Huddly AS – Consolidated Second quarter report 2021

Preparing for renewed growth Huddly’s operations have been temporarily affected by the Covid-19 pandemic, as stated in the Q1 2021 report. Q2 2021 total revenue was 64 MNOK, down 24% from 84 MNOK in Q2 2020, mainly due to indirect adverse impacts from global supply chain tightness.

With Huddly’s leading engineering and design, Huddly is well positioned to take continued part in the fast-growing Unified Communication and Collaboration market. Huddly’s product roadmap is being strongly received in the market.

Huddly reports Q2 EBIT at 7.8 MNOK, compared to 25.9 MNOK in Q2 2020. The gross margin for the quarter was 54%, compared to 59% in Q2 2020. Huddly forecasts revenue to be in the range from 400 MNOK to 450 MNOK and gross margin percentage to be around 50% in FY 2021.

“Huddly is in an excellent position to take advantage of the rapidly increasing demand in the enterprise office market, even though effects of the ongoing pandemic have affected our progress. We have continued to invest heavily in R&D, and we already see the results. All our attention is dedicated to product development and building a superior organization with a strong business culture”, says Stein Ove Eriksen, CEO and Co-founder of Huddly

R&D and Product The Huddly L1 camera is now shipping to customers and has been received strongly in the market. The Huddly L1 is defining a new product category, as the first software defined smart camera for large meeting rooms. Traditional large room video conferencing cameras have motorized pan tilt and zoom, and are quite clunky and large, while the Huddly L1 with its compact size and no moving parts fits nicely on your screen.

Sales Huddly continued to increase investments in the Channels go-to-market strategy in both EMEA and the Americas. Nils Stangnes has been appointed as Huddly’s Executive Vice President of Global Channel Sales, based in Oslo, Norway. Huddly’s Channel revenue grew 61% in Q2 2021 compared to Q2 2020. Crestron and Google continue to be strong partners. Companies worldwide have experienced supply chain disturbances during 2021, due to logistical backlogs, port congestions in the US, as well as a global semiconductor shortage. Huddly has not had an adverse direct impact from this, as we have buffered up components over time. However, there has been an indirect adverse impact from strategic and channel partners, which may continue to be an uncertainty going forward. Q2 2021 total revenue was down 24% compared to Q2 2020, mainly due to reduced revenue caused by indirect adverse impacts from global supply chain tightness. Huddly’s L1 camera has been very well received by our Strategic Partners, Distributors, Resellers and end user Customers. There is evidence that Covid-19 has affected segmentation in the videoconferencing market and increasing the relative sizing and importance for large cameras. Software defined cameras will be the preferred alternative versus the traditional pan-tilt-zoom cameras. Huddly Canvas continues to be well received by the market.

Outlook With Huddly’s leading engineering and design, Huddly is well positioned to take continued part in the fast-growing Unified Communication and Collaboration market. Huddly’s product roadmap is being strongly received in the market. Huddly forecasts revenue to be in the range from 400 MNOK to 450 MNOK in FY 2021. Huddly forecasts gross margin percentage to be around 50% in FY 2021 and costs to increase as Huddly accelerates investments in products, go-to-market, and support functions to accommodate for long term growth. Huddly sees strong signs of improvements in the enterprise office market and believes sales opportunities into this market will increase in H2 2021 and beyond.

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, we combine 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: huddly@lillebyfrisch.no