Huddly AS – Consolidated Fourth quarter report 2021

On track to regain sales growth.

Q4 2021 closes a challenging year for Huddly carrying strong momentum into 2022. Q4 2021 revenue was 100.9 MNOK, 11.1 MNOK lower than the historic high at 112.0 MNOK in Q4 2020. Quarter-on-quarter growth the last two quarters, up 58 % from a low-point of 64 MNOK in Q2 2021, shows positive momentum. Total backlog value continued to grow at end Q4 2021 to 107 MNOK, an increase of 23 % compared to end Q3 2021.

“A stronger long term macro underpins our growth conviction. The post pandemic back to office is expected to increase spending on collaboration tools. Our strong progress on the product roadmap and our ambitious ramp up plan for 2022 puts us in an excellent position to meet the increased demand”, says Alexander Woxen, CEO of Huddly.

25 % of the global workforce is expected to work from home post-pandemic, up from 5 % in 2019, according to Frost & Sullivan, a leading global market research and analysis consultancy.

Planned growth activities in Products, Go-To-Market, and support functions bring adjusted EBIT at 3.4 MNOK in Q4 2021, compared to 35.1 MNOK in Q4 2020. Full year 2021 revenue closes at 336.9 MNOK, being 3.7 % below the lower end of the outlook provided in Q3 2021 report.

Direct and indirect supply chain issues continued to affect revenue and earnings in Q4 2021. Gross margin ended at 44 % in Q4 2021, compared to 55 % in Q4 2020, where Purchase price variances (PPVs) for components impacted gross margin percentage with approximately five percentage points.

The imminent launch of Huddly S1 AI camera for small and medium rooms will increase the lineup of networked cameras, covering scenarios from huddle rooms to large meeting rooms. The networked cameras L1 and S1 will provide a platform for building user experiences that enables communication and collaboration in the challenging hybrid office.

Huddly L1 camera has been certified by Microsoft as part of Crestron kits for Microsoft Teams and Skype for business. Huddly recently announced Gallery View, a smart experience that helps give everyone an equal presence in video meetings. It supports composite people feed in Microsoft Teams Rooms. Huddly IQ is the first of Huddly’s cameras to offer Gallery View.

See the enclosed presentation and report for further information.

About Huddly AS: Huddly is a technology company that creates tools for team collaboration. Based in Oslo, Norway, Huddly combines 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.

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