Huddly As · OSL:HDLY
Huddly As — Q3 2024 Earnings Presentation
19 slides from Huddly As's earnings presentation, Dec 5, 2024
Slide 1: Q3 2024 Results
Q3 2024 Results th 5 December 2024
Slide 2: Revenue low point reached, promising signs of sales growth
Revenue low point reached. However, promising signs of sales growth and path to historical profitability Increased adoption Microsoft buys and endorses Launch of new products adding New strategic partner signed of Huddly Crew Huddly’s AI technology audio to the portfolio ▪ Significant accelerated up
Slide 3: Summary Q3 2024
Summary Q3 2024 Revenue and Gross Margin Q3 2024 results: NOK million ▪ Revenue of NOK 26 million and Gross Margin of 40%. Underlying Gross Margin of 52% excluding accrual for one-off scrapping of components Revenue low point, but promising signs of growth: ▪ New strategic partner signed: Earlier re
Slide 4: Huddly Crew: A new category of multi-camera systems
Huddly Crew: A new category of multi-camera systems Imagine a live video crew producing your meetings… The solution: Huddly Crew and AI technology Huddly AS, Q3 2024
Slide 5: Huddly Crew is a flexible plug and play platform
Huddly Crew is a flexible plug and play platform, enabling expansion into attractive market segments >60 kUSD 2025/26 Room budget 30-60 kUSD Shipping since Q3-24 10-30 kUSD Shipping since Q2-23 5-10 kUSD Shipping since Q3-21 Small: 3-6 people Medium: 6-9 people Large: 9-14 people Very large: >14 peo
Slide 6: Significant acceleration in adoption of Crew throughout 2024
Significant acceleration in adoption of Crew throughout 2024 Kits sold per quarter Market validation with increasing average order size re it ith ca eras re add on ca era Average number of Crew kits sold per order* Purchase order examples Q3-24: 17 kits from a large customer in Canada (government se
Slide 7: New strategic partner
New strategic partner News media snippet Comments ▪ As announced in stock exchange notice on the 29th October: New strategic partner signed with revenue and cash effect from Q1 2025 ▪ Timing of revenue impact accelerated to Q4 2024, as purchase orders have been placed earlier than first forecasted ▪
Slide 8: Microsoft partners with Huddly to transform meeting experiences
Microsoft partners with Huddly to transform meeting experiences ▪ Microsoft has chosen Huddly Crew to enhance collaboration in large meeting spaces at its Redmond Headquarter ▪ With Edge AI and scalable technology, it ensures inclusivity for all participants and supports Microsoft's vision for flexi
Slide 9: Product roadmap: A complete video and audio solution
Product roadmap: A complete video and audio solution Video: Video + Audio: Video + Audio: Multi-camera solution Complete solution for small-medium rooms Complete solution for all rooms 2024 2025 2026-27 Huddly Crew Huddly Crew+ Videobar (introducing Feb 25) Huddly Crew+ Satellite device (modularity)
Slide 10: The next step towards a complete solution to be introduced in February 2025
The next step towards a complete solution to be introduced in February 2025 The new Huddly Crew+ videobar ✓ Huddly Machine Learning Audio: Clear audio capture and optimal sound quality ✓ Leading AI video experience ✓ All-in-one, ready-to-deploy system ✓ Can be connected with Huddly Crew ✓ Enabled fo
Slide 11: Financials
Financials Huddly AS, Q3 2024
Slide 12: Disappointing sales, but strong leading indicators into 2025
Disappointing sales, but strong leading indicators into 2025 Revenue development and split NOK million, % of total revenue Revenue of NOK 26 million resulting in 34 % decrease compared to Q2 2024 ▪ Sales to hannels decreased by % co pared to ’ , % and decreased by 5 % s. ’ % o Unsatisfactory results
Slide 13: Underlying gross margin in Q3'24
Underlying gross margin in ’ o Gross margin (%) development 5 % % % % ▪ ’ gross argin includes a one-off increase % % in COGS of NOK 3.0 million related to accrual Underlying Q2’23 % % % gross margin of 50 %, excluding release of one-off sales provision Underlying Q3’24 > for scrapping of components
Slide 14: Summarized profit and loss
Summarized profit and loss Condensed profit & loss statement NOK million ▪ Revenue decline mainly due to weak sales from strategic partners. Expected to increase in 2025 Q3 2024 Q3 2023 Change YTD Sep 24 YTD Sep 23 Change with a new and recently signed distribution Revenue 25.8 58.1 -56% 97.9 166.5
Slide 15: 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 20 million in Q3 2024. 7% reduction compared to Q3 2023, but in line with capitalization in previous quarters ▪ ontinued in est ents to defend Huddly’s leading > technological posit
Slide 16: Q3 2024 cash flow
Q3 2024 cash flow Cash flow NOK million ▪ Cash flow from operations of NOK -30 million co pared to NO + 5 illion in ’ ▪ Cash flow from investments of NOK -20 million mainly related to capitalized R&D cost > ▪ Cash flow from financing activities of NOK -9 million ▪ Other changes related to currency t
Slide 17: Outlook and financing
Outlook and financing ▪ Huddly’s a bition is to return to positi e cash flo towards end of 2025 ▪ Cash flow positive in full-year 2026, and strong cash generation in 2027 ▪ Contemplating equity issue of NOK 130 million in a private placement, to bridge the company to cash flow positive Huddly AS, Q3
Slide 18: Q&A
Q&A Questions may be submitted to: ir@huddly.com Huddly AS, Q3 2024
Slide 19: Slide 19