Pexip Holding

Earnings Release • May 12, 2022

Pexip Q1 2022 - Key focus on accelerated return to profitability

Pexip Q1 2022 - Key focus on accelerated return to profitability

Oslo, Norway, May 12, 2022 - The video communications provider, Pexip Holding

ASA ("Pexip" or "The Company", Oslo Børs Ticker: PEXIP), today presented its

quarterly results for the first quarter of 2022, showing revenue of NOK 222.5

million, a growth of 24 percent year-on-year and EBITDA margin of -23%, affected

by the company's significant investments in future growth.

As previously communicated, Pexip is accelerating its return to positive

financial results, and targets a return to positive EBITDA in Q4 2022 and for

the full year 2023. Pexip's new CEO, Trond K. Johannessen, took the reins on

April 20.

"The Covid 19 pandemic has changed the videoconferencing market landscape.

Organizations across the globe have started to see the full potential of a video

-enabled world, not just for internal company communication but also for mission

-critical applications and high-security meetings. Video has become an integral

part of many organizations' operations, strategies, and workflows. Pexip has

created a focused strategy built on its core technology strengths to take

advantage of these opportunities, and we are uniquely positioned to succeed. In

order to do this in the most effective way, the Company needs to adapt its

organizational structure to be able to better execute on the defined strategy

and capitalize on the identified growth opportunities. At the same time, Pexip

needs to reduce its overall cost level to accelerate the Company's return to

profitable growth. Doing so will ensure a return to positive EBITDA in Q4 2022

and for the whole year of 2023. I am excited to have taken over as Pexip's CEO

on April 20, and I am truly impressed with the capabilities of Pexip's

technology and people as well as the high-caliber customers we serve. I look

forward to working with the team to fully implement the planned changes that

will fuel Pexip's return to profitability and future growth," said Trond K.

Johannessen, Pexip CEO.

Q1 2022 - Key Figures

Pexip's subscription base measured in Annual Recurring Revenue (ARR) reached USD

105.6 million in Q1 2022, up from USD 87.2 million in Q1 2021, representing an

increase of 21%, driven by higher sales from both product areas, Pexip self

-hosted software and Pexip as-a-Service.

Key highlights for the quarter include:

· Pexip's ARR reached USD 105.6 million, reflecting a 21% growth year-on-year

· ARR was reduced quarter-on-quarter by USD 0.8 million. Underlying ARR growth

was USD 1.2 million, adjusted for a change in pricing model with a strategic

partner. This change is expected to drive more than USD 4 million ARR growth

during 2022

· Revenues were at NOK 222.5 million, 24% growth year-on-year, driven by both

product areas

· EBITDA was at negative NOK 51.8 million, representing a negative 23% EBITDA

margin compared to a negative 30% EBITDA margin in Q1 2021

· Non-recurring cash outflows of total NOK 147 million for share buyback and

portfolio purchases drove extraordinary negative cash flow in the quarter.

Current cash reserves considered sufficient to drive growth and return to

profitability

· Net revenue retention rate, reflecting the percent of retained revenue from

existing customers, was 95% year-on-year, including churn of 9.2% year-on-year.

The reduction in net revenue retention rate was driven by a decline in net

upsell, which was at USD 3.4 million in Q1 2022

· Pexip closed its first customers through Microsoft Azure marketplace and had

a strong momentum within Secure Spaces and in public sector sales in the quarter

Q1 2022 - key deals included:

· Västra Götaland Regional Council - Public sector organization in Sweden

· Central European Ministry of Justice

· DLA Piper - Leading multinational law firm

· Significant upsell to US Department of Veterans Affairs - Executive branch

department of the federal government

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.

Q1 results presentation

The first quarter results for 2022 will be presented by video webcast on

Thursday, May 12, at 17:00 CEST. The presentation will be held in English by

Trond K. Johannessen (CEO), Øystein Dahl Hem (CFO), and Åsmund Fodstad (Chief

Revenue Officer). Please register using this form: https://www.pexip.com/q1-2022

-results-presentation-registration. Questions can be submitted to IR@pexip.com.

The presentation will be streamed via investor.pexip.com.

This information is subject to the disclosure requirements pursuant to Section 5

-12 the Norwegian Securities Trading Act.

Contact persons:

Investors: Mirza Koristovic, Director Investor Relations, IR@pexip.com, +47 93

87 05 25

Media: Lars-Einar Petterson, Communication Manager Norway,

Lars.einar.petterson@pexip.com, +47 93 44 88 27 or Gillian Dalslaaen, VP

Corporate Communications, gillian@pexip.com, +47 40 46 10 25

About Pexip | pexip.com

Pexip simplifies complex videoconferencing to empower organizations with face-to

-face collaboration, no matter the location or technology. Our scalable platform

enables high-quality video meetings, with enterprise-grade security, and is

easily adapted to fit customers' IT requirements and existing infrastructure.

This makes Pexip the leading provider for  large enterprises and public sector

organizations. The solution is sold through 300 channel partners in 75 countries

and used in more than 190 countries. Pexip was listed on the Oslo Børs in May

2020.