Pexip Holding

Earnings Release • Feb 14, 2023

Pexip Holding ASA - Q4 2022 results

Pexip Holding ASA - Q4 2022 results

Oslo, Norway, February 14, 2023 - Pexip Holding ASA ("Pexip" or "The Company",

Oslo Børs Ticker: PEXIP), today presented its quarterly results for the fourth

quarter of 2022, showing revenue of NOK 260.4 million and an adjusted EBITDA of

NOK 21.7 million excluding one-off restructuring costs of NOK 29.2 million.

The cost reduction program continued in Q4, and additional 189 million of

annualized reductions in costs was realized in the quarter. The annualized

operational cost base in Q4 ended at NOK 967 million, down NOK 372 million from

the Q2 2022 level of NOK 1,339 million. This provides confidence in Pexip's

ability to achieve the target for full year 2023 presented in the Q3 2022

presentation of NOK 100 to 150 million in EBITDA and have led to an updated cost

base estimate for 2023 of NOK 850 million.

"2022 has been a year of change for Pexip. The transition to a leaner

organization is progressing well and we are going into 2023 with a motivated

team and with continued focus and drive towards our targets of growth and

increasing profitability. Despite the macroeconomic slowdown impacting our

customers, we continue to see growth and traction in Secure Spaces and Video

Innovation and are confident that these areas will be of great importance in the

years to come." said Trond K. Johannessen, Pexip CEO

Q4 2022 - Key figures

Pexip's subscription base measured in Annual Recurring Revenue (ARR) amounted to

USD 99.6 million in Q4 2022, representing a year-on-year decline of 6% from USD

106.4 million in Q4 2021. The development in year-on-year ARR continue to be

affected by the large US Government customer not renewing the contract as the

program lost its funding, as well as decline in legacy areas.

Key highlights for the quarter include:

· In Q4, the cost reduction program resulted in additional NOK 189 million of

annualized reductions in costs realized. The cost base going into Q1 underpin

cash flow target at current revenues, and Pexip have updated the cost base

estimated targets for 2023 to NOK 850 million, from previously announced NOK 940

million. Pexip exited Q4 with a team of 329 FTEs, down 40% from mid-Q2.

· Q4 revenue of NOK 260.4 million, down 2.1% year-over-year. Pexip's

subscription base measured in ARR was USD 99.6 million in Q4 2022. Adjusted

EBITDA was NOK 21.7 million excl. restructuring costs, up 119% y-o-y.

· Solid momentum within Secure Spaces with recurring revenues growing 8% in Q4

and 60% underlying growth y-o-y.

· Continue to strengthen partnerships in Connected Spaces and estimate stable

ARR development going forward.

· Cash flow of NOK -67 million, with a cash position of NOK 419 million.

Analyst consensus estimates

Every quarter ahead of the earnings announcement, Pexip collects earnings

estimates from the equity analysts currently covering the Company. The consensus

estimates and the methodology used in preparation of the consensus estimates are

published on the Company's IR webpages here:

https://investor.pexip.com/consensus.

Q4 results presentation

The fourth quarter results for 2022 will be presented by video webcast today,

Tuesday, February 14, at 08:00 CET. The presentation will be held by Trond K.

Johannessen (CEO), Øystein Hem (CFO) and Åsmund Fodstad (Chief Revenue Officer)

The presentation will be held in English and conducted as a webcast. Questions

can be submitted to IR@pexip.com in advance of the presentation or live during

the presentation.

Please join the webcast via the following link: https://www.pexip.com/events/q4

-2022-results-presentation

A recorded version of the presentation will also be available after the webcast

is concluded.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5 -12 of the Norwegian Securities Trading Act. This stock exchange

announcement was published by Christine Arnesen, Investor Relations,

Pexip Holding ASA, on 14 February 2023 at 07:00 CET.

For further information, please contact:

Christine H. Arnesen, Investor Relations

IR@pexip.com, +47 992 64 319

About Pexip | pexip.com

We are a video technology company. Our platform powers services from ultra

-secure government meetings, to personalized banking, to extended reality

devices. We believe that video has the potential to create trusted connections,

build brands and bring transformational ideas to life. Enterprise clients use

our video platform to secure their meetings, make new services, and elevate the

video experience - no matter the meeting room or hardware in use. Listed on the

Oslo Stock Exchange, Pexip's HQ is in Oslo, Norway. For more information,

visit www.pexip.com