Pexip Holding

Investor Presentation • Feb 11, 2021

Meet the world with video communication as it should be

Quarterly Presentation Q4 2020

11 February 2021

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Recent highlights

73% y-o-y growth in ARR to USD 82 million	Full-year revenue of NOK 679 million (+83%) and 15% EBITDA adjusted for IPO costs	New record deal with US Defense Health Agency at approx. USD 2 million in ARR
	Announced launch of	Increased sales and R&D
Launched Pexip Private Cloud	Pexip Room with Logitech	capacity, +98% y-o-y growth to 361 employees

3

Business update

Video communications as it should be

• ✓A better way to meet with business-quality audio/video
• ✓Securely join from anywhere across multiple technologies
• ✓Customize the platform to meet the unique needs for the organization and IT
• ✓Full control of data privacy and sovereignty, and compliance with data security standards

Large organizations choose Pexip for three main use cases

High-quality video meetings with focus on privacy and security

Vertical market applications and integrations

Expanding access to Microsoft Teams and Google Meet

Pexip is a high-growth subscription-based video communication company

Booked Annual Recurring Revenue ("ARR") portfolio per year end, USD million

• Users in ~190 countries
• Over 300 partners in 75 countries
• Over 350 employees in 20+ countries
• 97% of revenue from subscriptions

	EMEA	Americas	APAC
Share of ARR	56%	34%	10%

Solid growth path to long-term value creation

Pexip is targeting reaching USD 300 million by end of 2024

Pexip continues to win the trust of new large enterprises and public organizations

Note: Global Fortune 500 and Fortune 500

145%

38%

26%

USD >100,000 USD 30,000-100,000 USD <30,000

Pexip ideally positioned for enterprises' reality as organizations return to the office

The new normal will be hybrid working

• People combining working from home and the office
• "Every" room in the office will have a video device
• "Every" meeting will be a video meeting
• Need to connect everything from the browser to the board room – internally and externally

– McKinsey Global Institute

– McKinsey Global Institute

Enabling sustainable development for our customers and users

Pexip contributes to the green economy

• Pexip is committed to supporting our customers in making their business processes more sustainable
  • –Enabling vital healthcare or educational service delivery
  • –Enabling significant reductions in travel and commuting
• –Prolong the life of video and other IT equipment
• Will publish first sustainability report as part of the 2020 annual report

Pexip Private Cloud has been very well received by potential customers, partners and industry analysts

Unique value proposition for large enterprise

Speed

Pexip Private Cloud can be configured and deployed rapidly at whatever scale required.

Security

Pexip Private Cloud is dedicated enterprise-grade. Coming with robust security that is as effective as on-premise security.

Flexibility

Pexip Private Cloud enables flexible customizations to fit the needs of each organization

Rob Arnold, Program Manager, Unified Communications and Collaboration

Pexip Room and Logitech partnership significantly adds to growth potential

Note: Standard-based video endpoints can call any other standard-based meeting service. Example vendors are Cisco and Poly. Reference design means hardware devices which at set-up is installed with an app from meeting service, e.g. Microsoft Teams, Zoom, Google Meet Source: Wainhouse Research

Pexip has started on the next phase of our video communication adventure

Product update

Launched Pexip room together with Logitech

+

Launched Pexip room together with Logitech – first Android-based video device app

• Pexip software for Android based room devices

• • Pexip in full control of the experience
• • Sold as a Cloud Service license per device
• • Hardware devices are sold by Logitech
• • Mutual channel partners can offer bundled solutions

Strong value proposition to both Pexip Meeting customers and customers using multiple video platforms

+ Stress-free joining

• Join all meetings with a single touch
• One common experience across all devices

+ Meet smarter

• Pexip's AI enhanced meeting experience
• People centric to reduce meeting fatigue

+ Secure by design

• Designed to deliver enterprise-grade Security and Privacy

Launch of Epic partnership for Telehealth

• Epic is a major global provider of electronic patient journals for healthcare providers
• With Pexip's new integration, providers can easily enable a Pexip video appointment as part of their existing workflows
• More than 250 million patients have a current electronic patient record in Epic across a range of healthcare providers

Financial review

Strong development in Annual Recurring Revenue with 73% growth YoY

Growth across all geographies and product lines

New sales is the main driver for ARR growth with 59% in 2020

• Year-on-year growth increased to 73% end of 2020
• Majority of growth driven by sales to new customers at 59%.
• Net retention at 114%, including stable churn at 10% year-on-year

Development in ARR bridge shows continued momentum in net new sales

Development in year-on-year growth in ARR by quarter USD million, Last twelve months 2,6 7,4 -3,4 11,3 Q4 2018 23,5 11,7 2,4 -2,8 13,9 8,2 6,6 -3,1 Q4 2019 18,5 10,4 -3,3 Q2 2020 10,6 -4,3 Q3 2020 28,0 11,4 -4,9 Q4 2020 18,9 25,6 29,9 34,6 Q1 2020 Net Upsell New Sales Churn

• New sales has increased consistently quarter by quarter through 2020
• Net upsell saw an increase of USD 5.8 million in Q1 2020 due to Covid-19
• Growth in subscription base main driver for increase in churn, stable churn rate from Q3 2020

Q4 2020 revenue of NOK 229 million, corresponding to 96% revenue growth

Continue to scale the team in terms of adding leading talent and investing in culture and training

Scaling the team Scaling the culture

Increase in operating expenses from planned investments in Sales and R&D capacity

Solid EBITDA in Q4 2020 from strong sales

Investments

Comments

• Higher CAPEX in Q4 2020 mainly related to payments related to the customer base acquisition announced in Q3 2020, in addition to an increase in spend on servers and office fittings in Q4.
• Capitalization of own software development somewhat higher in Q4 2020 compared to previous quarters due to finalization of project accounts

Cash flow bridge

Cash flow bridge Q4 2020

NOKm

Comments

• Have a solid cash position to fund our acceleration plan, which is also impacting cash flow
• Positive operational cash flow for Q4 2020 and for FY 2020
• Exchange losses on cash holdings in other currencies from Q4 NOK appreciation of 52 MNOK
  • Cash position matching cash outflows to minimize real currency risk
• Cash position of NOK 1,101 million out of Q4 2020

Summary

Fourth quarter and 2020 in brief

Strong top line growth and solid profitability

• NOK 679 million in revenue for 2020, +83% compared to 2019
• Strong revenue growth across all geographies
• Continued strong ARR growth with USD 9.1 million in Q4 2020

Executing on the acceleration plan

• Launched Pexip Private Cloud
• Announced launch of Pexip Room through strategic partnership with Logitech in January
• Continue to build sales and R&D capacity reached 361 employees end of Q4 2020
• Solid cash position to invest in further growth

Outlook

Positive outlook for video communication

• Majority of enterprises shifting to a hybrid workforce
• Organizations looking to embed video into their workflows towards customers
• Pexip's technology is uniquely positioned to meet these new customer needs

Will continue to execute on growth plan

• Increase investments in future growth by adding talent in sales and marketing as well as R&D – targeting 550-600 employees by end of 2021
• Deploy up to 70% of raised capital during the next three years

Expect to reach long-term target of USD 300 million in ARR by end-of-2024

Upcoming dates

Update on Annual Recurring Revenue 8 April 2021

2020 Annual report 29 April 2021

Q1 2021 quarterly presentation

13 May 2021

Q&A

Meet the world with video communication as it should be

Quarterly Presentation Q4 2020

11 February 2021