Trond Johannessen
Chief Executive Officer

Good morning, and welcome to this presentation of Pexip's first quarter results. My name is Trond Johannessen, and I'm the CEO. Together with me here at Lysaker, I have Øystein Hem, our CFO; and Åsmund Fodstad, our Chief Revenue Officer. Together, we will take you through the highlights of the quarter and our current focus.

The standard disclaimers apply as usual.

First, a brief overview of Pexip for those new to the company. Pexip was founded in 2012, and currently, we operate in 25 markets across the globe. We are a specialist video conferencing and infrastructure company focusing on interoperability and secure and custom meetings. We do software only, delivered as software or software delivered as a service. Pexip has unique and established partnerships with the leading companies in our industry. We complement and enhance their solutions and do not generally compete with them. Our customers are mainly large organizations, both in the public and private sectors that have complex needs when it comes to video collaboration. The financial performance has been strong and has also been continuously improving over the last quarters.

Now to the highlights of the past quarter. Our annual recurring revenues grew with $4 million during the quarter, and this gives us an ARR base of $135 million leaving Q1. In Q1, we had continued strong growth in our secure and custom business area with new ARR of $2.9 million. $1.3 million of this growth came from defense, which is a core