Slide 1: Quarterly Presentation Q4 2021
Meet the world with video communication as it should be Quarterly Presentation Q4 2021 February 10, 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: Presenters
Presenters Michel Sagen Øystein Dahl Hem John Thorneycroft Karl Hantho Chair of the Board Interim CEO and CFO SVP of Business Management President Americas 3
Slide 4: Trond K. Johannessen
Trond K. Johannessen CEO from May 2022 Extensive experience in scaling and commercializing complex technology globally, organically & through M&A Background from top management and board positions in Embron Group, Tomra, McKinsey and Webstep Strong cultural fit with the Pexip values and philosophy U
Slide 5: Pexip is a global technology company
Pexip is a global technology company 535+ Employees in 35 countries 4,400 Enterprise and public sector customers 370 300+ Channel partners 100 101% Net revenue retention rate 2021 $106.4 million in annual recurring revenue 65 Challenger in Gartner Magic Quadrant 5
Slide 6: Pexip's differentiated customer offering is underpinned by unique technology
Pexip’s differentiated customer offering is underpinned by unique technology Patented transcoding architecture Run on any compute platform • Unique interoperability & no download experience • Total data privacy and control • AI using cloud compute • Full customization capabilities • More environment
Slide 7: Unique technology drives our success in three core markets
Unique technology drives our success in three core markets Video infrastructure Critical video Video enablement including interoperability to Microsoft for healthcare, judiciary, government, meetings retail and finance Teams and Google Meet for secure environments MUSD 63 in ARR MUSD 11 in ARR MUSD
Slide 8: Mass-adoption of video will transform our offices and our economy
Mass-adoption of video will transform our offices and our economy End-user adoption in video has exploded, still to Mass-adoption of video will transform our offices impact “old world” and our economy 5.4x Transformation of offices in order to End-user video 70% 1 enable organizations to retain the
Slide 9: Q4 Operational Update
Q4 Operational Update
Slide 10: Recent highlights
Recent highlights 30% y-o-y Strong revenue driving Q4 NOK 266 million growth in ARR to EBITDA of NOK 10 million; in Q4 2021 revenue USD 106 million 4% margin Announced FedRamp Pexip is now available in “In process” and Launched Enhanced Room Microsoft Azure compatibility with Management marketplace
Slide 11: Launched several important innovations in our new focus areas
Launched several important innovations in our new focus areas Enhanced Room Management Launched Jan 2022 Video infrastructure Completes our capability to fully including interoperability to Microsoft Teams and Google Meet manage and support video room equipment 11
Slide 12: Launched several important innovations in our new focus areas
Launched several important innovations in our new focus areas Deeper authentication options with SAML ID Launched Jan 2022 Critical video Allows for access restrictions based on common technologies meetings like BankID for secure environments Pexip Health – Far end Camera Control Launched Jan 2022 A
Slide 13: Pexip is now available in Microsoft Azure Marketplace
Pexip is now available in Microsoft Azure Marketplace, enhancing our reach to Large Organizations Existing Go-to-Market New in 2022 • Microsoft Azure Marketplace Who leads is the most comprehensive Channel software marketplace the sale? globally + • Pexip is now available Who • Enable better coopera
Slide 14: Pexip continues to win the trust of new large enterprises and public organizations
Åsmund? 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 2021 Share of ARR by account size in ARR, USD +30% 106M YoY growth: 21% 14% 82M 24% 24% 32% 23% 55% 37
Slide 15: Continued strong growth in Americas across all business areas
Continued strong growth in Americas across all business areas Video infrastructure Critical video Video enablement including interoperability to Microsoft for healthcare, judiciary, government, meetings retail and finance Teams and Google Meet for secure environments 15
Slide 16: Pexip Achieves FedRAMP "In Process" Designation
Pexip Achieves FedRAMP "In Process" Designation opening a new market for Pexip FedRAMP will extend Pexip's reach into Federal, State & Local Governments, and in particular US civilian agencies, that prefer a Cloud Service • FedRAMP is a US Government program that standardizes security assessment and
Slide 17: Have substantially strengthened the team since IPO
Have substantially strengthened the team since IPO, expect ARR growth substantially above people growth in 2022+ Have scaled the team to drive future growth Nearing the end of the aggressive expansion – Number of employees expect employee growth below ARR growth in 2022 Sales and Marketing R&D +49%
Slide 18: Sales and Financial Performance
Sales and Financial Performance
Slide 19: 30% growth in Annual Recurring Revenue
30% growth in Annual Recurring Revenue – Added 6.6 million in Q4 2021 Booked Annual Recurring Revenue (ARR) development Q-o-Q growth in ARR USD million USD million • Q4 2021 growth in ARR of +30% 106 USD 6.6 million, compared 100 to USD 9.1 million in Q4 93 9.1 2020 and USD 4.4 million in 87 Q4 2019
Slide 20: Solid growth contributions from all geographies and products
Solid growth contributions from all geographies and products ARR per geo ARR per product USD million USD million APAC AMERICAS Pexip as-a-Service EMEA YoY growth: Self-hosted Software YoY growth: +30% 106 106 100 32% 100 93 10 93 87 9 87 82 9 82 45% 9 48 8 39 40% 43 35 38 32 35 29 33 28 20% 55 57 24
Slide 21: 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 +11% -9.7% +30% +29% • Sales to new customers continue to 8.9 7.9 106.4 be main driver behind growth 23.6 • ARR net retention is at a normal Net retention of 101% 81.9 level at 101% • C
Slide 22: ARR growth driving revenue growth
ARR growth driving revenue growth Quarterly revenue development Comments NOK million Self-hosted Software Operating revenues – Pexip as-a-Service Pexip as-a-Service • Overall growth of 28% year-on-year to NOK 89 million, of which NOK 1.8 million is related to Skedify +16% YoY growth: 266 Operating r
Slide 23: Increase in operating expenses from planned investments
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 Other Operating expenses Option related costs • Increased external services related to M&A as well as R&D Other Salary and pers
Slide 24: Executing on communicated growth strategy
Executing on communicated growth strategy Cash flow from Significant investing activities investments per quarter headcount, impacting EBITDA in sales-related Comments NOK million, cash outflow • Gross margin growth of NOK 35 million -2 • Growth in OPEX of NOK 75 million due to headcount growth and
Slide 25: Cash flow bridge
Cash flow bridge Cash flow bridge Q4 2021 Comments NOKm • Negative net working capital development -119 main contributor to negative cash flow 923 6 – Trade receivables increased NOK 78 10 56 million due normal seasonality due to high 48 Q4 invoicing 28 804 2 • Acquisition of Skedify including debt
Slide 26: Summary and Outlook
Summary and Outlook
Slide 27: Q4 2021 in brief
Solid financial results and position • Continued ARR growth with USD 6.6 million in Q4 2021/30% y-o-y growth • NOK 266 million in revenue for Q4 2021, positive EBITDA of NOK 10 million • Solid cash position to invest in further growth Q4 2021 in brief Strong operational momentum • Have built a stron
Slide 28: Updated Financial Guiding
Updated Financial Guiding Old New ARR of USD 300 million by end of Revenue growth Unchanged 2024 2025 EBITDA of +25% with +25% Long-term profitability Unchanged revenue growth Negative 25-35% EBITDA margin in Negative 15-20% full year Short-term profitability 2021/2022, neutral to positive EBITDA ma
Slide 29: Outlook
Positive outlook for the year, however, expect a challenging Q1 due to short-term uncertainties • Continue to see uncertainty on return to office and hardware delays impact demand • Strengthened partnership with a key partner and change in business model will impact ARR negatively with USD 2 million
Slide 30: Upcoming dates
Upcoming dates Annual & Sustainability Reports 2021 March 31, 2022 Annual General Meeting April 21, 2022 Q1 2022 ARR Update April 7, 2022 Q1 2022 Quarterly Presentation May 12, 2022 30
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