Norway's Pexip second-quarter revenue doubles as pandemic boosts video conferencing

Pexip Holding ASA

12/08/2020 07:14

OSLO, Aug 12 (Reuters) - Norwegian video conferencing firm
Pexip Holding ASA  PEXIP.OL  said on Wednesday its
second-quarter revenue nearly doubled from last year and
adjusted earnings surged as more companies embraced home-office
technologies due to the COVID-19 pandemic.
    Shares of the company, which competes with the likes of Zoom
 ZM.O  and BlueJeans, have jumped 40% since their Oslo listing
in mid-May.  urn:newsml:reuters.com:*:nL8N2CW2EA
    Revenue for the April-June quarter rose by 98% year-on-year
to 163 million Norwegian crowns ($18 million), while adjusted
earnings before interest, tax, depreciation and amortisation
(EBITDA) increased to 40.4 million crowns from 11.6 million
crowns a year ago.
    "As a result of the COVID-19 situation, we have seen a
significant shift in the way people and organizations perceive
and use video communication tools," Pexip Chairman Michel Sagen
said in a statement.
    "We believe this has set in motion a move to a hybrid
solution where large organizations will enable their employees
to combine a mix of remote and office work, utilizing video
communication solutions in both locations," he said.
    So-called annual recurring revenue has risen by 64% in the
last year to $66 million, and is ahead of schedule to meet a
long-term goal of $300 million by 2025, Pexip said.
    Taking advantage of its own technology, Pexip conducted an
all-virtual roadshow in April and May to market its shares to
investors, making it the first European company to complete an
initial public offering remotely.  urn:newsml:reuters.com:*:nL8N2CM1E5
    Still, the transaction to list the firm gave it a one-off
cost of 97 million crowns, pulling its unadjusted operating
result down to a loss of 17 million crowns from a profit of 0.7
million a year-ago, it said.
    
($1 = 9.0470 Norwegian crowns)

 (Reporting by Terje Solsvik; Editing by Rashmi Aich)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))