Huddlestock Fintech (HUDL) Q2 2023 earnings summary

Executive summary

• H1 consolidated revenue rose 116% YoY to NOK 45.97m; reported EBITDA loss narrowed 25% to NOK 4.19m.

• Acquisitions expanded the offering; positive EBITDA is targeted for FY2024, supported by integration, cost control and scaling Investment-as-a-Service offerings.

Financial highlights

• Q2 revenue was NOK 29.37m, up 140% YoY; H1 revenue was NOK 45.97m, up 116% from NOK 21.30m.

• H1 pro forma revenue was NOK 54.73m, up 77% from NOK 30.96m, assuming acquired businesses were included from January 2023.

• H1 operating costs rose 96% YoY to NOK 64.36m; pro forma costs were NOK 77.25m.

• H1 net loss was NOK 19.45m and EBIT loss was NOK 18.39m, including NOK 14.20m in depreciation and amortization.

Outlook and guidance

• Positive EBITDA targeted for FY2024, supported by cost-reduction initiatives and planned acquisition synergies.

• Next-generation technology solutions were planned for launch in late 2023 and early 2024; focus was a ready-to-use, multi-tenant Investment-as-a-Service offering.

• Priorities include recurring revenue, completing Brokerage-as-a-Service, winning Nordic white-label clients and scaling Nordic and German operations.

• Short- and medium-term financing options were to be explored to support growth and capital spending.