Huddlestock Fintech (HUDL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues were NOK 16 million, down from NOK 17 million in Q2, mainly due to seasonal effects impacting consulting income.

• Investment as a Service (laaS) revenue grew 1% sequentially, with assets under administration up 5% and end clients up 18%.

• EBITDA was negative NOK 7 million, compared to negative NOK 6 million in Q2; net result for Q3 was negative NOK 20 million.

• Three contract expansions and a technology partnership in Germany were signed, with a new consulting client in Denmark.

• Private placement in September raised NOK 14.2 million, with NOK 4.3 million received in October; CFO resignation announced, effective year-end.

Financial highlights

• Total operating income for Q3 2024 was NOK 16 million, down from NOK 17 million in Q2, mainly due to lower consulting activity.

• Personnel costs were NOK 15 million and other operating expenses NOK 8 million, both stable or slightly down from Q2.

• Net result for Q3 was negative NOK 20 million.

• Cash position at end of Q3 was NOK 10 million, not including NOK 4.3 million from the private placement received in October.

Outlook and guidance

• Focus remains on organic growth in investment as a service, with continued upselling and new client acquisition.

• Expansion contracts and new East Capital contract expected to improve financial performance from Q4 2024.

• Company aims to accelerate sales efforts and achieve EBITDA positivity, with major growth opportunities in Germany.

• Ongoing search for financing partners to support both organic and non-organic growth.