Video Communications Company Announces Another Record Quarter

Delivers 64% year-on-year Growth in Annual Recurring Revenue

The video communications provider, Pexip, today presented its Q2 earnings,
reporting an increase in Annual Recurring Revenue (ARR) of USD 9.1 million
during the quarter, which is 3.8X the corresponding figure in Q2 2019 and the
best Q2 in the company's history. This resulted in a contract base measured in
ARR of USD 65.8 million, giving a year-on-year growth in ARR of 64%. As a
consequence of strong sales, Pexip delivered revenues of NOK 163 million in Q2
2020, up 98% from Q2 2019. Adjusted EBITDA was NOK 40.4 million (25% of
revenue), up from NOK 11.6 million (14% of revenue) in Q2 2019. The company is
tracking ahead of its plan to reach USD 300 million in ARR by 2025.

In Q1 2020, Pexip reported a significant increase in sales to existing customers
as companies expanded their use of video communication in response to Covid-19.
This increased usage amongst existing customers continued into Q2 2020 but was
amplified by a larger share of revenues coming from net new business than in Q1
2020, with approximately 3/4 of the year-on-year growth originating from net new
customers. The remaining 1/4 originated from increased sales to existing
customers, giving a Net Retention Rate in Q2 of 118% (based on ARR) for the
previous 12 months, up from 113% in the previous quarter.

In May the company listed on the Oslo Stock Exchange raising net proceeds of NOK
1.1 billion in addition to facilitating an equally sized secondary transaction.
The company succeeded in significantly increasing its investor base, both in the
number of institutional and retail investors as well as in their geographical
distribution. With the IPO, Pexip secured a strong cash balance for further
growth and development. The expansion of the team has already begun and at the
end of Q2 Pexip had 250 employees, up 59% year-on-year.

"In Q2 we saw a strong increase in net new sales. We also continued to increase
our Net Retention Rate, demonstrating that we are successfully helping our
existing customers make the most of their investments, ensuring customer
satisfaction. We believe that our unique user experience and range of deployment
options, combined with our focus on stringent data protection, position us well
for continued success," said Odd Sverre Østlie, CEO of Pexip.

"As a result of the Covid-19 situation, we have seen a significant shift in the
way people and organizations perceive and use video communication tools. We
believe that this has set in motion a move to a hybrid solution where large
organizations will enable their employees to combine a mix of remote and office
work, utilizing video communication solutions in both locations. Pexip is
ideally positioned to meet the needs of organizations facing this new
situation," said Michel Sagen, Chairman of the Board of Pexip.

Q2 2020 Financial Highlights in Summary:

  ·
Subscription base measured in Annual Recurring Revenue of USD 65.8 million,
giving a year-on-year growth in ARR of 64%

  · Quarterly revenue of NOK 163 million, up 98% year-on-year
  · Revenue Net Retention Rate of 118% (based on ARR) for the previous 12
months, up from 113% in Q1 2020

Øystein Hem, CFO, +47 992 34 596

Gillian Dalslaaen, VP Marketing, +47 40461025

Pexip simplifies complex video conferencing to empower teams to meet, regardless
of location or technology. Our scalable, cloud-native platform enables high
-quality video meetings, interoperability with Microsoft and Google solutions,
and video system device registration. Customers can deploy Pexip on their own
privately hosted servers, in their own cloud subscription of choice (Azure,
Google Cloud or AWS), as a hybrid, or as a service. With a diverse set of APIs,
Pexip can be customized to fit customers' unique needs. The solution is sold
through 300 channel partners in 75 countries and used in more than 190
countries.