OTMO - Earnings call transcript Q2 2022 | Otonomo Technologies Ltd.

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Operator

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

Miri Segal

Thank you, conference operator, us today. and thank you to second all Otonomo's quarter XXXX call. Welcome for joining

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

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

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

by have website. you download please of from If QX of received call copy Today's press will PowerPoint the not financial Relations release, results accompanied the a section company's presentation. Investor it a be

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and effectively more of peers. Otonomo believes to its the also compare financial Following a that Because it this view replay performance. economic allows is to provides loss and Please on website. in webcast Otonomo's the Otonomo investors we the financial a Otonomo non-GAAP which of operating analysis believes of will measure Otonomo's Relations available note call, is of the present today's be management's non-GAAP presentation performance, Otonomo's increased Investor on that transparency will that this of operating financial historical measure. also of internal call, evaluate measure performance of used the

not update EVP, measures Moav, its other included Co-Founder in this reconciliation of Bonnie Strategy this joined companies. of similarly to we Otonomo; to current Corporate Volkow the Monteforte, of provide opportunities Volkow, by GAAP the results Bonnie of Otonomo other are and feedback market will comparable Doron on Floow. of financial Director industry by presentation the is be the CFO; of and Otonomo's measure Floow. the company's will Today, CEO, with measure release. QX Simon, Founder non-GAAP Ben Aldo business. and and comparable and CEO by A The of who state share represented measure Aldo, directly Moav Ben overview The financial most may an the Development; and Although, combination an will of start followed titled and

for the will We session. live call then the open Q&A

the that, of question-and-answer joined like to will this turn to During Ben Volkow. please Bonnie, Ben, I'd Ben the call be Aldo. by and call, ahead. over With session Doron go

Ben Volkow

you, Miri. conference Hi, closing was underpinned QX financial The our of second Thank results for by XXXX in call. you everyone, our thank strongest quarter ever quarter our acquisition Otonomo's momentum Floow. was business, and joining solid and

transportation The measures. and is science capabilities data the enable a and disruption of advanced a of to We control economy. cost as mobility are sector the we may While conditions, the that the realize an reduce we and we revenues good less growth, given positive top-line actions remain early business create data. result our data with growth our of are we that a continue to will current in taken mobility market underlying where optimistic future stage and Farther have believe macroeconomic undergoing and fundamentals line going predictable. expense be massive new exceptional about are

about economy of transportation X% fact, covering worldwide Consulting and services. enabling the GDP vehicle vehicle manufacturing, derives will In technology represent the PTOLEMUS mobility infrastructure, transportation,

services technologies. the Otonomo's estimated for Cloud road XXXX, catalyst and market experiences and that economy billion big we as by mobility that significant mobility in of five XX the us years, $XXX represent billion over Over generation create to and out serves opportunity the towards X.X build mobility to will on-demand With shifts to of mobility vehicles over underpinned the services data develop the multimodal the data will XXXX. next by be believe new is strategy by for on a enabling

significant the Otonomo: creation massive. insurance value two huge that today both transformation our delivers software segments Our truly is engagement And is for in the thesis our addressable clients win for largest approach and market in This our and given sectors. market rate defined opportunity in the validates fleets. a

that I key As to continue attributes earlier, business. momentum in our are indicated see we to

impressive backlog grew quarter-over-quarter, QX. brings QX. the by added in Floow by to and of we revenue. the Those close XX% highlights. customer results market and second revenues are XXx quarter-over-quarter of X.Xx base Otonomo, quarter-over-quarter. remarkable quarter more increased QX nearly new than customers our recurring was XX% show quarter-over-quarter. Otonomo and increased had transformative On in XXx strength the to Some the Annual top of continued increased business additional wins by and of XX Recurring We by exciting The the new growth. revenues for Bookings

to market and continue for our of interest As connected we core increased. cases use see car demand

safety road signed across vehicle dealerships of fleet OEMs, vehicle we've expected with enabling OEM fleet advance telematic contract solutions Orbital In clients provider platform contracts For more access awarded the into segment, manufacturers. derive Otonomo, new recently embedded will and managers. leading vehicle company to connectivity, to example, Systems. to Insight, connected analytics connected greater a geographic is information multiple provide data data in systems insights access the location for supplier announced and intelligence granular geospatial commercial to a is Geograma, Systems as for and business. use to Guidepoint Otonomo And yesterday, has designed their multiyear data data including Guidepoint a a Spain. multilevel service Otonomo’s Guidepoint we enable their

the in observing and fleet domain, fleet than value telematic customers, stages deals we strong early demonstrates of continued in our success pace therefore our are ramp. winning customers the In Our solution. that see initially new revenue slower software-defined in onboarding slower anticipated

and scale, with these in others remain processes streamline pipeline, initiatives advanced be Otonomo’s position We our bullish changed market dramatically. positively those on it the believe as We to space. we are along walking accounts will in the on that multiple

all-electric, and the intelligence its be mobility U.S. insights, into to of more precise Aero, input self-flying quantitative to company market. in a which platform mobility first in quantitative the Finally, leading developer Wisk allows help Otonomo’s shows go-to translate taxi air advanced air Wisk

several all and fleet the These with On be significant capabilities. product fleet In and mobility features front. introduced the We had introduced for QX. we've mileage and first of maintenance releases more during provide and advanced all up intelligence efficiently fleets also a sizes. insights notifications of to example, fleet vehicles, for management vehicle lights fleet, breadth of snapshot customers a as connected new view fuel are can for new when set relevant, such User and managers, charge of to issues issues, as battery are levels. push such for immediate warning data electric maintenance triggered. And low for easily manage low

AppExchange, Otonomo to We Salesforce providing new on access data. also customers mobility unlock app to accurate updated ways

For safety single vehicles, cloud workflows, that access The as provide using execute well data, allows multifaceted and actions, service capabilities. version geofencing, trigger specific sales dispatch fleet customers utilize as will distance, functionality Salesforce and latest to driver and entire cloud. build upon

is solutions analytics. proprietary data for adoption, by electric product Otonomo’s with data three and actionable high machine advanced For And new offerings mobility new growth science, learning existing expand Otonomo intelligence, applying vehicle solutions planning. Mobility-as-a-Service curated These insights released and urban categories. derived

MaaS to multimodal location, on breadth of positive Otonomo in movement. from service services ride depth data helps shift. data match of intelligence, rebalancing is includes relocating the date demand rich differentiator up-to-date deploying adaptive increasing municipalities, fusion their data. predictive sources mobile to their services. daily Our understand human and accessibility based clear drive stations cities and connected performance The vehicle This devices, shift sources micromobility, helps multilayered integration by networks, fleet of of metrics, optimal with model mobility mobility performance, after supply and data resources in providers also charging and by maximize soon

areas, traffic destination and networks sites We’ve Intelligence. city city based to electric social to to and vehicle demographic EV each on in the even flow, mapping trip plan EV intelligence, charging urban volume end means primary Data-driven charging local easy zone can of in undeserved for precise multimodal allow data. visibility profile planners. works Urban basic and Otonomo placing mobility EV provides more and with counting into now planners demand rates, On specified region limited for access detailed with charge visitation future to optimal gain purpose stations. patterns corridors. translate predict design planners creates previously for adding demand up-to-date and metrics, operators of and across measurement locations accurate pinpoint transportation including point of mobility been Otonomo value

development. win was strong a quarter can business product you it fundamentals, and pipeline As see, customer across

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

Bonnie Moav

of second the Revenues and driven quarter flow Ben. of XXXX $XXX,XXX compared the to you, revenues. data Thank the for $X.X vehicle XXXX. Growth the was our by quarter in contribution was million, core connected second

Before contingent assets, these intangible and into is acquisition consist you liability related numbers, I impairment non-GAAP of expenses, remind intangible stock-based Non-GAAP goodwill. to move items expenses I excluded The that acquired of further our amortization to want depreciation, Floow presented items. of the information compensation and

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

impairment to $X.X XXXX. second XXXX loss The million, the loss Our $XX.X compared million intangible QX operating of of goodwill assets. and operating GAAP includes for was $XX.X million quarter in

in In of quarter, second an increase by by mainly new operational intangible expansion and assets. $X intangible million loss in acquisition, operating was and the of assets. operational to GAAP new acquisition In to new the acquired amortization of operating companies second in addition, the non-GAAP expansions and amortization quarter was loss the driven as driven well as compared $XX.X of million, XXXX, increasing our related

infrastructure which XXXX our data, $X.X XXX% increase QX million and the third-party in The consumers. consists our costs is to company of stores QX attributed the of to cloud used in expenses the cloud data of primarily from amount services, data related increased processed and XXXX. growth to $XXX,XXX by in amount just Our by

of and cost data The of for year-over-year, the reflects of used $X.X Floow. data purchasing which million other In cost our addition, OEMs we includes of their in provider of the the of Cost increase a XXX% result acquisition an and as data product. revenues pay increase Neura to the

Floow The services to related customers. In of million to cost addition the is provided $X.X

acquisition marketing by and our of year-over-year, and $X.X respectively the were to XXX% of Our $X.X non-recurring million impairment accelerated by sales company In and million and XXX%, expenses consider XXXX this and interim expenses research test, goodwill was and development capitalization. QX the which XXXX, an respectively, costs. in second and mainly General administrative the expenses market representing over decline decline ago, year from recent recent due and million growth intangible for quarter workforce driven an and the XXX% mainly unit. increased public company performed Management in triggered factors outcome expenses assessment quarter for statement impairment XXXX The in was and for in charge of possible to acquisition compared the the of QX period were other a $X.X The of affecting increase with Neura along company’s financial test of includes the the a of resulted of $X.X XXX% XXXX. million, $XX.X which second million, same Floow. reported non-cash and consolidated this and recorded our XXX% the

cash of the by cash $XX of mainly from balance a XXXX. The with quarter in was end operating driven year in investment decrease ended cash, using million sheet. and acquisition Floow million. the short-term cash restricted $XX.X million of to cash equivalents, $XXX.X activities Turning We This million and and $XX.X

the on Moving guidance. to

of to at the We these metrics this due to not pace as and relied in macroeconomic be slower We and will Ben. near-term base, results such revenues and no fast of it believe of deal expect factors we turn closing. fleet forecasting see our key condition to not to uncertainty may adding customers as the focused a the over upon growth half And our for growing remain and on growth as other HX, forecasted business will new continue now, our adoption for longer combination in scaling that time. rate Based but back by I a are to while are on the business we these be controlling expenses. forecast customer challenges second factors, year should and XXXX

Ben Volkow

you, Thank you. Thank Bonnie.

the in think Floow Another and we additional I’ve connected of Co-Founder of in acquisition the was of and these to growth. are us acquisition strategy completion insurance. to The join and Monteforte Floow positions Aldo The either QX milestone CEO behind give context continued for phenomenal asked Aldo? the why

Aldo Monteforte

accidents we had Thank you, morning, of vision Ben, years and vision, the XX automobile that number a good ago, number the and could fatalities. folks. I reduce a of

never XX north to industry model making and a to due the the by partners predict with star was closer the insurance been operating part reality the tax conceived. from repair one making of later, from small and go-to-market insurance we help and and connected have best to an acquisition Otonomo, present. our Our and safer a move day no mobility products to vision the ever years

precise what fairness. means it that pricing products risk, about of one, special? understanding is and Number So which connected make insurance them granular

there Second, accuracy needs. should It to intimacy one when to purchase data, sense in be the policy users, to well to needs coverage than approach the their for prevent to Floow ambition. bringing both that When just acquisition pay to Otonomo service need all data source. words offer organization immediacy of users, the is the uniquely with and can accounted weaknesses insurance by the to world back and with that they it, risk combination more no required. into potential mitigating unique motor enabled – nine both future arising a fits dispatching each another customer the insurance vehicle match fits one the intelligence steps step all and world deep financial resources of risk In policy of the which days fusion, of means the delivered connect ahead The a under capabilities, are drivers repositories the makes data require connected down the events, deliver leading ago, thrive I car the technical accurately most us Otonomo one, timely that resources claim. precision smartphones holders’ part data that The ability manage cannot insurers of world’s end when of and for which our to When means for able reconstructing sat tools auto and as of new see third, modern the outcomes. power means other words, access as observe individual of required of with combination us. The products, to necessary and which more profile. by as I else. platform as the augmented immense compete of end months brings the Otonomo, support in Ben being the sense our And as front We from of to and roof, ahead. one saw of I fusion vista represents things. we means everybody in insurance, connected three Number best have which

The Ben insurers, and serve lines behind commercial to personal adoption Telematics I thing of saw the the in are and opportunity was policies. second connected who

for third, from has quality safety efficacy the of their and scores added help And and and micro can respective its data. manage the potential fault we saw of analytics. bonus the been with small analytics. we customers fleet information fleet alerts maintenance arising So Floow quantify always and advanced connected actively in car native and

undergoing from continents products data Their equipment, I completed and from in richer, including be today, by four and And their Since significant going visits. AI driven intensely anxiety of transaction, sets tour future is is Insurance met an concerns coming a would from countries embarked taken industry share and partners are them main the on emerge business. a than I we themes. the what seven those camera native to leaders of expansion due clients like three and to world. in about personally our I’ve now asking OEM Our sense insights and have pervasive connected original role are the availability world talked vision away computer data to and data and more XX data. trepidation. of to The

proliferation role in data the more OEMs space the to of native connected assertive First, data their due car and the take that insurance control.

pandemic. accelerated the by expectations Second, rising interactions, experiences and a for theme COVID consumer exquisite digital

regulatory baked analytics place a as powered think intelligence to And in the reference traditional debate semi-autonomous fairness around particularly of known and credit for provides the Third, scores lesser risks, artificial pricing that discriminatory into changes, search crystal with addressing ball, the such vehicles. criteria better fourth, taking insurance in of biases U.S. electric

challenges. – see without refinery them turn existential the partners all my address all new these help to can clients have Floow threats In solutions you ahead, how In world Now our value and exceptions, who into opportunities. enable to unique and naturally strategic brave the acquisition data interactions, or the collection with is validated developed Ben. by to them confirmed data insurers our of happen do helped Those with reliance refinery which and who to struggle outsmart over house, touch on provided very expected by will capabilities to And, capabilities. end insurers will predictive Either refinery not and hard adapt digital the this operate be competitors users. better sophisticated data a partner. you in without profitably by position

Ben Volkow

Aldo. you, Thank

are very the As you can in see, strong business. we momentum experiencing

Our sectors, bearing plan insurance to that sign focus achievements as small we is a we fruits. to fleet and on are such the and grow year. as the growth And through recurring come QX strategic continue revenue and high believe of scale of

to have very some excited in are and share some with and then the the weeks. next activities engagements them of you few we about We of progressing

challenges future in in fast are business execution expected on our the new we confident market, to ready to and strategy, in now come we emerging very quarters. take and the growing results bullish we a are We growth, the on macro and a position, have micro and rapidly are questions. market Operator, both why levels

Operator

from from comes the Thank And We question go ahead. line first now please of – your Instructions] Please Riley. will first take you. Nichols Josh question B. your [Operator by. stand

Your line is open.

Josh Nichols

for One, Floow how the a Good much the color you. could little second the for bit revenue I’m progressing in and curious? did is integration did morning. specifically with you the if they – Thank how of Floow account provide Yes. quarter,

Ben Volkow

Hi, question. to the The I’m level integration with both and very also Josh. This well take your in going is happy organization level. is on the Ben. Floow technical

cost. also started testing the phone combination bring and really believe to – data, we level, and Big to the moving is the really plan. fusion, very, can cloud terms market, behind of we On Aldo of to cloud And but team of the combining the in quality all best technical the nicely bring in call to that of of very phone gives his which together we XXX% part the it to are the of really unique. in excited we post-merger terms we shared data and the insurance organization, integration a what according we market terms this vision market, coverage, is and what insurance what to about vision which we and and and are management

of revenues, the revenues the terms not In QX. flow sharing are we for for

up it opening not at this do on We stage. it depending. are We might later

Josh Nichols

XXXX, guess customers be longer a the that detail I quarter? but since on you know Or I onboard. you that taking guidance XQ And And directionally, could you could enough. information, would Any flow causing to helpful. Fair higher pulled then what’s I directional you a are full guidance bit for of fair, mentioned little for give would little some the any there’s provide have than it that. know is be that a like bit additional XQ these fleet you’d

Ben Volkow

our try we to with if more add, is than elaborate will really slower existing on customers see terms I farther fleet the question, would We Bonnie in going of good that adding anticipated. onboarding a platform vehicles and It’s needed.

than it’s are plans customers than need is for previous new we account new slower onboarding, expanding of call share than go a their they our had customers we and sometimes us. We very the today bring anticipated. the growth are think inside, Many shared I Definitely in or that onboard, but quarter, related bringing customers. They to partners. times we their more the the high terms in slower with the

from bit business, this plus changing on operators fleet great internal or growth expectations too optimistic see we anything is and something the in of in However, the want demand get the guidance don’t But been Bonnie, definitely add? slowness strategy impact, that in sector. maybe feedbacks strong their vehicles. we and some our to and a as unexpected on-ramp our not we’ve material the you and

Bonnie Moav

your we the guidance although for Yeah. part want add and your pulled second I onto forecast just given XXXX. that are HX of for our questions we to not any

you only to remind to were able X.X the that in we revenues from Just consolidate for flow QX, the months.

to second contribution the flow our So the from you can anticipate of line for half additional XXXX. top

the course, of – highlights and of on mentioned revenues, I in business of top with the Otonomo. the the as momentum Of recurring in continuous good growth revenues

Josh Nichols

for Thanks providing color some there.

expected bit going come what’s going you’re to more How OpEx to the investments the the a be that down conservative are little macro target? mentioned given on You risk. forward, much quarter-over-quarter? Or those

Bonnie Moav

our when we know, keep we to spend our very closely support and to from you company. very as and the repeating that management call are one So, another, cash with only watched growth we of conservative is our spending

looking are to and we of are to not recruit, on cloud money services, and purchasing We travel. some planning save data massively

of we terms that increasing want that our commit but also again, comes I are cost. acquired you with company percentage, In take obviously into need to a to here, – consideration we don’t

Josh Nichols

Thanks.

of lot or horizon do granted opportunities for there the real real OEMs? further some longer-term question that stage. are is half? is, in contracts there’s the chance monetization still guess, I Or company early for revenue is largest of a What second it’s last these a sizeable the securing with me on then start you And opportunities So think that the could relatively out? still you

Ben Volkow

fleet as insurance. investing think size the behind we areas in those the potential, investment high another in see but and also I largest the for just reason the not market where analysts really us, the covering There’s So such areas.

XXX%, segments high the Those data the market in mobility we segments ecosystem we to represent approach the revenues. recurring very And those revenues, also not believe recurring technology represent well right in and the also have We all segments. those unique for segments. almost right with positioned, technology

we focus is we about and are us. insurance be large We figure have seven those see quarters. areas them and that see and some pipeline, us to large nice for deals, main – the and we deal the have in fleet hope able – win in for we to coming news share the So deals

Josh Nichols

That’s Thanks. me. for all

Operator

Thank you.

We comes the take Justin your question line from Barell And next by. will now of from Please please stand our question, go Citi. ahead. next

line Your is open.

Justin Barell

Hey, this is on for Justin Itay.

quick question. super So

So, question there guidance, I trying growth what to the but understand, business. guess of in some backlog, you was very the momentum We on kind I’m strong as in additions. highlighted better bookings, saw customer it expressed

seeing So of are talked more may that all Or bit you guys well? a fleet. volatility as on market with that better that through – seeing help the weakness the know strength the be more well? across you you the general this there market. or kind us and guidance? observed, to coming is you as But lot just can is a to given you I of insurance reconcile a little area there the weakness is just about and board nascency weakness any broad XXXX relative decision But it Thanks. may kind pull Is generic organic? be the plan? where of side of perhaps based There’s just

Ben Volkow

Justin. the Thanks for question,

us very share a onboarding to the trust transparency because that ever. we think of build to analyst market, that it’s with company and company momentum. want I like heal, slower. the young that a fact important for bit you is It’s strong in see see the going important community. I agree for with that we a things strongest the us [ph] – double we a And it we definitely quarter our fleet as was that messaging

give in excited we previous also the our come. behind are that stand focus. We the time, messaging we about very But what’s to XXX% same cannot

influence our is I things see to stand And maybe can is come what and think bit to the We you macro why see going And we it’ll for believe a end This really we are making with quarter, mainly anything? that slower. will it that that we us waiting transparency. for customers bit business. was in this have sure how happening then will focus. say information are before a behind believe where we cannot us, end we market. caveat next we the decisions XXX% not a in the still more Bonnie, We want we year. it’s the of some give important better our add on to because XXX%

Bonnie Moav

you. No, thank

Justin Barell

way it? about a Is a there timeline, we the the think mention could I that of term, right any we maybe metric? giving out do guess, like point view, guess or I from I guess, but is at directional there the know, to least if to duration guidance is expectations. bit think you near a can, decent hard, you that quantify better a for general, some a whatnot. and push I may how delay relative timeline about, initial there Is this, be far There versus

Ben Volkow

I will will I think answer feel to comfortable give way I visibility. a and you in try better it a

think the growth in exciting revenues the recurring high growth is in of some the things we the of today bookings and high growth I pipeline. share the in

pushed much to too think right. be will don’t really we things the So

on of and geographies periods, more really than based are of very at stable not healthy number on this and of number recurring can based a on very sure building supply business I time. details We revenues. high that based percentage I’m

Justin Barell

super That’s helpful. actually

Floow coming the recurring the there or defining like just I can or recurring, i.e., guess, from recurring Floow revenue Floow’s the be is hoc more walk that the So ad of definition is might revenue? through variable the all is side, more you’re how I on considered as revenue, recurring in this that slug the piece is revenue, to business that guess of, you terms through, whole

Bonnie Moav

Hi.

business So as of XX% were revenues recurring. for highlights, in I mentioned this QX before the

to a the And Otonomo from recurring truly So Otonomo the this and This a SaaS to says in We company. – also basically revenues. maybe as which are high the is SaaS also company, part Floow revenues the understand Floow pushback of of we that you contributed coming can percentage. Floow revenues. the the a contributed significant to that are view the

are We than the less for keen not That’s revenues securing on months future. XX closing deals. really

recurring So we a as ourselves definitely see company. SaaS

Justin Barell

Okay. Got you.

all classified as fair Floow’s that it’s assume to So recurring. revenue then the is

Bonnie Moav

part. Significant

Justin Barell

jump Okay. Thank queue. the Perfect. I’ll back in you.

Bonnie Moav

Thank you.

Operator

Thank you. [Operator next Instructions] Company. Needham ahead. go Please Ryan from by. from We & will question next line now comes your take stand Koontz question. our And of the Please

open. line Your is

Ryan Koontz

substantial I’m there, sounds kind it the Hi. pick to of obviously of can from portion for backlog a The Thanks – tell Floow that me going in of question. the you you Any came that most of like over color really up as contract on be did and XX months amount sorts these helpful? give the recognized kind backlog in of you. any there in that us next direction will typical Thank lengths, backlog things, and is recurring.

Bonnie Moav

not runs So this can Floow The you months. most our tell I up at deals the that XX of or moment. months between contracts within breaking we’re Otonomo XX to

reflects the So obviously backlog that.

Ryan Koontz

really I’ll jump helpful. Thank in back That’s you. queue.

Operator

questions. Thank will you. hand the currently There further no I back. are call

Ben Volkow

you next Thank to for you. call. our operator. you, today. Thank We you Thank look forward seeing joining us everyone in

Operator

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

You disconnect. may now

Otonomo Technologies (OTMO) 17 Aug 222022 Q2 Earnings call transcript