Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Q4 2020 Earnings Presentation
37 slides from Pexip Holding Asa's earnings presentation, Feb 11, 2021
Slide 1: Quarterly Presentation Q4 2020
Meet the world with video communication as it should be Quarterly Presentation Q4 2020 11 February 2021
Slide 2: Important notice and disclaimer
Important notice and disclaimer These materials have been produced by Pexip Holding AS (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 representativ
Slide 3: Recent highlights
Recent highlights Full-year revenue of New record deal with US 73% y-o-y NOK 679 million (+83%) Defense Health Agency at growth in ARR to and 15% EBITDA approx. USD 2 million in USD 82 million adjusted for IPO costs ARR Increased sales and R&D Announced launch of Launched Pexip Private capacity, Pex
Slide 4: Business update
Business update ]pexip[
Slide 5: 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 6: 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 7: Pexip is a high-growth subscription-based video communication company
Pexip is a high-growth subscription-based video communication company Booked Annual Recurring Revenue (“ARR”) portfolio per year end, USD million 82 • Users in ~190 countries CAGR • Over 300 partners in 75 countries 47 • Over 350 employees in 20+ countries 70% • 97% of revenue from subscriptions 36
Slide 8: 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 lucrative enterprise segment 5 2 Massively scalable business Industry recognized video model with high sustainability communication platform w
Slide 9: Pexip is targeting reaching USD 300 million by end of 2024
Pexip is targeting reaching USD 300 million 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 l
Slide 10: 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 Q4 2020 Share of ARR by account size in ARR, USD 82M YoY growth: +73% 24% 26% 47M 23% 38% 34% 29% 145% 52% + 10 n
Slide 11: Pexip ideally positioned for enterprises' reality as organizations return to the office
Pexip ideally positioned for enterprises’ reality as organizations return to the office Conference rooms The new normal will be hybrid working • People combining working from home and the office • “Every” room in the office will have a video device • “Every” meeting will be a video meeting • Need to
Slide 12: Enabling sustainable development for our customers and users
Enabling sustainable development for our customers and users Pexip contributes to the green economy • Pexip is committed to supporting our customers in making their business processes more sustainable – Enabling vital healthcare or educational service delivery – Enabling significant reductions in tr
Slide 13: Pexip Private Cloud has been very well received
Pexip Private Cloud has been very well received by potential customers, partners and industry analysts Unique value proposition for large enterprise Speed Pexip Private Cloud can be configured and deployed rapidly at whatever scale required. Security Pexip Private Cloud is dedicated enterprise-grade
Slide 14: Pexip Room and Logitech partnership significantly adds to growth potential
Pexip Room and Logitech partnership significantly adds to growth potential Annual video endpoint sales In Million devices Forecasted volume 1.4 2020-2024: Pexip has since inception offered subscription services for standard-based video systems Pexip Room is Pexip’s first application to be run on 0.8
Slide 15: Pexip has started on the next phase of our video communication adventure
Pexip has started on the next phase of our video communication adventure ARR target of USD 300m by 2024 Established leadership position within larger collaboration market IPO 2020 Founded 2011 15
Slide 16: Product update
Product update
Slide 17: Launched Pexip room together with Logitech
Launched Pexip room together with Logitech + workspace 17
Slide 18: Launched Pexip room together with Logitech – first Android-based video device app
Launched Pexip room together with Logitech – first Android-based video device app + Pexip software for Android based room devices + Pexip in full control of the experience + Sold as a Cloud Service license per device workspace + Hardware devices are sold by Logitech + Mutual channel partners can off
Slide 19: Strong value proposition to both Pexip Meeting customers and multi-platform customers
Strong value proposition to both Pexip Meeting customers and customers using multiple video platforms + Stress-free joining • Join all meetings with a single touch • One common experience across all devices + Meet smarter • Pexip’s AI enhanced meeting experience workspace • People centric to reduce
Slide 20: Launch of Epic partnership for Telehealth
Launch of Epic partnership for Telehealth • Epic is a major global provider of electronic patient journals for healthcare providers • With Pexip’s new integration, providers can easily enable a Pexip video appointment as part of their existing workflows • More than 250 million patients have a curren
Slide 21: Financial review
Financial review ]pexip[
Slide 22: Strong development in Annual Recurring Revenue with 73% growth YoY
Strong development in Annual Recurring Revenue with 73% growth YoY Booked Annual Recurring Revenue (ARR) development Q-o-Q growth in ARR USD million USD million 82 2.1X +73% 73 9.1 66 57 47 43 3.1X 40 36 38 4.4 1.4 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q4 2018 Q4 20
Slide 23: Growth across all geographies and product lines
Growth across all geographies and product lines ARR per geo ARR per product USD million USD million APAC AMERICAS Cloud Service EMEA YoY growth: Software YoY growth: 82 82 73 8 42% 73 66 7 66 33 109% 57 7 28 57 79% 27 6 25 24 47 47 23 19 6 20 16 15 49 55% 46 77% 42 46 36 40 37 31 32 26 Q4 2019 Q1 20
Slide 24: New sales is the main driver for ARR growth with 59% in 2020
New sales is the main driver for ARR growth with 59% in 2020 Development in ARR portfolio last twelve months USD million +24% -10% +73% +59% 4.9 81.9 11.4 • Year-on-year growth increased to 73% end of 2020 Net retention of 114% 28.0 • Majority of growth driven by sales 47.2 to new customers at 59%.
Slide 25: Development in ARR bridge shows continued momentum in net new sales
Development in ARR bridge shows continued momentum in net new sales Development in year-on-year growth in ARR by quarter USD million, Last twelve months 34,6 New Sales Net Upsell 29,9 Churn • New sales has increased consistently 25,6 quarter by quarter through 2020 28,0 18,9 • Net upsell saw an incr
Slide 26: Q4 2020 revenue of NOK 229 million, corresponding to 96% revenue growth
Q4 2020 revenue of NOK 229 million, corresponding to 96% revenue growth Quarterly and annual revenue development Comments NOK million Software Operating revenues – Cloud service Cloud Service • Overall growth of 155% Q4 2020 over Q4 2019 to NOK 70 million due to strong sales across a number of accou
Slide 27: Continue to scale the team in terms of adding leading talent
Continue to scale the team in terms of adding leading talent and investing in culture and training Scaling the team Scaling the culture Number of employees Other Engineering Sales and Marketing 361 +98% 34 130 182 14 72 197 96 Dec-19 Dec-20 27
Slide 28: 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 580.4 Other Operating expenses 47.8 • Have increased investments in marketing in order to capital
Slide 29: Solid EBITDA in Q4 2020 from strong sales
Solid EBITDA in Q4 2020 from strong sales Quarterly Adjusted1 EBITDA development Comments NOK million, (Percent of revenue) 103.4 (15%) 49.5 40.4 (22%) 76.3 37.3 • Q4 2020 reported EBITDA of NOK 49.5 million 32.0 (25%) (21%) (25%) 19.8 (27%) • FY 2020 reported EBITDA of NOK 55.6 million (22%) 11.5 1
Slide 30: Investments
Investments Cash flow from investing activities per quarter Comments NOK million, cash outflow 73.8 (11%) PPE and intangibles Software dev. 39.1 (17%) • Higher CAPEX in Q4 2020 mainly related to payments related 40.1 to the customer base acquisition announced in Q3 2020, in addition to an increase i
Slide 31: Cash flow bridge
Cash flow bridge Cash flow bridge Q4 2020 Comments NOKm • Have a solid cash position to fund our -59 acceleration plan, which is also impacting 1,159 50 39 cash flow 3 3 52 1,101 17 • Positive operational cash flow for Q4 2020 and for FY 2020 • Exchange losses on cash holdings in other currencies fr
Slide 32: Summary
Summary ]pexip[
Slide 33: Fourth quarter and 2020 in brief
Strong top line growth and solid profitability • NOK 679 million in revenue for 2020, +83% compared to 2019 • Strong revenue growth across all geographies • Continued strong ARR growth with USD 9.1 million in Q4 2020 Fourth quarter and Executing on the acceleration plan 2020 in brief • Launched Pexi
Slide 34: Outlook
Positive outlook for video communication • Majority of enterprises shifting to a hybrid workforce • 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 • Incre
Slide 35: Upcoming dates
Upcoming dates Update on Annual Recurring Revenue 8 April 2021 2020 Annual report 29 April 2021 Q1 2021 quarterly presentation 13 May 2021 35
Slide 36: [ = ® t Oo a @
[ = ® t Oo 3 a @
Slide 37: Quarterly Presentation Q4 2020
Meet the world with video communication as it should be Quarterly Presentation Q4 2020 11 February 2021