Odd Sverre Østlie has led the Company through a merger and significant growth, headed the highly successful IPO in 2020, and expanded an already great team with lots of new talent,” said Michel Sagen, Chair of the Board of Pexip, and continued, “The rapid growth of Pexip will fundamentally change the Company over the coming years. The Board and Odd Sverre are aligned with regards to Pexip’s strategy but have different views on the approach going forward. Thus, the Board and Odd Sverre have agreed that the timing is right for a new CEO. The Board would like to thank Odd Sverre for the great results and wish him the best of luck in future endeavors
It has been a privilege to lead Pexip over the past years. We have built an exceptional technology platform, earning us the trust of some of the world’s largest enterprise and government organizations. At the same time, we have built an excellent, global team with a culture that is unique in the industry, and I am confident that the team will continue to drive further success. In short, I remain extremely confident in Pexip's future and wish the team the best of luck
The Board is pleased that Øystein has accepted the interim CEO position. He has already demonstrated outstanding performance as CFO. Øystein and the management team have the drive and skills to propel the company forward – both along the outlined strategic trajectory and towards the ARR target of USD 300 million by the end of 2024
Organizations all over the world are preparing for post-pandemic hybrid working, and our salesforce and partners are working closely with customers to get ready for the new normal. Uncertainty around office openings resulted in somewhat delayed sales opportunities and bookings in Q2 2021 as customers postpone their purchase decisions. The underlying momentum in the market remains firm. We see significant demand and a strong sales pipeline for the second half of 2021. Our continued increase capacity within sales will also be a positive driver for growth in the quarters to come, together with a continuous launch of new product features. In Q2, we saw solid year-on-year growth, with especially strong sales to public sector organizations as well as first phase deals with some of the largest companies in the world within key verticals, including business to consumer (B2C) retail and business consultancy providers. These are examples of customer segments seeking high degree of robustness, service quality, security and ease of use, which are at the core of Pexip’s unique offering. All in all, we are progressing well on our growth strategy as communicated at the time of the IPO, including ramp-up of sales and technology staff and our work with strategic partners, and we are on track to reach our ARR target of USD 300 million by 2024
While organizations all over the world are preparing for hybrid working, delayed office openings have temporarily impacted customer purchasing of digital communication solutions between the office and home workers, resulting in delayed opportunities and thus Q2 sales bookings. However, our salesforce and partners are working intensely with customers to get ready for the new normal, and we see a significant pent-up demand and strong sales pipeline for the second half of 2021. Our increased capacity within sales will also be a positive driver for growth in the months to come
In Q2 I am particularly happy with the sales to new customers as well as work done on prospective new customers in the pipeline. We saw especially strong sales to public sector organizations as well as first phase deals with some of the largest companies in the world within key verticals, such as B2C retail- and business consultancy providers. We are progressing well on our growth strategy, including our work with strategic partners, and we are on track to reach our ARR target of USD 300 million by 2024
I am pleased with the performance of the team in Q1, delivering continued strong growth. As a large portion of renewals were signed in the previous quarter, it is good to note our strong ability to attract new customers this quarter. This clearly demonstrates the attractiveness of our solutions for enterprise and public sector customers with high requirements. While most businesses have still not returned to the office in the wake of the Covid-19 pandemic, the new normal of hybrid working is right around the corner. This will require flexible and secure videoconferencing of high quality, which we are particularly well positioned to deliver
I am happy to report a strong Q4 2020 with record high revenue and solid profitability, providing strong momentum into 2021. We are well on track to reach our target of ARR of USD 300 million by the end of 2024 as companies and public entities are preparing for the complex requirements of a post Covid-19 hybrid working environment, and where secure, efficient, and flawless video conferencing systems will play an essential role. This is at the core of Pexip’s offering, and our investments in increased sales capacity and R&D has resulted in a range of important new contracts during the quarter.
I am very excited about our newest launches such as Pexip Private Cloud and the Pexip Room cooperation with Logitech. We are also launching an important partnership for telehealth in collaboration with Epic, and more will come. 2021 will be an active year in terms of product enhancements.
In Q3, we delivered our best third quarter ever, with impressive net new sales, as more organizations are seeing the benefit of a best-in-class meeting experience and the need for a secure and interoperable video platform.
We added several major Fortune 500 and NATO defense organizations to our customer portfolio, reflecting the strength of our value proposition in the large enterprise and public sector segments.