Huddly – Q2 2022: Continued growth - taking actions to improve margins
Oslo, August 18, 2022: Huddly, a leading enabler of video conferencing experiences through its AI software and intelligent camera systems, reported a revenue of NOK 106.6 million for the second quarter of 2022, an increase of 67% compared to the same quarter last year. The strong increase was mainly driven by sales through strategic partners, with relative flat sales in channels. Combined with increased component cost this explains a decline in gross margin to 39% from 54% in the same period last year.
Huddly is working to direct its commercial efforts towards higher-margin products and channels. As part of this, the company has strengthened the commercial organization with Daniel Johansson, a former Tandberg and Cisco executive, as Chief Commercial Officer (CCO), and Mats Bergqvist as Vice President Sales Americas.
“Huddly continued its growth momentum in the second quarter, delivering 67% year-on-year revenue growth. This is a remarkable achievement by the entrepreneurial team at Huddly and our partners, in a market affected by value chain disruptions, inflation and economic uncertainty. We are not satisfied with the margin development and have taken action to improve performance. Going forward it is a top priority to revive growth in higher-margin Channel sales with a strengthened commercial organization,”– said CEO Alexander Woxen
Successful monetization of innovative software solutions will be crucial to build strategic value and establish a robust margin position in the future. As the first step in this monetization strategy, the company expects to launch Speaker Framing® in the fourth quarter 2022, and its AI director multi camera system ‘Huddly Studio’ in 2023. These innovations transform currently static video environments into dynamic and natural meeting environments.
“We remain confident that the hybrid workplace is evolving as a trend, and that this will fuel enterprise investments as companies seek to build well-functioning and flexible hybrid workplaces. With the current energy crisis and rising inflation, we also believe corporates will seek to reduce travels to save energy and cut costs. This should also support investments into videoconferencing and better cameras,” said Alexander Woxen.
Recognizing the increased economic uncertainties, Huddly guides for a full-year revenue in the low-end of the previously outlined NOK 450-550 million revenue range, based on current foreign exchange rates. With gross margins having been negatively affected by higher component prices, product mix, and relatively higher sales through strategic partners, the Company also believes the gross margin for the full year will fall in the low-end of the previously outlined 35%-50% range.
Held by CEO Alexander Woxen and CFO Ragnar Kjos, pre-recorded and available at:
Live Q&A session will be held as a virtual event today at 10:00 CEST available through the following link:
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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.
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.
Huddly AS Q2 2022 Report.pdf
Huddly AS Q2 2022 Results Presentation.pdf