slide 90: Long term operating model
Long term operating model Percent of revenue Business drivers 2019 2020 Last twelve Long-term model months Revenue growth 30%1 83% 36% >25% Gross margin 95% 94% 90% 88-92% Salary costs 51% 59% 79% 45-50% Other OPEX 23% 27% 22% 15-18% EBITDA 21% 8% -11% >25% 90
Slide 91: Purpose, Culture, People, Organization
Purpose Culture People Organization 91
Slide 92: Purpose
Purpose • Communication • Guiding Star • One Team 92
Slide 93: Culture
Culture • Innovation • Excellence • Collaboration • Ownership 93
Slide 94: People
People • Thorough Recruiting • Quality Growth • Strong Foundation 94
Slide 95: Organization
Organization • Agile Organization • Flat Structure • Continuous Learning 95
Slide 96: Summary
Massive USD 5 billion market opportunity in Pexip’s core focus areas: video infrastructure, critical video meetings and video enablement – further opportunity to expand in adjacent markets over time Strong underlying performance in core focus areas, already accounting for more than 85% of ARR Core f
Slide 97: Q&A
Q&A