Huddlestock Fintech (HUDL) Q4 2023 earnings summary

Executive summary

• FY2023 operating revenue was NOK 87.742m, up 88% YoY; recurring revenue reached NOK 41.9m, up 566%.

• FY2023 EBITDA was negative NOK 16.684m and net loss was NOK 86.892m, including NOK 18.5m in Q4 write-downs.

• Priorities included faster profitability, cost control, stronger customer delivery, operational efficiency and long-term financing partners.

Financial highlights

• FY2023 operating revenue was NOK 87.742m versus NOK 46.708m in 2022; Q4 revenue was NOK 25.151m versus NOK 13.821m in Q4 2022.

• FY2023 operating expenses rose 70% YoY to NOK 104.425m; Q4 expenses rose 52% to NOK 33.466m, including one-off costs related to acquired businesses.

• FY2023 EBITDA was negative NOK 16.684m versus negative NOK 14.697m; Q4 EBITDA was negative NOK 8.315m, in line with Q4 2022.

• FY2023 EBIT was negative NOK 79.460m versus negative NOK 33.105m; net loss was NOK 86.892m versus NOK 15.652m in 2022.

Outlook and guidance

• Cost-saving measures launched in Q2 and Q3 were on plan; a Q1 2024 revision aimed to make them more aggressive and accelerate positive EBITDA.

• Priorities included profitable products and near-term revenue, customer deliveries, internal efficiency, cost control and growth in Visigon Professional Services.

• Management emphasized focused resource deployment and balancing growth with profitability to support long-term shareholder value.

• Long-term financing partners were sought to support the strategy, including potential non-organic growth.