Pexip Holding

Earnings Release • Aug 11, 2022

Pexip Q2 2022 report - Adapting organization and cost to drive sales and accelerate path to profitability

Pexip Q2 2022 report - Adapting organization and cost to drive sales and accelerate path to profitability

Oslo, Norway, August 11, 2022 - Pexip Holding ASA ("Pexip" or "The Company",

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

quarter of 2022, showing revenue of NOK 195.0 million, a growth of 10 percent

year-on-year and negative adjusted EBITDA of NOK 98.9 million excluding one-off

restructuring cost of NOK 26.8 million.

Pexip has previously announced an accelerated plan to return to profitable

growth, positive EBITDA and cash-flow, and today announced secured and committed

cost savings of NOK 196 million on an annualized basis. The company targets

additional NOK 100 million of savings during the coming three quarters. The main

effect comes from headcount reductions

"We expect to return to positive EBITDA in the fourth quarter this year, and

along with the organizational restructuring we implemented in the second

quarter, the cost reduction program will help us accelerate the development

towards this important milestone. We have plans in place to be cash flow

positive out of Q1 2023. Our new organization is well aligned with our core

strategy of driving sales and pursuing a market-leading position in the areas of

Secure Spaces, Video Innovation and Connected Spaces, where we experience strong

customer interest," said CEO of Pexip Trond Johannessen, and reiterated Pexip's

target of EBITDA profitability for 2023 and a cash-flow neutral run-rate after

Q1 2023.

In the second quarter 2022 Pexip's Pexip's subscription base measured in Annual

Recurring Revenue (ARR) reached USD 106.1 million in Q2 2022, up from USD 92.7

million in Q2 2021, representing a year-on-year increase of 14%. New customers

were the key driver for the growth. Compared to the level at the end of the

first quarter 2022, ARR was unchanged.

"As we shift focus to high-growth opportunities, we have seen that ARR growth in

Q2 continued to reflect the slow development from Q1. Nevertheless, we are

encouraged in to see continued healthy growth in Secure Spaced and Video

Innovation. Our customer focused product and technology development continues,

and as an example we recently launched our 'Virtual Courts' product, which

represents a proven and significant opportunity for us and a great value

proposition for our customers," said Trond Johannessen.

Q2 2022 - key financial highlights

· ARR USD 106.1 million, reflecting a 14% growth year-on-year and unchanged

quarter-on-quarter

· Revenue NOK 195.0 million, a growth of 10 percent year-on year

· EBITDA excluding one-off restructuring cost of negative NOK 98.9 million

· Operating loss (EBIT) NOK 149.9 million including one-off restructuring cost

of NOK 26.8 million

· Net profit negative NOK 89 million

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.

Q2 results presentation

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

Thursday, August 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/events/q2-2022-results-presentation-registration

Questions can be submitted to IR@pexip.com.

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 the Norwegian Securities Trading Act. This stock exchange

announcement was published by Øystein Hem, CFO of Pexip ASA, on the time and

date set out above.

For further information, please contact:

Øystein Hem, CFO

+47 992 34 596

IR@pexip.com

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.