Pexip Q1 2022 Annual Recurring Revenue at USD 106 million – Targets profitability from Q4 2022

(Oslo, Norway, April 7, 2022) In this trading update, Pexip Holding ASA (“Pexip” or “The Company” Oslo Børs Ticker: PEXIP) presents its Annual Recurring Revenue (ARR) for the first quarter (Q1) of 2022. At the end of Q1 2022, Pexip’s ARR is 21% higher year-on-year. In Q1 2022, Pexip’s ARR was reduced by USD 0.8 million, impacted by common seasonality that slowed new sales and by changes in a pricing model with a strategic partner.

  • Pexip’s subscription base measured in ARR reached USD 105.6 million in Q1 2022, up from USD 87.2 million in Q1 2021, representing a year-on-year increase of 21% or USD 18.4 million.
  • Growth from new customers accounts for USD 23 million over the last twelve months, representing 26% growth. Net revenue retention rate, reflecting the percent of retained revenue from existing customers, was 95% year-on-year, including churn of 9.2% year-on-year. The reduction in net revenue retention rate was driven by a decline in net upsell, which was at USD 3.4 million in Q1 2022.
  • A change in pricing model with a strategic partner led to a USD 2.0 million reduction in Q1 ARR. Pexip expects this change to drive a positive effect during the rest of 2022 of more than USD 4 million.
  • Adjusted for the partner pricing model change the underlying new ARR from normal business was USD 1.2 million in Q1 2022. Including this change, the quarterly change in ARR was negative USD 0.8 million in Q1 2022.
  • ARR from Pexip’s Self hosted Software reached USD 59.4 million in Q1 2022, up 15% year-on-year, while ARR from Pexip as-a-Service reached USD 46.2 million, up 30% year-on-year.
  • Continued growth in Video enablement and Critical video meetings, which grew 37% and 106% year-on-year respectively. These two areas increased their ARR by USD 2.3 million in Q1 2022.
  • Pexip will adapt its growth strategy to reduced visibility on quarterly timing of ARR growth, and target being EBITDA profitable in Q4 2022 and for the whole year of 2023.

“Over the last two years, the way we work has been revolutionized. This has accelerated the adoption of video, which has allowed Pexip to grow from USD 47 million in ARR to USD 106 million in the same period. This acceleration has created huge opportunities for future growth. However, lack of visibility into how and when organizations will return to the office and delays in video hardware deliveries have impacted the short-term increase in infrastructure sales, while the use of video for mission critical, high security meetings and customized applications across industries has increased. This is the foundation of the more focused strategy we have been executing on since late 2021, pursuing market leading positions in video infrastructure, critical video meetings and video enablement, as presented on our Capital Markets Day in December 2021.

We see strong customer interest in the business areas we are targeting, and a substantial growth opportunity in a USD 5 billion market in 2024 that will support a significant increase in ARR in the next three years and beyond. However, we are disappointed with our performance in Q1 and we see that our current growth rate is below where it needs to be to reach our existing USD 300 million target by the end of 2024. While we are confident that we will return to ARR growth in Q2 2022 and beyond, we realize we have less visibility on the timing for USD 300 million compared to when the target was set in 2020. This is partly driven by the larger customer size within Critical Video Meetings and Video Enablement which require longer purchasing decisions.

As a consequence, we will adapt our growth plan and targets accordingly and initiate measures to accelerate our return to profitability. We target being EBITDA profitable in Q4 2022 and for the whole year of 2023, and will present an updated growth plan and target later this year. We maintain a very solid balance sheet, and the adapted growth plan with an earlier return to profitability will imply lower investments than previously anticipated,” said Interim CEO and CFO, Øystein Hem.  

Key Contracts Awarded in Q1 included:

Department of Veterans Affairs

Pexip secured an upsell deal with the US Department of Veterans Affairs. Building on a strong existing customer relationship, the upsell in Q1 2022 was related to significant growth in Pexip usage for telehealth calls.

Västra Götaland Regional Council

Pexip secured a new contract with Västra Götaland Regional Council in Sweden for critical meetings, Microsoft Teams interoperability and integration to their healthcare journal system. This important new public customer for Pexip has approximately 55,000 employees with over 550 dedicated videoconferencing endpoints.

Central European Ministry of Justice

Pexip secured a contract with a new Central European Ministry of Justice customer for Pexip’s Self-hosted software. Pexip will solve the need for secure meetings within the organization, as well as replacing the existing video infrastructure and becoming the customer’s main videoconferencing provider.

Leading Multinational Law Firm

Pexip has secured a contract with a leading multinational law firm with offices in more than 40 countries, for Pexip-as-a-Service. Pexip is replacing all the customer’s existing endpoint infrastructure and enabling them to move everything to the cloud.  Pexip will also deliver interoperability with Microsoft Teams, videoconferencing endpoint management and a branded virtual lobby experience. Together, these Pexip services will enable the customer to have a simple unified user joining experience for all video-enabled meetings. This contract is an example of Pexip’s unique technology possibilities.  

Pexip will hold a presentation of the Q1 2022 ARR update today at 08:00 CET. The presentation material is attached. The webcast will be held in English by Øystein Hem (Interim CEO and CFO) at: https://investor.pexip.com/ . Pexip will present the full Q1 2022 interim report on May 12, 2022.

The information included in this announcement is such that the Company is required to disclose in accordance with the EU Market Abuse Regulation (MAR) and is publicly disclosed in accordance with MAR article 17 and section 5-12 of the Norwegian Securities Trading Act. The announcement is made by Øystein Hem.

For questions, please contact:

Investors: Øystein Hem, CFO and Interim CEO, IR@pexip.com, +47 99 23 45 96

Media: Lars-Einar Petterson, Communications Manager Norway, lars.einar.petterson@pexip.com,

+47 93 44 88 27 

Följande bilagor finns för nedladdning:
Pexip Q1 2022 ARR update presentation
Pexip Q1 2022 ARR update announcement

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Ponsse’s new products for responsible forestry

Ponsse launches excellent new products to improve productivity in sustainable harvesting. The new solutions have been developed together with customers, listening to their needs. The PONSSE Scorpion Giant harvester and the PONSSE Mammoth forwarder respond to the highest requirements of modern forestry both in terms of ergonomics and productivity.  

“These new products strengthen our position as one of the world’s leading suppliers of responsible harvesting solutions. The development of both new forest machines started from improved ergonomics, safety and usability, as well as better visibility from the cabin. We believe that we succeeded very well in this, and we are delighted to demonstrate these new products to our customers today here in Surahammar in Sweden,” says Marko Mattila, Sales, Marketing and Service Director at Ponsse.

PONSSE Scorpion Giant – power in various conditions

The PONSSE Scorpion Giant is only a giant in terms of productivity and power. The new harvester adds to the Scorpion product range, which was completely upgraded in 2021. According to customer needs, the Scorpion Giant was developed to have more tractive effort, which helps the harvester to be agile even in challenging conditions, including snow, steep slopes and soft terrain. It is in a league of its own when it comes to crane lifting power, also when handling larger stems.

“Even though the Giant is the strongest harvester in the Scorpion range, the Bear is still our most powerful harvester overall. What makes the Scorpion Giant stand out is its versatility, allowing it to be operated at various sites, as it can be fitted with the PONSSE H6, H7, H7HD Euca or H8 harvester head,” Mattila says.

Unique ergonomics

Cabin ergonomics and usability have been one of the leading themes in Ponsse’s research and development in recent years alongside the development of safety. The PONSSE Giant has a one-piece windscreen that extends to the roof of the cabin, offering even better visibility for the operator and ensuring safe working in all conditions. The cabin workspace is like a practical and quiet office with a view, developed to support the operator’s comfort and wellbeing.

The Scorpion Giant features many solutions familiar from the Scorpion product range that have been developed even further. These include increased tractive force and a more powerful C50+ crane whose fork boom offers excellent visibility of the logging site. The Scorpion Giant also features the unique active levelling and stabilisation systems familiar from other Scorpion models. The Scorpion Giant is available with the highly advanced and modern Opti 5G system and the Opti 8 touchscreen computer.


PONSSE Opti 5G – the most modern information system on the market

PONSSE Opti 5G is the most modern information system on the market. Its smooth and fast operations raise user experiences in information systems to a whole new level. The powerful C50+ crane, combined with the Opti 5G information system, offers a whole new way to control the crane and improve operational efficiency using PONSSE Harvester Active Crane. With Harvester Active Crane, the operator can directly control the movements of the harvester head, instead of just controlling the individual operations of the crane. This allows the operator to focus on wood processing, instead of simply controlling the crane.

Harvester Active Crane, available as an option, requires the Opti 5G control system, which is currently available in the Scorpion product range’s harvesters in certain market areas. The availability of Harvester Active Crane will be expanded to other machine models and market areas.   


PONSSE H8 – the next generation’s harvester head

The new PONSSE H8 harvester head features powerful feed, a strong grip and a sturdy but agile frame. The saw box area is even wider, making the harvester head an excellent choice for trees with a high butt diameter. The harvester head can be fitted in the PONSSE Ergo, Scorpion Giant and Bear, the strongest harvesters in our product range. The automatic features of the Opti control system, developed and built by Ponsse, control the feed speed and saw movement, according to the tree diameter, and ensure fast and precise sawing. With Active Speed, the harvester head’s operating speed can be adjusted based on the tree species and stem diameter. Working with the H8 harvester head equipped with the new feature is productive and smooth, regardless of the stem size. 


PONSSE Mammoth forwarder – an unprecedented load-carrying capacity

The PONSSE Mammoth forwarder, powerful in terms of productivity, expands Ponsse’s forwarder range to the new category of 25-ton load-carrying capacity. Equipped with the stepless Continuously Variable Transmission (CVT) system and the PONSSE K121 loader, the Mammoth’s sturdy frame structures and super-strong hydraulics ensure that large stems and heavy loads can be transported effortlessly, even in the most challenging terrain. 

Ergonomics addressed in every detail in the Mammoth’s development

In the PONSSE Mammoth forwarder, operator ergonomics has been addressed every step of the way. The new forwarder offers the highest productivity when driving distances are long. Less driving is required because more stems can be transported each time.

New features for improved productivity

One of the most prominent new features is the PONSSE Active Seat, developed according to forest machine operators’ requests. The new Active Seat improves usability, as it turns and follows the work environment according to crane movements, increasing the forest machine operator’s productivity. The Active Seat, developed by Ponsse, is only available for PONSSE forest machines.

The PONSSE Mammoth can be equipped with PONSSE Active Cabin, an effective cabin suspension system with a simple structure. It helps forest machine operators keep going, even during longer shifts, by suspending any stress on the cabin. In addition to the Mammoth, the Active Cabin is available for the Buffalo, Elephant and Elephant King forwarders.

The Mammoth can be equipped with a long rear frame, which enables the transport of oversized stems at plantations in South America, for example. The Mammoth features the largest load space in the Ponsse product range: 6.8 or 8.0 m2, depending on each customer’s choice.

The PONSSE Active Crane is a loader control system for forwarders, with which the operator controls grapple movements instead of individual functions, allowing the operator to concentrate effectively on working with the loader. Active Crane is easily controlled using two levers, one of which controls the grapple height from the ground, and the other the direction of movement.


The new PONSSE Active Manual service offers helps and guidance through videos 

PONSSE Active Manual is an instruction and maintenance manual service with videos to support the daily work of forest machine operators. The visual PONSSE Active Manual is an owner’s manual service that runs on mobile devices and supplements the current Owner’s Manual by offering videos alongside the manual. PONSSE Active Manual is available on Apple and Android app stores.

Further information

Marko Mattila, Ponsse Plc, Sales, Marketing and Service Director,

tel. +358 400 596297, marko.mattila@ponsse.com




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