Huddly AS – Q4 2023: Improved cash position – results in line with guiding

Huddly reported revenues of NOK 44 million in Q4 2023, a decrease of 24 % compared to Q3 2023. Full year 2023 revenue ended at NOK 211 million, and in line with guiding.

The gross margin was 38 % in Q4 2023, compared to 39 % in the same period in 2022. The gross margin for full year 2023 was 48 %, compared to 37 % in full year 2022, and in line with guiding at ~50 %.

The roll-out of Huddly Crew in Q3 2023 has improved market traction for Huddly’s technology. In January 2024, Huddly Crew was certified for Microsoft Teams as a multi-camera system for medium and large meeting spaces. Microsoft Teams is the leading collaboration platform, and Teams certification is often a purchasing criterion for corporate buyers.

“The long-term market outlook for collaborative video solutions remains strong. Huddly’s AI driven technology and multi-camera solutions give us a solid position to capture market share” says Graham Williams, CEO of Huddly.

Following a thorough process during the second half of 2023, Huddly qualified as an approved direct vendor to Lenovo. This is a quality stamp from one of the world’s leading technology companies.

The management has taken actions to actively manage Huddly’s cost base. The number of full-time employees has been reduced by 16 % during 2023. Employee benefit expenses and other operating expenses amounted to NOK 43 million in Q4 2023, a reduction of 15 % compared to Q4 2022.

Huddly’s cash position is significantly improved through a successful private placement in Q4 2023 and a subsequent offering to all shareholders in January 2024. Cash balance at year end 2023 was NOK 164 million.

Interest from a global player contributed to a strategic review initiated in Q4 2023. Interest from an additional global player has been received after the announcement of the strategic review. The process is currently ongoing, and an update will be provided at the appropriate time. The Board of Directors is assisted by Sansa Advisors.

Outlook and financial guiding: The long-term market outlook for collaborative video solutions remains strong. Huddly expects revenue growth in 2024 compared to 2023, a gross margin in 2024 around 50 % and to reach positive cash flow within 2025. However, the ambition of positive cash flow within Q4 2024 remains, in line with communication in the Q3 2023 report.

Presentation at 08:00 CEST, 15 February, 2024

CEO Graham Williams and CFO Abhijit Banik will present the fourth quarter results today at 08:00 CEST, available through the following link:

A Q&A will follow directly after the presentation. Questions may be submitted live during the session. A recorded version of the presentation and the Q&A session will be made available on the company’s IR website.

For more information, please contact:

Abhijit Banik, CFO

Mobile: +47 408 30 964

The information above is subject to the disclosure requirements in accordance with the EU Market Abuse Regulation. This stock exchange notice was published by CFO Abhijit Banik at 07:00 CEST on 15 February 2024.

About Huddly AS

Disruptive innovation is our heartbeat at Huddly. We're committed to pushing technology and challenging the status quo in to empower human collaboration. Combining our industry-leading expertise in artificial intelligence, software, hardware, and UX, we craft intelligent camera systems that enable inclusive and productive teamwork. Huddly cameras are designed to provide high-quality, AI-powered video meetings on major platforms, including Microsoft Teams, Zoom, and Google Meet. With upgradable software, durable hardware, and engaging user experiences, they are the ideal choice for organizations seeking a future-proof, scalable, and sustainable solution. Founded in 2013, Huddly is headquartered in Oslo, Norway, with presence in the US and EMEA and distribution globally.