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Quarterly Presentation Q1 2025 May 7th, 2025
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22 These materials have been produced by Pexip Holding ASA (the "Company“, and with subsidiaries the “Group”). The materials hav e been prepared for the exclusive use of persons attending an oral briefing and meeting to which these materials relate given by a representative of the Company and/or persons to whom these materials have been provided directly by an authorized representative of the Company (the “Recipients”). For purpo ses of this notice, "materials" means this presentation, its contents and appendices and any part thereof, any oral presentation and any question or answer s ession during or after or in relation to any of the foregoing. The materials are for information purposes only, and do not constitute or form part of any offer, invitation or recommendatio n to purchase, sell or subscribe for any securities in any jurisdiction and neither the issue of the information nor anything contained herein shall form the basi s of or be relied upon in connection with, or act as an inducement to enter into, any investment activity. The materials comprise a general summary of certain matters in connection with the Group, and do not purport to contain all of the information that any recipient may require to make an investment decision. Each recipient should seek its own independent advice in relation to any financial, legal, tax, accounting or other specialist advice. No representation or warranty (expressed or implied) is made as to any information contained herein, and no liability whatsoe ver is accepted as to any errors, omissions or misstatements. Accordingly, the Company or any such person's officers or employees accepts any liability whatsoever arising directly or indirectly from the use of the materials. The materials may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not histori cal facts, sometimes identified by the words "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates ", "targets", and similar expressions. Any such forward-looking statements are solely opinions and forecasts which are subject to risks, uncertainties and other factors th at may cause actual events to differ materially from any anticipated development. No liability for such statements, or any obligation to update any such st atements or to conform such statements to actual results, is assumed. These materials are not intended for distribution to, or use by, any person in any jurisdiction where such distribution or us e would be contrary to local laws or regulations, and by accepting these materials, each recipient confirms that it is able to receive them without contravention of an unfulfilled registration requirements or other legal or regulatory restrictions in the jurisdiction in which such recipients resides or conducts busin ess. This presentation and related materials speaks only as of the date set out on the cover, and the views expressed are subject to change based on a number of factors. The Company does not undertake any obligation to amend, correct or update the materials or to provide any additional information about any matters described herein. Important notice and disclaimer
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31 Excluding other gains and losses 2 Cash flow excluding financing items Software only specialist video conferencing player Serving large enterprises and public sector organizations Unique partnerships with the technology leaders in our industry 115.5m ARR USD EoQ1 10% ARR growth Y-o-y 91% Gross margin LTM margin 27% Free cash flow2 LTM margin +8p.p EBITDA expansion1 LTM margin improvement Strong financial performance
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1) Excluding Other gains and losses, e.g., restructuring costs Q1 2025 highlights • Continued improved ARR, revenue and EBITDA growth • Strong growth in Secure & Custom • Increased public awareness around need for secure and sovereign IT solutions • Announced Pexip Connect for Google Meet hardware with Google • Announcing share buy back program in light of strong cash position and commitments +2.4m 112.5 221m ARR Q-o-Q Adj. EBITDA1 Q1 2025 Free cash flow Q1 2025 MUSD 115.5 EoQ1 MNOK 255 LTM MNOK 315 LTM 4
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1 EBITDA less Other gains and losses 2 Operating cash flow, investment cash flow and leases Continued growth and further improved profitability 104.8 107.1 109.5 113.1 115.5 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 +2.3 +2.5 +3.5 +2.4 Total ARR USDm Q1 2024 Q2 2024 Q3 2024 Q4 2024 143 (14%) 170 (16%) 178 (17%) 207 (18%) Q1 2025 255 (22%) Adjusted EBITDA1 NOKm, Last twelve months Free Cash flow2 NOKm, Last twelve months Q1 2024 Q2 2024 Q3 2024 Q4 2024 164 191 209 196 Q1 2025 315 5
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When complete privacy and control over data is required Pexip Secure & Custom Spaces Video meetings that are self-hosted on-premises or in a private cloud When several video technologies need to work seamlessly together Pexip Connected Spaces Video meeting room interoperability Pexip’s two business areas 6
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7 Global SaaS Services Self-hosted Secure Meeting Pexip Secure Meetings caters to customers with specific security & privacy requirements SECURE AND CUSTOM SPACES Secure Meetings are easily scheduled in Outlook Data Control User authentication Integrated Chat
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8 Pexip offers unique deployment flexibility Software-as-a-Service Controlled IT environments Global SaaS Services Sovereign cloud Government cloud Private cloud On-premises Air-gapped SECURE AND CUSTOM SPACES
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9 Strong momentum for Secure & Custom reinforced by current market trends - Reuters, March 2025 Q1 2024 Q1 2025 37.7 47.9 Secure & Custom ARR USDm - NTB, March 2024 - Microsoft, April 2025 ❝Airbus leads call for Europe to create soveregin infrastructure fund, buy European Skygard announced that it has recieved NOK 2.4 billion in funding Microsoft announces new European digital commitments +27%
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Our vision is to connect any meeting room to any meeting is becoming reality meetingsrooms CONNECTED SPACES 10 Rooms Rooms Rooms SIP end- points Rooms Meeting Meeting Meeting Meeting NEW!
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• Pexip will enhance the interop experience for Google Meet hardware users • The offering will enable Google Meet hardware to join Teams meetings with excellent quality • Will be available through the Google Marketplace and through resellers • Already actively marketed by Google Announced Google Meet hardware interoperability CONNECTED SPACES 11
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Sales update 1212
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13 Secure and Custom Spaces +3.0m 47.9m 27% ARR change Q-o-Q USD ARR USD End of Q1 2025 Y-o-Y growth Q1 2025 Secure Meetings continue to be the main growth driver Significant increase in public awareness on need for sovereign IT in Europe Continued good momentum in defense, added USD 1.0 million in ARR in Q1 across multiple organizations
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Defense use-case: Bundeswehr PEXIP SECURE MEETINGS PRODUCT Use case: enable defense and governments to securely collaborate with NATO and allies 14 Army, Navy, Air Force, Cyber, Information Space Command. SECURE AND CUSTOM SPACES Why Pexip: 1. Sovereign ▪ European vendor ▪ Deployment flexibility incl. mobile networks 2. Resilient ▪ Secure and higher, including NATO SECRET ▪ Reliability via Pexip’s hardened software 3. Interoperable ▪ FMN Spiral 4 ready (NATO approved standard) ▪ Support of various mission partner solutions (e.g., Skype for Business, Cisco, Poly)
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Note: Legacy is incorporated into Connected Spaces from Q1 2025, and in historic comparisons Connected Spaces -0.5m 67.6m 1% ARR change Q-o-Q USD ARR USD End of Q1 2025 Y-o-Y growth Q1 2025 Continued strong momentum with new Connect for Zoom Rooms product with another major win with Walmart Continue to build pipeline on new Connect products Lost 0.6 in ARR across two Service Providers who provided Interop as a Service based on Pexip Software 15
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Customer use-case: Walmart 16 CONNECTED SPACES CONNECT for MICROSOFT TEAMS CONNECT for ZOOM ROOMS PRODUCTS Use case ▪ Connect 4000+ Zoom rooms and 1000+ Cisco rooms to Teams meetings ▪ A typical Pexip use case Key winning USPs for Pexip ▪ Seamless UX for both Microsoft and Zoom ▪ Trusted and proven solution ▪ Premium, hands- on support ▪ Customer-focused development 8000+ stores. 2M employees
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Financial update 17
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18Booked Annual Recurring Revenue (ARR) development. Legacy is incorporated into Connected Spaces from Q1 2025, and in historiccomparisons Subscription-based revenue model with total ARR base at USD 115.5m in Q1 2025 67.0 67.4 68.6 68.1 67.6 37.7 39.7 41.0 44.9 47.9 Q1 2024 Q2 2024 Q3 2024 Q4 2024 104.7 107.1 109.5 113.1 Q1 2025 115.5 +10% Total ARR USDm 50% 41% 9% Americas APAC EMEA Secure & Custom Connected Spaces +27% +1% ARR split USDm 24% 22% 20% 19% 8% 7% Government Regulated industries Healthcare Enterprise IT Defense and Aerospace
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Secure and CustomConnected spaces 19 Strong growth in Secure & Custom 67.6 Q4 2024 1.7 New Customers Net Upsell Churn Q1 2025 68.1 2.40.2 -0.8%2.4% Quarterly net retention of 97% -3.6%0.3% USD million, quarter-over-quarter 44.9 47.9 Q4 2024 1.1 New Customers 2.2 Net Upsell 0.3 Churn Q1 2025 6.7%2.5% Quarterly net retention of 104% -0.7%4.9% • USD 2.4 million in net growth in Q1 2025 compared to USD 2.0 million in Q1 2024, from stronger net upsell across Connected Spaces and Secure & Custom
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Quarterly revenue increase of 19% y-o-y – 18% growth on Software as a Service, 20% growth on Software – Estimated growth in constant currency of 13% y-o-y EBITDA1 increased with 75% – Estimated NOK 7 million currency benefit in Q1 2025 vs Q1 2024 15% revenue growth on an LTM basis, 5 p.p. above underlying ARR growth 78% growth in EBITDA1, 22% EBITDA1 margin 20 19% revenue growth and 75% EBITDA growth in Q1 1) EBITDA adjusted for Other gains and losses 125 167 Q1 2024 148 200 Q1 2025 292 348 19% Revenue NOK million EBITDA1 NOK million (margin) SaaS Software 554 607 471 567 LTM Q1 2024 LTM Q1 2025 1,025 1,175 +15% LTM Q1 2024 LTM Q1 2025 143 (14%) 255 (22%) +78% Q1 2024 Q1 2025 64 (22%) 112 (32%) +75% Quarterly LTM
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21 86% of revenue growth converted to EBITDA 27 265 (91%) Q1 2024 29 319 (92%) Q1 2025 COGS Gross margin 292 348 +56 (+19%) Revenue and gross margin NOK million Q1 2024 Q1 2025 64 (22%) 112 (32%) +48 (10 p.p.) EBITDA excl. other gains and losses NOK million Continue to maintain high EBITDA conversion
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22Note: Share option related costs in Q1 2025 include realized social security costs from employee share option and RSU exercise window Stable year-on-year expenses Salary and personnel expenses NOK 7 million increase y-o-y –Net NOK 6 million higher share option related costs from partial cash settlement of share options as well as social security accrual reduction from negative share price development –Fixed and variable salary flat y-o-y from inflation increase balanced by headcount reduction Other Operating expenses NOK 1 million lower costs overall, no major changes in the main sub-categories 39.1 9.4 152.2 Q1 2024 38.7 8.4 155.4 Q2 2024 34.6 16.0 135.0 Q3 2024 40.5 12.2 165.4 Q4 2024 38.0 15.0 153.7 Q1 2025 200.7 202.5 185.6 218.1 206.7 Other operating expenses Share option related costs Salary and personnel expenses Quarterly OPEX development NOK million
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231 Includes fair value adjustments on money market funds Note: Free cash flow defined as the sum of operating cash flow, investment cash flow and lease payments NOK 221 million in free cash flow in Q1 2025, NOK 118 million above Q1 2024 Cash flow bridge Q1 2025 NOK million • Very strong operating cash flow from operating results as well as seasonal working capital improvement – NOK 118 million in working capital improvement • NOK 7 million investment cash flow (-2 million y-o-y), mainly from capitalization of own software development • NOK 19 million in net exchange losses on foreign currency due to NOK/USD appreciation 230 Operating cash flow1 7 Investment cash flow 3 Principal lease payments 221 Free cash flow 0 Cash and money market funds Q1 2025 628 849 830 Net exchange gains on cash holdings Other financing activities 19 Cash and money market funds Q4 2024
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24 Q1 2025 Financial results Q1 2025 Q1 2024 Y-o-Y Revenue 348 292 56 Cost of goods sold 29 27 2 Gross Profit 319 265 54 Salary and personnel exp. 169 161 7 Other operating exp. 38 39 -1 Adjusted EBITDA 112 64 48 Other gains and losses 3 -7 -9 EBITDA 115 58 57 D&A 14 20 -6 EBIT 101 38 63 Net financials -14 23 -36 Profit/loss before income tax 87 60 27 • 19% increase in year-on-year revenue due to ARR increase and currency gains • COGS increase driven by resale of a large multiyear secure chat solution • EBITDA excluding other gains and losses of NOK 112 million, NOK 48 million higher than in Q1 2024 • NOK 3 million in gain from received insurance gain • Reduction in D&A due to completed depreciation of past software and customer contract acquisitions • Negative net financials resulting from foreign exchange difference due to NOK/USD appreciation Profit and loss NOK million
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Outlook and targets 25
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26 Initiating an up to NOK 100 million share buyback program Program details • Pexip to acquire up to a volume of 2 million shares or shares for a value of NOK 100 million (whichever happens first) • Pexip Q1 cash position of NOK 830 million adjusted for the maximum share buy back and dividend paid in Q2 is NOK 470 million • To be initiated May 7th Rationale • Pexip has outstanding commitments to deliver shares as part of employee share incentive programs • Pexip saw a strong cash flow in Q1, and has a very robust balance sheet
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1) Excluding other gains and losses • Continued positive market outlook across the business areas driven by market trends • Need for private video meeting platforms • Custom video work-flows are growing • Interoperability is highly relevant • Our unique technology, strong market position and industry partnerships put Pexip in a good position to capitalize on these market trends • End Q2 2025 ARR expected 117-120 USD millions 27 Outlook Near-term targets Consistently deliver: • Above 10% ARR growth • Above 20% EBITDA1 margin Long-term ambition Deliver Rule of 40 performance across ARR growth and EBITDA margin
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Q2 2025 Quarterly Presentation August 14th, 2025 Upcoming dates 28
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Q&A Investor.pexip.com
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BACKUP
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31 Summary of key figures Comments Q1 2025 ARR • Delta ARR of 2.4 MUSD, driven by good growth in Secure & Custom across new and existing customers (+27% y-o-y) • Annual ARR growth of 10% p.a. Revenues • Growth in quarterly revenues of MNOK 56 (+19%), driven by both software and software-as-a-service • Seasonally strong software revenues in Q1 COGS • COGS increase below revenue growth driving improved gross margin. Part of COGS increase driven by large resale of 3rd party licenses to a joint software customer, underlying SaaS COGS were stable Opex • Main driver of y-o-y increase is employee share option exercise in Q1 2025 • Other OPEX somewhat down, stable development across underlying drivers Cash and money market funds • Cash balance closing MNOK 105.5 above 2023 • Slight reduction in operating cash flow y-o-y due to seasonal working capital build-up KPI Unit Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Y-o-y Q-o-Q ARR Connected Spaces MUSD 67.0 67.4 68.6 68.1 67.6 0.6 -0.5 Secure & Custom MUSD 37.7 39.7 41.0 44.9 47.9 10.3 3.0 Total MUSD 104.8 107.1 109.5 113.1 115.5 10.7 2.4 P&L SaaS revenue MNOK 125.3 134.6 140.8 144.5 147.6 22.2 3.1 Software revenue MNOK 166.6 130.9 87.7 188.0 200.4 33.7 12.3 Revenue MNOK 292.0 265.6 228.5 332.5 347.9 56.0 15.4 Cost of Goods Sold MNOK -27.1 -27.1 -24.8 -26.2 -28.8 -1.8 -2.6 Gross profit MNOK 264.9 238.5 203.7 306.3 319.1 54.2 12.8 Salary and personnel expenses MNOK -161.4 -163.8 -151.0 -177.7 -168.6 -7.2 9.0 Other OPEX MNOK -39.1 -38.7 -34.6 -40.5 -38.0 1.0 2.4 Adj. EBITDA MNOK 64.4 36.0 18.1 88.2 112.5 48.0 24.3 Other gains and losses MNOK -6.7 -3.0 -3.4 -2.7 2.6 9.4 5.3 EBITDA MNOK 57.7 33.0 14.6 85.4 115.1 57.4 29.6 D&A and impairment MNOK -19.8 -19.6 -18.6 -23.3 -14.1 5.7 9.2 EBIT MNOK 37.9 13.4 -4.0 62.2 101.0 63.1 38.8 Net Financials MNOK 22.5 -1.0 13.0 20.1 -13.9 -36.5 -34.0 Tax MNOK -15.0 -5.4 -3.2 -22.6 -20.7 -5.7 1.9 Net profits MNOK 45.4 7.0 5.8 59.7 66.4 21.0 6.7 Cash and cash flow Operating cash flow MNOK 112.3 78.9 22.2 38.0 230.5 118.2 192.5 Investing cash flow MNOK (8.7) (7.2) (11.1) (13.8) (6.7) 2.0 7.0 Principal lease payments MNOK (3.0) (4.0) (3.3) (3.1) (2.9) 0.1 0.2 Free cash flow MNOK 100.5 67.7 7.8 21.1 220.9 120.3 199.7 Cash position MNOK 628.1 586.5 593.2 628.2 830.5 202.4 202.3 Note: Operating cash flow includes fair value adjustments of money market funds to be consistent with other interest income. Cash position includes money market funds.