In this trading update, Pexip presents its Annual Recurring Revenue (ARR) for the fourth quarter (Q4) of 2020. In Q4 2020, Pexip increased its ARR with 73% year-on-year to USD 81.9 million.
- Pexip’s subscription base measured in ARR reached USD 81.9 million in Q4 2020, up from USD 47.2 million in Q4 2019, representing a year-on-year increase of 73%.
- Of the 73% year-on-year growth in ARR, 59 percentage points (pp) are from new customers and 14 pp are from existing customers. Net revenue retention rate, reflecting the percent of retained revenue from existing customers, was 114% year-on-year, including churn of -10% year-on-year.
- Pexip generated new ARR (delta ARR) of USD 9.1 million in Q4 2020, compared to USD 4.4 million in Q4 2019, representing an increase in delta ARR of 108% year-on-year.
- USD 1.6 million of the delta ARR in Q4 2020 was the result of a customer base acquisition in July 2020, which is now completed.
- ARR from Pexip’s Infinity software platform reached USD 49.0 million in Q4 2020, up 55% year-on-year, while ARR from Pexip’s cloud service reached USD 32.9 million, up 109% year-on-year.
- The company is on track to reach USD 300 million in ARR by 2024.“I am very pleased with the excellent performance of the team in Q4 and throughout 2020, providing a strong momentum for Pexip going into 2021. We are experiencing a high demand from large enterprise customers and public sector organizations with complex requirements that are preparing for a post Covid-19 working environment, where video conferencing will play a central role in the new normal of hybrid working”, said Pexip CEO, Odd Sverre Østlie.