Slide 1: Quarterly Presentation Q2 2020
Meet the world with video communication as it should be Quarterly Presentation Q2 2020 12 August 2020
Slide 2: Important notice and disclaimer
Important notice and disclaimer These materials have been produced by Pexip Holding AS (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 representativ
Slide 3: Business update
Business update ]pexip[
Slide 4: Meet the world with video communication as it should be
Meet the world with video communication as it should be 100% software and cloud based Works everywhere for everyone • Flexible set-up, easy-to-use and manage • Connects across multiple technologies • Integrates with existing workflows • A preferred provider among enterprises 4
Slide 5: So far in 2020, Pexip has a strengthened position as an independent, focused video provider
So far in 2020, Pexip has a strengthened position as an independent, focused video provider High-quality video Vertical market Expanding access to meetings with focus on applications and Microsoft Teams and privacy and security integrations Google Meet The European Council HM Courts & Tribunal Servi
Slide 6: Pexip trusted for global meetings: Lebanon emergency relief conference
Pexip trusted for global meetings: Lebanon emergency relief conference 6
Slide 7: Pexip has strengthened differentiators during 2020
Pexip has strengthened differentiators during 2020 Multi-cloud native Real-time media engine High-touch sales Strategic partners “The Pexip way” architecture What? Transcoding & switching Virtualized and distributed cloud Leveraging channel partners for Unique culture and agile Partnering with co-op
Slide 8: Introducing Pexip Private Cloud
Introducing Pexip Private Cloud
Slide 9: COVID-19's impact
COVID-19’s impact + pandemic showed the value of video + business continuity + supported via cloud services & self-hosted software + exposed weaknesses and bad practices from vendors Going forward, every meeting will have a video dimension
Slide 10: Today's Industry Choice: Self-Hosted vs Shared Cloud
Today’s Industry Choice Self-Hosted Shared Cloud + IT administrators manage every component + IT administrators manage only config + IT’s responsibility to grow/expand + vendor’s responsibility to grow/expand + control over information flow and storage + trust vendor with all personal information st
Slide 11: Introducing Pexip Private Cloud
Introducing Pexip Private Cloud Control of self-hosted Ease of Shared Cloud + control where data flows + scales as needed + control where data is stored + automatically deploy new geographies + control change management + simple billing Self-Hosted Private Cloud Shared Cloud
Slide 12: Queensland Health: the challenge, the solution, the result
The challenge • Mirroring the real-life scenario of visiting a doctor • Solution (hardware) agnostic for hospitals and • simple to use for patients The solution • Pexip Software deployed in a private cloud • Customized branding • Secure and private, Health Insurance Portability and Accountability Ac
Slide 13: Increasing the team is key for future growth
Increasing the team is key for future growth - Continuing to execute on the acceleration plan Number of employees • Growth capability dependent on the size of the 250 team +59% • Have increased to 280 employees as of today • 60% of YTD growth in Sales and Marketing roles, 30% in Engineering, 10% in
Slide 14: Covid-19 has opened Enterprise's eyes to the benefits of a hybrid workforce
Covid-19 has opened Enterprise’s eyes to the benefits of a hybrid workforce The share of employees working partly remote is Benefits from a hybrid workforce are likely to make a exploding long-term material change in work routines • The need for social distancing is likely to be present for several
Slide 15: Sales results and financials
Sales results and financials
Slide 16: Long-term goals
Long-term goals Revenue growth ARR of USD 300m by 2025 Long-term profitability +25% EBITDA margin by 2025 Market recognition Recognized leader position in the Meeting Solutions market within 3-4 years 16
Slide 17: Second quarter sales highlights (1/2)
Second quarter sales highlights (1/2) Strong development in ARR with 64% growth YoY driven by strong Q1 and Q2 growth Contracted Annual Recurring Revenue (ARR) development Q2 2019 – Q2 2020 Q-o-Q growth in ARR Q2 2019 – Q2 2020 USDm USDm 66 3.8X +64% 9.5 57 9.1 47 43 40 4.4 2.4 2.7 Q2 2019 Q3 2019 Q
Slide 18: Second quarter sales highlights (2/2)
Second quarter sales highlights (2/2) Strong development across both products and geographies ARR per geo Q2 2019 – Q2 2020 ARR per product Q2 2019 – Q2 2020 USDm USDm APAC AMERICAS Cloud Service Q2 2020 Q2 2020 EMEA YoY growth: Infinity YoY growth: 66 66 7 29% 57 57 6 24 92% 47 47 43 23 68% 43 19 4
Slide 19: Significant improvement in new sales in Q2 2020
Significant improvement in new sales in Q2 2020 Development in ARR portfolio last twelve months Annual recurring revenue, USDm +26% -8% +64% 3.3 65.8 +46% 10.4 • Year-on-year growth increased to 64% out of Q2 2020 from 50% out of Q1 2020 18.5 Net retention of 118% • Majority of growth driven by net
Slide 20: Revenue and gross margin development
Revenue and gross margin development Quarterly revenue development Q1 2019 – Q2 2020 Q2 2020 revenues breakdown per geo and product area NOKm NOKm (YoY EMEA Americas Apac Total growth) Cloud Service 29.0 (+76%) 12.8 (+70%) 2.8 (+88%) 44.6 (+75%) Infinity 68.9 (+147%) 38.3 (+91%) 11.4 (+30%) 118.6 (+
Slide 21: Operating expenses
Operating expenses Quarterly OPEX development Q1 2019 – Q2 2020 Comments NOKm IPO-related costs Other operating expenses Salary and personnel expenses IPO transaction costs • Transaction fee related to the secondary offering of the IPO are accounted for as part of Operating Expenses, as well as 158.
Slide 22: Adjusted EBITDA
Adjusted EBITDA Quarterly Adjusted1 EBITDA development Q1 2019 – Q2 2020 Comments NOKm +250% 40.4 37.3 • Adjusted EBITDA in line with previous quarters 32.0 • Following our acceleration plan, we expect EBITDA to decline going forward as we increase OPEX in Sales and Marketing, 19.8 as well as in R&D
Slide 23: Cash flow bridge
Cash flow bridge Cash flow bridge Q2 2020 NOKm Comments 42.6 • Net proceeds less transaction fees and 1,217.5 transaction-related costs from issuing new shares of NOK 1,101 million, with remaining 1,099.0 elements contributing NOK 25 million • CAPEX is related to capitalization of own software devel
Slide 24: Summary
Summary ]pexip[
Slide 25: Second quarter in brief
Delivering on the acceleration plan • Strengthened differentiators across technology and sales • Released innovations on scaling, security and product features, as well as released the new Private Cloud offering for live customer pilots • 59% year-on-year growth in people to support medium-term grow
Slide 26: Outlook
Positive medium- and long-term outlook for video communication • Majority of enterprises shifting to a hybrid workforce • Pexip’s technology is uniquely positioned to meet these new customer needs Will continue to execute on growth plan • Increase investments in future growth by adding talent in sal
Slide 27: Upcoming dates
Upcoming dates Update on contracted Annual Recurring Revenue By October 7th Q2 2020 quarterly presentation November 11th 27
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