Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — Q1 2022 Earnings Presentation
30 slides from Pexip Holding Asa's earnings presentation, May 12, 2022
Slide 1: Quarterly Presentation Q1 2022
Quarterly Presentation Q1 2022 May 12, 2022
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: Pexip at a glance
Pexip at a glance Washington DC Oslo, London, Stockholm, Paris, Copenhagen, 2011 New York Düsseldorf, Ghent, Utrecht Company founded 550 Employees in 34 countries 300+ Partners in 75 countries 370 4,400 113 Enterprise and public sector customers $106 million Annual Recurring Revenue 2021 68 Challeng
Slide 4: Pexip has a unique patented core technology platform
Pexip has a unique patented core technology platform Core transcoding Agnostic infrastructure: Built as a platform: architecture Works on all platforms Highly customizable • Processing happens in the • Enables complete control of data & • Enables complete network and not on the device business conti
Slide 5: Pexip's focused and clearly differentiated approach addresses a massive market opportunity
Pexip’s focused and clearly differentiated approach addresses a massive market opportunity • MS Teams Video conferencing/ 20+ BUSD communication • Zoom in 2024 • Google Meet • Webex 5 BUSD Secure Spaces Pexip core in 2024 solution areas Video Innovation Connected Spaces Source: Wainhouse Research, c
Slide 6: Pexip is focused on addressing customer needs in three core solution areas
Pexip is focused on addressing customer needs in three core solution areas Secure Spaces Video Innovation Connected Spaces When complete privacy and When an embedded or When you have several video control over data is required custom video solution is solutions that need to work required together 6
Slide 7: Q1 highlights and key areas of focus
Q1 highlights and key areas of focus Growth y-o-y Growth Q1 Results & cash • EBITDA of NOK -52 million • ARR up 21% y-o-y • Quarterly actual delta ARR or negative 23% margin to USD 106 million of USD -0.8 million and • Extraordinary high cash • Revenue up 24% y-o-y to underlying USD 1.2 million outf
Slide 8: Q1 2022 Sales Development
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Slide 9: 21% y-o-y increase in Annual Recurring Revenue
21% y-o-y increase in Annual Recurring Revenue USD million • ARR of USD 105.6 million at the end of Q1 2022 – USD 0.8 million below Q4 2021 • Underlying ARR is USD 1.2 million higher, adjusting for negative USD 2.0 million one-off booking from change in +21% pricing model with a single partner contr
Slide 10: New customers represent the main driver for ARR growth
New customers represent the main driver for ARR growth Development in ARR portfolio last twelve months USD million +4% -9.2% +21% +26% • Sales to new customers continue to 3.4 be main driver behind growth, in 8.0 105.6 23.0 line with previous period 87.2 Net retention of 95% • Improved churn at 9.2%
Slide 11: New win: Central European Ministry of Justice
New win: Central European Ministry of Justice • Pexip is providing a secure meeting platform to a Central European Ministry of Justice • The solution is to be deployed as an on-premise installation with Secure Spaces the Pexip Infinity platform at the core for secure environments • Pexip was chosen
Slide 12: Upsell: US Department of Veterans Affairs
Upsell: US Department of Veterans Affairs • Chose Pexip for custom development and branding options Video Innovation • 97% YOY Growth on Pexip platform for healthcare, judiciary, government, retail and finance • 2.3M Veterans served via Pexip (FY21) • 9.5M Video Telehealth Calls (FY21) 12
Slide 13: New win: DLA Piper
New win: DLA Piper • DLA Piper is a global law firm with lawyers located in more than 40 countries throughout the Americas, Europe, the Middle East, Africa and Asia Pacific, positioning us to help Connected Spaces clients with their legal needs around the world including interoperability to Microsof
Slide 14: New win: Västra Götaland Region
New win: Västra Götaland Region • This Swedish municipality has approximately 55,000 employees with over 550 dedicated videoconferencing systems • They chose Pexip for applications in all 3 solutions areas, including Microsoft Teams interoperability (Connected Spaces), confidential meetings (Secure
Slide 15: Launched Pexip Engage
Launched Pexip Engage Video Innovation • Key solution in the Video Innovation space • Launch completes Skedify acquisition from Q4 2021 • Already gaining traction with customers, building on established Skedify customer base
Slide 16: Q1 2022 Financial Results
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Slide 17: Q1 2022 Financial results
Q1 2022 Financial results Profit and Loss Comments NOK million Development • 24% increase in year-on-year revenue in line with Q1 2021 Percent ARR increase P&L item Q1 2022 Revenue 179.7 222.5 24% • Increased Cost of Sale from increased cloud service share of revenues, in addition to strengthening t
Slide 18: +24% revenue increase in line with ARR development
+24% revenue increase in line with ARR development Quarterly revenue development Comments NOK million Self-hosted Software Operating revenues – Pexip as-a-Service Pexip as-a-Service • Overall growth of 29% year-on-year to NOK 93 million • Development in line with ARR development +24% YoY growth: 266
Slide 19: Increase in operating expenses from higher headcount and activity level
Increase in operating expenses from higher headcount and activity level Quarterly OPEX development Comments NOK million IPO-related costs Other operating expenses Other Operating expenses Share option related costs • Increase in external services from legal costs related to M&A, Other Salary and per
Slide 20: Flat development in EBITDA - focus going forward on return to profitability
Flat development in EBITDA - focus going forward on return to profitability Cash flow from Significant investing activities investments per quarter headcount, impacting EBITDA in sales-related Comments NOK million • Gross margin growth of NOK 32 million • Growth in OPEX of NOK 31 million due to head
Slide 21: Extraordinary high cash outflow due to share buyback and portfolio acquisitions
Extraordinary high cash outflow due to share buyback and portfolio acquisitions Cash flow bridge Q1 2022 Comments NOKm • Operational cash flow of negative NOK 31 million driven by a negative EBITDA with a -214 seasonal improvement in working capital 804 52 8 20 80 • Extraordinary non-recurring cash
Slide 22: Outlook
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Slide 23: CEO observations
CEO observations • The pandemic has changed the market landscape and created both challenges and new opportunities for Pexip • Pexip has a robust strategy coupled with a strong and differentiated market position • Pexip needs to adapt its organization to be able to better execute on the defined stra
Slide 24: Outlook
Outlook • Significant ARR growth potential next three years and beyond through executing on focused strategy to be a leader in core solution areas and market segments; total market potential of USD 5 billion • Target reducing overall cost level to accelerate return to profitability • Return to ARR g
Slide 25: Upcoming dates
Upcoming dates AUG 11 Half-yearly Report and Presentation NOV 10 Q3 2022 Report and Presentation FEB 14 Q4 2022 Report and Presentation 25
Slide 26: Q&A
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Slide 27: Appendix
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Slide 28: Balanced growth across geographies and products
Balanced growth across geographies and products ARR per geo ARR per product USD million USD million APAC AMERICAS Pexip as-a-Service EMEA +21% YoY growth: Self-hosted Software YoY growth: 106 106 106 106 100 22% 100 93 10 10 93 87 9 87 9 30% 9 48 46 39 38 28% 43 35 38 32 35 29 15% 55 57 58 17% 55 56
Slide 29: Large organizations is the largest growing segment
Åsmund? Large organizations is the largest growing segment Large organizations driving growth Share of ARR by account size in ARR, USD YoY growth: +21% 106M 106M 100M 93M 21% 20% 1% 87M 22% 23% 24% 24% 24% 23% 22% 23% 23% 56% 55% 56% 29% 53% 54% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 USD >100,000 U
Slide 30: Significant market potential in core solution areas
Significant market potential in core solution areas Secure Spaces Video Innovation Connected Spaces for secure environments for healthcare, judiciary, government, including interoperability to Microsoft retail and finance Teams and Google Meet MUSD 11 in ARR MUSD 21 in ARR MUSD 62 in ARR +106% y-o-y