The video communications provider, Pexip, today presented its quarterly results for the fourth quarter and full year 2020.
Pexip’s subscription base measured in Annual Recurring Revenue (ARR) reached USD 81.9 million in Q4 2020, up from USD 47.2 million in Q4 2019, representing an increase of 73%. The growth was driven by a range of important customer wins both in the enterprise segment and in the public sector, such as a record deal with the US Defense Health Agency at approximately USD 2 million in ARR. At the same time the percent of retained revenue from existing customers, was 114% year-on-year, including churn of 10% year-on-year.
“I am happy to report a strong Q4 2020 with record high revenue and solid profitability, providing strong momentum into 2021. We are well on track to reach our target of ARR of USD 300 million by the end of 2024 as companies and public entities are preparing for the complex requirements of a post Covid-19 hybrid working environment, and where secure, efficient, and flawless video conferencing systems will play an essential role. This is at the core of Pexip’s offering, and our investments in increased sales capacity and R&D has resulted in a range of important new contracts during the quarter”, said CEO of Pexip Odd Sverre Østlie.