Huddlestock Fintech (HUDL) Q3 2023 earnings summary

Executive summary

• 9M 2023 revenue rose 90% YoY, with recurring pro forma revenue reaching NOK 29.2m; EBITDA remained negative, while positive EBITDA is targeted for FY 2024.

• Strategy centers on Investment-as-a-Service, recurring-revenue growth, commercial expansion, and balancing growth with profitability.

Financial highlights

• 3Q operating revenue was NOK 21.7m, up 87% YoY; 9M consolidated revenue was NOK 62.6m versus NOK 31.9m, up 90%.

• 9M pro forma revenue was NOK 70.6m, up 56% YoY; pro forma EBITDA was negative NOK 10.5m versus negative NOK 8.4m in 9M 2022.

• 9M recurring revenue reached NOK 29.2m, up 620% YoY, and represented 41.0% of pro forma revenue versus 10.3% in 9M 2022.

• Consolidated 9M EBITDA was negative NOK 8.4m versus negative NOK 6.4m; operating costs rose 80% YoY to NOK 71.0m.

• 9M net loss was NOK 45.2m versus NOK 15.7m; EBIT was negative NOK 43.7m, including NOK 35.4m of depreciation and amortization.

Outlook and guidance

• Positive EBITDA targeted for FY 2024, supported by cost control, efficiency, financially attractive deals, and product development aligned to profitability.

• Priorities include Nordic sales and onboarding, preparing German operations to scale, recurring-revenue growth, and organizational synergies.

• Cost-saving program was on track, with further savings under evaluation through more efficient internal processes without reducing customer value.

• Plans to passport Norwegian and German regulatory licenses across the EU, which would increase capital requirements.