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million.
“We are pleased to be back to positive ARR growth and to continue to deliver a
strong cash flow. Our continued focus on secure and custom solutions yields
results, demonstrating the value that we create for our customers. We remain
confident that these areas will be of great importance in the years to come.”
said Trond K. Johannessen, Pexip CEO.
Q2 development continues to provide momentum to reach the financial targets set
for 2023, and the results from the first half of 2023 are in line with the
guidance given of cash flow positive operations and an EBITDA of NOK 100-150
million for the whole year. The 2023 cash flow target was exceeded in the first
half of 2023, and we have therefore updated our target for the year to NOK 85
-100 million.
Within secure and custom solutions there was a USD 1.8 million growth in ARR in
Q2 and significant renewals in the quarter have gone well. Our secure solutions
are increasingly relevant and awareness around sovereignty and privacy for
Government data is increasing, with more countries issuing specific
recommendations and regulations. Within interoperability and infrastructure
solutions, we continue to capture new accounts although overall decline due to
churn and capacity reductions from legacy and Connected Spaces. The development
in the strategic partnerships with both Microsoft and Poly continues to show
that Pexip’s focused approach to our key markets makes us an attractive partner
in our industry.
Q2 2023 - Key figures
Pexip’s subscription base measured in Annual Recurring Revenue (ARR) amounted to
USD 98.7 million in Q2 2023, representing a year-on-year decline of 7% from USD
106.1 million in Q2 2022, but up 0.4% since Q1 2023. The development in year-on
-year ARR continues to be affected by the large US Government customer not
renewing the contract as the program lost its funding, as well as a decline in
legacy areas.
Key highlights for the quarter include:
· Q2 2023 revenue of 232.9 million, up 19% y-o-y. Pexip’s subscription base
measured in ARR was USD 98.7 million in Q2 2023, down 7% y-o-y but up 0.4% since
Q1 2023. EBITDA amounted to NOK 7.7 million, up NOK 105 million since Q2 2022
excluding restructuring costs.
· Cash flow of NOK 42 million in the quarter, with a cash position of NOK 508
million. We have revised our full-year cash flow target, and the updated,
increased target for 2023 free cash flow is NOK 85-100 million.
· Pexip’s transformation over the last quarters has been successful, and the
new lean organization is delivering strong tangible results. We continue to
drive operational improvements across the business going forward and with a
continued focus on our core markets to enhance market and technology leadership.
· Good start to the Poly partnership, with high joint sales and marketing
activity across regions. Through Q2 we saw strong pipeline development and the
first sales are already won, although limited conversion to date with only three
months of operation.
· We continue to launch technology innovations and in Q2 we launched direct
calling (SIP P2P) for Microsoft Team Rooms and SIP Guest Join for Microsoft
Teams (announced in the Q1 presentation). We are also piloting AI-powered
translation with some of our top customers.
Analyst consensus estimates
Every quarter ahead of the earnings announcement, Pexip collects earnings
estimates from the equity analysts currently covering the Company. The consensus
estimates and the methodology used in the preparation of the consensus estimates
are published on the Company’s IR web pages here:
https://investor.pexip.com/consensus
Q2 results presentation
The second quarter results for 2023 will be presented by video webcast today,
Thursday, 10 August, at 08:00 CEST. The presentation will be held by Trond K.
Johannessen (CEO), Øystein Hem (CFO), and Åsmund Fodstad (Chief Revenue Officer)
The presentation will be held in English and conducted as a webcast. Questions
can be submitted to IR@pexip.com in advance of the presentation or live during
the presentation.
Please join the webcast via the following link: https://www.pexip.com/events/q2
-2023-results-presentation
A recorded version of the presentation will also be available after the webcast
is concluded.
For further information, please contact:
Christine Arnesen Karsrud, Investor Relations
IR@pexip.com, +47 992 64 319
About Pexip | pexip.com
Pexip is a video technology company that offers multi-platform software for
various purposes such as business meetings, secure government communication,
doctor’s appointments, and court proceedings. It is an excellent tool for
organizations that want seamless, secure, and scalable meetings that enhance the
video experience. Pexip (PEXIP) is listed on the Oslo Stock Exchange. Visit us
at www.pexip.com or on LinkedIn (http://www.linkedin.com/company/pexip/)
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5 -12 of the Norwegian Securities Trading Act.
This stock exchange announcement was published by Christine Arnesen Karsrud,
Investor Relations, Pexip Holding ASA, on 10 August 2023 at 07:00 CEST.
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