Earnings Call: Q1 2021

Apr 15, 2021

Summary

Q1 revenue was NOK 500,000, while software customization and client onboarding contributed to a NOK 1.8 million operating loss. Most named partner contracts were expected to go live in Q2, despite pandemic-related commercial delays.

We are delighted to welcome you to the Q1 2021 earnings release statement by Huddlestock Fintech's CEO, John Skajem. For additional information, we refer you to the investor relations section on Huddlestock's corporate website. Good morning, ladies and gentlemen. This is John Skajem. I am the CEO of Huddlestock, and today we have released our unaudited financial report for the first quarter of 2021. I will only make a brief statement this morning. Due to the ongoing health pandemic and government restrictions, I am delighted to talk to you today from my home office. I am looking forward to seeing you all in person very soon. We are pleased with our progress year to date. In line with our strategy, we continue to grow our client list. While the ongoing health pandemic has caused some delay to our commercial development plans, we are delighted that our partnerships with BNP Paribas, Baader Bank, MHX, Donau Capital, Pecunia, and Tradegate are progressing well, and we expect the majority of these contracts to go live during Q2 of this year. I would like to highlight a few points in the Q1 report. Operating revenue for the quarter was 500,000 NOK. This is up from 225,000 NOK for the full year of 2020. Operating expenses came in at 2.3 million NOK, which is leading us to an operating loss for the quarter of 1.8 million NOK. This compares to an operating loss of 12.4 million NOK for all of 2020. The expenses in Q1 were predominantly driven by investments in customization of the software in conjunction with the onboarding of new contracted clients. Q2 has started well with a strong pipeline of new letters of intent and contracts to be signed for both Bedrock and Apex solutions. We continue to focus on growing our global footprint. These are exciting times for Huddlestock, both from a commercial perspective as well as strategic. We are very much looking forward to the next steps in our journey. Thank you for your support thus far and hope you will continue to support us on the exciting journey ahead. Thank you for listening and have a great day.