Pexip Holding Asa · OSL:PEXIP
Pexip Holding Asa — TP ICAP Midcap 2023 Conference
29 slides from Pexip Holding Asa's conference presentation, May 12, 2023
Slide 1: Company introduction and overview
Company introduction and overview 12 May, 2023
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: Powering video everywhere with unique multi-platform video technology
Powering video everywhere with unique multi- platform video technology Patented transcoding architecture Run on any compute platform Centralized data processing Works in all environments, including self • Gives improved interoperability & hosted and sovereign clouds browser experience • Enables tota
Slide 4: Pexip represents the Norwegian video communication heritage
Pexip represents the Norwegian video communication heritage Pexip represents knowledge, talent and culture built up over 30 years Cisco acquires Tandberg Pexip founded in 2011 for USD3.3bn1 in 2010 1) At the time of acquisition 4
Slide 5: Pexip at a glance
Pexip at a glance Oslo (HQ), London, Stockholm, Paris, 2011 Washington DC Copenhagen, Milan, Düsseldorf, Ghent, Utrecht founded 325 employees across 26 countries 12 offices across the world 300+ partners in 75 countries 4,000 enterprise and public sector customers ~$100 million in Annual Recurring R
Slide 6: Focused on customer needs in two core solution areas, and are strengthening our position in both
Focused on customer needs in two core solution areas, and are strengthening our position in both Connected Spaces Secure, customized solutions ARR: ARR: 60m 33m USD USD • Market and technology leadership strengthened • Pexip offers unique solution for self hosted and private through Q1 cloud deploym
Slide 7: Problems we solve
Problems we Jpexip[
Slide 8: Connected Spaces: Pexip bridges the gap between different technologies
Connected Spaces: Pexip bridges the Best Microsoft Teams interop user experience • Enables you to bring Teams to every meeting room gap between • Seamless, intuitive experience Familiar meeting features different • technologies Cost savings • Reduce costs on expensive video infrastructure • Postpone
Slide 9: Problem to solve:
Problem to solve: My organization is invited to video meetings on all major platforms and we would like to use our meetings rooms with video conferencing equipment to join all these meetings 9
Slide 10: Solution
Solution Pexip provides a solution that enables a smooth meeting experience for relevant video equipment and relevant meeting platforms Join a meeting with one click Click one button. There. Enjoy the meeting. 10
Slide 11: Security and privacy concerns driving demand for Pexip secure, custom solutions
Security and privacy concerns driving demand for Pexip secure, custom solutions Pexip Secure Collaboration A modern self-hosted collaboration tool with chat, video and file-sharing. Geopolitical Cyber Complexity Vulnerability Data Modern and Interoperability sovereignty supported & control solution
Slide 12: Problem to solve:
Problem to solve: My organization is prevented from using cloud services that hosts all or parts of our data Can we still have a modern video collaboration solution? 12
Slide 13: A modern and tailored solution
A modern and tailored solution Pexip provides a modern collaboration solution that can be hosted in the environment the organization prefers – no need to use a public cloud Book with single Provide a familiar Tailored join Create security button experience through experience awareness Make people aw
Slide 14: Other examples of problems we solve
Other examples of problems we solve My organization needs a Our private 5G network customized video solution needs a video solution to designed for a specific work- operate without internet flow connection We need a business Can we use existing continuity solution to be equipment and connect to used
Slide 15: Investment case
Investment c Jpexip[
Slide 16: Investment highlights
]pexip[ Investment highlights Certified video communication platform with unique technology and 1 industry partnerships serving a broad range of companies and governments globally Approx. USD 100 million in ARR – targeting large, high-growth markets 2 with unique position towards lucrative enterpris
Slide 17: Unique technology makes Pexip a preferred partner for the leading collaboration platforms
Unique technology makes Pexip a preferred partner for the leading collaboration platforms Microsoft certification for Sole interoperability provider for One of four certified providers for 17
Slide 18: Strategic partnership with Poly powering Poly's new video infrastructure solutions
Strategic partnership with Poly powering Poly’s new video infrastructure solutions PrivateConnect CloudConnect FedConnect Powered by Pexip Powered by Pexip Powered by Pexip Offerings will be available through Poly’s sales channels, improving Pexip’s market reach “We're thrilled to work with Pexip, a
Slide 19: A selection of organizations using Pexip
A selection of organizations using Pexip "It was important for us to have the capabilities to enable our people to communicate with our clients effectively. Given the large scale - 400,000 people - and over 4,000 video conferencing calls a month. Being able to bring those together is really importan
Slide 20: Turning around to a profitable company in 2023
Turning around to a profitable company in 2023 Full Year Adj. EBITDA1 YTD NOK million 100-150 Transformation highlights 76 • Have adapted cost base to 56 current revenues, giving 35 positive EBITDA and cash flow • More focused strategy has enabled Pexip to strengthen -52 differentiators in core mark
Slide 21: Total ARR base at USD 98m in Q1 2023
Total ARR base at USD 98m in Q1 2023 Total ARR ARR split USDm Q1 2023 106.4 105.6 106.1 99.8 100.7 99.6 98.3 Self-hosted Software 92.7 87.2 46% 54% Pexip as-a-Service APAC EMEA 8% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 54% 38% 2021 2021 2021 2021 2022 2022 2022 2022 2023 Americas Legacy Underlying ARR Booked An
Slide 22: Connected Spaces
Connected Spaces ARR • Continuous innovation ongoing to increase technology leadership in USDm Connected Spaces 61.9 61.5 61.3 61.2 59.9 • Continue to win major customers with our leading technology, in particular on Teams interoperability • Large US federal government agency – Social Security Admin
Slide 23: Secure and custom solutions
Secure and custom solutions • Continued momentum for our Secure Collaboration products with recurring revenues in Secure Spaces growing 5% in Q1, and ARR underlying y-o-y growth of 69% USDm 34.7 • Increased awareness on cyber vulnerability and privacy gives Pexip 31.9 32.1 32.7 an attractive positio
Slide 24: Clear progress of return to profitability
Clear progress of return Revenue to profitability NOK million +17.2% 260.4 260.6 222.5 195.0 189.2 Positive revenue increase of 17% compared to Q1’22, of which 11 p.p. are driven by currency effects Q1 Q2 Q3 Q4 Q1 2022 2022 2022 2022 2023 Continued positive EBITDA development, driven by realized eff
Slide 25: Cash flow - quarterly
Cash flow - quarterly Cash flow from operations NOK million +104.0 73.4 The overall cash flow is a net positive of 47 million NOK, driven largely by the improvement in our operating cash flow. Positive EBITDA, net working capital and exchange gains from receiving -30.6 -34.4 -42.3 payments at a more
Slide 26: High gross margins across the business areas
High gross margins across the business areas Gross profit by segment NOKm Q1 2023 Q1 2022 YoY dev. Revenue from Connected Spaces 158 149 6% • COGS are mainly related to Connected Spaces, however COGS of Connected Spaces 18 21 -14% both business areas with Gross Profit from Connected Spaces 139 128 9
Slide 27: Q1 2023 Financial results
Q1 2023 Financial results Profit and loss NOKm Q1 2023 Q1 2022 • 17% increase in year-on-year Q1 revenue, driven by currency exchange changes and stronger Software- Revenue 260.6 222.5 as-Service revenues Cost of goods sold 21.3 25.8 • COGS is mainly relating to sale of Pexip-as-a-Service Gross Prof
Slide 28: Outlook and 2023 targets
Outlook and 2023 targets Generally positive market outlook across Target 2023 EBITDA of NOK 100-150 the business areas million We aim to become a profitable business, with targets supported by the solid progress on the cost reduction Poly partnership and FedRAMP program Progress after Q1: On track A
Slide 29: Thank you for listening!
Thank you for listening! Investor.pexip.com