Pexip Q2 2022 report – Adapting organization and cost to drive sales and accelerate path to profitability
Oslo, Norway, August 11, 2022 - Pexip Holding ASA ("Pexip" or "The Company", Oslo Børs Ticker: PEXIP), today presented its quarterly results for the second quarter of 2022, showing revenue of NOK 195.0 million, a growth of 10 percent year-on-year and negative adjusted EBITDA of NOK 98.9 million excluding one-off restructuring cost of NOK 26.8 million.
Pexip has previously announced an accelerated plan to return to profitable growth, positive EBITDA and cash-flow, and today announced secured and committed cost savings of NOK 196 million on an annualized basis. The company targets additional NOK 100 million of savings during the coming three quarters. The main effect comes from headcount reductions
“We expect to return to positive EBITDA in the fourth quarter this year, and along with the organizational restructuring we implemented in the second quarter, the cost reduction program will help us accelerate the development towards this important milestone. We have plans in place to be cash flow positive out of Q1 2023. Our new organization is well aligned with our core strategy of driving sales and pursuing a market-leading position in the areas of Secure Spaces, Video Innovation and Connected Spaces, where we experience strong customer interest,” said CEO of Pexip Trond Johannessen, and reiterated Pexip’s target of EBITDA profitability for 2023 and a cash-flow neutral run-rate after Q1 2023.
In the second quarter 2022 Pexip’s Pexip’s subscription base measured in Annual Recurring Revenue (ARR) reached USD 106.1 million in Q2 2022, up from USD 92.7 million in Q2 2021, representing a year-on-year increase of 14%. New customers were the key driver for the growth. Compared to the level at the end of the first quarter 2022, ARR was unchanged.
“As we shift focus to high-growth opportunities, we have seen that ARR growth in Q2 continued to reflect the slow development from Q1. Nevertheless, we are encouraged in to see continued healthy growth in Secure Spaced and Video Innovation. Our customer focused product and technology development continues, and as an example we recently launched our ‘Virtual Courts’ product, which represents a proven and significant opportunity for us and a great value proposition for our customers,” said Trond Johannessen.
Q2 2022 – key financial highlights
- ARR USD 106.1 million, reflecting a 14% growth year-on-year and unchanged quarter-on-quarter
- Revenue NOK 195.0 million, a growth of 10 percent year-on year
- EBITDA excluding one-off restructuring cost of negative NOK 98.9 million
- Operating loss (EBIT) NOK 149.9 million including one-off restructuring cost of NOK 26.8 million
- Net profit negative NOK 89 million
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.
Q2 results presentation
The second quarter results for 2022 will be presented by video webcast on Thursday, August 12, at 17:00 CEST. 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/q2-2022-results-presentation-registration
Questions can be submitted to [email protected].
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 the Norwegian Securities Trading Act. This stock exchange announcement was published by Øystein Hem, CFO of Pexip ASA, on the time and date set out above.