Pexip (PEXIP) Morgan Stanley European Technology Media & Telecom Conference 2024 presentation summary

Business overview and strategy

• Focuses on two main areas: Connected Spaces (video meeting room interoperability) and Secure & Custom Spaces (self-hosted, secure video meetings).

• Partners with leading technology companies including Microsoft, Google, HP, Zoom, Cisco, and NVIDIA.

• Strong market position in a growing video meeting market, with only 10% of office meeting rooms globally equipped with video endpoints.

• Expanding into Video Platform as a Service (VPaaS) for regulated industries, launched in 2024.

• Emphasizes security, data sovereignty, and compliance, especially for government and regulated sectors.

Financial performance

• Annual recurring revenue (ARR) reached USD 110 million in 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 year-over-year.

• Stable operating expenses due to headcount reduction and disciplined cost management.

• Paid first-time dividend in 2024, with a policy to distribute 50-100% of free cash flow.

Business segments and customer use cases

• Connected Spaces enables any meeting room to join any meeting, supporting all major platforms.

• HSBC uses the solution to connect 4,000 Zoom Rooms to Teams meetings, improving user experience.

• Secure & Custom is the top provider of self-hosted video meetings, serving organizations with strict security needs.

• European government uses Secure Meetings for parallel, high-security video communications.

• Launched private AI for Secure Meetings in partnership with NVIDIA, ensuring data privacy.