Huddlestock Fintech AS (OSE: HUDL) – Huddlestock Fintech AS Q4 2022 Financial Report

by James · February 23, 2023

23.2.2023 08:09:34 CET Huddlestock Fintech AS Additional regulated information that must be published according to the laws of a member state

Huddlestock delivers growth and is well prepared to enter a new boost in commercial activity

Stavanger, Norway, 23 February 2021 – Huddlestock Fintech AS, a provider of innovative technology solutions to the capital markets, treasury and asset management industries, today published its unaudited financial report for the fourth quarter and full year 2022.

In 2022, Huddlestock Fintech delivered pro forma revenues of NOK 16.19 million in the fourth quarter, resulting in full year NOK 61.60 million, an improvement from 2021 of NOK 20.05 million, or +48% YoY, after have included F5 IT and Tracs for the entire year 2022.

Group revenues were NOK 13.16 million in the fourth quarter, and NOK 46.05 million for the full year 2022, an improvement from 2021 of NOK 22.69 million, or +97% year on year.

2022 was another year of growth and progress for Huddlestock. The company continues to see great interest from our pan-European customers and partners. Our technology solution is live with thousands of customers, executing trades and expanding assets under management. The company is in a strong position and wants to add new relationships in the months and years ahead. In the consulting business, Huddlestock enjoys solid demand, and has added new prime clients to its engagement list. While technology was affected by the events in Ukraine and the reorganization in Germany at the beginning of the year, we have seen a marked acceleration in demand for our technology solutions and tailored software, and the team secured several large mandates at the end of the year. The Investor Services division has also added new clients and enjoys strong demand for its services. We are excited for 2023 and expect this to be a year of transformation that includes more new products, new geographical locations and more new customers.

– The company is working hard in all areas and a good foundation has been established for further growth in 2023 and beyond. The work on next-generation technology solutions is going according to plan and will be launched in the last part of H1. We plan to demonstrate our range of products and services at our annual general meeting to be held on 1 June 2023 in Stavanger, says John E. Skajem, CEO of Huddlestock Group.

Huddlestock’s consulting business continues to deliver strong revenues, with NOK 10.51 in the fourth quarter of 2022 and NOK 39.20 million for the full year 2022. Long-term customer commitments, and three large framework agreements entered into in the fourth quarter, confirm the strength of the consulting franchise. Looking into 2023, the team has added a few more products to serve the banking industry, and there is good visibility into existing and new customer contracts.

Within Huddlestock Technologies, Europe’s leading Banking-as-a-Service provider embedded Huddlestock’s Trade Tech solution into its service offering, and the first platform client went live during the second half of 2022. The Huddlestock technology has been validated and is running smoothly as expected . Furthermore, our software developers continue to work on existing customer deliveries and onboarding, as well as bringing in new customer mandates. During the fourth quarter, the team signed 2 significant mandates.

Technology, consisting of several dedicated and first-class developers and commercial colleagues, delivered total technology-related revenues of NOK 7.41 million in 2022, up from NOK 2.45 million in 2021, confirming the path to profitable revenue growth within our technology franchise.

In 2022, the Huddlestock group delivered a consolidated turnover of NOK 46.1 million, +97% YoY, after including F5 IT since the acquisition on 1 May 2022. EBITDA was NOK -14.0 million, as the group scales up the organization and continues investing in our technology suite adds talent and prepares for growth in future customer deliveries. Proforma revenues for the full year 2022 were NOK 61.6 million +48% year-on-year.

The company continues to see strong demand for Huddlestock’s trading and wealth technology solutions, technology services and consulting services across our product line, and signed new major framework agreements during the quarter. We expect to crystallize multi-year synergies on both the revenue and cost side from our recent acquisitions and remain committed to delivering on our medium-term target of NOK 200 million in revenue. The group has a strong balance sheet with equity of NOK 121.0 million.

During the second half of 2022, 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 Reg Tech and Investor Services organization for the investment and wealth management industry, is being planned and we are currently awaiting final approval from the Norwegian Financial Supervisory Authority. At the end, Njord Group will invest a further NOK 5 million in Huddlestock Fintech, which takes their share of ownership to close to 8.26%.

“With our acquisition of Tracs, we will have 68 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 12.00 in English. To access the presentation, please contact Investor Relations.

Please find the presentation material for the fourth quarter and year 2022 attached.

For questions, please contact investor relations.

CONTACTS:

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

This information is considered inside information according to the EU’s market abuse regulation and is subject to the disclosure requirements according to § 5-12 of the Securities Trading Act. The stock exchange announcement was published by the contact person on the date and time stated above.

To view all press and investor releases, please take a look in the investor relations section of our corporate website www.huddlestock.com/investor-relations

About Huddlestock Fintech:

Huddlestock Fintech delivers innovative technology solutions to the capital markets, finance and wealth 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 on 26 November 2020, as Norway’s first fintech company to be listed on the stock exchange.

For more information, please visit www.huddlestock.com

Disclosure regulations

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

Contacts

John E. Skajem, CEO, +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.

For more information, please visit www.huddlestock.com

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