Pexip Holding

Earnings Release • Jul 2, 2020

Video Communications Company, Pexip, Announces Continued Strong Sales Growth for Q2 2020

Video Communications Company, Pexip, Announces Continued Strong Sales Growth for Q2 2020

Delivers 64% year-on-year growth in Annual Recurring Revenue - the best Q2 in

Pexip's history

Oslo, Norway, 2 July 2020

The video communications provider, Pexip, today reported an increase in ARR of

USD 9.1 million during the quarter, which is 3.8X the corresponding figure in Q2

2019, of USD 2.4 million, and the best Q2 in the company's history. This

resulted in a contract base measured in Annual Recurring Revenue (ARR) of USD

65.8 million, giving a year-on-year growth in ARR of 64%. The company is

tracking ahead of its plan to reach USD 300 million in ARR by 2025.

The company experienced a stronger momentum in net new sales in Q2

2020 with approx. 3/4 of the year-on-year growth originating from net new

customers. The remaining 1/4 originated from increased sales to existing

customers, giving a Net Retention Rate in Q2 of 118% (based on ARR) for the

previous 12 months, up from 113% in the previous quarter.

In Q1 2020, Pexip reported a significant increase in sales to existing

customers as companies expanded their use of video communication in response to

Covid-19. This positive impact on sales from increased usage amongst existing

customers continued into Q2 2020 and was amplified by a larger share

of revenues coming from net new business than in Q1 2020.

"In Q2 we saw a strong increase in net new sales. We also continued to increase

our Net Retention Rate, demonstrating that we are successfully helping

our existing customers make the most of their investments, ensuring customer

satisfaction. We believe that our unique user experience and range of deployment

options, combined with our focus on stringent data protection, position us well

for continued success," said Odd Sverre Østlie, CEO of Pexip.

"As a result of the Covid-19 situation, more organizations than ever have been

exposed to a new way of working, granting their employees access to video

communication tools to enable them to work from home. We have seen video quickly

become an integrated part of daily work routines and I believe this represents a

lasting change - with a hybrid model emerging, where employees combine working

from the office utilizing professional video systems, with the possibility

to work from home on laptops and mobile devices. Pexip is ideally positioned to

meet the needs of large organizations experiencing this "new normal", and, as a

result, I believe this will have a positive effect on our business going

forward, as well as benefiting the environment and leading to a better work-life

balance for many", said Michel Sagen, Chairman of the Board of Pexip.

Investor Relations: Øystein Hem, CFO, +47 992 34 596, IR@pexip.com

Press: Lars-Einar Petterson, +47 934 48 827, lars.einar.petterson@pexip.com

or Gillian Dalslaaen, +47 40461025, gillian@pexip.com

Pexip simplifies complex video conferencing to empower teams to meet, regardless

of location or technology. Our scalable, cloud-native platform enables high

-quality video meetings, interoperability with Microsoft and Google solutions,

and video system device registration. Customers can deploy Pexip on their own

privately hosted servers, in their own cloud subscription of choice (Azure,

Google Cloud or AWS), as a hybrid, or as a service. With a diverse set of APIs,

Pexip can be customized to fit customers' unique needs. The solution is sold

through 300 channel partners in 75 countries and used in more than 190

countries.