In This Article:
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Revenue: NOK39 million for Q2 2024, an increase of 18% compared to Q1 2024.
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Gross Margin: 39% for Q2 2024, with an underlying gross margin of 43% excluding one-off items.
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Channel Sales Growth: Increased by 27% compared to Q1 2024 and by 2% year-on-year.
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Cash Balance: NOK105 million as of June 30, 2024.
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Cost Reduction: Total cost base reduced by 15% year-on-year on a cash cost basis.
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R&D Investment: Capitalized R&D was NOK9 million for Q2 2024.
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Cash Flow: Negative NOK25 million from operations, minus NOK10 million from investments, and minus NOK8 million from financing for Q2 2024.
Release Date: August 22, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Huddly AS (OSL:HDLY) reported a 27% increase in sales to channels compared to the first quarter of the year.
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The establishment of a New York sales hub led to a 25% increase in channel revenue in the Americas year-on-year.
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A US patent was granted for Huddly Crew as an autonomous video conferencing system, highlighting the company's innovation capabilities.
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The company maintains a strong cash balance of NOK105 million as of June 30, 2024.
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Huddly AS is focusing on innovation and technology leadership, with plans to scale its sales model to Austin, Texas, in the second half of the year.
Negative Points
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Strategic sales remain challenging, with a significant decline compared to the same quarter last year.
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Gross margin declined to 39% in Q2, partly due to a one-off expense related to price protection for distributors.
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The company experienced a 15% year-on-year reduction in total cost base, indicating potential financial strain.
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There is a high degree of volatility and unpredictability in the market, leading to the withdrawal of financial guidance.
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Cash flow statements show a decrease in cash balance from NOK154 million at the end of March 2024 to NOK105 million at the end of June 2024.
Q & A Highlights
Q: Why is Huddly planning to establish a hub in Austin, Texas, instead of the West Coast? A: Rosa Stensen, CEO: The US market is stabilizing, and our New York hub has increased sales in the Americas by 25% year-on-year. Austin, Texas, is strategically chosen due to the trend of large corporations moving their campuses to the South and Southeast. Its central location in the US offers great reach, and we will maintain a sales presence on the West Coast.
Q: Can you elaborate on the strategic review development? A: Rosa Stensen, CEO: The strategic review is progressing well, and the Board expects to conclude it within a few months. The review aims to explore opportunities for growth and strategic partnerships.