Pexip Holding ASA - Q4 2022 results

Oslo, Norway, February 14, 2023 - Pexip Holding ASA ("Pexip" or "The Company", Oslo Børs Ticker: PEXIP), today presented its quarterly results for the fourth quarter of 2022, showing revenue of NOK 260.4 million and an adjusted EBITDA of NOK 21.7 million excluding one-off restructuring costs of NOK 29.2 million.

The cost reduction program continued in Q4, and additional 189 million of annualized reductions in costs was realized in the quarter. The annualized operational cost base in Q4 ended at NOK 967 million, down NOK 372 million from the Q2 2022 level of NOK 1,339 million. This provides confidence in Pexip’s ability to achieve the target for full year 2023 presented in the Q3 2022 presentation of NOK 100 to 150 million in EBITDA and have led to an updated cost base estimate for 2023 of NOK 850 million.

“2022 has been a year of change for Pexip. The transition to a leaner organization is progressing well and we are going into 2023 with a motivated team and with continued focus and drive towards our targets of growth and increasing profitability. Despite the macroeconomic slowdown impacting our customers, we continue to see growth and traction in Secure Spaces and Video Innovation and are confident that these areas will be of great importance in the years to come.” said Trond K. Johannessen, Pexip CEO

Q4 2022 – Key figures

Pexip’s subscription base measured in Annual Recurring Revenue (ARR) amounted to USD 99.6 million in Q4 2022, representing a year-on-year decline of 6% from USD 106.4 million in Q4 2021. The development in year-on-year ARR continue to be affected by the large US Government customer not renewing the contract as the program lost its funding, as well as decline in legacy areas.

Key highlights for the quarter include:

• In Q4, the cost reduction program resulted in additional NOK 189 million of annualized reductions in costs realized. The cost base going into Q1 underpin cash flow target at current revenues, and Pexip have updated the cost base estimated targets for 2023 to NOK 850 million, from previously announced NOK 940 million. Pexip exited Q4 with a team of 329 FTEs, down 40% from mid-Q2.
• Q4 revenue of NOK 260.4 million, down 2.1% year-over-year. Pexip’s subscription base measured in ARR was USD 99.6 million in Q4 2022. Adjusted EBITDA was NOK 21.7 million excl. restructuring costs, up 119% y-o-y.
• Solid momentum within Secure Spaces with recurring revenues growing 8% in Q4 and 60% underlying growth y-o-y.
• Continue to strengthen partnerships in Connected Spaces and estimate stable ARR development going forward.
• Cash flow of NOK -67 million, with a cash position of NOK 419 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.

Q4 results presentation

The fourth quarter results for 2022 will be presented by video webcast today, Tuesday, February 14, at 08:00 CET. 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 [email protected] in advance of the presentation or live during the presentation.

Please join the webcast via the following link: https://www.pexip.com/events/q4-2022-results-presentation

A recorded version of the presentation will also be available after the webcast is concluded.

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, Investor Relations, Pexip Holding ASA, on 14 February 2023 at 07:00 CET.