Pexip Equity Story
Pexip develops and delivers a purpose-built video communication platform that empowers large organizations to transform their operations with video. Video has become an integral part of many organizations’ operations and workflows and serves as an ideal tool for high-engagement digital interactions and collaboration. This is expected to drive market growth in the years to come.
Pexip has developed and sold a unique software platform since its foundation in 2011. Due to its unique core architecture developed by a high-quality and focused software development team, Pexip provides a flexible and interoperable platform with best-in-class security and privacy capabilities. Pexip’s unique technology is why 15% of the Fortune 500 and many of the largest government organizations around the world are using Pexip, and why Microsoft, Google and other technology companies are working with Pexip to augment and enhance their own video platforms.
As a business, Pexip is built on a recurring subscription revenue model and passed the milestone of USD 100 million in annual recurring revenue (ARR) in 2021. Pexip has high gross margins (90% in 2021) and a cost base mainly driven by software development and sales and marketing costs. Following a period of accelerated growth and investments during which ARR grew from USD 47 million dollars in ARR in 2019 to USD 106 million in 2021, the Company is now focusing on reaching profitability and being EBITDA positive by Q4 2022.