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Pexip Revenue Doubles as Pandemic Boosts Video Conferencing

OSLO, Aug 12 (Reuters) - Norwegian video conferencing firm Pexip Holding ASA said on Wednesday its revenue nearly doubled in the second quarter and adjusted earnings surged as more companies embraced home-office technologies during the COVID-19 pandemic.

Shares of Pexip, which competes with the likes of Zoom and BlueJeans, jumped 5.7% in early trade to 92.9 crowns.

The company, which listed on the stock market three months ago, said April-June revenue 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.

Pexip was founded in 2019 by a merger of two firms. On its initial public offering (IPO) in May, the company’s shares rose more than 50% on their first day of trading.

Pareto Securities, one of the brokers that worked on the IPO, said the second-quarter revenue was 14.8% ahead of its forecast while costs were 7% lower than expected.

“We reiterate our buy rating and a target price of NOK 105 per share,” Pareto said in a note to clients.

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.

$1 = 9.0470 Norwegian crowns

Reporting by Terje Solsvik; Editing by Rashmi Aich and SusanFenton

Source: Reuters

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