# Pexip \[NO\] – Strong SaaS growth on the horizon
**URL:** https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685
**Category:** Osakkeet
**Tags:** norja, ulkomaiset-osakkeet
**Created:** [February 11, 2021, 7:36pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685 "2021-02-11T19:36:19Z")
**Posts on this page:** 20
**Page:** 1
### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 11, 2021, 7:36pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/1 "2021-02-11T19:36:19Z")
Greetings. I was inspired to start a thread on Pexip Holding after reading the analysis of the company linked by @AktieEntreprenören on Twitter. The company listed on the Oslo Stock Exchange in May 2020, thus kicking off a new phase in its growth strategy. The company also published a strong Q4 2020 report today. I think the figures of this growth company might interest other forum members as well. If you don’t have time to go through the whole post, I have listed below a short summary of the main points of the case, the risks, and links to various sources.
**MAIN POINTS**
- A SaaS company providing video conferencing solutions, 97% of its revenue (Q4 2020 82 MUSD) is recurring SaaS revenue (ARR).
- SaaS revenue has grown at an average annual rate of 70% (CAGR) over the 2013–2020 period.
- The company has a strong track record of profitable growth (EBITDA around the 25% level), which has been funded mainly by its own cash flow.
- Pexip’s services are valued, and therefore the company is very good at retaining its customers (Churn ~ 8% and NRR ~100% historically).
- The company has just launched its strategy aiming for strong international growth and aims to use the funds obtained from the share issue to grow SaaS revenue to 300 MUSD by 2024. This would mean approx. 3.5x revenue compared to 2020. In the Q3 2020 annual review presentation, this target was brought forward from 2025 → 2024.
- The company is priced at a clear discount compared to its Nordic peer group as measured by the EV/S multiple (13.5 calculated on 2020 revenue).
- If the company’s growth strategy targets are met by 2025 (SaaS revenue 300 MUSD, \>25% EBITDA), the stock has significant upside.
**KEY QUESTIONS / RISKS**
- Can Pexip challenge the three tech giants in the video conferencing solutions market (Microsoft, Google, Cisco)?
- Has the company’s recent strong growth been just a temporary spurt caused by Corona, or is it a structural trend?
- How will the company’s ambitious 2025 growth strategy succeed?
- Will new technology enter the market that challenges the company’s strong position?
**LINKS**
Prospectus:
> **[Pexip%20-%20Prospectus%20(4%20May%202020).pdf](https://www.pexip.com/hubfs/Pexip%20-%20Prospectus%20(4%20May%202020).pdf)**
>
> 10.99 MB
Q3 2020 interim report presentation:
> **[Pexip%20Q3%202020%20quarterly%20presentation.pdf](https://www.pexip.com/hubfs/Pexip%20Q3%202020%20quarterly%20presentation.pdf)**
>
> 2.73 MB
Q4 2020 interim report presentation:
> **[Pexip%20Quarterly%20Presentation%20Q4%202020%20(1).pdf](https://www.pexip.com/hubfs/Pexip%20Quarterly%20Presentation%20Q4%202020%20(1).pdf)**
>
> 2.01 MB
Company basic information:
> **[Investor - Equity Story](https://investor.pexip.com/why-invest)**
>
> Read more about where Pexip has come from and our future growth aspirations.
@AktieEntreprenören analysis from February 2021:
> **[Pexip-Analys-Feb21.pdf](https://drive.google.com/file/d/1g-KW4GOzmKZzY1Su-zSmbA-2CA1TP2LN/view)**
>
> Google Drive file.
**------------------------------------------------------------------------------------------------------------------------------------**
**GENERAL INFORMATION**
Pexip is a global technology company that provides video conferencing solutions and digital infrastructure. The company offers flexible deployment models ranging from a cloud-based platform offered as a service to a self-hosted solution either on-premises or in any cloud environment. The solutions are delivered as a recurring subscription-based model (SaaS), which makes revenue streams stable and therefore also highly predictable. The company stands out from other providers by offering users the ability to participate in the same meeting using systems and hardware that are otherwise incompatible with each other. Pexip recently received the highest NPS score in a comparison of the 17 largest video conferencing solution providers, which gives a positive signal about the quality of services and customer retention.
**The company’s services in brief:**
**Pexip Meetings** – A video conferencing platform with high functionality (artificial intelligence and unlimited scalability)
**Pexip Room** – Video conferencing equipment for meeting rooms. The company has just announced a major [partnership agreement](https://www.pexip.com/news/pexip-and-logitech-offer-secure-simple-meeting-room-experience) with Logitech to improve video conference room capabilities.
**Infrastructure for video conferences** – Infrastructure that is largely customizable to the company’s current and future video meeting systems. The ability to connect video conferencing equipment that is otherwise incompatible with each other.
**Pexip for Microsoft and Google Meets** – Enables joining Google Meets, Teams, and Skype meetings using devices from different providers.
Pexip is thus a certified partner of Google and Microsoft, enabling interoperability between different technologies. The company is one of three in the world to offer interoperability with Microsoft Teams, and the only one in the world to offer it with Google Meet.
The company has a truly impressive customer list: it has 20% of Global Fortune 50 companies and 15% of Fortune 500 companies as customers. Most of the company’s customers are large enterprises or companies with high security requirements regarding video conferencing solutions. In my opinion, this shows that the company’s solutions are of high quality, the company has strong pricing power, and a good starting point for strong international growth.
Pexip sells its solutions through a global reseller network, including 300 partners in 75 countries. The company has over 3,400 customer companies headquartered in 73 countries and users in 190 countries.The current Pexip was formed in the 2019 merger of Pexip (founded in 2012), which specialized in video infrastructure, and Videxio (founded in 2011), a provider of cloud video services. The founders of both companies are veterans in their respective fields. Below is a brief summary of the company’s history.
**MARKET AND COMPETITORS**
-Wainhouse Research estimates that the company’s core market will grow at an average annual rate (CAGR) of 20% to USD 19 billion between 2018 and 2023 (an updated figure could probably be found for this estimate).
-In the future, the company has interesting opportunities in the B2C market, e.g., as video meetings become more common in healthcare. This market is assumed to grow at an annual rate (CAGR) of 23% to USD 267 billion by 2026. Indeed, the company just shared in its Q4 2020 presentation about its new partner, Epic, which has 250 million patients in its electronic health record system. I feel that there is enormous potential in this partnership.
-My assessment is that the company will not run out of a potential market (TAM) anytime soon. Any potential slowdown in growth will be due to the company’s own poor execution or a competitor’s disruptive technology.
-Main competitors: Cisco, Zoom, BlueJeans, Microsoft, Google. Page 45 of the offering memorandum contains a concise summary of the main competitors and their products.
**COMPETITIVE ADVANTAGES (WHY DO CUSTOMERS CHOOSE PEXIP?)**
- **Better security features than competitors.** In its Q3 2020 presentation, the company just announced that it has secured NASA and USNORTHCOM (United States Northern Command) as customers. These are organizations that certainly prioritize security when choosing video conferencing solutions.
- **Best interoperability between solutions from different vendors**. Pexip summarizes well in its [blog post](https://www.pexip.com/blog1.0/meeting-agnostic-pexip-blog) why the interoperability of different solutions is of primary importance – meetings must be as easy as possible. _”..What John sees is a screen, a camera, and some kind input device like a remote control or a touch panel. He doesn’t care about the technology, the provider, or what kind of meeting it is. He cares about closing that deal, helping that customer, or hiring that new employee.”_
- **Flexible deployment options** , which allow customers to use Pexip as a service or take it as a self-hosted solution either on-premises or in any cloud environment, such as Microsoft Azure, Google Cloud, or Amazon Web Services. The product is also highly adaptable to customer needs. The company has an open API that allows customers to develop functionalities around the system just the way they want.
- **High customer retention.** Customers who choose Pexip also remain customers for a long time (this is perhaps the end result of the first three points).
**FINANCIAL INFORMATION AND TARGETS**
The company has set ambitious targets to be achieved by 2025.
-ARR revenue of USD 300 million by 2024. In the Q3 2020 report, the target was brought forward by a year compared to the original plan. In my opinion, this sends a really strong signal about the company’s current performance capacity.
-Long-term profitability: EBITDA \> 25% with over 25% revenue growth
-Market leader position within 3–4 years (this refers specifically to the large enterprise customer segment)
- SaaS revenue has grown by an average of 70% per year (2013–2020); currently, 97% of revenue is recurring billing
- USA and APAC account for ~90% of revenue, with strong growth across all continents
- The company’s gross margin is very high (~95%) and gives an indication of its scalability potential
- Pexip has succeeded in acquiring 7 + 10 new Fortune 500 companies as customers over the last two quarters (Q3 and Q4 2020)
- The company’s sales to large enterprise customers grew 145% y-o-y in 2020. In my opinion, this is one of the most important metrics to monitor how the company is able to challenge the three tech giants in this market.
**MANAGEMENT / INSIDER OWNERSHIP** \* Management, board of directors, and other insiders own approx. 22% of the company’s shares
- Insiders made significant purchases most recently in the autumn when the share was trading around 60 NOK
**VALUATION / RETURN EXPECTATION**
- In the four-quadrant chart showing P/S and revenue growth (LTM Q3 2020), you can see that Pexip is clearly undervalued compared to its Nordic peers. After the Q4 report, the P/S for 2020 is 13.5, so the company’s position should actually be moved down another notch. It’s worth keeping in mind here the tailwind the pandemic gave the company during 2020. It will be interesting to see if the company’s revenue growth will “normalize” from this. (Image from @AktieEntreprenören’s analysis)
- Enclosed is a screenshot from @AktieEntreprenören’s analysis, which gives a good indication of the company’s return potential if the strategy hits the mark or if targets are even exceeded. The return expectations have been calculated for an 83 NOK share price, so the recent rise in the share price has already eaten up a (small) part of it. The base case assumes that the valuation (P/S) would remain the same as now.
- I also made my own rough calculation to illustrate the possible price (NOK) of the share in different scenarios. If growth starts to fade, multiples will certainly melt down to much lower levels very quickly, but if the company succeeds, the upside is significant.
- In my opinion, the risk/reward ratio in this company is excellent. My opinion is supported by the company’s strong track record of profitable growth, impressive customer base, high customer satisfaction (and thereby retention), and an interesting market position. However, we will only get final confirmation of the progress of the company’s story after the corona episode is over, when it becomes clear whether the current huge demand for video conferencing solutions is temporary or the beginning of a permanent, structural change (the so-called hybrid working model).
**SUMMARY**
I bought company shares myself before the earnings report (approx. 5% of the portfolio) and will certainly continue buying if the company’s operational performance continues to be just as good. My opinions on the company’s products, future prospects, or market position should be read with a high degree of skepticism, as I do not know the technology/industry in detail. The views are mainly summaries of the company’s reports and already finished analyses. However, I feel that the demand for solutions related to remote work will remain strong even after the corona period, and Pexip is in an interesting position to meet this growing demand and increasingly high functionality requirements. Hopefully, this summary is useful and sparks interest in researching the company at an even more detailed level.
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### Author:  [@evolution](https://forum.inderes.com/u/evolution)
#### Post date: [February 11, 2021, 11:09pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/2 "2021-02-11T23:09:26Z")
High-quality initial post! I did some number-crunching on the company regarding ARR growth. I went down to the quarterly level here to try and separate the growth surge brought on by the pandemic from “normal growth.” The company grew much more moderately during 2019, and Q1 2020 exploded, presumably boosted by the pandemic. After this, the ARR growth from one quarter to the next has slowed to “only” just over 10%.
One could assume that the pandemic year led to companies’ video conferencing investments, which also explains the high growth rate even in late 2020. So, the normal pace could be assumed to be under 10%. Additionally, it is inherently more difficult for a larger company to grow at equally high percentages. Achieving the 300 MUSD ARR target by 2024 would require a quarterly growth rate of 8.5% if we take the end of 2020’s 81.9 MUSD as the starting point. So, a slowdown from the current pace may occur, but a decline to 2019 levels would lead to failure in reaching said target.
Below is my Excel work on quarterly ARR growth based on Pexip’s materials (note: yellow growth figures are estimates as I could not find Q1-Q3 2018 data at the quarterly level). yoy=year on year, qoq=quarter on quarter
At the annual level, growth has historically materialized, and with a steady growth rate for the 2024 ARR target, it looks like this. Growth significantly slowed until 2018, after which acceleration actually began already in 2019. From this perspective, the 300 MUSD target in 2024 would seem easier, as over 38% growth could be expected for 2021 with high probability.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 12, 2021, 7:30am UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/3 "2021-02-12T07:30:26Z")
Interesting thoughts on the growth rate and what achieving the goals would concretely require on a yearly/quarterly basis. Indeed, a good comment on the acceleration of growth already in the pre-corona year 2019, which supports the assumption that the growth boost is not only due to corona. 2021 is indeed a very important year for the company’s future; they still have a lot to prove regarding the sustainability of growth. The starting level is indeed very low, and achieving the same percentage growth requires significantly more investment in the sales organization than before.
A few factors, in my opinion, support maintaining a higher growth rate compared to 2019’s growth:
- In 2015-2019, the company grew solely on its own cash flow and wanted to maintain strong profitability (EBITDA 20-25%) alongside growth. Now, the company has openly communicated that it is putting all its efforts into growth and allowing the operating margin (EBITDA) to turn negative (-25-35%) for the next two years.
- The company has a strong cash position after the offering, and they stated that they intend to use the cash for growth investments and product development. This supports the continuation of strong growth after 2020. Recruitment has started very strongly, and the number of employees has practically doubled during the year. This is a positive thing, but a large number of new hires in a short time also brings significant risks. The target was, if I recall correctly, 600 employees during this strategy period.
- Pexip’s announced partnership agreements with Logitech and Epic also support sales growth, as the company’s solutions can be sold on a significantly broader front. The Logitech partnership increases growth potential, especially in the sales of the Pexip Room service, as solutions are sold in so-called packages. (Logitech supplies the hardware, Pexip the software). The Epic partnership may not materialize into sales immediately, but it opens the door to a completely different scale of the Telehealth market and is very positive in the long run.
- Lastly, I would add the transformation of organizational working methods towards a so-called hybrid model. Companies will simply invest more in remote work and conferencing equipment, as well as in building various technical bridges between tools, to enable this model.
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### Author:  [@DayTraderXL](https://forum.inderes.com/u/DayTraderXL)
#### Post date: [February 12, 2021, 10:18am UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/4 "2021-02-12T10:18:52Z")
What makes Pexip different from other software-based solutions? Is it that you can also join a virtual meeting via Teams or Meets? Or that Logitech has been able to do something special with Pexip so that their hardware works better with different network connections, maintaining high-quality video?
- Generally, the problem with all of these is that if a large group participates in a meeting via video connection from different physical locations, the bandwidth often isn’t enough - forcing most people to use only audio.
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### Author:  [@Pancake](https://forum.inderes.com/u/Pancake)
#### Post date: [February 12, 2021, 2:30pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/5 "2021-02-12T14:30:39Z")
2020:
Revenue 80M USD
EBITDA 12M USD
Market Cap 1.3B USD
2025 target:
Revenue 300M USD
EBITDA (25%) 75M USD
It’s hard to see clear undervaluation, but of course, comparables could be even more expensive.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 12, 2021, 2:40pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/7 "2021-02-12T14:40:38Z")
Regarding the problem of bandwidth running out, I don’t think Pexip can differentiate itself from its competitors. All operators likely have the same problem. If image quality or other functionalities deteriorate because of it, built-in AI or video scalability probably won’t help 😃
However, Pexip’s solutions differ from its competitors in quality and functionality based on what I’ve read. Here are a couple of points:
- Solutions related to product compatibility are, in my opinion, the company’s biggest competitive advantage. There are many different use cases.
- Example 1 (compatibility with a customer): If a company uses Microsoft Teams, you can attach a Pexip integration layer (I couldn’t think of a better word) to it, which enables a virtual meeting with a customer who has, for example, Cisco equipment in their meeting rooms.
- Example 2 (combining internal infrastructure): If a company uses Google Meets but has Cisco equipment in their own meeting rooms – Pexip enables the company to use Meets with their conference equipment.
- According to Wainhouse research, over 60% of companies use more than three video communication solutions. If this figure is even close to the truth, there is likely a great need for “technical bridges” between systems and hardware.
- Higher level of security. I cannot comment on this functionally or technically any further, but in my opinion, reference customers (e.g., NASA) speak for themselves here.
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### Author:  [@DayTraderXL](https://forum.inderes.com/u/DayTraderXL)
#### Post date: [February 12, 2021, 3:11pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/8 "2021-02-12T15:11:13Z")
I myself have used cloud-based software directly for these arrangements, in which case you only need a small Windows machine and a display/screen in the meeting room.
- What is the significance of Cisco devices here - do they replace the Windows machine - what is the benefit, are they cheaper? A Windows machine can be used for everything else in a meeting room. There are really small Windows-based setups like that.
- If you use Teams and your neighbor organizes with Meets, you get a link in your email in the meeting invitation, through which you can join via your browser.
- The security level certainly matters, but then the whole system is probably on its own server anyway.
I’m just trying to find out what the key here is - I mean, there are an annoying number of different software applications in large companies, as they have been acquired by different units and at different times. That’s clear.
Zoom has taken over these markets in the short term, Pexip probably has its chances, but the Norwegians must have some kind of distinct feature to conquer the world.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 13, 2021, 1:04pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/9 "2021-02-13T13:04:55Z")
> - what is the significance of those Cisco devices here - do they replace Windows - what is the benefit, are they cheaper? You can use Windows in the meeting room for everything else. There are already very small Windows-based setups like that.
Cisco Webex was just an example of random conference equipment. My assessment is that Pexip’s product stands out precisely in large organizations where there is a large collection of different equipment. Many companies want a meeting room solution that is fast, easy to use, and that everyone can use without IT support. In practice, you come into a meeting room, there’s a touch screen on the table, you can send meeting invitations from different providers to that device, and join meetings with one touch.
> - if you use Teams yourself and a neighbor organizes with Meets, you get a link in your email in the meeting invitation, through which you can join via the browser.
It’s true that an organization using Teams gets a Meets link in the invitation, but it cannot be opened directly without custom configurations on a conference device that is not Meets-based. Pexip customers, on the other hand, can connect to meetings without additional software or extensions via Pexip’s WebRTC client. For example, at my workplace, we use approximately the setup below + a large screen in many rooms – Teams links are not opened via that touch screen. In meeting rooms, someone always has to open the Teams link from their laptop and connect their computer to the larger screen. In this case, audio is often adjusted via a separate additional device as well. With Pexip’s software, the same device could directly join a Teams meeting.
Below are some reasons from reference customers why they chose Pexip. Also below is a link to their fairly comprehensive case study library. There, they dive deeper into the details; I brought some highlights here.
“We needed a secure solution where participants could join meetings without the need to download a plug-in and it was essential that we maintained total control over sensitive patient information and confidential communications. The solution was Pexip.” **Helsinki University Hospital** - The largest university hospital in Finland, and one of the largest hospitals in Europe.
“We have a huge on-premise deployment of Skype for Business and Cisco video conferencing systems. We chose Pexip because we wanted a product that could scale and move with us as we start our transition from on-premise to hybrid and then ultimately to having our entire deployment in the cloud.” **Accenture** - A multinational professional services company that provides services in strategy, consulting, digital, technology and operations
We then decided to try out Skype for Business, and in the process of trying out various other vendors over a year, realised we needed a platform that enabled Skype users to connect with those on other platforms as well — this became a key factor in our choice of vendor. That’s when we first came across Pexip. We tried it out for a month and our experience with the brand was wonderful. **Amnesty International** - A non-governmental organization focused on human rights.
> **[The video technology hub | Pexip](https://www.pexip.com/resources)**
> I’m just trying to find out what the key point is here.
This is indeed a critical factor for Pexip’s long-term growth story. I can’t answer this yet, but I can take the question a bit further 😃
1. Does Pexip’s software/architecture bring enough ease to larger companies that they choose their solution instead of their own meeting room-specific setups, or is Pexip’s product just a “nice to have” luxury item that companies willing to invest will buy?
2. If the answer is that Pexip’s products are a luxury, a follow-up question immediately comes to mind: Is there a large enough market if they were to only profile themselves as a provider for customers who particularly emphasize security?
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### Author:  [@Jeremy](https://forum.inderes.com/u/Jeremy)
#### Post date: [February 13, 2021, 8:50pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/10 "2021-02-13T20:50:35Z")
The company definitely has some impressive references. I added a small batch of this to my portfolio this week, and now I feel a bit more confident after checking through those customer references. =)
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### Author:  [@Dr\_Bull](https://forum.inderes.com/u/Dr_Bull)
#### Post date: [February 13, 2021, 10:12pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/11 "2021-02-13T22:12:36Z")
An interesting company, to be sure. Competition with the big players is certainly tough. The acquired customer accounts, in my opinion, speak for the product’s functionality, at least for now. The COVID era is of course exceptional, but it nicely caught my eye that Q3 2019 \< Q3 2020, particularly the number of large customer accounts, has grown strongly.
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### Author:  [@naata](https://forum.inderes.com/u/naata)
#### Post date: [February 14, 2021, 7:49pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/12 "2021-02-14T19:49:45Z")
Of course, it’s very difficult to stand out from Zoom, Teams, etc. in this business, but even strategic differentiation and focus on certain segments might be enough.
What primarily and hugely interests me in this case is this Telehealth thing for these reasons:
From the IPO prospectus:
_ **Pexip intends to expand in the following** high impact segments: A) **Selected B2C vertical markets, e.g. health care and finance**. Pexip expects that enterprises/organizations increasingly want to include video into their B2C workflows – with some level of tailoring, branding, and other integrations to make it part of their overall customer experience. **Pexip has already been embraced by several leading health care providers** such as U.S. Department of Veterans Affairs, where Pexip’s video meeting platform is underpinning digitalization of their doctor-patient workflows. Similarly, several financial companies have_
_leveraged Pexip in their customer work flow_
Fortune Business, by the way, writes this about Telehealth:
_The global telehealth market size was valued at USD 61.40 billion in 2019 and is projected to reach USD 559.52 billion by 2027, exhibiting a CAGR of 25.2%_
These are probably the big US army deals won during Q4. Last week, Talouselämä (Finnish business magazine) also mentioned that during the Corona era, remote visits in Finland increased by a factor of 40. Doctors on the forum, what do you think? @El\_Nila was apparently in the field?
The company’s figures are, by the way, terrifyingly good. Half of the staff are sales people, so a pretty decent cash cow could be created immediately if they wanted to. They probably shouldn’t want to, as the development of remote meetings has only just properly begun!
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### Author:  [@JNivala](https://forum.inderes.com/u/JNivala)
#### Post date: [February 14, 2021, 8:04pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/13 "2021-02-14T20:04:27Z")
These remote appointments have increased primarily in the private sector (Terveystalo, Pihlajalinna, Mehiläinen, etc.). Of course, these already account for a significant portion of public sector services in certain areas. So yes, they have increased quite significantly in Finland, though I can’t give exact figures right now. In the public sector (if the aforementioned companies are not responsible for service provision), there are hardly any remote appointments, unless phone consultations are counted.
> **[Etävastaanottojen kysyntä kasvoi rajusti](https://www.laakarilehti.fi/ajassa/ajankohtaista/etavastaanottojen-kysynta-kasvoi-rajusti/)**
>
> Yksityiset terveysasemat tekevät koronavirustestejä lisääntyvissä määrin ammattilaisille, mutta myös yksityishenkilöille.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 14, 2021, 8:56pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/14 "2021-02-14T20:56:48Z")
The Epic announcement was likely the main reason for the strong surge on Friday. The ARR growth had already been announced in an earlier press release in January. I also did some digging into the telehealth market and the Epic deal:
- Pexip estimates that 30% of doctor appointments will be remote by 2022.
- “At Pexip we have worked with healthcare organizations and caregivers since 2013 to help extend their reach by providing secure, easy-to-join video visits for patients from any device or location. Epic is currently being used by more than 250 million patients worldwide and this integration makes it easier for patients and healthcare providers to conduct video visits that fit seamlessly into their daily workflow,” → New information for me that Pexip has been working with hospitals for almost 10 years now.
- So, with Pexip Health for Epic, patients and providers can have a remote meeting directly from MyChart (which is used by over 100 million patients). As I understand it, other software doesn’t have a built-in remote meeting capability directly within Epic’s service. In this case, Epic’s hosting can also be done on their own servers → Higher security (very sensitive data is handled in healthcare)
Below are some notes from the Q4 webcast on questions regarding the potential of the Telehealth market in the Q&A section.
_Please tell something about opportunities, lead times, business model etc. within Telehealth_
- There are more extensive customisations that customers want to do in systems in the telehealth market → This aligns well with Pexip’s capabilities (security and complex architectural solutions).
- Deal sizes are therefore also bigger → The deal with the US Defense Health Agency last quarter, the company’s largest deal to date at approx. 2 MUSD ARR, is good evidence of this.
_Which are the main benefits of Pexip Health for hospitals?_
- Customisations in the healthcare provider system are much easier to do, Epic has lots of predefined workflows and workflow support → Faster implementation and hospitals can get their telecare offerings to market faster.
All in all, it feels like Pexip is very well positioned for the demands of the Telehealth segment.
P.S. I hope this Epic deal has as much potential as Remedy’s previously announced Epic deal 😃
[Pexip Announces Native Integration with Epic, the world's largest Electronic Health Record System provider](https://www.prnewswire.com/news-releases/pexip-announces-native-integration-with-epic-the-worlds-largest-electronic-health-record-system-provider-301224926.html#:~:text=All%20Products-,Pexip%20Announces%20Native%20Integration%20with%20Epic%2C%20the%20world's,Electronic%20Health%20Record%20System%20provider&text=STOCKHOLM%2C%20Feb.,electronic%20health%20record%20system%2C%20Epic).
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### Author:  [@DayTraderXL](https://forum.inderes.com/u/DayTraderXL)
#### Post date: [February 15, 2021, 7:22am UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/15 "2021-02-15T07:22:34Z")
Back in the day, these virtual meetings specifically had to be arranged with devices like Cisco, but when software moved to the cloud, I imagined this type of solution would fall into oblivion. But apparently not. However, back then, these required their own expert who would then handle the technical problems and updates related to them. Nowadays, these probably run on some Linux version?
But if Pexip gains market share from customers requiring stronger data security, then there will probably be enough of a revenue source for a global operator. I should start considering acquiring a share if the price consolidates. The stock has made a sharp rise since December.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 15, 2021, 3:24pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/16 "2021-02-15T15:24:11Z")
Here’s more substance regarding Telehealth offerings and customers, from a CCO blog post published on February 9th.
> **[How Video Conferencing Improves Virtual Care in Healthcare | Pexip](https://www.pexip.com/blog/improving-virtual-care-with-pexip-health)**
>
> Discover how Pexip Health helps healthcare organizations thrive in the new reality of virtual care and telehealth with innovative video conferencing solutions.
Security and seamless integration with existing processes and systems are key.
> _Today’s healthcare organizations need [secure](https://www.pexip.com/security), high-quality video that fits seamlessly into their daily workflows. Pexip’s video platform was designed with these tenets in mind, and is already powering more than 600,000 virtual visits a week for leading hospitals and health systems in North America._
A few notable mentions of organizations that are Pexip customers.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 17, 2021, 3:51pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/17 "2021-02-17T15:51:50Z")
Pexip received recognition in the Frost & Sullivan international comparison today. This certainly isn’t a bad thing for a small Norwegian firm 😃
> 17th February 2021 - Frost & Sullivan has recognized Pexip with the [2021 Customer Value Leadership Award for the Global Video Conferencing Industry](https://www.pexip.com/en-us/frost-sullivan-2021-customer-value-award). This award is a testament to Pexip’s secure and flexible solutions which, combined with its strong technology leadership and customer-centric culture, are helping organizations around the world modernize their workplace collaboration.
> **[Pexip Wins Frost & Sullivan’s 2021 Customer Value Leadership Award](https://www.pexip.com/news/pexip-wins-frost-sullivan-2021-customer-value-leadership-award)**
>
> Frost & Sullivan recognizes Pexip for its secure cloud video platform, sales momentum, and technology leadership
[Pexip Award - Frost&Sullivan Awared 2021.pdf](https://forum.inderes.com/uploads/short-url/pSGsyca4jyT3dKTb3rNZEjTWac2.pdf) (1.8 MB)
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 21, 2021, 2:26pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/18 "2021-02-21T14:26:32Z")
Benchmark has recently taken a position in Pexip and QT. Hopefully, they will also publish their own analysis of Pexip soon. They consider the company cheap relative to its peers.
[https://twitter.com/GetBenchmarkCo/status/1363192882547609604](https://twitter.com/GetBenchmarkCo/status/1363192882547609604)
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 22, 2021, 3:01pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/19 "2021-02-22T15:01:18Z")
Someone bought a million shares today. The share price started a reasonably strong rise after that. Looks like there’s confidence!
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### Author:  [@naata](https://forum.inderes.com/u/naata)
#### Post date: [February 22, 2021, 4:35pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/20 "2021-02-22T16:35:40Z")
Oh! But I was looking last week and it seems like the institutions don’t have much of a slice of this yet. There was only one bank on the list of major owners. So it’s possible that other whales are still coming to the feeding grounds.
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### Author:  [@Bein](https://forum.inderes.com/u/Bein)
#### Post date: [February 22, 2021, 5:50pm UTC](https://forum.inderes.com/t/pexip-no-voimakasta-saas-kasvua-horisontissa/13685/21 "2021-02-22T17:50:36Z")
Here’s a list of the largest shareholders at the end of last month. Let’s see how the list changes in February.
There aren’t many familiar names there for me either 😃
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