Huddly AS - Q2 2023: Improved revenue and gross margin compared to Q1 2023

In the second quarter 2023, Huddly reported total revenue of NOK 57 million, an increase of 12% from NOK 51 million in the first quarter 2023 and a decline of 46% compared to the second quarter of 2022.

The company increased its gross margin to 57% compared to 46% in the first quarter 2023 and 39% in the second quarter 2022. Although the underlying gross margin was approximately 50%, as the company booked a reversal of sales provisions, the underlying gross margin reflects a sustainable balance between sales through Strategic partners and Channels. The split was 51% to 49% respectively.

“In 2023 we are focusing on products, customers and stabilizing our cost base. We are also taking action to secure long term collaborations with our Strategic and Channel partners, and this will establish a platform for future growth” says Graham Williams, CEO of Huddly. “We will continue to lead with technology innovation, as demonstrated by Huddly Crew, our award-winning multi-camera technology, that is AI driven by Huddly Director”.

Huddly sees strong interest for its newly launched Huddly Crew and shipped the first products to customers during the first half of 2023. The AI powered camera system has been presented to more than 850 companies since market launch early this year. Huddly Crew is inspired by Director techniques in movies and live television to create engaging meetings and is set to be Huddly’s main medium to long-term growth driver. Coupled with a comprehensive and improved go-to-market strategy, Huddly Crew will enable the company to take proactive steps to regain growth momentum as the workplace moves into hybrid mode.

Outlook: Stabilize in 2023 and Growth in 2024
Huddly expects its revenue to reach NOK 200-250 million for the full year 2023 and to regain sales growth momentum into 2024. Gross margin for the full year 2023 is expected to be in line with the underlying gross margin for the second quarter, at approximately 50%. The company’s cost base stabilized in the first half of 2023 and is expected to decline in the second half of 2023.

Presentation at 08:00 CEST
CEO Graham Williams and CFO Abhijit Banik will present the second quarter results today at 08:00 CEST, available through the following link: https://us06web.zoom.us/webinar/register/WN_bZIEZAaVSL2gL-BKcL3CJw

A Q&A will follow directly after the presentation. Questions may be submitted in advance to ir@huddly.com or 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 is such that Huddly AS is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on 17 August 2023.

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