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. […]