Huddlestock Fintech

Earnings Release • Aug 29, 2024

Huddlestock - Q2 and H1 2024: Taking steps in the right direction

Huddlestock - Q2 and H1 2024: Taking steps in the right direction

29.8.2024 07:00:00 CEST | Huddlestock Fintech AS | Additional regulated

information required to be disclosed under the laws of a member state

Huddlestock Fintech AS ("Huddlestock") reports total operating income of NOK 18

million for the second quarter, compared to NOK 20 million in the first quarter

2024. Staffing changes resulted in a weaker quarter for Consulting, while

Investment-as-a-Service saw a healthy 7% organic revenue increase. Personnel

costs were reduced 14% compared to the first quarter 2024 while other Operating

expenses saw an increase related to financing and restructuring activities set

to force in the period. This resulted in a negative EBITDA of NOK 6 million for

the second quarter 2024.

In 2023, Huddlestock completed three acquisitions and one divestment resulting

in significant changes to its business model. In the first quarter 2024, a new

CEO and CFO roles were established setting into force initiatives for cost

control and cost reduction which are expected to show visible effects in the

second half of 2024 and into 2025. Coupled with enhanced sales activities and

technology development and integration from acquisitions, the company has a

short-term ambition of turning EBITDA-positive.

"We are taking steps in the right direction" says Leif Arnold Thomas, CEO of

Huddlestock. "As we are confident in our technology and market, we are still in

a transition phase of streamlining and consolidation to unlock Huddlestock's

full potential. Effects of the hard work laid down in the first half of the year

is expected to become visible in the second half 2024 and into 2025."

Huddlestock will continue to defend its unique position with the only end-to-end

Investment-as-a-Service offering. The company operates in a self-reinforced

growth market defined by more investors, evolving preferences, and more

investment platforms. By gradually consolidating technology from its

acquisitions to one platform and making the offering available in existing

geographical markets, the company enables up- and cross-selling to an existing

combined customer base while attracting new customers. Beyond its existing

markets, the company sees a major market opportunity in Europe and particularly

Germany where it continues to pursue opportunities which can enable an

accelerated market entry.

For the first half year, total operating income amounted to NOK 39 million. This

was a decrease from NOK 46 million in the first half 2023, in large related to

the strategic divestment of Huddlestock solutions in Q4 2023 which contributed

to NOK 9 million of revenue in the first half 2023. EBITDA for the first half of

2024 came in at negative NOK 9 million, compared to negative NOK 4 million in

the same period last year.

At period end, the company had a cash position of NOK 10 million and continues

its work to identify potential financing partners to support its strategy

including non-organic growth.

Presentation and Q&A

Huddlestock's Chairman of the Board, Øyvind Hovland, and the CEO Leif Arnold

Thomas, will host webcast presentations of the results in Norwegian and English

today, followed by Q&A sessions (10:00 CEST in Norwegian / 12.00 CEST in

English).

To participate, please register your interest with

investorrelations@huddlestock.com

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* Leif Arnold Thomas, Chief Executive Officer, Huddlestock Fintech AS, +47 982

15 520, leif.thomas@huddlestock.com

ABOUT HUDDLESTOCK FINTECH AS

Huddlestock is an innovative technology software provider through its

Investment-as-a-service offering, with full operational service support and a

leading financial Consultancy services business. We deliver innovative and

sustainable technology and operational solutions to companies offering financial

products and services.

Find out more at huddlestock.com - https://www.huddlestock.com/

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/18218092/4907/Download%20announce

ment%20as%20PDF.pdf

Huddlestock - Q2 and H1 2024 Presentation_FINAL.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/18218092/4905/Huddlestock%20-%20Q

2%20and%20H1%202024%20Presentation_FINAL.pdf

Huddlestock Fintech AS - Second quarter and first half 2024 report_FINAL.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/18218092/4906/Huddlestock%20Finte

ch%20AS%20-%20Second%20quarter%20and%20first%20half%202024%20report_FINAL.pdf