Huddlestock Fintech (HUDL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was NOK 18 million, down from NOK 21 million in Q1 2024, with laaS/IaaS revenue up 7% but Consulting revenue down due to staffing changes.

• New CEO and CFO appointed in Q1 2024, with management restructuring to drive efficiency and cost control.

• Cost reduction initiatives underway, with effects expected in H2 2024 and 2025.

• Signed LOIs for expansion in Germany and Norway, including Tradevest, AVL, and HILI.

• Ongoing laaS/IaaS platform integration and migration of Norwegian customers, aiming for full harmonization in 2025.

Financial highlights

• Q2 2024 total operating income: NOK 18.4 million, down from NOK 20.6 million in Q1 2024 and NOK 29.4 million in Q2 2023, mainly due to divestment of Huddlestock solutions (F5IT).

• EBITDA: NOK -5.6 million (Q1 2024: NOK -3.8 million; Q2 2023: NOK -1.8 million); H1 2024 EBITDA: NOK -9.4 million (H1 2023: NOK -4.2 million).

• Net result: NOK -18.8 million in Q2 2024 and NOK -35.2 million in H1 2024.

• Personnel costs reduced to NOK 14.8 million, both sequentially and year-over-year.

• Cash position at period end: NOK 10 million.

Outlook and guidance

• Short-term ambition to achieve EBITDA-positivity through cost control and focused sales, with effects expected in H2 2024 and 2025.

• Continued investment in technology and platform consolidation to enable up- and cross-selling.

• Accelerated market entry into Germany pursued via partnerships and M&A.

• No specific guidance on organic growth pace due to variability in integration and sales cycles.

• Enhanced sales efforts and efficiency improvements planned.