Slide 1: Q2 2024 Results
Q2 2024 Results Presented by CEO, Rósa Stensen CFO, Abhijit Banik nd 22 August 2024
Slide 2: Key highlights Q2 2024
Key highlights Q2 2024 Q2 2024 results Revenue and Gross Margin ▪ Revenue of NOK 39 million, Gross Margin of 39 % NOK million New Channels focused go-to-market strategy yields results ▪ Sales to Channels increased by 27 % compared to Q1’24, and by 2 % vs. Q2’23 Sales and marketing strengthened ▪ Suc
Slide 3: Focus areas to support long-term growth
Focus areas to support long-term growth 1. Continue to lead 2. Increase revenue 3. Maintain Gross Margin 4. Strict cost control with technology innovation Strategic Channel Product led growth through Increase revenue base, Monetizing innovation and Managing cost without continued R&D investments bot
Slide 4: The problem: Hybrid collaboration pain points
1. Innovation 2. Sales 3. Gross margin 4. Cost The problem: Hybrid collaboration pain points End-user pain point 1 End-user pain point 2 The workplace is converging to hybrid mode, but with significant challenges… >50% of communication is non-verbal. Most of today’s remote collaboration technology d
Slide 5: Imagine having a live video crew producing all your meetings
1. Innovation 2. Sales 3. Gross margin 4. Cost Imagine having a live video crew roducing all your eetings… Huddly AS, Q2 2024
Slide 6: The solution: Huddly Crew and AI technology
1. Innovation 2. Sales 3. Gross margin 4. Cost The solution: Huddly Crew and AI technology Huddly AS, Q2 2024
Slide 7: Customers' willingness to pay
1. Innovation 2. Sales 3. Gross margin 4. Cost Crew is a scalable and flexible plug and play platform, enabling expansion into new and attractive market segments >60 kUSD Customers’ willingness to pay: Room budget1) 30-60 kUSD Shipping in Q3-24 10-30 kUSD 5-10 kUSD Small: 3-6 pax Medium: 6-9 pax Lar
Slide 8: Huddly user story: Video podcasting made easy at Lafayette College
1. Innovation 2. Sales 3. Gross margin 4. Cost Huddly user story: Video podcasting made easy at Lafayette College ▪ Lafayette College makes content creation accessible for all students and staff with a video podcast studio featuring Huddly Crew ▪ “The game-changer was discovering Huddly Crew,” says
Slide 9: Huddly Crew and its AI technology is extensively protected by IP
1. Innovation 2. Sales 3. Gross margin 4. Cost The solution: Huddly Crew’sHuddly Crew andisAI A technology technology rotected by P extensively Huddly Crew – 14 patent families Alignment with Software Products Image processing Experiences Environment platform partners AI-directed system Meeting spac
Slide 10: Diversified go-to-market and sales strategy
1. Innovation 2. Sales 3. Gross margin 4. Cost Diversified go-to-market and sales strategy Historical revenue concentrated among two strategic partners Future business model Strategic partners Channel 21 25 21 2 Increased revenue: The major source of income 3 2 2 2 27 33 7 27 2 24 31 3 25 17 11 Incr
Slide 11: Channel: Growth momentum from building out sales hubs in key regions in the US
1. Innovation 2. Sales 3. Gross margin 4. Cost Channel: Growth momentum from building out sales hubs in key regions in the US ▪ Continuing to invest and grow the global sales team, currently with a particular focus on the US ▪ Successful establishment of hub in New York, Potential Established hub in
Slide 12: Consolidated manufacturing from Q2, leading to reduced COGS
1. Innovation 2. Sales 3. Gross margin 4. Cost Consolidated manufacturing from Q2, leading to reduced COGS while maintaining operational excellence Supply chain disruption: Supply chain stabilization: Focus on resilient operations Focus on efficient operations Dual manufacturing and multiple Consoli
Slide 13: High quality, robust and scalable manufacturing in partnership with Flex
1. Innovation 2. Sales 3. Gross margin 4. Cost High quality, robust and scalable manufacturing in partnership with Flex ▪ Huddly’s contract manufacturer, Flex, produces finished goods at Tczew in Poland before being shipped to customers ▪ Flex is a US company with 140,000+ employees at ~100 sites ar
Slide 14: Reduced headcount has yielded 6% YoY savings in personnel cost
1. Innovation 2. Sales 3. Gross margin 4. Cost Reduced headcount has yielded 6% YoY savings in personnel cost. Total cost base reduction of ~15% YoY Headcount Payroll, incl. salaries, pension and tax NOK million Consultants ull time employees 124 11 nd o nd o Huddly AS, Q2 2024
Slide 15: Summary: Focus areas to support long-term growth
Summary: Focus areas to support long-term growth 1. Continue to lead 2. Increase revenue 3. Maintain Gross Margin 4. Strict cost control with technology innovation Strategic Channel Product led growth through Increase revenue base, Monetizing innovation and Managing cost without continued R&D invest
Slide 16: The strategic review is progressing well
The strategic review is progressing well ▪ As announced in November 2023, a strategic review was initiated ▪ The process is progressing well ▪ The Board of Directors expects to conclude the strategic review within a few months ▪ The Board of Directors is assisted by Sansa Advisors Huddly AS, Q2 2024
Slide 17: Financials
Financials Huddly AS, Q2 2024
Slide 18: Revenue development: Positive momentum in Channel
Revenue development: Positive momentum in Channel Revenue development and split NOK million, % of total revenue Revenue of NOK 39 million resulting in an 18 % increase compared to Q1 2024 44% 51% ▪ Sales to Channels increased by 27 % compared to Q1’24, 3 % and increased by 2 % vs. Q2’23 27% 32% > o
Slide 19: Gross margins in Q2'24 declined mainly due to one-off items and increased COGS
Gross argins in ’ declined ainly due to one-off items and increased COGS Gross margin (%) development 57% ▪ The decrease in gross margin is primarily due 4 % 4 % 4 % to one-time expenses related to price protection 3 % 3 % Underlying Q2’23 3 % 3 % for distributors following sales price reductions 34
Slide 20: Summarized profit and loss
Summarized profit and loss Condensed profit & loss statement NOK million ▪ Q2’24 revenue decline due to continued Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change headwind from strategic partner revenue. Revenue from sales of goods 39.1 57.2 -32% 72.1 108.4 -33% However, positive momentum in Channels G
Slide 21: R&D investments to drive long-term growth
R&D investments to drive long-term growth Capitalized R&D cost NOK million, % of revenue ▪ Capitalized R&D cost of NOK 9 million in Q2 2024. Decline from Q2’23 due to higher share of work related to maintenance vs. development in Q2’24. The share of time spent on development is expected to return to
Slide 22: Q2 2024 cash flow
Q2 2024 cash flow Cash flow NOK million ▪ Cash flow from operations of NOK -25 million 25 compared to NOK -51 million in Q2’23 1 4 ▪ Cash flow from investments of NOK -10 million mainly related to capitalized R&D cost > ▪ Cash flow from financing activities of NOK -8 million ▪ Other changes related
Slide 23: Q&A
Q&A CEO, Rósa Stensen CFO, Abhijit Banik Chair of the Board, Jostein Devold Huddly AS, Q2 2024
Slide 24: Slide 24