Video communications provider Pexip has reported a 30 percent increase in annual recurring revenue (ARR) in the fourth quarter, although it made a big EBITDA loss for the full year.
ARR in the last quarter increased to $106.4 million, driven by strong software sales. The company is listed on the Oslo, Norway exchange and reported that actual revenues in the fourth quarter jumped 16 percent to NOK 266 million ($30 million). While EBITDA was positive at NOK 10 million, it was down from NOK 49.5 million in Q4 2020.
“I am satisfied with the profitability development of the company, with an EBITDA margin of 4%, which is ahead of schedule in our investment plan,” said Pexip interim CEO and CFO Øystein Dahl Hem. We also had a reduction in year-on-year churn, which is now back below 10%.”
But, he added:
“We experienced growth across all our core business pillars, however, the video infrastructure area was negatively impacted by the limited use of offices and delays in roll-out of new video rooms. This is due to renewed COVID-19 restrictions and delays in our customers’ video hardware deliveries due to chip shortages.”
For the full year 2021, Pexip grew revenue by 18.7 percent to NOK 805.5 million, from NOK 678.5 million in 2020.
Reported EBITDA was negative at NOK 124.3 million, compared to a NOK 55.6 million profit in 2020, reflecting a negative 15% margin.
Through 2021, the firm has focused on expanding sales and R&D capacity, and finished 2021 with 537 employees, up 49 percent from the end of 2020.
“We feel confident that capitalising on the growth investments made in 2020 and 2021 will enable us to deliver on our ambitions to return to positive EBITDA during 2023, and reach $300 million in ARR by the end of 2024,” said Dahl Hem.
Pexip’s technology is sold through 300 channel partners in 75 countries and used in more than 190 countries. In June 2020, Nuvias UC signed an EMEA-wide distribution agreement with Pexip.
