Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the Otonomo Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation there will be opportunity to ask questions. [Operator Instruction] Please note this event is being recorded.

I would now like to turn the conference over to Juliet McGinnis, Senior Director of Communications at Otonomo. ahead. go Please

Juliet McGinnis

and Welcome operator, XXXX all joining for call. Thank Otonomo's thank fourth today. to year quarter us you, you and earnings full

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

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

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

have If from a press one the of download company's you please the Relations not release, received of website. Investor earnings the copy section

a call be Today's will PowerPoint. accompanied by

You Otonomo's website. on A are this Otonomo's Investor available of be the Relations view webcast will Relations welcome replay website. on Investor presentation to

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

A of most measures comparable this not this of measure of GAAP may earnings other measures directly presentation included financial comparable be Otonomo's its is to in release. other Although measure to similarly titled reconciliation our companies. non-GAAP

a market, off summary and the and the CEO Bonnie state current we will us of CFO of start And of Volkow, Otonomo; joined Ben by QX an Moav, with update of Today, Otonomo. Co-founder results Ben are XXXX. on

year Moav for Bonnie an us the financial XXXX. will of company's results overview full give Next, the and QX

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

call, by section During this the of will Q&A Bonnie. be Ben joined

to the Volkow. Ben, ahead. Ben With please call pass over I'd that, like go to

Ben Volkow

Thank for year XXXX Otonomo's full results conference quarter fourth thank and you joining you, and everyone, Juliet. financial Hi, call.

of into that results, enter me growth enable and and merger. news carriers, fleet It was complementary the across and of for experiences predictive exceptional preventive will multichannel couldn't delivery, and digital get companies transportation, OEM, QX I assistance mobility with ecosystem let mobility products, synergetic delivery service to and transaction address response advancing about excited of Urgently assistant be create faster providers. week. customer-centric creation the last services by mobility value integration Before a highly our first announced accelerate agreement merger into more our assistance with We to is us the and insurance platform

rental more registered company and extremely agreement well OEM, and course, sectors, revenues combined than connected with vehicles XXX countries covering operating be in solutions assistance than $XXX than than across more XX of will million north insurance, and, transportation, in million The with of partnerships XX XX,XXX automotive service pending XXXX, the more more XX professionals capitalized and patents. suite with

questions I merger prepared of to I on of combined the regarding billion. Directors CEO be today. our address over end in happy to will markets serve on the decade, at the of the by expected more is close of will all-stock X.X connected quarter expected totaling third Upon XXXX. Matt of will Bruce, will of vehicles billion to journey company. be your This the will the joining and company. remarks be currently the next company the With $XXX combined the Urgently, the CEO continue Board transaction combined the closing, road be than

let's positive was with continued QX for growth yet Now to record-breaking strong Otonomo, and another our year-end focus quarter Otonomo. and revenue for QX results bookings. XXXX shift

company All the that quarters. of continued our the contracts key growth for metrics were positive well coming quarter-on-quarter. substantial signed And in position will we new

took the in these that QX cost reduce substantial result company. shift more also steps this our of be marked operating in with significant market think strategy impact a but sets as overall in adoption. difficult and year-over-year the to the Otonomo a We and business. well outlook, sustainable revenue line build for We our we and cost preserving the will to necessary savings capital up scalable reductions costs necessary to estimate the

For has product of exited remarkable. from customer the we $X $X.X and the million, run year We revenues grew short recurring growth, XX% XXXX, to our full development success and revenue with revenue rates. year been nothing million

and While in for have we of our business, on expectations the not to would less year disruption the top the our remain we have strategy. market meet did line preferred optimistic future about and the the we

was the XXXX about with market our of all cycles perspective, a decision half From ecosystem. back extended

a demand into We as Otonomo will expected. as anticipate persist and, thus, company XXXX with are for accordingly we perspective. As see we services into these not financial that did result, revenues quickly from well a translate positioning strong factors the data macro

on of the because key the pivotal use telematics. for will of software be next in the increasing the number of and industry design our the and vehicle The segments road cases of because transformative of vehicles three believe a economic Because adoption the to maturation rate the two point we reach years connected the applications as as model of of mobility in the as tipping of adoption new well adoption, electric will sector industry.

our key momentum across metrics. continued QX

X% recurring of quarter-over-quarter. quarter-over-quarter increase grew for recurring revenue Otonomo's highlights million, was quarter-over-quarter. $X.X December of fourth quarter by X% reflects for revenue, as $X revenue are XXXX. XX% to million, million. Some QX Backlog grew $X.X which of XXXX, Recurring quarter for of fourth is by the of of was the X, XX% the quarter the XX% revenues. an revenue Annual fourth XXXX Bookings ARR,

are of highlights. here our million Revenue in $X XXXX to for XXXX, million compared $X.X some For XXXX. was

were For our added was vehicle recurring connected ‘XX for new million. the for increased insurance XXXX, current XX customers We Bookings $X.X from We XXXX in OEM million. ‘XX. to data contracts XXXX. full also year revenues $X.X

We more of in FX. X.X issuance, vehicles create phone the address largest completed motor We combines The X Floow X-plus-X to mobility one to carriers. management equals in insurance fleet well increased as segments acquisition And data maintenance of the consoles sector. than the FloowFusion platform by on a number to and that we the launched and fleet offering car mileage as

announced touch quarter. in want some I to strategic of the partnerships the

support services route services. The global marketing conditions, accident its Azure, Otonomo data Microsoft will and Microsoft connected notification users across provided enhancements optimization. vehicle Bing, to traffic providing selected Otonomo products has Microsoft Microsoft and to Microsoft. Windows to and map mapping for allow improve its and current develop streaming First, by including

and support including insights data include connected use With products mapping new additional data, and derive and for third-party events roads offerings. Microsoft's branded will its own and restrictions, road Microsoft set, its enrich data, vehicle road to products to services network Microsoft biometric traffic solutions this licensed example. services, its safety data. as data alter sign marketing validate can such additional road current and

vehicle maintenance to a manufacturer, dongle moving hardware solutions global the so insights multiyear be Platform. data, Otonomo other managing installed customers to reach time from is Easy across Group, fleet fleets, telematics. will for vehicle from costs Unlike data as as multiple software-based able spent the partnership Renault through aftermarket customers devices. directly provide connect vehicle that data reduce to This well brands. for signed these to cost-effective automotive actionable gain installation aftermarket to Cloud to fleet Renault and access require easier its Renault the with Group such other as also access We to and access OBD

infrastructure And mobility on available commercial with Otonomo's We creating there To digital additional sources for signed from of multiple world's the Smart a future integrate vehicle for of the Iteris is transportation. unlock Mobility management. also Smart intelligence, data ecosystem public mission help mobility multiyear will of its source and connected platform. data insights advances traffic and connected Iteris into agreement trusted customers. enterprise smarter technology new Mobility The Iteris, through data sector platform mobility a infrastructure solutions

Michelin in risk Europe. service that Otonomo for in driving and the countries within Otonomo vehicle improve behavior unit selected and will available spots reduce safety Smart advance data help the sold zoning the business DDI specialized potential lease data to or analysis, DDI, acceleration accident has Mobility additional and identify identification road Michelin in events near Michelin And and Europe. Group, development authorities by border across France, to Beginning drivers. connected finally, through leverage of its platform, de-acceleration, data

hand I'll detail it Bonnie to on QX our for year more full Otonomo's and financial, XXXX CFO, Moav. over Now

Bonnie Moav

compared primarily driven XXXX fourth revenue. Revenues fourth growth was million Ben. the for contribution and quarter Floow of the you, to for $X.X quarter Thank the $X.X connected Growth of million core The XXXX. reached vehicle our data in by

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

financial with results, release. along earnings GAAP and our GAAP can between in Our found results, non-GAAP reconciliation be the

quarter. to will results for turn I the now the financial detailed

of restructuring $X.X the Our compared in million XXXX. million, million GAAP to million of fourth cost $X.X a transaction operating loss for $XX.X QX in costs XXXX was including of $XX.X quarter

million, was quarter for compared non-GAAP fourth of operating loss the costs $XX.X XXXX. transaction million of to In the including quarter, $XX fourth million $X.X

third-party measures The infrastructure to adopted in in $X.X cloud QX efficiency a decreased million Our is reduce the to attributed decrease cloud QX by consist related which expenses from XXXX. costs company to the $X.X to services, of primarily XX% XXXX costs. million

and provider year-over-year, their Cost of increase the to paid our using products. data data $X.X an data XXX% of million, of cost the reflects which other of OEMs purchasing services we includes for

is the million provided of customers. to our cost addition, services In $X.X related to

our the connection by growth reflect due and which The Floow increase $X.X which XX% effect and expenses XX%, yet in in the take development not marketing does expenses sales in $X.X workforce and will restructuring to year-over-year, fourth XXXX. increased research The and quarter Our the process, with mainly acquisition. XXXX million, were for million respectively, of workforce recent and

The million fourth a expenses XX% General bonus. insurance were excluded, in it costs the ago. of current reduction million If same reflects quarter $X.X and the costs. quarter in include to due period mainly a year in expenses million quarter-over-quarter, and reduction $X.X management to XXXX transaction compared for D&O administrative of $X.X

the During in the expected substantial will the fourth approximately end be of cost by process cost employees worldwide. quarter, is completed quarter the result company of of to reduction, reduction XXX of savings. including XXXX head started first This a process and

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

And now I over to it Ben. turn will back

Ben Volkow

progress today's Exiting standpoint Otonomo. strategic to creating and in to partnerships positioned for we overcome capital XXXX call, adjust year our focused the of partners highlighted a are that laser are adoption year, As market and experiencing. had rate segments will scale. and and the highly from we we challenges well to Growing believe the scalable believe on QX ecosystem of full great we

XXXX is Our as a carried the into bang. with we started year momentum

lawsuit has Third, April against the filed been last class Otonomo dismissed. action

to this both Otonomo, claimed lawsuit it that BMW a we You of the hardware the on fixed the as may the data Otonomo devices that press vehicles privacy. at reinforces much dismissal service in Well, base plaintiff tracking believe highlights complaint of as the importance remember the lawsuit U.S. strange

with pleased and outcome Otonomo's step our are matter and efforts resolve to in this the the We of defend in position this important reputation industry.

to announced are anticipated to rental in transportation, support and vastly powerhouse customers. fleet for now create third Urgently recently of with insurance, agreement quarter integration service to The mobility our our that and customer improve merge automotive partners teams engaging OEM, and experiences the can XXXX. going safety is Second, close their a and

questions. take to ready now are we Operator,

Operator

first Nichols with Please Instructions] [Operator from Josh go ahead. question B. comes Our Riley.

Josh Nicholas

that curious, a on of just there's you of obviously, to the hit kind mean, towards going I some the about items call. on of talked end company. Just the with management the But lot expense

a the of How completed, change million forward? fourth going So the burn, $XX in quarterly there cost-saving the loss is target operating quarter. that rate all an these initiatives once expected company And that had company to cash is is looking achieving? at are around run

Bonnie Moav

very Thank Josh. monitor for Yes, continue Yes. you the we to the question, carefully. cost

And employees. in finalizing call, As approximately are cost we reduction. terminated mentioned of we the are in process doing the XXX other some

substantive it the going and looking we reduce to reduce cloud in places. As mentioned costs call, services be to in a managed to other already It's our cutting.

our believe XX% going forward So rate going of the it's to XX% us between to in we to probably burn cut QX. take beginning from

Josh Nicholas

me. just like going pro new look exchange the expect forma little structure And then to subject question we what's bit and current change. sheet the Could high-level that balance entity? of pro know on the outstanding what's last rate, that about And the it's of to a we for today? a overall, that on basis, couple a based should cap like cash debt, items forma to see? But things shares talk I could

Bonnie Moav

several could also, lot things are not there's point. lots and So pieces of and change there there between can at is a going take this It signing unfortunately, we that a signing And moving closing. are of to between closing. lot months, and share

not So describe will we table significantly time how it think disclosing at point. from the as cannot look. -- vary point this we that to we closing cap the could We it are are this

Josh Nicholas

shares guess, filed, was the think be, to going what I the it I every that did disclose of at guess, outstanding, stock, interpret rate that was X But there was was published? X-K in X-K, to right, I X.XX the was that share be least disclosed conversion Right. in that that least right, date -- was it we're how going for you the Otonomo at I

Bonnie Moav

It legacy of can combined a depends Otonomo around on other up XX% will the We get percentage few entity. did down, disclose change conditions. or the that holders

Operator

I back over any would for This to concludes Juliet session. to remarks. like the question-and-answer our turn conference McGinnis closing

Juliet McGinnis

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

Operator

has Thank concluded. you today's conference The for presentation. attending now

You may now disconnect.

Otonomo Technologies (OTMO) 15 Feb 232022 Q4 Earnings call transcript