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

Attachments

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

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