Pexip Hldg Asa

Good morning and welcome to this presentation of Pexip's third quarter results. My name is Trond Johansson and I'm the CEO. Together with me here at Lysaker, I have our CFO, Øystein Hamm, and our Chief Revenue Officer, Osmund Fodstad. Together, we will take you through the highlights of the past quarter and our focus going forward. The standard disclaimers apply as usual. First, a brief overview of Pexip for potential new viewers. Pexip was founded in 2012 and currently we operate in 25 countries across the globe. We are a specialist video conferencing and infrastructure company focusing on interoperability and secure and custom meetings. We do software only, delivered as a software or delivered as a service. Pexip has unique and established partnerships with the leading companies in our industry. You see some of them on this slide. We complement and enhance their solutions and do not generally directly compete with them. Our customers are mainly large organizations in both the private and public sector that have complex needs when it comes to video collaboration. The financial performance is strong and has been improving over the last quarters. Now to the highlights of the past quarter. Our annual recurring revenues grew with $3.2 million during the quarter, and this leaves us with an ARR base of 122.2 million out of Q3. In the quarter, we had particularly strong performance in our secure and custom business area, and the development here is supported by increased public awareness around the need for secure and sovereign IT and communication solutions. In connected spaces, our Connect for Zoom product continues to perform well. We also see that our solutions for self-hosted interoperability in high security private clouds in the US is developing positively. In Q3, we also launched a brand new product in cooperation with Google that enables Google Meet hardware to connect to Teams meetings with excellent quality. This was not possible before. EBITDA came in at 52 million kroner in the quarter, and free cash flow came in at 29 million kroner in the quarter. If we look at our Q3 performance in the context of the last 12 months, we see that the positive trend we have seen over the past quarters continues. Our total ARR continues to grow and is at an all-time high. Year over year, the growth rate is 12%. Our 12-month rolling EBITDA reached 310 million kroner, which is a 74% improvement since Q3 last year. And this corresponds to a 25% EBITDA margin. The free cash flow the last 12 months was 303 million kroner. This is 45% higher than at the same time last year. We take this performance as evidence that we are operating in attractive markets with relevant products and a strong market position. Pexip has two main solution areas. Pexip secure and custom is about privately hosted video meetings that give complete privacy and data control with the desired level of customization. Pexip connected spaces is about video meeting interoperability by enabling any meeting room to connect to any meeting platform. First, a few words about secure and custom. This area grew 30% year over year in Q3 and now constitutes 44% of our total ARR base. Here, Pexip provides a video meeting platform that can be used exclusively or alongside, for example, Teams or Zoom in those situations when you need to close the door and have a secure meeting. Our solution includes security features such as tailored user authentication, clear meeting classification labeling, and complete control over what data is stored and where. Integrated chat is also an option. The secure meeting can easily be booked through the Outlook calendar or started through a chat session exactly the same way as with Teams meetings. I believe that most large organizations will have more than one video meeting solution in the future, and Pexip is very well positioned as the secure meetings alternative. AI functionality is clearly in demand also for organizations that use secure meetings. Pexip works with NVIDIA to bring relevant AI features to our customers as added features in secure meetings. Previously, we have launched live captions, and now in Q3, we introduced translated live captions covering 36 languages. Next up is exporting transcripts to enable video meeting summaries and the like. This will come in our version 3 of the Pexip AI media server. A typical use case for AI-based translated live captions would be court hearings where all participants do not speak the same language. On this slide, you see an example of a satisfied customer that used translated captions in a recent court hearing in the UK. Cleveland Faulkner, director of the UK Military Court Service says, today, the UK Military Court Service used Pexip's secure meetings platform to enable remote participation in the hearing at the Bulford Military Court Center by native German speaking attendees. Through Pexip, powered by NVIDIA, all spoken content was translated in real time into German, allowing the participants to follow every part of the proceedings. I think it's a pretty good testament to the perceived value and, of course, the observed quality of this Pexip functionality. In our other business area, connected spaces, Pexip has the vision of connecting any meeting room to any meeting platform, a vision that now pretty much has become a reality. With Pexip's unique technology, interoperability focus, and industry partnerships, we have a market-leading position in this field. The new solutions for Google hardware, Zoom rooms, and Teams rooms are unique to Pexip and are evidence of the leading position that we have. In Q3, we launched a brand new connected spaces product named Pexip Connect for Google Meet Hardware. With this new product that we have co-developed with Google, all meeting rooms that have Google Meet Hardware can now connect to Teams meetings with excellent quality. This was not possible before. The market interest is strong, and we closed $250,000 in new ARR on this product during the month of October alone. This is really no big surprise to us, as Google has stated that this is the most requested feature for Google Meet hardware by their customers. Let me show you a short demonstration of how the solution works at LUX.

Your Google Meet hardware can now dial into a Teams meeting. I've already dialed in three Teams users from their Teams application on their laptop. Let's connect the Google Meet hardware as well. Notice how we get a Teams-like experience when using Pexiv Connect. At any given time, we get the Teams-like features seen here as exemplified with profile picture, speaking indicator on the ones speaking without sending video. Someone in Teams has clicked raise hand, and at the same time, we maintain most of the screen real estate for those that are sending video. If someone wants to click share from their Teams application, down here we have PowerPoint Live list. Let's go for the top one. Content is being prepared and shared in Teams, which in turn is being projected on the Google Meet hardware as well.

I hope you like it. In my humble opinion, it looks pretty good. Moving over to a slightly different use case within connected spaces where Pexip is truly unique. In the US government space, various private or government clouds are in use for different classification levels up to top secret. Interoperability solutions are required to enable the use of Microsoft Teams from meeting rooms and organizations using these various government clouds. Pexip works closely with Microsoft to deliver these critical solutions. It is worth noting that Pexip is the only technology partner enabling video devices to join Teams meetings in US government clouds. This past quarter, we initiated two different projects within high security government organizations that now will get access to Pexip's Connect products for the first time. We expect these projects to expand significantly in 2026, so stay tuned. Now, I hand it over to Osmund for a sales update.