Pexip Holding — AGM Information 2022

Apr 7, 2022

Meet the world with video communication as it should be

Q1 2022 ARR Update

April 7, 2022

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These materials have been produced by Pexip Holding ASA (the "Company", and with subsidiaries the "Group"). The materials have 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 purposes of this notice, "materials" means this presentation, its contents and appendices and any part thereof, any oral presentation and any question or answer session during or after or in relation to any of the foregoing.

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✓Delivering video conferencing software targeting large enterprises and government sector

✓Unique video technology

✓Deep industry partnerships with Microsoft and Google, as well as the top global AV and IT system integrators

Unique technology drives our success in three core market

Pexip's core markets represent a massive market opportunity

Pexip intends to have a leadership position in a 5 BUSD segment by 2024

Well-positioned to benefit from mass adoption of video communication

Pexip has successfully solved the complex video needs of large organizations since its inception

Q1 2022 ARR Update

21% y-o-y growth in Annual Recurring Revenue

Booked Annual Recurring Revenue (ARR) development

USD million

• ARR of USD 105.6 million at the end of Q1 2022
  • USD 0.8 million below Q4 2021
• Underlying ARR is USD 1.2 million higher, adjusting for negative USD 2.0 million one-off booking from change in pricing model with a single partner contract
  • Expect this change to drive more than USD 4 million ARR growth during 2022

• Continued positive development on churn

– At 9.2% p.a. compared to 9.7% p.a. at the end of last quarter

• Lack of acceleration on new sales and lower upsell due to:

• Strategic re-focus to three core business areas in early stage of execution
• Lack of hardware endpoint deliveries to customers delaying projects
• Lower net upsell due to strong growth in capacity last two years

Continue to win in core business areas

Balanced growth across geographies and products

USD million

ARR per geo ARR per product

USD million

Pexip continues to grow within large organizations

Large organizations driving growth

Share of ARR by account size in ARR, USD

Åsmund?

New customers represent the main driver for ARR growth

• Sales to new customers continue to be main driver behind growth, in line with previous period
• Improved churn at 9.2% in line with trend over last quarters
• Lower ARR net retention due to lower net upsell driven by change in partner pricing model (USD -2 million) and excess capacity due to lower than planned video room usage

Will adapt growth plan and targets to accelerate return to profitability

Will adapt growth plan and targets

• Video adoption has been accelerated in the past two years, creating huge opportunities for future growth and strong customer interest in Pexip's core business areas
• Current growth rate below what is needed to reach existing target of USD 300 million by the end of 2024
• Less visibility on the timing of reaching USD 300 million compared to when setting the target in 2020

Accelerate return to profitability

• Expect to return to quarterly ARR growth in Q2 and beyond
• Target being EBITDA profitable in Q4 2022 and for the whole year of 2023
• Will present updated growth plan and target later this year

Upcoming dates

Annual General Meeting	April 21, 2022
Q1 2022 Quarterly Presentation	May 12, 2022

Q&A