Huddly As · OSL:HDLY
Huddly As — Investor Presentation (December 2024)
36 slides from Huddly As's investor presentation, December 2024
Slide 1: Empowering Human Collaboration
Empowering Human Collaboration Huddly Company Presentation December 2024 Huddly AS 2024 ©
Slide 2: Important information and disclaimer (1/2)
Important information and disclaimer (1/2) This presentation (the "Presentation") has been prepared by Huddly AS (the "Company" and, together with its subsidiary, the "Group"), with the assistance of Pareto Securities AS (the "Manager"), solely for information purposes to potential investors in conn
Slide 3: Important information and disclaimer (2/2)
Important information and disclaimer (2/2) This Presentation speaks as at the date set out on its front page. Neither the delivery of this Presentation nor any further discussions between any of the Company or the Manager with the Recipient shall, under any circumstances, create any implication that
Slide 4: Summary of risk factors
Summary of risk factors Risks related to the Group and the industry in which the Group operates ▪ The Group is exposed to the risk that counterparties are unable to fulfil their obligations ▪ The Group faces risks related to going concern ▪ Existing NOK 55.5 million shareholder loan with pledge in I
Slide 5: Investment highlights: Positioned for comeback
Investment highlights: Positioned for comeback 1 2 3 Positioned for revenue growth Positioned for product leadership Positioned for M&A and profitability ▪ Accelerated market adoption of Huddly ▪ Global Strategic partner recently signed with ▪ Strategic review announced in November Crew: Two purchas
Slide 6: Products powered by a unique combination of technology capabilities
Products powered by a unique combination of technology capabilities Huddly technology platform Result and benefit UX and design Engaging video meetings edited in real time to seamlessly capture all participants, verbal and non-verbal communication AI and machine learning Understanding human communic
Slide 7: Product portfolio: From single- to multi-camera solutions
Product portfolio: From single- to multi-camera solutions Product awards 2017 2018 2019 2020 2021 2022 2023 2024 Huddly Crew Continuous Medium to large meeting rooms software upgrades Brings TV and movie magic to your video meetings Huddly L1/S1 Small, medium and Continuous software upgrades large m
Slide 8: 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 8 December 24 Huddly AS 2024 ©
Slide 9: 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 Meeting room budget 2025/26 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:
Slide 10: 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 11: A complete solution enhances product-market fit
A complete solution enhances product-market fit 1 2 3 4 Customers prefer Solve audio customer pain points Simplified distribution Increased share of wallet complete solutions End- Huddly Distributors Resellers customers Customers increasingly value… ▪ Bad audio quality is a major source of ▪ No need
Slide 12: Touching inflection point with appealing growth outlook
Touching inflection point with appealing growth outlook Adoption curve | Percentage adoption ~11 billion USD global market 2029 100 million meeting rooms No more than 10-15% of meeting rooms are ~4 billion USD global market equipped with video 2024 conferencing Frost & Sullivan Early Early Late Inno
Slide 13: Diversified market approach: Channel and Strategic partners
Diversified market approach by strengthening Channel and repeating past success with Strategic partners Top priority on how to return Historical revenue (MNOK) shows potential with Strategic partners to positive cash flow trategic partners Channel Increased revenue, representing roughly 50% of total
Slide 14: Large industrial ecosystem – many partner opportunities
Large industrial ecosystem – many partner opportunities MAJOR INTEGRATORS: AUDIO SPECIALISTS: ECOSYSTEM PLAYERS: POSSIBLE PARTNERS Large players integrating videoconferencing equipment Have expanded their offering vertically into (e.g., cameras) into complete solutions videoconferencing devices, typ
Slide 15: Leveraging existing and new products to establish new Strategic partnerships
Leveraging existing and new products to establish new Strategic partnerships Strategic partners Existing New and signed Pending Generating pull Confidential Distributor agreement Existing offering New offering signed in Oct 24 with Confidential Top management priority. a leading global industry Work
Slide 16: 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 17: Channel strategy: Driving sales growth through partnerships
Channel strategy: Driving sales growth through partnerships with distributors and resellers Generate pull-demand Huddly Distributors Resellers End-customers Example partners Example partners Sales Team USA Large enterprises Sales Team EMEA Education Sales Team APAC Government ✓ Close proximity and r
Slide 18: Channel strategy: Building out sales hubs in key markets
Channel strategy: Building out sales hubs in key markets ▪ A particular strong focus on the US market: Successful establishment of hub in New York, model to be scaled to Austin (Texas) ▪ North America represents ~40% of a USD 4 billion global Potential Established hub in market of meeting room devic
Slide 19: Revenue low point reached, path to historical profitability
Revenue low point reached, we see promising signs of sales growth and path to historical profitability Key historical performance (MNOK) Comments evenue perating cash flow Gross margin ▪ Proven ability to generate positive cash flow ▪ Due to relatively high fixed cost base, the company generated sig
Slide 20: 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 Crew it with x cameras Crew add on camera Average number of Crew kits sold per order* Purchase order examples Q3-24: 17 kits from a large customer in Canada (govern
Slide 21: Continuing to optimize cost to maximize ROI
Continuing to optimize cost to maximize ROI Organization has streamlined over the past years Further cost reduction measures ▪ Disciplined cost control: Planning to reduce annualized total cost by approximately 12 MNOK from 2025 ▪ Cost reduction is estimated to have limited impact on product develop
Slide 22: Business plan and ambitions
Business plan and ambitions Strategic focus Priorities and plan Growth ambitions (MNOK) 1 Channel revenue trategic partner revenue Gross margin total Grow channel Leveraging Strong alignment ~ 50% ~ 47% Grow Strategic partner revenue by focusing existing and future with Microsoft for ~ 650-700 sales
Slide 23: Huddly has several attractive strategic characteristics
Huddly has several attractive strategic characteristics 1 2 3 4 Technology capabilities and IP Product offering and bundling Scale and gross margin expansion SaaS and software monetization Gross profit C G evenue Added competitive edge and Strengthening or creating a complete Attractive gross margin
Slide 24: Sources and uses
Sources and uses ▪ The size of the offering is based on the Board’s best understanding of Uses the financial development and liquidity projections going forward and is deemed sufficient to bridge the capital requirement into 2025, and Bridge deficit until cash flow positive approximately towards end
Slide 25: Share capital and largest shareholders
Share capital and largest shareholders Top 25 shareholders as of 31st October 2024 Share capital Rank Shareholders Shares Shares % ▪ Before the private placement, Huddly AS has 536,328,048 shares with a par value of NOK 0.000625, 1 G&J WILLIAMS PROPERTY PTY LT 52,024,194 9.70 providing a total share
Slide 26: Interim consolidated statement of profit or loss Q3-2024
Interim consolidated statement of profit or loss Q3-2024 Amounts in NOK 1,000 (unaudited) Note Q3 2024 Q3 2023 YTD Sep 2024 YTD Sep 2023 2023 Sales of goods 3 25,779 58,145 97,901 166,540 210,722 Total revenue from sales of goods 25,779 58,145 97,901 166,540 210,722 Cost of goods sold (15,356) (30,1
Slide 27: Interim consolidated statement of financial position Q3-2024
Interim consolidated statement of financial position Q3-2024 Amounts in NOK 1,000 (unaudited) Note 30 Sep 2024 30 Sep 2023 31 Dec 2023 Amounts in NOK 1,000 (unaudited) Note 30 Sep 2024 30 Sep 2023 31 Dec 2023 ASSETS EQUITY AND LIABILITIES Equity (condensed) Non-current assets Shareholder's equity 29
Slide 28: Risk factors (1/8)
Risk factors (1/8) Investing in the Shares involves inherent risks. Before making an investment decision, investors should carefully consider the risk factors and all information contained in this Presentation. The risks and uncertainties described herein are the principal known risks and uncertaint
Slide 29: Risk factors (2/8)
Risk factors (2/8) 1.1.5 The Group depends on existing Strategic partners One of the Group's go-to-market models is a Strategic partner model, where the Strategic partner bundles the Group's products and services with its own products and services for onwards sales to its own customers. The Group cu
Slide 30: Risk factors (3/8)
Risk factors (3/8) 1.1.9 The Company may not be successful in attracting and retaining sufficiently skilled employees, inter alia due to possible lay-offs caused by its financial condition The Group's operations depend highly on its ability to retain or replace its founders, management, certain high
Slide 31: Risk factors (4/8)
Risk factors (4/8) 1.1.13 Risk relating to the use of open-source code The Group uses open-source code in parts of the software distributed with its products. When using open-source code, it is on condition of full compliance with the terms of the relevant open-source licenses. Given the scope and c
Slide 32: Risk factors (5/8)
Risk factors (5/8) Any failure to comply with data protection and data privacy policies, privacy-related obligations to customers or third parties, privacy-related legal obligations, or any compromise of security that results in an unauthorized release, transfer or use of personally identifiable inf
Slide 33: Risk factors (6/8)
Risk factors (6/8) 1.3.5 The Group is exposed to foreign currency exchange risk Because a significant part of the Group's business is conducted in currencies other than its functional reporting currency (NOK) and the Group has its majority of annual revenue in contracts denominated in foreign curren
Slide 34: Risk factors (7/8)
Risk factors (7/8) 1.4.5 Pre-emptive rights to subscribe for Shares in additional issuances could be unavailable to shareholders in the United States or other countries Under Norwegian law, unless otherwise resolved at the Company's general meeting of shareholders, existing shareholders have pre-emp
Slide 35: Risk factors (8/8)
Risk factors (8/8) 1.4.11 The Company is subject to the regulations for shares listed at Euronext Growth Oslo which may deviate from the regulations for securities trading on Oslo Børs or Euronext Expand, and which may imply a risk of lower degree of transparency and minority protection Generally, a
Slide 36: DRAFT
DRAFT Huddly AS 2024 ©