Huddly AS – Consolidated First quarter report 2021

Continued revenue growth in Q1 for Huddly, but COVID-19 delays growth.

Q1 2021 was a record first quarter for Huddly, with revenues of 84.1 MNOK, up 14% compared to 73.9 MNOK in Q1 2020.

Crestron, Google and Shure continued to be strong partners. Huddly continued to increase investments in channels go-to-market strategy in both EMEA and Americas. Huddly partnered with Mersive Technologies a leading provider of wireless media streaming and collaboration software.

EBIT for Q1 2021 was a loss of 256.4 MNOK, compared to 21.6 MNOK in Q1 2020. Adjusted EBIT, excluding all option expenses for Q1 2021, was 16.8 MNOK, compared to 21.9 MNOK in Q1 2020. The gross margin was 52 % for the quarter.

In February, the Company announced its successful completion of an offering of new and existing shares in connection with the admission to trading of the company’s shares on Euronext Growth. Capital raised in connection with the offering and subsequent listing on Euronext Growth was 277.8 MNOK net of transactions cost.

Outlook

With Huddly’s leading engineering and design, Huddly is well positioned to take continued part in the fast-growing Unified Communication and Collaboration market. Huddly’s short-, medium- and long-term product roadmap is being well received in the market.

Huddly forecasts revenue to be in the range from 400 MNOK to 500 MNOK in FY 2021. The COVID-19 pandemic, causing many closed offices globally, has negatively impacted the sales opportunities into the enterprise office market in the start of 2021. The third wave of COVID-19 in the Northern Hemisphere has hit harder and longer than anticipated at the beginning of 2021. Huddly sees signs of improvements in the enterprise office market and believe sales opportunities into this market will increase going forward, especially in second half of 2021 and into 2022.

Companies worldwide have experienced supply chain disturbances during 2021, due to logistical backlogs from the Suez Canal blockage, port congestions in the US, as well as a global semiconductor shortage. Huddly has not had an adverse direct impact from this, as we have buffered up components over time. However, there has to some extent been an indirect adverse impact from strategic and channel partners, which may continue to be an uncertainty going forward.

Huddly forecasts gross margin percentage to be around 50 % in FY 2021 and costs to increase as Huddly accelerates investments in products, go-to-market, and support functions to accommodate for long term growth.

About Huddly AS: Huddly is a technology company that creates tools for team collaboration. Based in Oslo, Norway, we combine expertise across the fields of design, hardware, software, and artificial intelligence. The company’s smart cameras are designed to make it easier and better for people to communicate with each other. Huddly’s solutions with industry-leading partners enable high-quality video experiences on all major collaboration platforms.

See the enclosed presentation and report for further information.

For more information, please contact: Stein Jacob Frisch, Investor Relations, Huddly AS, mob: +47 91 61 09 11, email: huddly@lillebyfrisch.no