Huddlestock Fintech AS (OSE: HUDL) – Huddlestock Fintech AS Financial report for the third quarter and nine months 2022.

by James · November 9, 2022

10/11/202207:30:01 CET | Huddlestock Fintech AS | Half-yearly financial reports and audit reports / limited reviews

Stavanger, Norway, 10 November 2022 – Huddlestock Fintech ASa provider of innovative technology solutions to the capital markets, finance and wealth management industries, today released its unaudited financial report for the third quarter and nine months of 2022.

For Q3 2022, Huddlestock Fintech delivered 73% YoY revenue growth Consolidated Group income on NOK 11.59 million for the entire quarter. The group’s EBITDA in 3Q improved to NOK -0.83 million vs. NOK -3.61 million in 3Q 2021, based on capitalization of development costs from the first half of 2022 of NOK 3.24 million. During the 3rd quarter, the company reduced external costs due to the use of internal talent for technology development. Proforma revenue, including all acquisitions, for the first nine months of 2022 was NOK 45.40 million +49% YoY, a strong development since listing on Euronext Growth.

“The first nine months of 2022 were another strong and progressive period for Huddlestock. During the third quarter, an important milestone was reached for the company with the first customers live on a brokerage platform of Europe’s leading Banking-as-a-Service provider with Huddlestock’s Trader technology at the core. We continue to experience demand and expansion in all business segments, with rapid market acceleration of our proprietary technology solutions. Several more customer contracts have been signed, including a significant customer focused on the external operating environment. we are in the final stages of negotiations with more potential new customers I am happy to see that we are growing faster in technology than any other service. says John E. SkajemCEO Huddlestock Fintech.

The growth of Huddlestock Technologies is reflected in the numbers, with recurring revenue on NOK 4.75 million in the first nine months of 2022, an increase of 157% from the previous year, confirming the potential for growth in recurring revenue from our technology solutions. In the third quarter, the company achieved NOK 2.51 million in recurring technology revenue. Following the direct validation of Huddlestock’s technology at the end of September, the pipeline of clients has grown steadily, cementing the company’s position as a leading European WealthTech.

Huddlestock’s financial and technology consulting business continues to deliver strongly with earnings on NOK 28.69 million for the first nine months, up 3% from the previous year. For the third quarter, we delivered NOK 8.84 million. Long-term customer commitments and three major framework agreements have been signed after the end of the third quarter, confirming the strength of our consulting franchise despite a softer macro environment. Looking ahead to 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 group revenue growth of 239% on Consolidated Group income on NOK 32.88 millionhaving included F5 IT since acquisition 1^St May 2022, and EBITDA at NOK -6.43 million, a solid improvement of 12% from 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 pro forma EBITDA NOK -8.3 million. The group has a strong balance sheet with an equity capital of NOK 128.06 million.

After the end of the third quarter, we completed the acquisition of F5 IT, and issued 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 now awaiting final approval from the Norwegian Financial Supervisory Authority. Close up, Njord Group will invest in addition NOK 5 million in Huddlestock Fintech, taking their stake closely behind 8.26%.

“We are pleased 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 underway in building an organization 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 the presentation material for 9M and 3Q 2022 attached.

Disclosure regulations

This information is mandatory according to § 5-12 of the Norwegian Securities Trading Act.

Contacts

John E. SkajemCEO, +47 418 87 412, [email protected]

About Huddlestock Fintech AS

Huddlestock Fintech is an innovative technology software provider with a leading expertise in professional services. We deliver innovative and sustainable technology solutions to the capital markets, finance and asset management industry.

Through its technology offering, Huddlestock offers an innovative, compliant and data-centric WealthTech SaaS, which accelerates the digital transformation and trends of hyper-personalization and on-demand banking within the wealth management industry. Huddlestock’s SaaS powers the integration of affordable, efficient white-label trading and investment services, underpinning Huddlestock’s mission to deliver financial inclusion by democratizing access to capital markets.

Through its world-class professional services business, Huddlestock delivers strategic technology solutions and process automation for the financial services industry. This range of services has driven Huddlestock to become the preferred provider of financial consulting services and technology solutions in the Nordics. Huddlestock Fintech AS was listed on the Euronext Growth Market 26 November 2020as Norway’s first fintech company to be listed on the stock exchange.

For more information, please visit www.huddlestock.com

Attachments

Download the announcement as PDF.pdf
HUDL Q3 2022 Investor Presentation.pdf