Huddlestock Fintech (HUDL) Q2 2022 earnings summary

Executive summary

• H1 reported revenue was NOK 21.30m, up 5% HoH; pro forma revenue was NOK 30.968m, up 30% YoY including acquisitions from January 1.

• Reported EBITDA was NOK -5.594m and pro forma EBITDA NOK -7.270m, reflecting investment in technology, talent and scale.

• Strategic priorities included profitable recurring revenue growth, scaling Nordic and German operations, integrating acquisitions and expanding SaaS and embedded trading, investment and RegTech services.

Financial highlights

• H1 operating income was NOK 21.30m versus NOK 3.02m in H1 2021; operating expenses were NOK 32.89m, including NOK 6.00m depreciation and amortisation.

• Reported H1 EBIT was NOK -11.598m and net loss NOK 11.99m, versus NOK -5.214m EBIT and NOK 4.89m net loss in H1 2021.

• Q2 revenue was NOK 12.45m and Q2 costs were NOK 18.77m, including NOK 2.78m depreciation.

• Total assets were NOK 164.41m and equity NOK 122.48m at June 30, 2022.

• Pro forma H1 costs were NOK 38.23m excluding depreciation and included NOK 5m intercompany revenue adjustments.

Outlook and guidance

• FY 2022 revenue guidance was NOK 75m, including F5 IT and Tracs Group; medium-term revenue guidance was NOK 200m and includes acquisitions.

• Consulting was fully booked through year-end 2022, with good visibility into 2023; additional hires were planned to meet demand.

• F5 IT was expected to contribute NOK 17m in 2022 and be financially accretive from year one; integration supported next-generation TradeTech SaaS development.

• TradeTech SaaS had promising leads, with growth prospects highlighted for Wealth Management RegTech solutions.