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Huddly AS (OB:HDLY) reported NOK 45 million in revenue for Q1 2025, representing a 37% increase compared to the same period last year, according to the company’s quarterly presentation delivered on May 15, 2025. Despite the strong year-over-year performance, the Norwegian video collaboration technology provider faces increasing market uncertainty from tariffs and volatile trade conditions.
Quarterly Performance Highlights
Huddly’s Q1 2025 results showed significant improvement over the previous year, with revenue increasing from NOK 33 million in Q1 2024 to NOK 45 million. This growth was primarily driven by a 55% increase in channel sales compared to the same period last year. The company also maintained a healthy gross margin of 53%, up from 48% in Q1 2024.
As shown in the following chart of quarterly revenue and gross margin trends:
While the year-over-year comparison is positive, the sequential comparison shows a decline from Q4 2024’s revenue of NOK 51 million and gross margin of 59%. This sequential decline may reflect seasonal patterns and the impact of increasing market uncertainty.
The company’s CFO Abhijit Banik noted during the presentation that Huddly has implemented annual cost savings of NOK 12 million, which will take full effect from May 2025. These cost-cutting measures include a reduction in workforce, with full-time employees decreasing from 109 to 86.
Strategic Initiatives and Partnerships
A key highlight of the quarter was the global rollout of Huddly Crew at Microsoft (NASDAQ:MSFT), which began in Q1 and continues in Q2. Microsoft selected Huddly Crew for its large meeting spaces, supporting the tech giant’s vision for flexible, next-generation hybrid workspaces.
As illustrated in the Microsoft partnership slide:
Sam Albert, Principal Product Manager at Microsoft, praised the solution: "Huddly Crew is easy to install. It comes straight out of the box," highlighting the product’s user-friendly nature that aligns with Microsoft’s needs for scalable meeting room solutions.
Another significant strategic development was Shure’s launch of a portfolio of four Huddly-powered IntelliMix room kits in Q1. These kits combine Shure’s audio expertise with Huddly’s AI-powered video solutions, creating comprehensive offerings for different meeting room sizes.
The channel sales and strategic partner revenue breakdown shows the following trend:
CEO Rósa Stensen emphasized that strategic partner revenue is expected to "substantially increase throughout 2025," suggesting that the Microsoft and Shure partnerships will drive future growth.
Product Roadmap and Innovation
Huddly presented an ambitious product roadmap aimed at delivering a complete video and audio solution. The company is preparing to launch the Huddly C1, a new AI-driven videobar, at the InfoComm 2025 trade fair in June.
The product roadmap illustrates Huddly’s strategic direction:
The Huddly C1 videobar features 20x more AI processing power than previous models, a modular design, and advanced audio capabilities. The launch will be conducted in cooperation with Lenovo and Microsoft, with a global rollout plan that includes roadshows in Europe and the United States.
As detailed in the launch timeline:
Andrea Recupero, Director EMEA Smart Collaboration at Lenovo, was quoted in the presentation expressing enthusiasm about the partnership, further validating Huddly’s strategic direction.
Financial Analysis
Huddly’s financial position shows signs of improvement despite ongoing challenges. The company reported a cash balance of NOK 93 million as of March 31, 2025, bolstered by an oversubscribed offering that raised gross proceeds of NOK 25 million in March.
The cash flow chart illustrates the company’s financial movements:
R&D investments remained substantial at NOK 20 million in Q1 2025, representing a 7% increase compared to Q1 2024. The company maintains a team of 61 engineers, including approximately 45 with expertise in AI, machine learning, and software development.
Huddly’s gross margin performance has been relatively stable:
Forward-Looking Statements and Market Challenges
Huddly maintains that it is delivering according to its business plan, focusing on growing strategic partner and channel revenue, maintaining healthy gross margins, and implementing disciplined investments and cost control. The company aims to return to positive cash flow towards the end of 2025.
However, the presentation acknowledged increased uncertainty due to macroeconomic volatility and tariffs. The United States has imposed significant tariffs on imports from China and other Asian countries, affecting Huddly’s supply chain and distribution partners. With the Americas representing approximately 56% of 2024 revenue, these tariffs pose a material risk.
In response, Huddly has raised prices for US end-customers while maintaining its margins. Nevertheless, the company noted that "overall market uncertainty is significantly affecting customer investment decisions," which could impact future sales.
The company also announced the conclusion of its strategic review process, which was initiated following interest from a global industrial player. The Board has decided to end the review, stating that "a transaction is not anticipated in the near term," likely due to the increased market uncertainty.
Despite these challenges, Huddly remains focused on its growth strategy, with ambitions to significantly expand revenue while maintaining healthy margins through 2027. The success of this strategy will depend largely on the company’s ability to navigate market uncertainties while capitalizing on its strategic partnerships and product innovations.
Full presentation:
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