Huddlestock Fintech

Earnings Release • Nov 10, 2022

Huddlestock Fintech AS (OSE: HUDL) - Huddlestock Fintech AS Third Quarter and Nine Months 2022 Financial Report.

Huddlestock Fintech AS (OSE: HUDL) - Huddlestock Fintech AS Third Quarter and Nine Months 2022 Financial Report.

10.11.2022 07:30:01 CET | Huddlestock Fintech AS | Half yearly financial reports

and audit reports / limited reviews

Stavanger, Norway, 10 November 2022 - Huddlestock Fintech AS, a provider of

innovative technology solutions to the capital markets, treasury, and wealth

management industries, today released its Unaudited Financial Report for the

Third Quarter and Nine Months 2022.

For the Third Quarter 2022, Huddlestock Fintech delivered YoY revenue growth of

73% on Consolidated Group revenues of NOK 11.59 million for the full quarter.

Group EBITDA in 3Q improved to NOK -0.83 million vs. NOK -3.61 million in 3Q

2021, based on capitalising development cost from first half 2022 of NOK 3.24

million. During the 3Q the company reduced external costs due to use of internal

talent for technology development. Proforma revenues, including all acquisitions

for the first nine months of 2022, were NOK 45.40 million +49% YoY, a strong

development since listing on Euronext Growth.

"The first nine months of 2022 was another strong and progressive period for

Huddlestock. During the third quarter an important milestone was reached for the

Company with the first clients live on a brokerage platform by Europe's leading

Banking-as-a-Service provider with Huddlestock's Trader technology at its core.

We continue to experience demand and expansion in all business segments, with a

rapid market acceleration of our proprietary technology solutions. Several more

client contracts have been signed, including a significant client focusing on

the external operating environment. Furthermore, we are in the final stages of

negotiations with several more potential new clients. I am pleased to see that

we are growing faster in technology than any other service," says John E.

Skajem, CEO Huddlestock Fintech.

The growth of Huddlestock Technologies is reflected in the numbers, with

recurring revenues of NOK 4.75 million in the first nine months of 2022, a 157%

increase on the previous year, confirming the potential for growth in recurring

revenues from our technology solutions. In the third quarter the company

achieved NOK 2.51 million in recurring tech revenues. After the live validation

of Huddlestock's technology late September, the pipeline of clients has been

growing steadily, cementing the company's position as a leading European

WealthTech.

Huddlestock's financial and technology consulting business continues to deliver

strongly with revenues of NOK 28.69 million for the first nine months, up 3%

year-on-year. For the third quarter we delivered NOK 8.84 million. Longer-term

client commitments and three major framework agreements have been signed post

the close of the third quarter, confirming the strength of our consulting

franchise despite a softening macro environment. Looking into the rest of the

year, all our consultants are fully booked for 2022, and we have good visibility

for existing client contracts into 2023.

For the first Nine Months of 2022, Huddlestock Fintech delivered revenue growth

for the group of 239% on Consolidated Group revenues of NOK 32.88 million, after

including F5 IT since acquisition 1st May 2022, and EBITDA at NOK -6.43 million,

a solid 12% improvement on the previous year. Proforma revenues including F5 IT

and Tracs for the first nine months of 2022, were NOK 45.40 million +49% YoY and

proforma EBITDA NOK -8.3 million. The group enjoys a strong balance sheet with

shareholders' equity of NOK 128.06 million.

After the close of the third quarter, we closed the acquisition of F5 IT,

issuing 6,666,667 new shares. The acquisition of Trac Services and Tracs

Technology, a full service RegTech for the Wealth Management industry, is going

according to plan and we are currently awaiting final approval from the

Norwegian Finanstilsynet. On close, Njord Group will invest an additional NOK 5

million in Huddlestock Fintech, taking their stake post-close to 8.26%.

"We are delighted to welcome a respected and long-term investor in Njord Group.

With our acquisitions we will have 67 talented colleagues in the group and are

well on our way to build an organisation for profitable growth, creating

sustainable and recurring shareholder value," says Øyvind Hovland, Chairman of

Huddlestock Fintech.

A presentation will be held at 10.00 in Norwegian and at 11.30 in English. To

access the presentation, please contact Investor Relations.

Please find enclosed the 9M and 3Q 2022 presentation material.

DISCLOSURE REGULATION

This information is subject to the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

CONTACTS

* John E. Skajem, CEO, +47 418 87 412, jes@huddlestock.com

ABOUT HUDDLESTOCK FINTECH AS

Huddlestock Fintech is an innovative technology software provider with a leading

expert professional services business. We deliver innovative and sustainable

technology solutions to the capital markets, treasury and wealth management

industries.

Through its technology offering, Huddlestock offers an innovative, compliant,

and data-centric WealthTech SaaS, accelerating the digital transformation, and

trends of hyper-personalization and on-demand banking within the wealth

management industry. Huddlestock's SaaS empowers the embedding of low-cost,

efficient white-label trading and investment services, underpinning

Huddlestock's mission of delivering financial inclusion by democratizing access

to capital markets.

Through its world-class expert professional services business, Huddlestock

delivers strategic technology solutions and process automation for the financial

services industry. This range of services has propelled Huddlestock into

becoming the preferred supplier of financial consultancy services and technology

solutions in the Nordic region. Huddlestock Fintech AS was listed on Euronext

Growth Market 26th November 2020, as Norway's first fintech company to be

publicly traded.

For more information, please visit www.huddlestock.com -

http://www.huddlestock.com/

ATTACHMENTS

Download announcement as PDF.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/1879/2542/Download%20announcement

%20as%20PDF.pdf

HUDL Q3 2022 Investor Presentation.pdf -

https://kommunikasjon.ntb.no/ir-files/17848032/1879/2541/HUDL%20Q3%202022%20Inve

stor%20Presentation.pdf