Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Morgan Stanley European Technology, Media & Telecom Conference 2024
24 slides from Pexip Holding Asa's conference presentation, Nov 20, 2024
Slide 1: Company presentation
Company presentation Morgan Stanley European Technology, Media & Telecom Conference 2024 November 20, 2024
Slide 2: Pexip at-a-glance
Pexip at-a-glance Strong financial performance From serving large enterprises and public sector organizations ARR 110m USD EoQ3 10% ARR growth Y-o-y 90% Gross margin LTM margin In partnership with the technology leaders in our industry +9p.p EBITDA expansion LTM margin improvement 20% Free cash flow
Slide 3: Pexip develops and delivers software in two business areas
Pexip develops and delivers software in two business areas Pexip Connected Spaces Pexip Secure & Custom Spaces Video meeting room interoperability Video meetings that are self-hosted on-premises or in a private cloud
Slide 4: 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 4
Slide 5: Strong market position in a growing market
Connected Spaces Strong market position in a growing market Video device growth expected to drive TAM growth Pexip with leading Technology Solutions Unmatched user experience Work with all major vendors and cover all relevant use cases +15% 2022-2027 Video endpoints sold p.a. Y-o-Y Full hosting flex
Slide 6: Customer use-case: HSBC
Connected Spaces Customer use-case: HSBC PRODUCT CONNECT FOR ZOOM ROOMS Use case Pexip was selected by HSBC to enable their ~4,000 Zoom Rooms to join Teams meetings with a high-quality experience. HSBC are extensively using Zoom and Teams internally and when meeting external suppliers and customers.
Slide 7: We are the #1 provider of self-hosted video meetings
Secure & Custom We are the #1 provider of self-hosted video meetings 7
Slide 8: Secure Meetings is for organizations that cannot compromise on security
Secure & Custom Secure Meetings is for organizations that cannot compromise on security Control your data and who has access to meetings Increase security and brand recognition through branding Tailor the meeting experience for your high-impact meetings
Slide 9: Growth outlook for Secure Meetings powered by cyber security mega-trend
Secure & Custom Growth outlook for Secure Meetings powered by cyber security mega-trend • 50% of European CXOs see data sovereignty as a top issue • 44% of European enterprises plan to move to sovereign cloud in the next 2 yrs. • 30% growth in private clouds • 137+ countries have enacted some form o
Slide 10: Customer use-case: European government
Secure & Custom Customer use-case: European government PRODUCT Secure Meetings as a parallel solution Use case Pexip was selected by the IT provider of a European Government to provide a secure video platform to operate side-by-side with Teams for specific use-cases and individuals, operating with t
Slide 11: Private AI for Secure Meetings launched in Q4 through NVIDIA partnership
Secure & Custom Private AI for Secure Meetings launched in Q4 through NVIDIA partnership • Private deployment with complete data control • Customer-specific language libraries • Built on NVIDIA AI models 11
Slide 12: New growth opportunity from Video Platform as a Service launch in 2024
Secure & Custom New growth opportunity from Video Platform as a Service launch in 2024 What is it? A software as a service platform accessed via APIs and SDKs for customers to embed video into business workflows launched in 2024 Who is it for? Organizations serving customers on video in highly regul
Slide 13: Sharp focus and leading technology enables Pexip to partner with global leading technology companies
Partnerships Sharp focus and leading technology enables Pexip to partner with global leading technology companies 2022 2023 2024 Note: Partners with active R&D and/or sales collaboration by year. Not exhaustive list 13
Slide 14: Microsoft partnership summary
Partnerships Microsoft partnership summary • Extensive R&D and commercial partnership since 2015 • One of two global partners providing interoperability into Teams meetings • Only partner on US Gov Clouds and on-premise Skype for Business • Only partner for Microsoft Teams Rooms cross-platform join
Slide 15: HP partnership summary
Partnerships HP partnership summary • Partnership was announced in May 2023 • Pexip is providing co-branded solutions to HP, and HP is reselling these to its customers • Co-branding Pexip’s core offerings in Connected Spaces and Secure & Custom • HP is migrating the existing customer base on its leg
Slide 16: Growth driving improved financial performance
Financials Growth driving improved financial performance Total ARR Adjusted EBITDA1 Free Cash flow2 USDm NOKm, Last twelve months NOKm, Last twelve months +2.3 +2.5 +3.0 +2.0 178 109.5 170 (17%) 209 104.8 107.1 (16%) 99.8 102.8 191 143 (14%) 164 113 (11%) 76 105 105.0 107.7 (8%) 96.0 99.4 102.0 69 Q
Slide 17: Total ARR base at USD 110 million in Q3 2024
Financials Total ARR base at USD 110 million in Q3 2024 Total ARR Legacy ARR split USD million Underlying ARR Self-hosted Software +10% 107.1 109.5 102.8 104.8 99.8 +12% 48% 52% Pexip as-a-Service 102.0 105.0 107.7 96.0 99.4 APAC EMEA 9% 50% 41% Q3 Q4 Q1 Q2 Q3 2024 2023 2023 2024 2024 Americas Booke
Slide 18: Growth in both business areas
Financials Growth in both business areas USD million, year-on-year Connected spaces and legacy Secure and Custom 22% -2% -13% 7% 15% 5% -5% 15% 1.3 64.2 13.9 8.2 68.6 Annual net retention of 85% 41.0 35.5 5.3 1.8 1.7 Annual net retention of 100% Q3 2023 New Net Upsell Churn Q3 2024 Q3 2023 New Net u
Slide 19: Continued revenue growth driven by SaaS
Financials Continued revenue growth driven by SaaS Revenue Adjusted EBITDA1 NOK million NOK million (margin) Software SaaS 102 +11% (+102) 178 1,071 (17%) 969 11% revenue growth on LTM, in line with ARR growth 553 Stable cost base and 90% gross 520 margins converting revenue growth 76 to EBITDA impr
Slide 20: Stable operating expenses
Financials Stable operating expenses Quarterly OPEX development NOK million Salary and personnel expenses 204.5 199.8 197.9 200.7 202.5 185.6 Have reduced headcount during 2023 179.1 38.7 and 2024 in order to offset inflation 45.0 42.8 36.7 39.1 35.4 34.6 9.8 8.8 10.8 9.4 8.4 7.6 16.0 Other Operatin
Slide 21: NOK 209 million in free cash flow last twelve months, up NOK 140 million
Financials NOK 209 million in free cash flow last twelve months, up NOK 140 million from previous period Cash flow bridge LTM Q3 2024 NOK million • Above 100% conversion from EBITDA to free 40 cash flow 15 264 112 594 209 3 • Disciplined approach to capital expenditure – 494 main driver is internal
Slide 22: Outlook
Outlook 2024 outlook • Continued positive market outlook across the • 8-11% ARR growth business areas • Previous 8-10% • Strong market position and industry partnerships are • 16-20% EBITDA1 expected to continue to drive growth 2025+ targets • Q4 2024 ARR expected 111-114 USD millions Consistently d
Slide 23: Thank you
Thank you Investor.pexip.com IR@Pexip.com
Slide 24: Backup: Summary of key figures
Backup: Summary of key figures KPI Unit Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Y-o-y Q-o-Q Comments Q3 2024 ARR ARR Connected Spaces MUSD 60.5 63.1 64.2 65.3 66.8 6.3 1.5 • Delta ARR Q3 of 2.4 MUSD, with good contibutions Secure & Custom MUSD 35.5 36.3 37.7 39.7 41.0 5.5 1.3 across Connected Spaces
Pexip — Morgan Stanley European Technology, Media & Telecom Conference 2024 on 6ix