Pexip Holding

Earnings Release • Jan 10, 2022

Pexip adds USD 6.6 million in Annual Recurring Revenue during Q4 2021

Pexip adds USD 6.6 million in Annual Recurring Revenue during Q4 2021

(Oslo, Norway, January 10, 2022) In this trading update, Pexip Holding ASA

("Pexip" or "The Company" Oslo Børs Ticker: PEXIP) presents its Annual Recurring

Revenue (ARR) for the fourth quarter (Q4) of 2021. In Q4 2021, Pexip increased

its ARR with 30% year-on-year to USD 106.4 million.

· Pexip's subscription base measured in ARR reached USD 106.4 million in Q4

2021, up from USD 81.9 million in Q4 2020, representing a year-on-year increase

of 30% or USD 24.6 million for 2021 full year.

· Of the 30% year-on-year growth in ARR, 29 percentage points (pp) are from

new customers. Net revenue retention rate, reflecting the percent of retained

revenue from existing customers, was 101% year-on-year, including churn of 9.7%

year-on-year.

· Pexip generated new ARR of USD 6.6 million in Q4 2021, compared to USD 9.1

million in Q4 2020 and USD 4.4 million in Q4 2019.

· ARR from Pexip's Self hosted Software reached USD 58.8 million in Q4 2021,

up 20% year-on-year, while ARR from Pexip as-a-Service reached USD 47.6 million,

up 45% year-on-year.

· The acquisition of Skedify, announced on November 8, 2021, accounted for

slightly more than USD 0.9 million of the growth in ARR.

"I am pleased to report continued strong growth for Pexip in 2021, having

increased our subscription base with USD 6.6 million in Q4, and USD 25 million

in ARR during 2021. For Q4, I am particularly satisfied with the reduction in

year-on-year churn which is now back below 10%, and to report that we landed

some significant new customers. We experienced growth across all our core

business pillars, however, the video infrastructure area is negatively impacted

by the limited use of offices and delays in roll-out of new video rooms. This is

due to the renewed Covid-19 restrictions and as well as delays in our customers'

video hardware deliveries due to chip shortages. As presented at Pexip's Capital

Markets Day in December 2021, moving into 2022, we have redefined our strategy

to focus specifically on the three main business areas where Pexip has clear

competitive differentiators - video infrastructure, critical meetings and video

enablement. We feel confident that executing on this renewed focus and

capitalizing on the growth investments made in 2020 and 2021 will enable us to

deliver on our ambitions to return to positive EBITDA during 2023 and reach USD

300 million in ARR by the end of 2024," said Interim CEO and CFO, Øystein Hem.

Key Contracts Awarded in Q4 included:

The US Federal Reserve

The US Federal Reserve is the central bank of the United States. Its purpose is

to promote the effective operation of the U.S. economy and, more generally, the

public interest. For the Federal Reserve, data sovereignty and privacy were key

components in their decision to utilize Pexip as their critical meetings video

platform.

Charter Communications

Charter Communications is an American telecommunications and mass media company.

With over 26 million customers in 41 states, it is the second-largest cable

operator and the fifth-largest telephone provider in the United States, with

100,000 employees across North America. The company currently uses Pexip

primarily as a disaster recovery communication platform, and their CXOs rely

heavily on video for their day-to-day business. Pexip was chosen for its ability

to be deployed in their many data centers across the US and made immediately

available as a failover service. Charter Communications views Pexip as a mission

critical disaster recovery platform.

GM Financial

GM Financial is a global provider of auto finance solutions and is the wholly

owned captive finance subsidiary of General Motors, with operations in North

America, South America, and Asia. The company chose Pexip to facilitate

communication between different video platforms and for the sustainability

aspect that Pexip provides, allowing them to make the most of their existing

video hardware, and manage it more effectively without needing to deploy extra

internal resources.

Technip Energies

Technip Energies is a leading Engineering & Technology company for the energy

transition, with leadership positions in Liquefied Natural Gas (LNG), hydrogen

and ethylene as well as growing market positions in blue and green hydrogen,

sustainable chemistry, and CO2 management. The Company operates in 34 countries

and has 15,000 employees. The company chose Pexip for its Microsoft integration,

registration and management of video hardware, and platform flexibility and

quality.

Pexip will hold a presentation of the Q4 2021 ARR update today at 08:00 CET. The

presentation material is attached. The webcast will be held in English by

Øystein Hem (Interim CEO and CFO) and Åsmund Olav Fodstad (President Global

Sales & Marketing) at: https://www.pexip.com/q42021_arr

Pexip will present the full Q4 2021 interim report on February 10, 2022. The

information included in this announcement is such that the Company is required

to disclose in accordance with the EU Market Abuse Regulation (MAR) and is

publicly disclosed in accordance with MAR article 17 and section 5-12 of the

Norwegian Securities Trading Act. The announcement is made by Øystein Hem.

For questions, please contact:

Investors: Investor Relations, IR@pexip.com, +47 94 80 58 51

Media: Lars-Einar Petterson, Communication Manager,

Lars.einar.petterson@pexip.com, +47 93 44 88 27

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.