Huddlestock Fintech (HUDL) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue increased 16% sequentially to NOK 18.0 million, driven by both Investment-as-a-Service (IaaS/laaS) and consulting growth.

• EBITDA improved by NOK 1 million from Q3 to Q4, reaching NOK -5.8 million, though still negative.

• Net result was negative NOK 17.3 million, a significant improvement from negative NOK 41.1 million in Q4 2023.

• Integration of three acquisitions and one divestment in 2023 led to significant revenue growth and business model reshaping.

• Accelerated German market entry through partnerships with Tradevest and AVL, with new contracts signed for Q1 2025 revenue.

Financial highlights

• Consulting revenue increased 23% sequentially, rebounding from a seasonally low Q3.

• IaaS/laaS revenue grew 8% quarter-over-quarter.

• Cash position at end of Q4 2024 was NOK 10.9 million, up from NOK 10.5 million at the start of the quarter.

• Operating expenses reduced from Q3 to Q4, but personnel costs increased to NOK 17.4 million due to year-end settlements.

• Cash flow from operations turned positive at NOK 1.8 million in Q4.

Outlook and guidance

• Focus for 2024/2025 is on profitable growth in consultancy (Visigon), accelerating IaaS/laaS, and German market expansion.

• Short-term goal to achieve positive EBITDA in 2024 remains, with ongoing search for financing partners.

• Emphasis on portfolio optimization, resource efficiency, and long-term value creation across three business areas.

• Continued strategy to enter Germany through local partnerships, notably with Tradevest and AVL.