OTMO - Earnings call transcript Q1 2022 | Otonomo Technologies Ltd.

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Operator

Good day and thank you for standing by. Welcome to the Otonomo’s First Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there’ll be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now CEO hand of would to call I Segal, Miri MS Instructions] like the to over [Operator IR. Please, go ahead.

Miri Segal

Thank for joining first thank you Welcome and results Otonomo’s financial quarter you, to XXXX call. us operator, today. conference all

anticipated Otonomo. remind materially events we discussions the that financial and in that subject the today Before uncertainties from and of statements our to forward-looking future you risks like Actual include relating statements. I differ would are begin, those results to could will to forward-looking performance future

Forward-looking today today, them. made update obligation speak statements expectations only revise as and to to of or no our we undertake publicly

Factors For a form filed of the could materially that to Otonomo’s SEC discussion factors with differ XXXX. XX, on some Risk of from any important please section risk actual statements, results the XX-F cause forward-looking March of the see

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Ben Volkow

we financial into see cars Hi, is evolving thank that for call. conference Thank Today, provide strategy. everyone, now results quarter you, and will how you insight and mobility services XXXX from Miri. Otonomo’s our we to connected joining first shaping market the

first will of the the provide Floow. a a development, and We The of quarter business acquisition high-level including recent of review summary

accessible, continued reflected mobility year-over-year elaborate as exonic believe data results net changing new QX see cases levels is believe and believe and call. we [ph]changes can will to today's emerging case Our people that that indicators, Otonomo, in platform power We unify complex capture, same used will be the leading of a those mobility data. catalyst move. in these that new I in time, mobility multilevel fair, In strong our as harnessing translate require safe. well change demand of mobility be rising, At sustainable mobility momentum joining the for key growth we Otonomo should ecosystem. later use more forever the points results. our ecosystem on customer low service cross-segment how the the mobility-related We

and That's services. can our create, ecosystem experiences So reach new Otonomo.

curated real-time or economy. and points, wall Otonomo data data et as market cetera. and up and [ph], We a and mobility highlight set we our connected cars ecosystem to to infrastructure. shaping are this, More take use platform points and data. At into related up conditions, business road we our data encompasses vehicle to mobile and see evolution where power data where What mobility what data and create shaping over platform forward. the traffic platform, it's of building complex the insight propel and technology can to is signs, it's see map strategy. are is active such XXX vehicle view acquisition and to build an infrastructure mobility broader driving services that connected historical auto insights the shape ability data, partners charging to development and micro We we But that forms phone applications. enrich them interdependencies data needed all an a describing with connected mobility the the than parcels This its from use larger visual mobility is and

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and ecosystem mobility management, segments monitoring and a management, infrastructure, and transformation specific open developed AI Today, of planning, One, platform like are autonomous customers of sectors. our enabling Three, integration curated fleet across provide we vehicle market technologies in traffic the work Here accelerate dozens our Two, insurance, mobility are the to covering platform we pace examples. few the data enable intelligence just into smart analytics. not to breadth mobility running tools spectrum, the a cars. wide range electric partners using utilization more. of of data connected and

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to address ecosystem will to mobility the segments requirements sector. mobility intelligence inside We in fast-moving enhance key the tools and continue

mobility proven the for of technology largest early The with During The by set acquisition services, provider insurance QX, the element used and our insurance companies globally. safer a a closed of major we and smarter announced We Floow in in next connected of Floow, with products the QX. successfully strategy search making carriers some of the for growth world. everyone acquisition is of the

will contribute to multiple We materially autonomous expect Floow vectors. in The success

the has year. pipeline as by Floow’s Floow will The and Floow a recurring is see the XXXX, of nature, through a revenue insurance in First, contributor cycle we the into second we half Further, the be business strong recurring this strong autonomous success feel growth and revenues this to revenue. base XXXX. XX% very strong coming more to grew sector, their by than revenue long time exiting With expect client in to

utilization mobile management Second, data more combination and OEM customer To technology date, Otonomo example, analysts products, an device is has to connected be on top companies extremely a strategic new about a via experiences of the business via opportunity we of Floow partners, Floow the and belief others. and both industry the been that believe our the emerging market positive from in game insurance for the their changer vendors. and is is fleet create deployed the basis, of used Clearly, outside right insurance that fusion two feedback new there the On for and companies. can Like, insurance in the of car improve data clients transformation. data, services accelerate that, accelerate industry.

successfully partners are sector opportunity outside breadth technology. mobility, We uniquely next the few two the is and and and with Otonomo positioned cases of with the insurance, fund focus accelerates capital we ecosystem and revenue the market the re-based have data issuance fleets use of that our to operate the using segments over already in aggregate largest both market confirmed business adoption the data and in to combined believe engaged We differentiating our across that as work years. IP. on

the further value IP XXXX, in to revenue our in grow aggressively deliver to the with including separate and ourselves expect market, we clients. ARR We and

a business? attributes. We into are our quarter strategy XX XX key grew the of number XX. year-over-year. more the is And compared the Those over previous contracts one of million signed increased and position cycle seeing we quarter. how global Based results, connected OEM contracts on represent translating So, for Backlog QX. in revenues recurring leader across top vehicles. We nearly OEMs, previous previous addressable the compared year-over-year. insurance positive of and to sales QX to in momentum traction quarter. connected XXX% doubled Quarterly over Floow, customers previous Recurring total XX% the Average compared of recurring we time compared backlog new decreased XX% revenues XX% bringing doubled The course, Booking combined than decreased quarter revenue quarter. to in to the the acquired to and the previous five compared to added technology. XX%

cases. demand Finally, connected continue of use market core our see we for to car

crush ecosystems, additional and as government then For connected synthesize from detection infrastructure, prediction, transportation apps, Waycare advanced incident and example, management vehicles, a collects which weather identification. data subsidiary agencies with Waycare, is management with vehicle data connected from Otonomo through congestion analysis uses agencies system. well as mobile existing data of

use applications. these vehicle cases, all to smart amounts data This their large of data Otonomo brings efficiency and Waycare its the of where value. For is of increase platform mobility needs connected

traffic, making segment. TTWN paying average drivers the at the cost. with and future, road these the studies a set easier Prior specific for speed speed on and calculate frame segments as customer for and user faster to the data road of provider the U.S. traffic the do it radio new United to time well well meeting help around was of XXX around is as monthly road request, time to TTWN studies Otonomo in States. internet perform segments information transformation across Our They U.S. total the million markets. reaches as vendor using truth as XXX TTWM average segments and for all weather provide average in speed to and than transit the the more network, than graphical more TV, speed autonomous a data ground provides average disruption Otonomo, for TTWN

Finally, speeding collect Suba, competitor accident was using competitive sensors physical win company. data Suba segment. the analytics an a prone around road recent against with a to European roadway

partnering are To sales summarize, recurring winning our revenue volume, time, our Suba and We our road authorities car cases, the our base improve for all Now efficiency Otonomo, decreasing focused core that fraud way strong of in to customers a new these cycle operations. positive momentum. able believe European is used who growing building revolutionize sectors data use connected show business the and of organically. to company safety are daily we increasing

be results confident I'm will financial we reflected expect revenue contribution revenues new bookings, in Looking momentum continue. Furthermore, the customers XX. ahead, in autonomous April from will from significant recurring that Floow the

Moav, our CFO. For on more to I Bonnie hand Otonomo’s detail financials, it over QX

Bonnie Moav

mobility Thank Growth Revenues new XXXX. of $X.XX activities, customers were quarter everyone. and intelligence was OEM in driven to million you, first first the Ben. agreements. by the $XXX,XXX new for our quarter Hi, new compared

use do of We year-over-year quarter-over-quarter use have use our unpredictable mobility not on our our and one this in nature to COVID-XX, revenues down forward to related We this rely went due revenue. growth cases case to in in this contributed case the intelligence moving business revenues. of

assets. our the compensation want that non-GAAP amortization consist remind acquired and numbers, I to Before I of you further move stock-based of items expenses intangible into

and with will turn I along earnings be non-GAAP results our the results, between financial the release. found in quarter. for reconciliation GAAP the detailed Our results GAAP can financial to now

loss in operating reason of compared In cost were increase, the acquisition the a driven million year-over-year the was with increase first in non-GAAP first public-listed GAAP in million of and Our same company. before. quarter XXXX, the becoming the of our $X.X The a to XXXX. million, was and expenses $XX.X headcount operating first loss increase was operating to XXX% driven mainly mentioned quarter quarter, loss $XX.X $X.X compared in significant by which from million, our associated GAAP the

cloud and process of related infrastructure of increase XXX%. year-over-year third-party $X.X which company amount mainly $XXX,XXX to the stores, grew data cloud costs by in due million and QX Our consists XXXX the our increased XXXX amount in which by to the by QX our in from XXX% data services, data used the of and than to consumer, more ingest,

Our cost and data data mainly costs providers, of for which costs, the used of of in in remains to purchasing the our OEMs we our level year-over-year. pay their revenues, consist data products including the same represents

XXX% Our year over million to our mainly General employees of the representing Neura. development a of the and expenses XXX%, more year-over-year, than quarter research with acquisition respectively, sales period expenses, an increase for administrative both $X.X and continue were year-over-year, growth XX compared and due including percentage. departments expenses, by XXX% together first the marketing accelerated and ago, same the XXXX increase in to to million workforce $X in of

mostly to to the and mentioned earlier, registration the headcount the and in expenses SEC acquisition. the with company, As the this a is attributed public addition our of associated becoming to cost

the decrease on XXst. of ongoing would primarily XXXX and We cash, cash activities XXXX. cash ended million $XX.X with I from million cash, like restricted March equivalents year-end our in to to balance $XXX.X quarter was the operating provided the reiterate Turning a This by sheet. we guidance business. driven in

from revenues I Floow year will April the to it results XXth. For weighted. with Revenues is reflected the expected to the from XXXX, of to of million in full much. hand $XX financial Thank in The backend be Otonomo’s million be most range very you starting $XX.X back revenue will Ben.

Ben Volkow

our behind With adoption assets data a a for market this solid on In the employees. and with committed closing, about this focus, I strategy, for ahead customers, in The positioned of promising in portfolio value colleagues first mortality its outlook upscale is remain perfectly committed include positioned it. technology are is investors positive future. leading team and management even infinity and We Otonomo is strong my advantage. Otonomo the year uniquely mover and with team partners, IT, creating execution the our and for of and to and

Before June we over are the share a into Q&A Operator, for investors the the that XX, now and hosting Q&A like session. the we will solution move I'd we we details to for will more update weeks. on virtual about ready event session, be showcase coming

Operator

Thank B. line [Operator from first question Instructions] you. go Your comes today Please Riley. the of Josh from ahead. Nichols

Your is line open.

Josh Nichols

initially provide be Is be or a that how little separate that more going? is going good bit recurring integration could early to And going to as made base you entity growth. you. was I front? detail a is on it much quarter, done Thank Yeah. since the ask terms the the The the acquisition see progress there in like of and second in customer to closed Floow expectations and on being there, what's run to revenue

Ben Volkow

to to it with take Do Doron, want first? are you you try us?

Doron Simon

be for is as that. separate primarily Josh would I mode entity. a running The And to take Floow operating Yes. the glad

data joint where entity joint We cases are we a long-term. as in on think it working functions. But bringing shared, is initially, platform use would some separate if a be up about you and with the common some

Josh Nichols

as there company's to and you think going or going revenue then the and are half model? over it XX go-to-market are Do to least it near-term revenue follow-up, the be that let's fleet that Thanks think next, you're so, be weighted. near-term, other at you months being reaffirming again. about guidance primary areas business or the are to contributors just call well talking And second to the insurance drivers,

Ben Volkow

good still the main take and -- I the in Josh, you near-term definitely, short-term believe those we very will it I have a that revenue question. two be providers. will

those on all, McKinsey. the analyst out based of there, markets like First potential are biggest most [ph]

has million that pipeline. it's With $X has the shared strong we acquisition last about year very we a -- that of the Floow, and company done

taking of are the we interested or of we excited see some we refine -- -- what mentioned that of We in industries outside the insurance-related definitely, are very insurance technology we insurance. outside go it, are are interest. So some vendors. OEMs their we towards about insurance the also and to segments driver like of some of own other in high in we mobility see offering scoring that insurance capabilities X.XX And

solution the exciting insurance some So in partnerships the and up is is formed definitely built a -- strong in we SWATs segment. also list. same

share Salesforce. we partnership example, For the with

So the and nicely see rising more use but by some are segments want very other now, they use segments but quarter-over-quarter. growing, cases, two always Those right the and value we and because providing faster in is pipeline is all And opportunities the that to inhouse other technology data growing insurance front two we're -- recurring and of we see or there growing. Doron, better, add nature in We are we a pack Bonnie, just Floow. bring anything want on that? we the got excited through build running either of fleets. lot of you with the top the beyond

Doron Simon

that was think I perfect.

Josh Nichols

that question of hop interest and thinking investors going and -- about on Last rapidly comments the chain for that? recently, macro industry tensions about me then how and rising been the in markets whether Any war be Ukraine, there's in impacting a changes queue. supply ongoing the rates, it's should lot changes, how back company's is I'll end

Ben Volkow

having see to rates, happening in impact we material is market, lack that, said we’ll the planet. So end, on definitely of don't is also get. our stock happening definitely, In the -- those vehicles, what business. we all whatever a Interest Ukraine, happening what are are in the not immune the to not we of is

all those healthy, a a is annual see And market, in not rate. blue but them we impacting definitely, events a our in fast-growing are macro that or changing market don't ocean. focus growth are We

Josh Nichols

me. That’s Thanks. for all

Ben Volkow

Thank you.

Operator

Taibao the Needham Thank Instructions] and Your Company. Please comes go line Chad from from you [Operator of [ph] next question ahead.

line Your open. is

Unidentified Analyst

Hi, for Ryan It's Chad on guys. Koontz.

wanted about that sequentially the drivers you Just sales both touch to Can year? of and decrease and on over year-over-year. how coming in time talk cycle average evolving the sort of see that the you

Ben Volkow

is take and I'll this it. Chad, Yes, Ben,

of to all, times fee it’s same get [indiscernible] and that the many revenues sign I in the and the decrease, a us quarter. think first it’s

I think of a result fees. it's of number

becoming of all, better. First we are

work to better, learning are We faster.

tighter and and requests, think is is the all handle maturity. legal I framework peers them in time process move ability improving our same [ph] our provide customer to the with

growing think to an customers lines. I want. projects Customers the have And It's not business the anymore depressing it's there indication what three years also maturity innovation know like two or in time for It's business. market. ago. a they business,

also other the as is fast possible. side as move So forward keen to

think two mainly. a I of combination those So it's

I all ought continue quarter-on-quarter. question. think a another to decrease But time I it definitely, hope enough. deliver improving there. Bonnie, And want we the we'll cannot see I to that's answers another guess decrease. and I anything Doron, add? are XX% promise the we to you

Unidentified Analyst

it. on update rest the just of terms where from a year hiring? of an hiring you what guys stand is Yes. That's your outlook Got the And then helpful. and for standpoint in

Bonnie Moav

we XXXX, headcount. seen take is until more our this Obviously, Bonnie. than Happy question. now see that starting Hi. we have increase This a August your you've when to significant doubled

us. will acquisition, employees Now our end with we in significant very new approximately which with – employees, coming XXX additional QX, for is with XXX up from

of year, of we to looking the map. the our In road have recruit – rest we are terms

a the SaaS. the but goes want we need you our we doubling business This and I recruit our support where we in but think recruitment areas months will won't the and in the to near you de-stocking our -- won't and in massive nine like Otonomo we up see be had Floow you to recruitment to map both plan, -- looking past can support are headcount tell that future. see to road to We to since scale --

Unidentified Analyst

you. for Thank all me. That's it. Got

Bonnie Moav

Chad. Thank you,

Operator

to Volkow, Thank Ben you. hand With CEO remarks. now call that, for closing I back will Otonomo’s the

Ben Volkow

here for you quarters all And in the see call. next Thank hope earnings you Thank I you. today. to joining us

Operator

today's conference concludes Thank for you participating. This you. call. Thank

now You disconnect. may

Otonomo Technologies (OTMO) 17 May 222022 Q1 Earnings call transcript