Huddlestock Fintech (HUDL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined to NOK 18 million from NOK 21 million in Q1, mainly due to consulting segment staffing changes, while IaaS/lAaS revenue grew 7% sequentially.

• EBITDA was negative NOK 6 million in Q2, impacted by higher operating expenses, financing, and restructuring.

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

• Ongoing platform integration and migration of Norwegian customers to proprietary technology, aiming for full harmonization in 2025.

• Signed LOIs with AVL and Tradevest in Germany, Hillebrand in Norway, and secured a new Danish consulting client.

Financial highlights

• Q2 2024 total operating income was NOK 18.4 million, down from NOK 20.6 million in Q1 2024 and NOK 29.4 million in Q2 2023.

• EBITDA for Q2 2024 was negative NOK 5.6 million, compared to negative NOK 3.8 million in Q1 2024.

• Personnel costs reduced by approximately 14% from Q1 to Q2, to NOK 14.8 million.

• Cash position at period end was NOK 10 million.

• Net result for Q2 2024 was negative NOK 18.8 million.

Outlook and guidance

• Focus on achieving EBITDA-positivity in the short term, with cost reduction effects expected in H2 2024 and into 2025.

• Continued investment in technology and platform consolidation to defend market position.

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

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

• Strategic emphasis on expanding in Germany and growing the consulting business, especially in Denmark.