Huddly AS – Consolidated Third quarter report 2021

Backlog shows growing demand for Huddly AI solutions. Huddly’s operations are still temporarily affected by the Covid-19 pandemic, through direct and indirect supply chain issues. Total revenue was 87.9 MNOK in Q3 2021, down 8% from 95.7 MNOK in Q3 2020. Backlog shows growing demand for Huddly’s solutions. Total backlog value at end Q3 2021 was 87 MNOK, an increase of 53% compared to end Q2 2021.

Huddly forecasts revenue to be in the range from 350 MNOK to 370 MNOK in FY 2021, as a result of global tightness in supply chain. Huddly forecasts gross margin percentage to be around 50% in Q4 2021 impacted by PPVs for components and costs to increase as Huddly accelerates investments in products, go-to-market, and support functions to accommodate for long term growth.

“In Q3 we saw our product strategy and R&D investments yield results as both the L1 camera and the Gallery View AI feature got a strong market reception. The Covid 19 pandemic and the corresponding supply chain issues impact short term revenue, but Huddly’s long term outlook is even stronger than before”, says Stein Ove Eriksen, CEO and Co-founder of Huddly

For the first time, Huddly had a direct adverse supply chain impact, with 16 MNOK of the backlog requested for shipping in Q3 2021, but mostly shipped in the 1st month of Q4 2021.

Adjusted EBIT was 10.2 MNOK in Q3 2021, compared to 25.4 MNOK in Q3 2020 (excluding option expenses), as Huddly increased investments in Go-To-Market and R&D activities to underpin future growth. The gross margin was 51% in Q3 2021, compared to 53% in Q3 2020.

Global enterprises are seeking solutions that make the return to office, combined with a fast-developing hybrid workplace, as efficient as possible. The Huddly L1 camera and the Gallery View AI user experience are both results of significant R&D investments directed at facilitating the hybrid workplace. Huddly sees strong signs of improvements in the enterprise office market and believes sales opportunities into this market will increase in 2022 and beyond.

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