Preparing for renewed growth
Huddly's operations have been temporarily affected by the Covid-19 pandemic, as
stated in the Q1 2021 report. Q2 2021 total revenue was 64 MNOK, down 24% from
84 MNOK in Q2 2020, mainly due to indirect adverse impacts from global supply
chain tightness. 

With Huddly's leading engineering and design, Huddly is well positioned to take
continued part in the fast-growing Unified Communication and Collaboration
market. Huddly's product roadmap is being strongly received in the market.

Huddly reports Q2 EBIT at 7.8 MNOK, compared to 25.9 MNOK in Q2 2020. The gross
margin for the quarter was 54%, compared to 59% in Q2 2020. Huddly forecasts
revenue to be in the range from 400 MNOK to 450 MNOK and gross margin percentage
to be around 50% in FY 2021. 

"Huddly is in an excellent position to take advantage of the rapidly increasing
demand in the enterprise office market, even though effects of the ongoing
pandemic have affected our progress. We have continued to invest heavily in R&D,
and we already see the results. All our attention is dedicated to product
development and building a superior organization with a strong business
culture", says Stein Ove Eriksen, CEO and Co-founder of Huddly 

R&D and Product
The Huddly L1 camera is now shipping to customers and has been received strongly
in the market. The Huddly L1 is defining a new product category, as the first
software defined smart camera for large meeting rooms. Traditional large room
video conferencing cameras have motorized pan tilt and zoom, and are quite
clunky and large, while the Huddly L1 with its compact size and no moving parts
fits nicely on your screen. 

Sales
Huddly continued to increase investments in the Channels go-to-market strategy
in both EMEA and the Americas. Nils Stangnes has been appointed as Huddly's
Executive Vice President of Global Channel Sales, based in Oslo, Norway.
Huddly's Channel revenue grew 61% in Q2 2021 compared to Q2 2020. 
Crestron and Google continue to be strong partners. Companies worldwide have
experienced supply chain disturbances during 2021, due to logistical backlogs,
port congestions in the US, as well as a global semiconductor shortage. Huddly
has not had an adverse direct impact from this, as we have buffered up
components over time. However, there has been an indirect adverse impact from
strategic and channel partners, which may continue to be an uncertainty going
forward.
Q2 2021 total revenue was down 24% compared to Q2 2020, mainly due to reduced
revenue caused by indirect adverse impacts from global supply chain tightness. 
Huddly's L1 camera has been very well received by our Strategic Partners,
Distributors, Resellers and end user Customers. There is evidence that Covid-19
has affected segmentation in the videoconferencing market and increasing the
relative sizing and importance for large cameras. Software defined cameras will
be the preferred alternative versus the traditional pan-tilt-zoom cameras.
Huddly Canvas continues to be well received by the market. 

Outlook 
With Huddly's leading engineering and design, Huddly is well positioned to take
continued part in the fast-growing Unified Communication and Collaboration
market. Huddly's product roadmap is being strongly received in the market.
Huddly forecasts revenue to be in the range from 400 MNOK to 450 MNOK in FY
2021. 
Huddly forecasts gross margin percentage to be around 50% in FY 2021 and costs
to increase as Huddly accelerates investments in products, go-to-market, and
support functions to accommodate for long term growth.
Huddly sees strong signs of improvements in the enterprise office market and
believes sales opportunities into this market will increase in H2 2021 and
beyond.

See the enclosed presentation and report for further information.

About Huddly AS:
Huddly is a technology company that creates tools for team collaboration. Based
in Oslo, Norway, we combine expertise across the fields of design, hardware,
software, and artificial intelligence. The company's smart cameras are designed
to make it easier and better for people to communicate with each other. Huddly's
solutions with industry-leading partners enable high-quality video experiences
on all major collaboration platforms.

For more information, please contact:
Stein Jacob Frisch, Investor Relations, Huddly AS, mob: +47 91 61 09 11, email:
huddly@lillebyfrisch.no