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Pexip Holding ASA - Q3 2022 results
10 Nov 2022 07:00 CET
Issuer
Pexip Holding ASA
Oslo, Norway, November 10, 2022 - Pexip Holding ASA ("Pexip" or "The Company",
Oslo Børs Ticker: PEXIP), today presented its quarterly results for the third
quarter of 2022, showing revenue of NOK 189.2 million and a negative adjusted
EBITDA of NOK 56.2 million excluding one-off restructuring costs of NOK 5.3
million.
The revenue development has been stable, with flat growth year-on-year, however,
realizing significantly lower costs than in Q2'22, EBITDA is improved quarter-on
-quarter. The Company has made solid progress on its cost reduction program.
Based on this, Pexip is setting its 2023 financial targets of NOK 100-150
million in EBITDA with a 40% cash conversion.
"The third quarter, and 2022 in general, has been impacted by a shift in focus
for Pexip, which has driven a need to reduce costs and restructure the
organization. We have communicated a new strategy and a plan to accelerate our
return to profitability, and I am pleased to present the results this has given
already. We feel confident that executing on this renewed focus will allow us to
reach our 2023 financial targets of positive EBITDA of NOK 100-150 million and
cash positive operations." said Trond K. Johannessen, Pexip CEO.
Q3 2022 - Key Figures
In the third quarter, Pexip delivered a stable year-on-year development. Pexip's
subscription base measured in Annual Recurring Revenue (ARR) reached USD 100.7
million in Q3 2022, representing a year-on-year growth of 1% from USD 99.8
million in Q3 2021. The limited growth was largely due a large US Government
customer not renewing the contract as the program lost its funding. Excluding
this customer, the underlying year-on-year growth was 5%.
Key highlights for the quarter include:
· Phase 1 of the cost reduction program is completed with expected annual cost
reductions of NOK 200 million, of which NOK 184 million realized in Q3. The
previously announced phase 2 has been expanded and is in implementation,
supporting the target of cash positive operations for 2023.
· Pexip's subscription base measured in ARR was USD 100.7 million in Q3 2022,
reflecting a 1% year-on-year growth.
· Quarterly delta ARR of USD -5.4 million driven by one main contract loss and
a reduction in legacy areas.
· Video Innovation and Secure Spaces continue to drive good momentum. Video
Innovation is up 18% year-on-year, with ARR growth of USD 3.3 million. ARR
growth in Secure Spaces was reduced due to the termination of a large contract,
resulting in a flat year-on-year growth of 1%. Excluding this, the underlying y
-o-y growth in Secure Spaces was USD 4.4 million.
· Revenue for Q3 was NOK 189.2 million, and EBITDA excluding restructuring
costs was negative NOK 56.2 million. Change in cash and cash equivalents was
negative NOK 38.6 million.
· Pexip won a significant contract with a leading global technology company in
Q3. Pexip will provide embedded software in order to extend the partner's
existing product's functionality. The first year annual revenue expected to be
USD 1.4 million.
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 preparation of the consensus estimates are
published on the Company's IR webpages here:
https://investor.pexip.com/consensus.
Q3 results presentation
The third quarter results for 2022 will be presented by video webcast today,
Thursday, November 10, at 08:00 CET. The presentation will be held in English by
Trond K. Johannessen (CEO), Øystein Dahl Hem (CFO), and Åsmund Fodstad (Chief
Revenue Officer). Please register using this form:
https://www.pexip.com/events/q3-2022-results-presentation-registration.
Questions can be submitted to IR@pexip.com. The presentation will be streamed
via investor.pexip.com.
This information is considered to be inside information persuant 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, Investor Relations, Pexip
Holding ASA, on 10 November 2022 at 07:00 CET.
For further information, please contact:
Christine H. Arnesen, Investor Relations
IR@pexip.com, +47 992 64 319
About Pexip | pexip.com
Pexip is a global technology company, solving customer communication scenarios
with a secure and flexible communications platform helping users standardize
their experience with seamless interoperability to any other meetings
technology. Pexip helps embedding video into critical business functions
connecting people, technology and devices to support workflows across the
enterprise, government and public sector. With a global network of 300 partners
in 75 countries, Pexip has a customer base of over 4,400 companies in 190
countries. Pexip was listed on the Oslo Børs in May 2020.
More information:
Access the news on Oslo Bors NewsWeb site
575265_Pexip_Q3_2022_Quarterly_Presentation.pdf
575265_Pexip_Q3_2022_Quarterly_Report.pdf
Source
Pexip Holding ASA
Provider
Oslo Børs Newspoint
Company Name
PEXIP HOLDING
ISIN
NO0010840507
Symbol
PEXIP
Market
Oslo Børs