Slide 1: Quarterly Presentation Q2 2022
Quarterly Presentation Q2 2022 August 11, 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 2011 New York Oslo, London, Stockholm, Paris, Ghent, Utrecht Company founded 300+ Partners in 75 countries 4,400 Enterprise and public sector customers 320 $106 million 100 Annual Recurring Revenue 2021 50 Challenger in Gartner Magic Quadrant1 Strong Position in Frost
Slide 4: Pexip has a unique patented core technology platform
Pexip has a unique patented core technology platform Core transcoding Built as a platform: Self-hosted and cloud-hosted architecture Highly customizable capabilities • Processing happens in the • Enables complete control of data & • Enables complete network and not on the device business continuity
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: Q2 highlights and key areas of focus
Q2 highlights and key areas of focus Organization & costs Focus and target Results & cash • Reorganization of commercial organization completed • Ahead of plan for EBITDA • EBITDA of NOK -99 million • Annual cost reductions of app neutral operations for FY adjusted for restructuring MNOK 200 realize
Slide 8: On the path to EBITDA-positive run-rate, and cash flow positive run-rate after Q1 2023
On the path to EBITDA-positive run-rate, and cash flow positive run-rate after Q1 2023 Cashreduction Cost flow from investing program activities per quarter Comments Estimated cost savings, NOK million, annualized 296 • Have reduced annual run-rate salary and personnel expenses with over NOK 130 mil
Slide 9: Reorganization completed with new P&L units
Reorganization completed with new P&L units Flatter and focused organization…. …increases speed and agility • From sales Theaters to focused • Drive growth in target verticals business units with P&L responsibility • Organized into Squads by customer • Prioritize resource allocation – type and solut
Slide 10: Q2 2022 Sales Development
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Slide 11: Continued flat development in Annual Recurring Revenue
Continued flat development in Annual Recurring Revenue USD million • ARR of USD 106.1 million at the end of Q2 2022 +14% – USD 0.5 million above Q1 2022 106 106 106 +41% 100 93 87 82 • Lower new sales and upsell due to: 73 – Continued competition in Connected Spaces, and 66 continued 3rd party suppl
Slide 12: Year-to-date growth in Secure Spaces and Video Innovation
Year-to-date growth in Secure Spaces and Video Innovation USD million Secure Spaces Video Innovation +2 +2 • Continue strong growth in Secure 16 18 19 21 21 Spaces and Video Innovation 8 10 11 11 13 – USD 2.8 million of ARR growth in 2021 2021 2021 2022 2022 2021 2021 2021 2022 2022 total across the
Slide 13: Consistent development across geographies and products
Consistent development across geographies and products ARR per geo ARR per product USD million USD million APAC AMERICAS EMEA Pexip as-a-Service +14% Self-hosted Software YoY growth: YoY growth: 106 106 106 106 106 106 100 17% 100 93 10 10 11 93 9 9 22% 48 46 47 39 38 39 23% 43 35 38 32 9% 55 57 58
Slide 14: 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% -8.8% +14% +20% 3.4 • Sales to new customers continue to 8.1 106.1 18.2 be main driver behind growth, in 92.7 line with previous period Net retention of 95% • Improved churn at 8.8%
Slide 15: New win: Capgemini
New win: Capgemini • Pexip was selected by Capgemini, a global consulting and technology company with 290,000 employees. • They chose Pexip for seamless internal and external communication for Microsoft Teams. Pexip’s interoperability capabilities are especially important for Capgemini in collaborat
Slide 16: New win: Region Östergötland
New win: Region Östergötland • Pexip was selected by another Swedish county, serving 500,000 inhabitants for a three year contract, now serving 10 out of 21 such entities in Sweden. • Sweden is leading in Europe on data security and privacy awareness, and have done a thorough recommendation on appro
Slide 17: Solid momentum in public sector building on technology leadership and solid customer references
Solid momentum in public sector building on technology leadership and solid customer references 17 17
Slide 18: Have launched Pexip Virtual Courts
Have launched Pexip Virtual Courts • Proven customer value. Court systems have already adopted non-purpose built video solutions to cope with the pandemic, which has proven cost efficiencies for the justice system and is essential to deal with large case backlogs • Proven solution. Pexip is already
Slide 19: Q2 2022 Financial Results
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Slide 20: Q2 2022 Financial results
Q2 2022 Financial results Profit and Loss Comments NOK million Development • 10% increase in year-on-year revenue in line with Q2 2021 Percent ARR increase driven by Pexip-as-a-Service P&L item Q2 2022 Revenue 195.0 177.1 10% • Increased Cost of Sale from increased cloud service share of revenues, i
Slide 21: +10% revenue increase in line with ARR development
+10% revenue increase in line with ARR development Quarterly revenue development Comments NOK million Self-hosted Software Pexip as-a-Service Operating revenues – Pexip as-a-Service • Overall growth of 34% year-on-year to NOK 100 million • Development in line with ARR development +10% YoY growth: 26
Slide 22: 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 Restructuring costs Other operating expenses Salary and personnel expenses Share option related costs • 37% growth overall, underlying 32% y-o-y in Salary and Other Salary and pers
Slide 23: Negative cash flow of NOK 65 million in Q2
Negative cash flow of NOK 65 million in Q2 Cash flow bridge Q2 2022 Comments NOKm • Cash flow of negative NOK 65 million driven by a negative EBITDA with a seasonal -65 improvement in working capital 590 98 525 • Positive impact on currency holdings in USD 1 from the higher USD/NOK exchange rate 12
Slide 24: Outlook
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Slide 25: Summary and Outlook
Summary and Outlook • Rapid return to profitability and profitable growth is #1 priority • Continued good underlying momentum for Secure Spaces and Video Innovation • Solid pipeline in the Public Sector globally, and Pexip’s dedicated solutions for the target verticals Judicial, Health, Finance and
Slide 26: Upcoming dates
Upcoming dates NOV 10 Q3 2022 Report and Presentation FEB 14 Q4 2022 Report and Presentation 26
Slide 27: Q&A
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