Huddly – Q3 2022: Strategic partners driving growth in record quarter

Oslo, November 10, 2022: Huddly delivered 34% revenue growth to a record NOK 118 million in the third quarter 2022, and 43% growth to NOK 339 million for the first nine months. The increased revenue is driven by growth in sales through the company’s strategic partners, Crestron and Google. Huddly is a leading enabler of video conferencing experiences through AI software and intelligent cameras.
Gross margins continue to be negatively affected by cost inflation, product mix, and the relatively higher sales through strategic partners and lower sales through Channels. The gross margin was 34% in the third quarter 2022, compared to 51% in the same period last year.

“Sales through our main strategic partners Crestron and Google generated record quarterly revenues, up 34% from the same period last year. While we will continue to grow with our global strategic partners, we are strengthening our commercial resources to revive the higher-margin Channel sales, and also working to develop and launch new products that will position Huddly for long-term profitable growth.”

– says CEO Alexander Woxen

Our innovative software solutions are crucial to build strategic value and establish a more robust margin position in the future. As the first step in this monetization strategy, the company has launched two new products:

• Speaker Framing - a powerful AI feature designed to make meetings inclusive and immersive - was launched in Channels in the third quarter, with the first shipments scheduled for November.

• Huddly’s AI Director Multi-Camera Experience - introduced on Google Next in the third quarter– will be launched in the second quarter 2023, with the solution being made available on all IP cameras starting with the L1.

The company reiterates its full year 2022 guiding. As previously communicated, the company expects revenue in the low end of the outlined NOK 450-550 million range and gross margin in the low end of the indicated 35%-50% range. Huddly has continued growing through 2022 and is working to strengthen profitability through initiatives to improve gross margins and constrain costs.
Huddly has continued growing through 2022 and is working to strengthen profitability through initiatives to improve gross margins and constrain costs. The company will present the results of an ongoing strategy review in connection with the interim results presentation for the fourth quarter in February 2023. The company has a solid financial position, and the Board of Directors considers the current liquidity position to be more than sufficient to fund ongoing operations.

Presentation:
Held by CEO Alexander Woxen and CFO Ragnar Kjos, pre-recorded and available at:
https://www.huddly.com/investor-relations/investor-news/huddly-webcast-q3-and-q-and-a/

Q&A
Live Q&A session will be held as a virtual event today at 10:00 CEST available through the following link:
https://www.huddly.com/investor-relations/investor-news/huddly-online-q-and-a-session-about-q3-presentation/
Questions may be submitted through ir@huddly.com or live during the Q&A session.
A recorded version of the Q&A session will be made available at:
https://www.huddly.com/investor-relations/investor-news/huddly-webcast-q3-and-q-and-a/

For more information, please contact:

Ragnar Kjos, CFO
Mobile: +47 971 14 061
E-mail: ragnar.kjos@huddly.com

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.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.

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