Huddly As · OSL:HDLY
Huddly As — Q1 2024 Earnings Presentation
20 slides from Huddly As's earnings presentation, May 8, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results Presented by CEO, Graham Williams CFO, Abhijit Banik th 8 May 2024
Slide 2: Key highlights Q1 2024
Key highlights Q1 2024 Revenue and Gross Margin Q1 2024 results: NOK million • Gross Margin of 48 % compared to 38 % in Q4 2023, and in line with guidance of ~50% for full year • Revenue of NOK 33 million, compared to NOK 44 million in Q4 2023 Channel sales improvement - strategic partner sales stil
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. Managing costs with technology through re-focusing innovation on Channel sales Product led growth through Increase revenue base Monetization of software Managing cost without continued R&D inv
Slide 4: Re-focused go-to-market and sales strategy
Re-focused go-to-market and sales strategy CONCEPTUAL ILLUSTRATION Strategic partners: Upside Strategic partners: Revenue Revenue Vulnerable to fluctuations Channels: Strong, predictable and highly profitable run-rate business Channels: Secondary focus Time Time Reducing customer concentration by sh
Slide 5: Channel strategy: Enabling our value chain partners for success
Channel strategy: Enabling our value chain partners for success 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 relations with ✓ Improved eng
Slide 6: Channel strategy: Building out sales hubs in key markets
Channel strategy: Building out sales hubs in key markets EXAMPLE • The US is a key market for Huddly • North America represents ~40% of a USD 4-5 billion global market of meeting room devices (source: Frost & Sullivan) • Numerous Fortune 1,000 companies and other highly Potential future hub Establis
Slide 7: Channel strategy: Joint marketing efforts with selected key partners
Channel strategy: Joint marketing efforts with selected key partners Example: Leveraging GTM strength and reach of partners to drive sales of Huddly Crew • I E w d’ d B B f AV d systems integration industries • Held in Barcelona, 30th January to 2nd February • 800 customer and partners participating
Slide 8: Channel strategy: Alignment with Microsoft
Channel strategy: Alignment with Microsoft WHAT? Huddly is actively engaging with Microsoft to ensure that our product development is aligned with their priorities SO WHAT? Microsoft Teams is the leading collaboration platform, and a prominent voice in how the future of hybrid collaboration is shape
Slide 9: The strategic review is still ongoing
The strategic review is still ongoing • As announced in the Q3 2023 presentation, a strategic review was initiated after receiving interest from a global industrial player • The process is still ongoing • Further update will be provided at the appropriate time • The Board of Directors is assisted by
Slide 10: Financials
Financials Huddly AS, Q1 2024
Slide 11: Revenue development
Revenue development Revenue development and split NOK million, % of total revenue Revenue of NOK 33 million resulting in a 25 % decline compared to Q4 2023 • d by 7% . ’ , dd d % % by 7 % mp d ’ % % o Quarter-on-quarter reduction reflects seasonal variations in the sales cycle to distributors and en
Slide 12: Improved margins in Q1 2024
Improved margins in ’ Gross margin (%) development 7% • m f ’ %, f m % % % ’ % % % % • m f % ’ . % ’ % % • ’ d d f ~ 0% f f y • Imp m m 0 d ’ reflects the higher profitably in Channel sales as customer mix has changed Huddly AS, Q1 2024
Slide 13: Profit and loss
Profit and loss Condensed profit & loss statement NOK million Q1 2024 Q1 2023 Change 2023 Revenue 33.0 51.2 -36 % 210.7 • ’ d d d Gross profit 15.9 23.5 -32 % 100.9 headwind from the strategic partner revenue stream Gross margin 48 % 46 % 48 % Other revenue 1.5 0 100 % 1.0 • Actively addressing and
Slide 14: Reduced headcount has yielded 12% savings in personnel cost
Reduced headcount has yielded 12% savings in personnel cost Number of FTEs Payroll, incl. salaries, pension and tax NOK million nd of nd of Huddly AS, Q1 2024
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 18 million in Q1 2024 • d m d f d H dd y’ d technological position in the market o 60 engineers, with deep and extensive experience in AI, machine learning, software development and
Slide 16: Q1 2024 cash flow
Q1 2024 cash flow Cash flow NOK million • Cash flow from operations of NOK -18 million compared to NOK - m ’ • Cash flow from investments of NOK -19 million mainly related to capitalized R&D cost • Cash flow from financing activities of NOK +19 million, of NOK 28.5 million is related to equity repai
Slide 17: Outlook
Outlook Huddly AS, Q1 2024
Slide 18: Financial outlook
Financial outlook Operating profit/loss (NOK million, 2018 – 2023) Operating cash flow (NOK million, 2018 – 2023) • Proven ability to generate cash • Expecting stable cost base to meet future demand and continued product development • Financial guiding • Revenue 2024 at a comparable level to 2023. I
Slide 19: Q&A
Q&A CEO, Graham Williams CFO, Abhijit Banik Chair of the Board, Jostein Devold Huddly AS, Q1 2024
Slide 20: Slide 20