Huddlestock Fintech (HUDL) Q4 2020 earnings summary

Executive summary

• 2020 milestones included listing on Euronext Growth, acquiring 100% of Huddlestock Systems in Germany, completing the core wealth-tech platform and signing commercial partnerships and contracts.

• Bedrock and Apex stage 1 launched with BNP Paribas on January 20, 2021; further commercial opportunities were presented for custody banking and trading connectivity.

Financial highlights

• 2020 unaudited operating income was NOK 225k vs NOK 0 in 2019; operating loss was NOK 8.474m vs NOK 5.704m.

• 2020 net loss was NOK 12.428m vs NOK 8.672m; discontinued operations contributed a loss of NOK 4.033m vs NOK 2.955m.

• Total operating expenses reached NOK 8.699m vs NOK 5.704m, including NOK 8.267m of other operating expenses; commentary cites software development, listing and capital-increase costs.

• At year-end 2020, total assets were NOK 71.541m, cash and equivalents NOK 2.958m, and total equity NOK 67.173m.

Outlook and guidance

• Forecast revenue rises from EUR 1.663m in 2021 to EUR 17.480m in 2024; forecast EBITDA increases from EUR 775k to EUR 15.162m over the same period.

• Forecasts include only contracts considered more certain and signed in 2020/2021; prospective pipeline revenue is excluded, with further upside anticipated from future contracts.

• BNP Paribas Germany is expected to add EUR 20bn of AUM within 3–4 years; projected contract revenues depend on average fees and are described as indicative.

• Forecasts assume the largest investment period has passed and most technology is complete; the presentation expects a large share of future profits to convert to free cash flow.