Huddly (HDLY) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached NOK 51 million, up 97% from Q3 and 15% year-over-year, driven by Huddly Crew adoption and large-scale orders in North America.

• Gross margin improved to 59%, the highest since Q2 2020, reflecting strong channel sales, software innovation, and favorable product mix.

• Strategic partnerships with Shure and Microsoft expanded market reach, with Huddly Crew chosen as a Microsoft Teams large room standard.

• Successful NOK 130 million private placement completed in December 2024, with an additional NOK 25 million repair offering planned.

• Strategic review ongoing, with active discussions with global industrial players; conclusion expected in Q2 2025.

Financial highlights

• Q4 2024 revenue: NOK 51 million, up 97% sequentially and 15% year-over-year; full-year 2024 revenue: NOK 148.8 million, down 29% from 2023.

• Q4 2024 gross profit: NOK 30 million, up 78% year-over-year; gross margin: 59% (vs. 38% in Q4 2023).

• EBITDA loss reduced to NOK 6.9 million in Q4 2024 from NOK 25.1 million in Q4 2023.

• Operating expenses in Q4 2024: NOK 38.4 million, down 11% year-over-year.

• Annual cost base reduced by 5% in 2024 compared to 2023; NOK 12 million annualized cost savings implemented.

Outlook and guidance

• Business plan targets positive cash flow by end of 2025, full-year positive cash flow in 2026, and strong cash generation from 2027.

• Plans to double revenue in 2025 and again in 2026, targeting NOK 650-700 million.

• Gross margin expected to stabilize around 50% going forward.

• Product roadmap includes launch of C1 video bar in H2 2024/2025 and satellite devices in 2026-2027.

• Annual cost savings of NOK 12 million implemented, effective primarily from May 2025.