Pexip Holding

Investor Presentation • May 7, 2025

Quarterly Presentation Q1 2025

May 7 th , 2025

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Software only specialist video conferencing player

Q1 2025 highlights

• Continued improved ARR, revenue and EBITDA growth
• Announcing share buy back program in light of strong cash position and commitments
• 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

Continued growth and further improved profitability

Total ARR USDm

Adjusted EBITDA¹ NOKm, Last twelve months

Free Cash flow² NOKm, Last twelve months

1 EBITDA less Other gains and losses 2 Operating cash flow, investment cash flow and leases

Pexip's two business areas

Pexip Secure & Custom Spaces

Video meetings that are self-hosted on-premises or in a private cloud

When complete privacy and control over data is required

Pexip Connected Spaces

Video meeting room interoperability

When several video technologies need to work seamlessly together

Pexip Secure Meetings caters to customers with specific security & privacy requirements

Pexip offers unique deployment flexibility

Strong momentum for Secure & Custom reinforced by current market trends

Secure & Custom ARR USDm

- Reuters, March 2025 ❝ Airbus leads call for Europe to create soveregin infrastructure fund, buy European

- NTB, March 2024 Skygard announced that it has recieved NOK 2.4 billion in funding

- Microsoft, April 2025 Microsoft announces new European digital commitments

CONNECTED SPACES

Our vision is to connect any meeting room to any meeting is becoming reality

Announced Google Meet hardware interoperability

• 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

Sales update

Secure and Custom Spaces

+3.0m ARR change Q-o-Q USD

ARR USD End of Q1 2025

27% 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

SECURE AND CUSTOM SPACES

Defense use-case: Bundeswehr

Army, Navy, Air Force, Cyber, Information Space Command.

PEXIP SECURE MEETINGS PRODUCT

Use case: enable defense and governments to securely collaborate with NATO and allies

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)

Connected Spaces

ARR change Q-o-Q USD

Lost 0.6 in ARR across two Service Providers who provided Interop as a Service based on Pexip Software

67.6m

-0.5m

ARR USD End of Q1 2025

1% 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

Customer use-case: Walmart CONNECTED SPACES

8000+ stores. 2M employees

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

Financial update

17

Subscription-based revenue model with total ARR base at USD 115.5m in Q1 2025

Booked Annual Recurring Revenue (ARR) development. Legacy is incorporated into Connected Spaces from Q1 2025, and in historic comparisons 18

Strong growth in Secure & Custom

USD million, quarter-over-quarter

• 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

19% revenue growth and 75% EBITDA growth in Q1

• 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

86% of revenue growth converted to EBITDA

EBITDA excl. other gains and losses

Stable year-on-year expenses

Quarterly OPEX development

Share option related costs

NOK million

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

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

Q1 2025 Financial results

Profit and loss

NOK million

	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

Outlook and targets

25

Initiating an up to NOK 100 million share buyback program

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

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 7 th
• 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

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

Upcoming dates

Q2 2025 Quarterly Presentation

August 14th, 2025

Q&A

Investor.pexip.com

Summary of key figures

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
of Goods Sold Cost	MNOK	-27.1	-27.1	-24.8	-26.2	-28.8	-1.8	-2.6
profit Gross	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 and losses gains	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
and D&A 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
Financials Net	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
profits Net	MNOK	45.4	7.0	5.8	59.7	66.4	21.0	6.7
Cash and cash flow
flow Operating cash	MNOK	112.3	78.9	22.2	38.0	230.5	118.2	192.5
cash flow Investing	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
cash flow Free	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.

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