Pexip (PEXIP) Company Presentation summary

Business overview

• Specialist in software-only video conferencing, serving large enterprises and public sector clients worldwide.

• Operates two main business areas: Connected Spaces (interoperability for any meeting room) and Secure & Custom Spaces (self-hosted, private, or sovereign cloud video meetings).

• Unique partnerships with major technology leaders such as Microsoft, Google, Cisco, NVIDIA, and Zoom.

• Strong market position supported by growing demand for video endpoints and a $3 billion total addressable market.

• Customers include high-profile organizations like NASA, U.S. Department of Veterans Affairs, and HSBC.

Product and market strategy

• Connected Spaces enables any meeting room to join any video meeting, supporting major platforms and devices.

• Secure & Custom Spaces address data sovereignty and privacy needs, offering self-hosted and sovereign cloud solutions.

• 50% of European CXOs consider data sovereignty a top issue, with 44% planning to move to sovereign cloud.

• Launched Private AI for Secure Meetings in Q4 2024, leveraging NVIDIA AI models for customer-specific deployments.

• Secure Meetings used as parallel solutions for sensitive use cases, such as European government deployments.

Financial performance

• Achieved $110 million ARR at end of Q3 2024, with 10% year-over-year growth.

• Gross margin at 90% and EBITDA margin improved by 9 percentage points over the last twelve months.

• Free cash flow margin at 20% LTM, with NOK 209 million in free cash flow, up NOK 140 million from prior period.

• Revenue grew 11% year-over-year to NOK 1,071 million, with EBITDA margin rising to 17%.

• Stable operating expenses and disciplined capital allocation, including first-time dividend in 2024 and a policy to distribute 50-100% of free cash flow.