The video communications provider, Pexip, today reported an increase in ARR of USD 9.1 million during the quarter, which is 3.8X the corresponding figure in Q2 2019, of USD 2.4 million, and the best Q2 in the company’s history. This resulted in a contract base measured in Annual Recurring Revenue (ARR) of USD 65.8 million, giving a year-on-year growth in ARR of 64%. The company is tracking ahead of its plan to reach USD 300 million in ARR by 2025.
The company experienced a stronger momentum in net new sales in Q2 2020 with approx. 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.
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 positive impact on sales from increased usage amongst existing customers continued into Q2 2020 and was amplified by a larger share of revenues coming from net new business than in Q1 2020.