Huddlestock Fintech As · OSL:HUDL
Huddlestock Fintech As — Q3 2023 Earnings Presentation
39 slides from Huddlestock Fintech As's earnings presentation, Nov 23, 2023
Slide 1: Q3 and 9 month 2023 Interim report
Q3 and 9 month 2023 Interim report January-September 2023 November 23, 2023
Slide 2: Disclaimer regarding forward looking statements
Disclaimer regarding forward looking statements Disclaimer regarding forward looking statements This presentation speaks only as of their date, and the views expressed are subject to change based on a number of factors, including, without limitation, macroeconomic and equity market conditions, inves
Slide 3: Huddlestock Fintech
3 Huddlestock Fintech Empowering our clients by delivering Investment-as-a-Service Øyvind Hovland John E. Skajem Leif Arnold Thomas Chairman Group CEO Corp.dev & IR 3
Slide 4: Huddlestock at a Glance
Huddlestock at a Glance 2014 85 Year founded Employees Oslo Stockholm 2020 6 Stavanger Listed on Euronext Companies acquired (HQ) Growth Market 2021 - 2023 Skövde (HUDL) Copenhagen London 100m 250m Munich Constanța Approx. annual Invested in our revenue (NOK) technology (NOK) * Figures includes F5IT
Slide 5: Consolidated financials in 9M 2023
Consolidated financials in 9M 2023 Consolidated revenues Consolidted EBITDA Consolidated EBITDA margin 2023 62.6m NOK -8.4m NOK -13.4% YoY growth of 90% YoY improvement of 32% Consolidated revenues Consolidated EBITDA Consolidated EBITDA margin 2022 31.9m NOK -6.4m NOK -19.6% Improved consolidated E
Slide 6: Proforma financials in 9M 2023
Proforma financials in 9M 2023 Proforma revenues Proforma EBITDA Proforma EBITDA margin 2023 70.6m NOK -10.5m NOK -14.8% YoY growth of 56% YoY improvement of 23% Proforma revenues Proforma EBITDA Proforma EBITDA margin 2022 45.4m NOK -8.4m NOK -18.3% Improved proforma EBITDA margin YoY 23% Proforma
Slide 7: Recurring revenues 9M 2023
Recurring revenues 9M 2023 Proforma recurring revenues Recurring revenues of total revenues 2023 29.2m NOK 41.0% YoY growth of 620% YoY growth of 498% Proforma recurring revenues Recurring reveues of total revenues 2022 4.7m NOK 10.3% Proforma numbers include Trac Services, Trac Technology, Dtech an
Slide 8: Highlights Q3 2023
Highlights Q3 2023 • Improved consolidated EBITDA margin YoY 32% • Increased YoY recurring revenues of 29.2m NOK (+489%) • Letter of Intent signed with Stack by.me • Professional Services Division extends several current mandates, outlook is stabile • Increased resources spent on the German market t
Slide 9: Huddlestock Capital increase November 2023
Huddlestock Capital increase November 2023 17,5 mill Funds raised “At selskapet henter inn NOK 17,5 mill over en helg i dagens marked til en 71 rabatt på under 20% synes jeg er mer enn tilfredstillende” “Selskapet har etter mine begrep gjennomført en aksjonærvennlig kapital innhenting i den forstand
Slide 10: Events after Q3 and Key priorities going forward
Events after Q3 • Signed contract with Norse Securities • Signed contract with Tind Asset Management • Signed Strategic cooperation agreement with NBX • Successful fund raising of 17,5m NOK Key priorities going forward • Capital increase in place -> Increase sales- and customer onboarding activities
Slide 11: Roadmap to Positive EBITDA
Roadmap to Positive EBITDA Financial year 2024 Expand our on- Strictly focus boarding All product development on (customer deliveries shall support Increase efficiency Investment- success) positive EBITDA 2024 in organization, as-a-Service department objective remove bottlenecks All relevant Priorit
Slide 12: Our Value Proposition
Our Value Proposition We enable any company to launch an innovative new investment service or transform their existing one in a matter of weeks.
Slide 13: Investment-as-a-Service
Investment-as-a-Service Our customers want to focus on Marketing the tip of the iceberg Sales Customer service Investment advisory ACME Investments White label investment experiences Portfolio AML / management KYC Custody Corporate Beneath the surface, we take actions management Regulatory care of e
Slide 14: Huddlestock offers a unique value proposition to Providers of Investment Services
Huddlestock offers a unique value proposition to Providers of Investment Services that aim to challenge traditional business models Huddlestock clients (B2B clients) Individual investors Institutional investors • Wealth Managers • Asset Managers • Saving Platforms • On-line banks • News portals B2B
Slide 15: Huddlestock's Partners
Huddlestock’s Partners Custodians and brokers Price feed and reference data Front ends CRM & Productivity Insurance & tax shells Cloud & banking providers AML, KYC, Credit API Aggregators
Slide 16: Q3 and 9 months results (unaudited)
Q3 and 9 months results (unaudited)
Slide 17: Group Operating Revenues
Group Operating Revenues Delivering and investing in strategic technology solutions Group Operating Revenues (in NOK 1000) ➢ Group operating revenues nine months 90% increase year over year +90% +87% * * Proforma numbers includes Huddlestock Investor Services, Tracs Technology, Dtech, Bricknode Plat
Slide 18: Group Operating Costs
Group Operating Costs Tighter labour markets. Investing in technology. Group Operating Costs (in NOK 1000) ➢ Group opertating costs nine months 80% increase year over year +80% +107% * * Proforma numbers includes Huddlestock Investor Services, Tracs Technology, Dtech, Bricknode Platform , Bricknode
Slide 19: Group EBITDA
Group EBITDA Optimizing internal resources. Group EBITDA (NOK 1000) ➢ Increased negative EBITDA due to seasonal revenue effects in the consultancy business ➢ Allocated cost increase in Germany due to strengthing of the organisation as well as increased focus on commercial developments * * Proforma n
Slide 20: Group Depreciation & Amortization
Group Depreciation & Amortization Group Depreciation & Amortization (NOK 1000) ➢ Technology in use from Q4 2022 ➢ Effects of PPA’s (Purchase Price Allocation) ➢ Divestment of Huddlestock Solutions * * Proforma numbers includes Huddlestock Investor Services, Tracs Technology, Dtech, Bricknode Platfor
Slide 21: Technology
Technology A story of two halves. Continued focus on client deliveries and growing recurring revenue streams. Technology revenues (NOK ‘000) * Proforma numbers includes Huddlestock Investor Services, Tracs Technology, Dtech, Bricknode Platform , Bricknode Software and Bricknode Ltd from January 2023
Slide 22: Huddlestock Fintech (HUDL) Top Shareholders
Huddlestock Fintech (HUDL) Top 20 Shareholders (Sep 30, 2023) Rank Name Holding Stake in % 1 NORDNET BANK AB 18 483 098 10,88 2 NJORD GROUP AS 12 429 113 7,32 3 SAA INVEST AS 10 000 000 5,89 4 VISION INVEST STAVANGER AS 8 286 715 4,88 5 BANK JULIUS BÃR & CO. AG 7 125 000 4,19 6 HEDEN HOLDING AS 5 14
Slide 23: Sales & Commercial Update
Sales & Commercial Update Robert Fuchsgruber, CCO
Slide 24: Components needed for an investment-as-a-service solution
In order to provide my planned investment offering to my clients, I need the following components of an investment-as-a-service solution: ✓ Backoffice platform to automate and scale my investment offering. ✓ White label capable frontend, which I can provide with brand and design of my company. ✓ Par
Slide 25: Huddlestock Investment-as-a-service offering
Huddlestock Investment- as-a-service offering. Your clients Front-end investment apps Your company/brand • Ready-to-use apps for automated, self-directed and advisory propositions • Custom software solutions Trading API Partner portal • Flexible API allows you to build • As an advisor, always mainta
Slide 26: Sales focus on clearly defined customer groups
The focus of sales activities is on clearly defined customer groups with the defined products and markets. IaaS • Online banks • Private banks • Financial portals • Financial sales organizations (pools) • Fund Companies • Wealth Managers SaaS • Wealth Managers • Corporate Finance Companies • Private
Slide 27: Still good times for the equity culture in Germany
Still good times for the equity culture in Germany. Confidence in shares remains (almost) unbroken. A plus of 1.6 million equity fund savers 12.9 million people own shares, equity funds or equity-based 600,000 people under the ETFs. age of 30 started saving in shares in 2022. Around one in five Germ
Slide 28: Record number of Germans invested in capital markets in 2022
A record number of Germans were invested in the capital markets in 2022, primarily in investment funds and ETFs. Young people are becoming increasingly interested. A total of 12.9 million people were invested in shares, equity funds or ETFs last year. This means an increase of 830,000 equity savers
Slide 29: Implications of increased interest for banks and providers
The increased interest has significant implications for banks and other providers, which will create both opportunities and challenges. Higher demand for investment products: As more and more Germans are interested in investing on the stock exchange, the demand for investment products such as shares
Slide 30: The German market holds great opportunities for Huddlestock
The German market continues to harbour great opportunities for Huddlestock and brings with it some challenges that we have to deal with. Banks, private banks and online banks, want a The change in the interest rate environment has digital offer for their customers, both in trading and shifted the fo
Slide 31: New Huddlestock Image Video is out now
New Huddlestock Image Video is out now! Watch the video here!
Slide 32: Thank you
huddlestock.com Thank you Huddlestock @huddlestock
Slide 33: Annexes
Annexes
Slide 34: Consolidated Income Statement
Consolidated Income Statement Consolidated Income Statement (in NOK) 3Q2023 2Q2023 QoQ 3Q2022 YoY 9M2023 9M2022 YoY 9M23 Pro-forma Operating income Other operating income 21 685 092 24 305 486 -11 % 11 591 632 87 % 62 590 924 32 887 454 90 % 70 635 251 Total operating income 21 685 092 24 305 486 -1
Slide 35: Consolidated Balance Sheet
Consolidated Balance Sheet Consolidated Financial Position (in NOK) 30.09.2023 31.12.2022 Consolidated Financial Position (in NOK) 30.09.2023 31.12.2022 ASSETS EQUITY Intangible assets Paid-in capital Research and development 68 256 805 35 770 453 Share capital 322 799 257 278 Goodwill 135 875 714 5
Slide 36: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Consolidated Statement of Cash Flows (in NOK) 9M 2023 2022 Cash flows from operating activities Profit (loss) before tax -45 961 133 -33 554 175 Depreciation and amortisation 35 360 193 18 408 001 Changes to accounts receivable -4 088 135 -1 965 741 Changes to accoun
Slide 37: Full disclaimer
Full disclaimer This presentation has been prepared by Huddlestock Fintech AS (the Huddlestock) solely for the use at the presentations to investors held in connection with the presentation of the past results of the certain period and anticipated future performance. This presentation is being made
Slide 38: Full disclaimer continued
Full disclaimer continued Any statement, estimate or projections included in this presentation (or upon which any of the conclusion contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the con
Slide 39: Investor relations contacts
Investor relations contacts: John E. Skajem Chief Executive Officer John.skajem@huddlestock.com +47 418 87 412 Leif Arnold Thomas Award-winning platform Chief Corporate Development & IR Leif.thomas@huddlestock.com +47 982 15 520 Listed on Images & Photography: unsplash.com and pixabay.com Icons: fla
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