Slide 1: Pexip Video Meeting Software Solutions
Pexip Video Meeting Software Solutions Company Presentation, Pareto TechSaaS November 28, 2024
Slide 2: Presenting from Pexip
Presenting from Pexip Trond K Johannessen CEO 2
Slide 3: Software only specialist video conferencing player
Software only specialist video conferencing player Strong financial performance Serving large enterprises and public sector organizations ARR 110m USD EoQ3 10% ARR growth Y-o-y 90% Gross margin LTM margin Unique partnerships with the technology leaders in our industry +9p.p EBITDA expansion LTM marg
Slide 4: Pexip's two business areas
Pexip’s two business areas Pexip Connected Spaces Pexip Secure & Custom Spaces Video meeting room interoperability Video meetings that are self-hosted on-premises or in a private cloud 4
Slide 5: Our vision is to connect any meeting room to any video meeting
Connected Spaces Our vision is to connect any meeting room to any video meeting Rooms Meeting Rooms Meeting Rooms Meeting Rooms Meeting SIP end- points rooms meetings 5
Slide 6: Pexip has a strong market position in a growing market
Connected Spaces Pexip has a strong market position in a growing market Video device growth expected to drive TAM growth Pexip with leading Technology Solutions +15% 2022-2027 Video endpoints sold p.a. Y-o-Y $ 3 billion TAM Partnerships underline market position 1 Frost & Sullivan, 2022-2027, McKins
Slide 7: HSBC is a typical Pexip customer
Connected Spaces HSBC is a typical Pexip customer PRODUCT CONNECT FOR ZOOM ROOMS Key winning USPs • Significantly improved experience on two-screen systems • Support for in-room sharing • Easier user experience 7
Slide 8: Secure & Custom market opportunity
Secure & Custom market opportunity Features • 50% of European CXOs see data sovereignty as a top issue Rich • 44% of European enterprises plan to move to sovereign cloud in the next 2 yrs. • 30% growth in private clouds • 137+ countries have Focused Security enacted some form of data protection and
Slide 9: Secure meetings are often used as a parallel solution to Global SaaS services
Secure & Custom Secure meetings are often used as a parallel solution to the Global SaaS services 9
Slide 10: Pexip Secure Meetings have tailored security and privacy functionality
Secure & Custom Pexip Secure Meetings have tailored security and privacy functionality • Tailored user Authentication • Full control over where data is stored • Meeting classification labelling
Slide 11: Customer use-case: European government
Secure & Custom Customer use-case: European government PRODUCT Secure Meetings as a parallel solution Use case Pexip was selected by the IT provider of a European Government to provide a secure video platform to operate side-by-side with Teams for specific use-cases and individuals, operating with t
Slide 12: Private AI for Secure Meetings launched in Q4 through NVIDIA partnership
Secure & Custom Private AI for Secure Meetings launched in Q4 through NVIDIA partnership • Private deployment with complete data control • Customer-specific language libraries • Built on NVIDIA AI models 12
Slide 13: Growth driving improved financial performance
Growth driving improved financial performance Total ARR Adjusted EBITDA1 Free Cash flow2 USDm NOKm, Last twelve months NOKm, Last twelve months +2.3 +2.5 +3.0 +2.0 107.1 109.5 209 102.8 104.8 99.8 178 191 170 (17%) (16%) 164 143 (14%) 113 (11%) 105 105.0 107.7 76 96.0 99.4 102.0 (8%) 69 Q3 Q4 Q1 Q2
Slide 14: Subscription-based revenue model with total ARR base at USD 110m in Q3 2024
Subscription-based revenue model with total ARR base at USD 110m in Q3 2024 Total ARR Legacy ARR split USDm Underlying ARR +10% Self-hosted Software 107.1 109.5 102.8 104.8 99.8 +12% 48% 52% Pexip as-a-Service 102.0 105.0 107.7 96.0 99.4 APAC EMEA 9% Q3 Q4 Q1 Q2 Q3 2024 50% 2023 2023 2024 2024 41% A
Slide 15: Revenue growth and cost control increasing profits
Revenue growth and cost control increasing profits Revenue EBITDA excluding other gains and losses NOK million NOK million (margin) Software SaaS 102 +11% (+102) 178 1,071 (17%) 969 553 520 76 (8%) 449 519 LTM Q3 LTM Q3 LTM Q3 LTM Q3 2023 2024 2023 2024 15
Slide 16: Stable operating expenses
Stable operating expenses Quarterly OPEX development Delta vs Q3 2023 NOK million NOK Million 204.5 199.8 197.9 200.7 202.5 179.1 185.6 45.0 42.8 36.7 39.1 38.7 34.6 -0.8 9.8 35.4 10.8 9.4 8.4 8.8 7.6 16.0 8.4 149.8 148.2 136.0 150.4 152.2 155.4 135.0 -1.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2023 2023 2023 20
Slide 17: NOK 209 million in free cash flow last twelve months, up NOK 140 million
NOK 209 million in free cash flow last twelve months, up NOK 140 million from previous period Cash flow bridge LTM Q3 2024 NOK million • Above 100% conversion from EBITDA to free cash flow 40 15 264 209 112 3 594 • Disciplined approach to capital 494 expenditure – main driver is internal software de
Slide 18: Industry partnerships continue to be a key part of our strategy
Industry partnerships continue to be a key part of our strategy 2022 2023 2024 Note: Partners with active R&D and/or sales collaboration by year. Not exhaustive list 18
Slide 19: Outlook
Outlook 2024 outlook • Continued positive market outlook across the • 8-11% ARR growth business areas • 17-20% EBITDA1 • Strong market position and industry partnerships are 2025+ targets expected to continue to drive growth Consistently deliver: • Q4 2024 ARR expected 111-114 USD millions • Above 1
Slide 20: Thank you
Thank you Investor.pexip.com IR@Pexip.com 20