Huddly AS – Q2 2024: New Channels focused go-to-market strategy yields initial results
Huddly reported revenues of NOK 39 million in Q2 2024, an increase of 18 % compared to Q1 2024 and a decrease of 32 % compared to Q2 2023. The gross margin decreased to 39 % in Q2 2024, compared to 48 % in Q1 2024, and 57 % in Q2 2023.
In May, Huddly announced a diversification of the go-to-market and sales strategy strengthening focus on Channels. The objective is to increase sales, reduce customer concentration and creating a sustainable go-to-market model. Channels sales increased by 27 % in Q2 compared to Q1 and 2 % year-on-year.
Huddly has successfully established a sales hub in New York and will scale this model to Austin (TX) in the second half of 2024. In parallel, efforts to drive brand and product awareness have been initiated.
“We are pleased that the strategic shift has already shown early signs of improvement. The company continues to implement the new strategy, and we expect the sales from Channels to increase further. In parallel, we maintain our work with Strategic partners to improve Strategic partner sales”, says Rósa Stensen, CEO of Huddly.
Sales through Strategic partners were stable compared to Q1 2024, but decreased by 64 % year-on-year. Huddly has a close dialogue with its Strategic partners and works proactively to add new Strategic partners. The revenue split in Q2’24 was 73 % from Channel sales and 27 % through Strategic partner sales.
The Management has continued to actively manage Huddly’s cost base. Reduced headcount has yielded 6 % savings in personnel cost in Q2'24 compared to Q2'23. A comparison of the cost base Q2’24 vs. Q2’23 on a cash-effect basis, shows a reduction of ~15 % in total cost.
Operating expenses in the quarter ended at NOK 50.9 million compared to NOK 40.5 million in the second quarter of 2023. The increase in operating expenses (P&L) is mainly explained by the introduction of the new 2024 options program for employees and somewhat lower R&D capitalization, with no cash-effect in the period.
The roll-out of Huddly Crew was strengthened by improved sales and marketing. Building on the Crew platform, the company announced that it will ship a five-camera solution opening the market for even larger meeting rooms in Q3 2024.
On 16 July, Huddly was granted a US patent for Huddly Crew as an "autonomous video conferencing system with virtual director assistance". Huddly Crew has already been certified for Microsoft Teams as a multi-camera system for medium and large meeting spaces.
From Q2, Huddly has consolidated its manufacturing through its partnership with Flex, leading to reduced COGS while maintaining operational excellence. The consolidation also reduces operational complexity.
Cash balance at 30 June 2024 was NOK 105 million, compared to NOK 154 million at 31 March 2024.
As announced in November 2023, a strategic review was initiated in Q4 2023. The process is progressing well and the Board of Directors expects to conclude the strategic review within a few months. The Board of Directors is assisted by Sansa Advisors.
Presentation at 08:00 CEST, 22 August, 2024
CEO Rósa Stensen 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_etFhr-s-SwmcPgCVZIaLaQ
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 22 August 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.