Huddlestock Fintech (HUDL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined to NOK 18 million from NOK 21 million in Q1, mainly due to consulting segment staffing changes, while laaS/IaaS revenue grew 7% sequentially.

• EBITDA was negative NOK 6 million in Q2, impacted by higher operating expenses, restructuring, and financing costs.

• Cost reduction initiatives are underway, with visible effects expected in H2 2024 and into 2025.

• Strategic progress includes LOIs with AVL and Tradevest in Germany, HILI in Norway, and a new Danish consulting client.

• Ongoing migration and integration of Norwegian clients to proprietary/laaS/IaaS technology platforms.

Financial highlights

• Q2 2024 total operating income was NOK 18.4 million, down from NOK 20.6 million in Q1 2024 and NOK 29.4 million in Q2 2023.

• EBITDA for Q2 2024 was negative NOK 5.6 million, compared to negative NOK 3.8 million in Q1 2024.

• Net result for Q2 2024 was negative NOK 18.8 million.

• Personnel costs reduced by approximately 14% from Q1 to Q2, reaching NOK 14.8 million.

• Cash position at period end was NOK 10 million.

Outlook and guidance

• Short-term ambition is to achieve EBITDA-positivity through cost control, efficiency, and sales focus, with effects expected in H2 2024 and 2025.

• Continued investment in technology and platform consolidation to defend and grow market position.

• Accelerated market entry into Germany and the Nordics via partnerships and M&A.

• No specific guidance on organic growth pace due to variability in integration and sales cycles.

• Priorities include new client acquisitions and recurring revenue growth.