Huddly AS – Q1 2024: Channels sales improvement - strategic partner sales still unsatisfactory
Huddly reported revenues of NOK 33 million in Q1 2024, a decrease of 25 % compared to Q4 2023 and a decrease of 36 % compared to Q1 2023. The gross margin increased to 48 % in Q1 2024, compared to 38 % in Q4 2023, and 46 % in Q1 2023. Channel sales increased by 7 % year-on-year.
Roll-out of Huddly Crew is improved after significant changes in the sales organization.
Huddly’s go-to-market activities have so far not delivered the necessary results. The key priority is to translate Huddly’s technological lead and the industry-wide recognition into sales. In Q1, Huddly executed a full review of the go-to-market model and implemented changes to achieve the necessary results. Huddly’s sales organization has in Q1 shifted focus from strategic partners to channels, improving predictability and margins.
“Channel partners are central to our market success and provide a balancing factor against cyclical changes among the strategic partners. While we still maintain a constructive relationship with our strategic partners, we see a significant potential in shifting focus towards the channels business”, says Graham Williams, CEO of Huddly.
Sales through Strategic partners decreased by 65 % year-on-year due to inventory build-up in the downstream supply chain, but revenue generated through Channels increased by 7 %. The revenue split in Q1’24 was 68 % from Channel sales and 32 % through Strategic partner sales.
The management has continued to actively manage Huddly’s cost base. The number of full-time employees (FTE) has been reduced by 15 %, from 131 at the end of Q1’23 to 112 at the end of Q1’24 vs.
Cash balance at 31 March 2024 was NOK 154 million.
Huddly is guiding revenue in 2024 at a comparable level to 2023. Channel revenue is expected to increase. Furthermore, Huddly guide gross margin in 2024 at around 50 % and to reach positive cash flow during H2 2025.
The strategic review initiated in Q4 2023 is currently ongoing, and an update will be provided at the appropriate time. The Board of Directors is assisted by Sansa Advisors.
Presentation at 08:00 CEST, 8 May, 2024
CEO Graham Williams and CFO Abhijit Banik will present the first quarter results today at 08:00 CEST, available through the following link: https://us06web.zoom.us/webinar/register/WN_j_YXtcx2TzeGR5Kz48CNhA
A Q&A will follow directly after the presentation. Questions may be submitted live during the session. A recorded version of the presentation and the Q&A session will be made available on the company’s IR website.
For more information, please contact:
Abhijit Banik, CFO
Mobile: +47 408 30 964
E-mail: abi.banik@huddly.com
The information above is subject to the disclosure requirements in accordance with the EU Market Abuse Regulation. This stock exchange notice was published by CFO Abhijit Banik at 07:00 CEST on 8 May 2024.
About Huddly AS
Disruptive innovation is our heartbeat at Huddly. We're committed to pushing technology and challenging the status quo in to empower human collaboration. Combining our industry-leading expertise in artificial intelligence, software, hardware, and UX, we craft intelligent camera systems that enable inclusive and productive teamwork. Huddly cameras are designed to provide high-quality, AI-powered video meetings on major platforms, including Microsoft Teams, Zoom, and Google Meet. With upgradable software, durable hardware, and engaging user experiences, they are the ideal choice for organizations seeking a future-proof, scalable, and sustainable solution. Founded in 2013, Huddly is headquartered in Oslo, Norway, with presence in the US and EMEA and distribution globally.