Slide 1: Quarterly Presentation Q2 2024
Quarterly Presentation Q2 2024 August 15, 2024
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 Selected Customers 2011 founded 295 employees across 25 countries Niche video conferencing player Market leading interoperability and secure video meetings provider Software only Selected Technology partners Develop and deliver software and SaaS Unique tech partnerships Partner wit
Slide 4: Q2 highlights
Q2 highlights Increasing ARR growth Increasing profits and cash flow Growth in both business areas • Adjusted EBITDA1 of NOK 36 • Strong contribution from both • ARR at USD 107.1 million end of million (+NOK 27 million/+10 p.p. y- Connected Spaces (+1.1) and Q2, up USD 2.3 million q-o-q and o-y), fr
Slide 5: Our mission
OUR MISSION To make seamless video communication available to all organizations regardless of technology platforms and security requirements Pexip Connected Spaces Pexip Secure & Custom Spaces Video meeting room interoperability Video meetings that are self-hosted on-premises or in a private cloud W
Slide 6: On a journey to connect any meeting room to any meeting
On a journey to connect any meeting room to any meeting Rooms Meeting Rooms Launched new products in Q2 Meeting Rooms Meeting Rooms Meeting SIP end-points ROOMS MEETINGS
Slide 7: Microsoft announced support for guest join via SIP in June
Microsoft announced support for guest join via SIP in June - This opens a new market opportunity for Pexip • Main use-case for Connected spaces has been bringing SIP systems into Microsoft Teams • Pexip has supported Microsoft in developing the capability for Microsoft Teams Room systems to join oth
Slide 8: Complementary video services for differing security & privacy requirements
Complementary video services are used to cater SECURE & CUSTOM SPACES to an organization’s differing security & privacy requirements Private Cloud Government Cloud Global SaaS Services Sovereign Cloud On- premises Air- gapped 8
Slide 9: Sovereign-meetings-as-a-Service
Sovereign-meetings-as-a-Service • Pexip partners with Orange Business and Kinly to provide Sovereign Meetings as a Service • Customers can run video meetings on a trusted and compliant Nordic service • Available across the Nordics with target launch this fall 9
Slide 10: Authorization attributes are checked continuously in the backend
Authorization attributes are checked continuosly in the backend 10
Slide 11: Continued growth and further improved profitability
Continued growth and further improved profitability Total ARR Adjusted EBITDA1 Free Cash flow2 USDm NOKm, Last twelve months NOKm, Last twelve months +2.0 +2.3 +3.0 +1.1 104.8 107.1 191 99.8 102.8 98.7 170 164 143 113 105 102.0 105.0 94.1 96.0 99.4 76 69 25 9 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q
Slide 12: Sales update
Sales upda Jpexip[
Slide 13: Connected Spaces
Connected Spaces ARR USDm • 10% ARR growth year-on-year in Connected Spaces benefiting from improved product differentiation, increasing momentum in 10% Poly|HP partnership and BlueJeans sunsetting their CVI solution 63.1 64.2 65.3 • Seeing increased customer activity on Pexip Connect for MTRs and 5
Slide 14: Secure and custom solutions
Secure and custom solutions ARR USDm • Secure and custom solutions growing 15% y-o-y, driven largely by 15% strong new sales and upsell across several accounts in Secure 39.7 36.3 37.7 Meetings 34.5 35.5 • Continued strong momentum in Secure Meetings, which saw its 13.4 14.7 17.5 best quarterly grow
Slide 15: Financial update
Financial up Jpexip[
Slide 16: Total ARR base at USD 107m in Q2 2024
Total ARR base at USD 107m in Q2 2024 Total ARR Legacy ARR split USDm Underlying ARR 8.5% Self-hosted Software 104.8 107.1 102.8 98.7 99.8 +12% 50% 50% Pexip as-a-Service 99.4 102.0 105.0 94.1 96.0 APAC EMEA 9% Q2 Q3 Q4 Q1 Q2 50% 2023 2023 2023 2024 2024 41% Americas Booked Annual Recurring Revenue
Slide 17: Growth in both business areas
Growth in both business areas USD million, quarter-over-quarter Connected spaces and legacy Secure and Custom +4.5% -0.9% -3.0% 0.6% +5.8% 0.1% -0.7% 5.3% 67.0 67.4 3.0 0.6 2.0 Quarterly net retention of 96% (97% excl legacy) 37.7 39.7 2.2 0.1 0.3 Quarterly net retention of 99% Q1 2024 New Net Upsel
Slide 18: Continued improvement in revenue and EBITDA
Continued improvement in revenue and EBITDA Revenue NOK million +33 (14%) 285.2 292.0 260.6 265.6 232.9 214.9 Revenue increase of 14% compared to Q2’23 – Combination of self-hosted software and as-a- Service driving growth Q1 Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2023 2024 2024 Adjusted EBITDA increase of N
Slide 19: Stable operating expenses
Stable operating expenses Quarterly OPEX development NOKm +1% 204.5 200.7 202.5 Salary and personnel expenses 199.8 197.9 179.1 NOK 5 million reduction y-o-y in fixed 45.0 42.8 36.7 39.1 38.7 salary in Q2, however, a net increase in 9.8 35.4 10.8 9.4 8.4 variable salary of NOK 8 million y-o-y 8.8 7.
Slide 20: NOK 68 million in free cash flow in Q2 – cash position reduced from dividend
NOK 68 million in free cash flow in Q2 – cash position reduced from dividend Cash flow bridge Q2 2024 NOKm 7 696 4 79 68 • Positive EBITDA, and a seasonally improved 628 112 587 working capital main positive contributors 0 2 to Q2 cash flow • Reduced investment and lease cash flow compared to Q2 202
Slide 21: Q2 2024 Financial results
Q2 2024 Financial results Profit and loss NOK millions Q2 2024 Q2 2023 Y-o-Y • 14% increase in year-on-year revenue, driven by Revenue 266 233 33 stronger Software and Software-as-Service revenues Cost of goods sold 27 24 3 • COGS is mainly relating to sale of Pexip-as-a-Service Gross Profit 239 209
Slide 22: Outlook and targets
Outlook and targets 22
Slide 23: Outlook
Outlook Improved 2024 outlook • Continued positive market outlook across the • 8-10% ARR growth business areas • Previous 5-10% • Strong market position and industry partnerships • 16-20% EBITDA1 are expected to continue to drive growth • Previous 13-18% • Q3 2024 ARR expected 108-110 USD millions M
Slide 24: Upcoming dates
Upcoming dates Q3 2024 Quarterly Presentation November 7th , 2024 24
Slide 25: Q&A
Q&A Investor.pexip.com
Slide 26: BACKUP
BACKUP Supporting materials
Slide 27: Summary of key figures
Summary of key figures KPI Unit Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Y-o-y Q-o-Q Comments Q2 2024 ARR ARR Connected Spaces MUSD 59.6 60.5 63.1 64.2 65.3 5.7 1.1 • Delta ARR Q2 of 2.3 MUSD Secure & Custom MUSD 34.5 35.5 36.3 37.7 39.7 5.2 2.0 • Annual ARR growth of 8.5% p.a. (11.5% excl legacy) Le