PARETO SECURITIES' TECHSAAS CONFERENCE - CISION
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Meet the world with video communication as it should be Pareto Securities’ TechSaas Conference November 10, 2021
✓Delivering video conferencing software targeting
large enterprises and government sector
✓Unique video technology
✓Deep industry partnerships with Microsoft and
Google, as well as the top global AV and IT
system integrators
2
Pexip has successfully solved the complex video needs of large organizations
Booked Annual Recurring Revenue 100
(“ARR”) portfolio per year end, USD
million
82
CAGR
• Investing raised capital for
growth in 2020 and 2021
70%
• Accelerated ARR growth
47 and normalized investment
level in 2022 improving
36 profitability
29
21 • Return to profitable growth
from 2023+
12
2013 2014 2015 2016 2017 2018 2019 2020 Q3 2021
Total funding ~25 MUSD Cash-flow positive and profitable Raised 120 MUSD
2012-2015 growth 2016-2020 to accelerate
3
Pexip is finding great success in our three core markets
Video infrastructure
Critical meetings Video enablement
and interoperability to
with focus on privacy
Microsoft Teams and of vertical workflows
and security
Google Meet
4
These three core markets represent a massive market opportunity
Pexip has a leadership position in a segment Well-positioned to benefit from mass adoption of
estimated to be USD 5 billion by 2024 video communication
+4.4X
Video-centric UC market: 20+ BUSD in 2024 70%
End-user video
adoption in the
western world
during Covid-19 13%
2019 2021
Pexip 5 BUSD in
current core 2024 49 million meeting
Offices still need
markets rooms globally
to adjust to a
hybrid world
4 million
video rooms1
1 2020 estimate
Source: McKinsey, Wainhouse, company estimates 5
Pexip finding great success in ultra secure meetings
APAC use cases:
1 Deliver Ultra secure /
EU use cases: highly private platforms to
Americas use case:
the military and
1 Deliver Ultra secure / highly governments
1 Deliver Ultra secure / highly private platforms to the
private platforms to the military and governments
military and government
2 Becoming Fedramp 2 Sovereign cloud opportunity
certified to deliver a US to meet GDPR/data privacy
sovereign cloud service conserns
6
Pexip’s differentiated customer offering is underpinned by unique technology
Smart transcoding Cloud agnostic deployment flexibility
Private Cloud
On-premise SaaS
Self-Hosted
• Proprietary real time media engine developed over 9 years • Proprietary technology allows Pexip’s experience to be delivered on
• Unique interoperability any existing platform or cloud provider (On-premise, GCP, Azure++)
• Unique AI capabilities in the cloud • Unique data privacy and control
• Unique security capability through by-passing the internet
• Unique customization capabilities
Rich end-user experience Flexible IT admin experience
7
Pexip is continuing to gain industry recognition
2018
Challengers Leaders • Moved up from a Visionary position
in 2019 & 2020, to become a Challenger to
the three largest vendors in 2021
Cisco
Zoom
Microsoft
• Gartner highlights three of Pexip’s
Google
LogMeln core strengths – Interoperability
Leadership, Robust Data Sovereignty,
Adobe
Reliable and Well-Supported
Huawei
BlueJeans
Vidyo
StarLeaf
PGi
Arkdadin
Ability to execute
Lifesize
Niche players Visionaries
Completeness of vision
Source: Gartner Magic Quadrant for Meeting Solutions 2018 8
Pexip is continuing to gain industry recognition
2019
Challengers Leaders • Moved up from a Visionary position
in 2019 & 2020, to become a Challenger to
the three largest vendors in 2021
Microsoft Cisco
• Gartner highlights three of Pexip’s
Zoom
core strengths – Interoperability
Google
LogMeln
Leadership, Robust Data Sovereignty,
Reliable and Well-Supported
Adobe
Huawei Pexip
Enghouse Systems BlueJeans
(Vidyo) StarLeaf
TrueConf
Lifesize
Ability to execute
PGi
Avaya
ZTE
Niche players Visionaries
Completeness of vision
Source: Gartner Magic Quadrant for Meeting Solutions 2019 9
Pexip is continuing to gain industry recognition
2020
Challengers Leaders • Moved up from a Visionary position
in 2019 & 2020, to become a Challenger to
Microsoft the three largest vendors in 2021
Cisco
Zoom
• Gartner highlights three of Pexip’s
Google
core strengths – Interoperability
LogMeln Leadership, Robust Data Sovereignty,
Huawei
Reliable and Well-Supported
Adobe BlueJeans by Verizon
Kaltura
Pexip
Quanshi
TrueConf StarLeaf
Ability to execute
Lifesize
Avaya
Niche players Visionaries
Completeness of vision
Source: Gartner Magic Quadrant for Meeting Solutions 2020 10Pexip is continuing to gain industry recognition
2021
Challengers Leaders • Moved up from a Visionary position
in 2019 & 2020, to become a Challenger to
Microsoft the three largest vendors in 2021
Zoom
Cisco
• Gartner highlights three of Pexip’s
core strengths – Interoperability
Leadership, Robust Data Sovereignty,
Google
GoTo
Huawei
Pexip Reliable and Well-Supported
BlueJeans by Verizon
Kaltura
Adobe
Quanshi
StarLeaf
Ability to execute
Avaya
TrueConf
Lifesize
Niche players Visionaries
Completeness of vision
Source: Gartner Magic Quadrant for Meeting Solutions 2021
11Pexip continues to win the trust of new large enterprises and public organizations
Selected by a range of large organizations Large organizations driving growth
Selected customer wins in 2021 Share of ARR by account size in ARR, USD
+37% 100M YoY growth:
22% 20%
73M
25% 22% 32%
24%
56% 47%
51%
Q3 2020 Q3 2021
USD >100,000 USD 30,000-100,000 USDStrong new sales in addition to a net retention of 100%
Development in ARR portfolio last twelve months
USD million
+11% -11% +37%
+37%
8,1 7,8 99,8 • Continue to grow new sales
26,8 Net retention of 100% • ARR net retention is at a normal
72,8 level at 100%, compared to 114% in
2020 benefiting from Covid upsell
and 99% in 2019
• Lowest churn in high-growth
+100k segment of 5% vs 11%
overall
Q3 2020 New Sales Net Upsell Churn Q3 2021
13Starting to see impact of ramp-up of hires on new sales
Average new sales YTD 2021 Average new sales Q3 2021
Ratio to experienced reps Ratio to experienced reps
• Hires from 2020 are
2013-2019 1.0X 1.0X starting to be fully
ramped with regards to
Q1 2020 1.1X 1.4X new sales, in particular
Q1 and Q2 cohorts
Q2 2020 0.7X 1.8X
Q3 2020 0.5X 0.4X • Ramp-up time of ~4-5
quarters about one
Q4 2020 0.5X 1.1X quarter more than
60% of before 2021
Q1 2021 0.3X sales 0.5X
staff • Positioned for further
Q2 2021 0.1X 0.6X
growth as 60% of
Q3 2021 0.0X 0.0X current sellers are hired
in Q3 2020 or later
Note: New Sales from quota-carrying roles, excludes ARR from individuals that have left Pexip during 2021. Includes Sales leadership roles with a player/coach responsibility
14Skedify
Skedify strengthens Pexip’s offering in Video enablement pillar
Video infrastructure
Critical meetings
Critical meetings Video enablement
and interoperability to
with focus
with focus on
on privacy
privacy
Microsoft Teams and of vertical workflows
and security
and security
Google Meet
16Skedify offer the next-generation scheduling technology for hybrid customer
engagements
“ Skedify is the bridge between the
digital customer journey and the
face-to-face conversation with our
Phone Video personal advisors.
“clearly
After implementing Skedify we
saw huge efficiency gains on
both sides, customers and advisors.
“ourSkedify have helped us transform
customer-facing function, giving
us a preeminent edge against our
competitors.
“ We could have never dreamed of it
in the current climate, but Brilart’s
May 2020 revenue was higher than
“
May 2019. That was only possible
On thanks to Skedify.
Branch
location
17The Skedify solution is highly complementary to Pexip
Pre-meeting In-meeting Post-meeting
Future
Lead Performance, opportunity to
Pexip Video +
Qualification & Scheduling Operational & take advantage
Meetings
Enhancement CX insights of Pexip in-
meeting AI
Native integration Analytics on
Built on Pexip
with CRM, availability, meeting
video meetings,
calendars and can occurrence, length
allows branding,
build customer- and type can
document sharing
initiated bookings, provide crucial
and persistent
support video and insights on
rooms
physical options conversion rates
18Solid growth path to long-term value creation
6 1
Massive, high-growth market
Solid growth path to reach
with unique position towards
USD 300m by end-of-2024
lucrative enterprise segment
5 2
Massively scalable business Industry recognized video
model with high sustainability communication platform with
impact unique technology
4 3
Successful track-record of Exceptional R&D team with a
serving high demanding history of industry defining
enterprise and government innovation
organizations
19Positive outlook for video
communication
• Majority of enterprises shifting to hybrid working
• 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
Outlook • Starting to see the impact of sales force ramp-
up, still significant potential
• Nearing the end of the accelerated investment
phase – expect ARR growth substantially above
people growth for 2022
• Plan for negative 25-35% EBITDA margin in
2021/2022, neutral to positive EBITDA in 2023
• Target 2025 EBITDA of +25% with +25%
revenue growth
Expect to reach long-term target of USD 300
million in ARR by end-of-2024
20Upcoming dates
Q3 2021 quarterly
presentation November 11, 2021
Capital Markets Day December 9, 2021
21Q&A
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