News Dec 10, 2020 1 min read

Pexip accelerates long-term annual recurring revenue Target - delivers ARR growth of 70%

Gillian K. Dalslaaen

Dec 10, 2020 1 min read

Gillian K. Dalslaaen

Oslo, Norway, 10 November 2020 - The video communications provider, Pexip, today presented its quarterly results for the third quarter of 2020:

Pexip’s subscription base, measured in Annual Recurring Revenue (ARR), reached USD 72.8 million in Q3 2020, up from USD 42.8 million in Q3 2019, representing an increase of 70%
The Company accelerates its long-term target of USD 300 million in ARR from 2025 to 2024 due to strong performance in 2020 and a solid outlook. This is one year earlier than its previous target
Revenue of NOK 136.3 million in Q3 2020, up 68% from Q3 2019. Cloud Service revenue is up 133% year-on-year to NOK 60 million
Gross margin of 92% of revenue, with Cost of Sales of NOK 11.0 million
EBITDA of NOK -24 million driven by investments in Sales, Marketing, and R&D and is in line with the acceleration plan

“In Q3, we delivered our best third quarter ever, with impressive net new sales, as more organizations are seeing the benefit of a best-in-class meeting experience and the need for a secure and interoperable video platform,” said Odd Sverre Østlie, CEO of Pexip. “We had several key customer wins in Q3, such as NASA and US Northern Command in the USA, Deutsche Bahn and Deutsche Börse in EMEA, and seven new Fortune 500 customers. We are proud to serve some of the most advanced and demanding organizations globally, reflecting the strength of our value proposition in the large enterprise and public sector segments.”  

For more information:

View the recording of the Q3 earnings call

Read the Q3 Report