Huddly (HDLY) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached a low of NOK 26 million, down from NOK 39 million in Q2 and NOK 58 million in Q3 2023, but new strategic partnerships and large orders signal growth potential.

• Major distributor agreement signed with a leading global industry player, expected to drive significant revenue from Q4 2024.

• Microsoft endorsed Huddly's AI technology and is rolling out Huddly Crew at its Redmond headquarters.

• Strategic review ongoing with indications of interest; expected to conclude in Q1 2025.

• Significant acceleration in Huddly Crew adoption, including major orders from US and Canadian customers totaling NOK 23 million.

Financial highlights

• Q3 2024 revenue was NOK 25.8 million, down 56% year-over-year and 34% sequentially; gross margin at 40% (52% underlying, excluding one-off scrapping accrual).

• EBITDA for Q3 2024 was NOK -31.1 million; EBIT was NOK -45.8 million; net loss before tax was NOK 49.2 million.

• Cash flow from operations was NOK -30 million; cash balance at quarter-end was NOK 48.8 million.

• Operating expenses increased 15% year-over-year to NOK 43 million, mainly due to lower salary capitalization and share incentive costs.

• Inventories rose to NOK 72.9 million, while trade receivables fell to NOK 16.3 million.

Outlook and guidance

• Revenue impact from the new distributor agreement expected from Q4 2024, earlier than previously communicated.

• Ambition to return to positive cash flow by end of 2025, with strong cash generation from 2027.

• NOK 130 million private placement planned to support liquidity and bridge to cash flow positivity.

• Cost reduction plan to lower annualized costs by NOK 12 million from 2025, with limited impact on product development.

• Launch of Huddly Crew + Videobar in H2 2025 and further product roadmap to support growth.