Pexip (PEXIP) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 2024 financial performance, with ARR reaching USD 113.1 million (up 10% year-over-year) and revenue at NOK 333 million (up 17% year-over-year), closing at the upper range of outlook.

• Secure and Custom ARR grew 24% year-over-year to USD 44.9 million, with significant wins in defense, justice, and healthcare sectors.

• EBITDA for Q4 was NOK 88 million (27% margin), with a 12-month rolling EBITDA of NOK 207 million (18% margin).

• Launched first Private AI solution for secure meetings and expanded partnerships, notably with Zoom, including ISV partnership and Connect for Zoom Rooms.

• Proposed dividend for 2024 is NOK 2.5 per share, including an extraordinary dividend, subject to AGM approval.

Financial highlights

• Q4 2024 revenue was NOK 333 million, up 17% year-over-year; full-year revenue grew 13% to NOK 1,119 million.

• Adjusted EBITDA for Q4 2024 was NOK 88 million (27% margin), up 49% year-over-year; full-year adjusted EBITDA was NOK 207 million (18% margin).

• Free cash flow in Q4 2024 was NOK 21 million; full-year free cash flow reached NOK 196 million.

• Gross margin improved to 91% for FY 2024, up from 90% in the prior year.

• Net retention rate in Q4 was 96% overall, with Secure and Custom at 106%.

Outlook and guidance

• Q1 2025 ARR expected in the range of USD 114–117 million.

• Targets above 10% ARR growth and above 20% EBITDA margin for 2024–2025, with long-term ambition to deliver Rule of 40 performance.

• Positive market outlook driven by demand for private video meeting platforms, custom workflows, and interoperability.