Huddly AS – Consolidated First quarter report 2022
Strong growth in Q1 2022
Huddly is reporting solid revenue growth of 36 % in Q1 2022 compared to Q1 2021, with revenues closing at MNOK 114.1. The product offering and growth strategy yield results as hybrid office work becomes the norm. Total backlog value grew significantly, closing at MNOK 201.8 at end Q1 2022, an increase of 88 % compared to end Q4 2021.
In Q1 2022 Huddly reached 300,000 units sold worldwide since the company first started shipping in 2017.
“Huddly is well positioned to deliver additional growth in a market where employers invest heavily in high quality video solutions to accommodate a workforce working both from the office and elsewhere. We have chosen to prioritize growth to leverage Huddly’s position as innovation leader in the video conferencing market”, says Alexander Woxen, CEO of Huddly.
Huddly’s view on the strong long-term macro trend is reinforced by overall growth in demand and with increased M&A activity in the market, such as HP’s acquisition of Poly.
Supply chain issues continued into 2022 as expected, amplified by recent lockdowns in China and the war in Ukraine. The disrupted supply of components induced periodic price anomalies. Huddly managed to maintain steady supply with competitive delivery time - in a period where manufacturing halts were common. However, this came at a price and is affecting the short-term margins and earnings.
The gross margin in Q1 2022 was 36 %, compared to 52 % in Q1 2021. Purchase price variances (PPV) for components negatively impacted gross margin percentage in Q1 2022 with approximately six percentage points. Adjusted for PPV, individual product margins are largely intact.
Despite lower margin contribution, expected to be short term, Huddly continued to support growth with operational expenses according to plan. However, Huddly monitors the business assumptions closely and adjusts accordingly. Adjusted EBITDA was MNOK 14.9 in Q1 2022, compared to MNOK 30.2 in Q1 2021(excluding non-cash effect option expenses for Q1 2022 and listing expense in connection with admission to trading of the company’s shares on Euronext Growth in Q1 2021). Adjusted EBIT at negative MNOK 4.9 in Q1 2022, compared to MNOK 16.8 in Q1 2021.
Q1 2022 represented a major step towards creating customer value through launching new software products, with the introduction of Huddly Speaker Framing, a powerful AI software addressing the inclusion and equity agenda. The Huddly meeting room series was complemented with the Huddly S1, a new networked state-of-the-art camera for small and medium sized meeting rooms.
The revenue guidance remains unchanged - in the range from MNOK 450 to MNOK 550 in FY 2022. The midpoint of MNOK 500 indicates growth of approximately 50 % YoY. Under the current circumstances Huddly forecasts gross margin percentage to be between 35-50 % in FY 2022. This is a change from the Q4 2021 report where gross margin percentage was forecasted to be 50 % in FY 2022. The updated guidance reflects the high volatility in the supply chain manifested in the Q1 2022 gross margin performance.
See the enclosed presentation and report for further information.
About Huddly AS
Huddly is a technology company that creates tools for team collaboration. Based in Oslo, Norway, Huddly combines expertise across the fields of design, hardware, software, and artificial intelligence. The company’s smart cameras are designed to make it easier and better for people to communicate with each other. Huddly’s solutions with industry-leading partners enable high-quality video experiences on all major collaboration platforms.
For more information, please contact: Stein Jacob Frisch, Investor Relations, Huddly AS, mob: +47 91 61 09 11, email: email@example.com
561956_Huddly Q1 2022 Report.pdf
561956_Huddly Q1 2022 Presentation.pdf