The video communications provider, Pexip, today announced record 50% year-on-year growth in contracted annual recurring revenue (ARR) after first quarter 2020, further enhancing the recently reported growth of 32% in 2019. Q1 2020 finished with a significant increase in delta annual recurring revenue (DARR) of 9.5MUSD, giving a total contracted annual recurring revenue (ARR) of 56.7 MUSD.
A significant part of the growth comes from increased demand from existing customers. Pexip experienced a Net Retention Rate in Q1 of 113% (based on revenue) for the previous 12 months, up from 99% in Q4 2019.
The Company reports that the strong results and momentum from 2019 are being further spurred by the current Covid-19 situation as more and more companies turn to video communication to enable business continuity. Pexip has seen a growth of 7 x peak traffic on its service in the past month alone. This increase in capacity demand comes from a mix of existing users and new customers. In particular, there has been an increased demand from health care providers and governments globally who have the need for secure video communication. Pexip believes that the current change in working behaviour with more home offices, remote consultations and conferences will continue to drive usage and adoption of video beyond the Covid-19 crisis.