On Monday, video technology company Pexip’s share price fell nearly 10 percent. The Svindal family is a major shareholder in the company, which owns just over NOK 62 million worth of shares in the company through companies A-Holding and Riisalleen Invest.
Monday’s drop comes despite the video technology company’s announcement Monday morning that its annual recurring revenue (ARR) will increase by up to 30 percent in the fourth quarter of 2021, to $106.4 million, or about NOK940 million.
However, the company closed down 9.77 percent at the time of closing on the Oslo Stock Exchange, which corresponds to a paper loss of just over six million kroner for the Svindal family.
Adjusted price targets
29 percentage points of growth came from new customers, according to the company’s stock exchange release. In the fourth quarter of last year, the company generated new annual recurring revenue of $6.6 million, down from $9.1 million in the same quarter last year.
“I am pleased to report continued strong growth for Pexip in 2021, after our subscription base increased by $6.6 million in the fourth quarter and $25 million in ARR through 2021. For the fourth quarter, I am particularly pleased with the reduction in the following year – year-over-year yield. which is now back at less than ten percent, and to inform us that we have acquired some significant new clients,” says interim CEO and CFO, Austin Heim, in the announcement.
Brokerage firm Pareto Securities recently lowered its price target for Pexip’s stock from NOK 80 to NOK 70. Pexip stock closed on Monday at NOK 34.18.
Following the recent acquisition of Pexip, Pareto estimated organic growth in annual recurring revenue (ARR) at $5.5 million for the quarter, which equates to an annual organic growth rate of approximately 23 percent. This is well below the 40 percent required for the company to reach its goal of $300 million in annual recurring revenue in 2024, Pareto wrote.
Among the positive aspects, Pareto noted, among others, that it takes about five quarters before new employees are fully effective for Pexip, and that the significant investment program initiated after the listing should begin to produce incremental results in 2022. Additionally, Pareto notes that Pexip continues to emphasize that its pipeline includes several large customers that it will be able to convert for sale through 2022.
Lund Svendal uploaded
Pexip stock is down 16.76 percent so far this year, and is down about 70 percent since its peak in February of last year. The market capitalization of the company is around 3.6 billion NOK.
In February last year, the Svindal family owned about NOK 140 million shares in Pexip, but recognized some of the gains and sold shares for around NOK 30 million.
During the fall, the family business sharply increased its holdings, and recently it became known that Aksel Lund Svindal and his family bought another 25,000 shares in the company. Earlier, he, his brother and their father through investment firm Riisalleen Invest would have owned 605,000 shares in the company.
Last week, Aksel Lund Svindal also bought 14,800 shares through its wholly owned holding company A Holdings. Through the company, he owns 1,191 million shares of Pexip.
Although the Svindal family currently owns a much larger number of Pexip shares than in February of last year, it currently only owns shares worth about NOK 62 million.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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