Earnings call transcript Q1 2023

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Operator

Good morning and welcome to the Otonomo First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. Thank you all for joining us today. Welcome to Otonomo's First Quarter 2023 Earnings Call.

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

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

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

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

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

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

off an and the Moav, Ms. state current will Co-Founder by update of Today, Ben on CEO market and with Volkow, the us Otonomo. of joined and business. we are start CFO the Bonnie Mr. Ben of Otonomo;

give will us the Moav Bonnie an financial of results. company's overview Next,

to call question-and-answer open live will then session. the a We

please, Volkow. that, I Mr. over to Ben, would turn like call ahead. go Ben the to With

Ben Volkow

results you. conference for Hi, financial XXXX Otonomo's joining call. you Thank thank QX everyone, and

let create couldn't mid-February. to about results, merger. and progress transaction will more business on into me to careers, platform in the first advancing of growth merger update response, our mobility for synergetic Urgently, regarding It suite predictive complementary value faster Before We QX excited and mobility the be and delivery products, Otonomo and announced preventive and providers. experiences and I by get with was highly you customer-centric is enable accelerate services companies us OEMs, the it integration mobility of the creation assistance insurance transportation, exceptional digital assistance service assistance ecosystem across

a million sectors, well company As expected on north capitalized and than X.X we solutions road countries, agreements decade, of more than OEM, totaling automotive XX extremely the be $XXX more partnership billion more operating transportation, and revenues next than expect combined the combined shared will With rental we XX by insurance, be connected in XXX to registered value. pending fleet with the past, patents. over $XXX the in across vehicles XXXX, will billion and company the markets in serve in

be the Since transaction We proposition regarding merger value of this third not out and synergy, XXXX. shareholders, sides the excited could been been questions merger. have your today. the to come and regularly return this about before, prepared the on of the has the our is we all-stock happy our of communicating in prepared we'll end expected joint questions close quarter at of will the believe strong -- about announcement, shared more the to remarks we address to of trends. future customers teams been the As both -- the addressing I

and us sunsetting to relating start allowed This the our to to includes our was fast-growing data. business. aggregate the process of larger data our in efforts happened vehicle QX services markets services, build that on and Another connected decision of focus double decision change down our which

couple more TAM insurance market, result, are smaller the the and same the many service-related has been analysts competitive largest received the even representing a believe effort lot fleet and At on that connected that the putting where our in market died a is in sectors vehicle focus. and of As we data time, quarters, TAM the was down of last represents highly end. aggregate have

details to over hand Moav. on Now it for more CFO, our Bonnie I'll Otonomo's QX,

Bonnie Moav

for consolidated the of by the Thank for Growth quarter first was $X.X XXXX. Revenues XXXX. primarily of to in compared quarter time first million for contribution the The revenue, XXXX QX which Ben. you, reached was the million $X driven first Flow

our into assets, to amortization intangible contingent acquisition I further move stock-based liability flow excludes loss I the the non-GAAP want compensation numbers, to restructuring related of costs. expenses acquired that Before operating depreciation, remind you and expenses,

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

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

related of million $X.X $XX.X company's million transaction in of Our first by in which $X.X million related the of to related operating offset loss GAAP revaluation the QX million. reduction to the for expenses quarter was $X.X costs amount XXXX reduction costs, operating approximately in XXXX, to $XX.X operational cost costs, increase operational liability, The $X flow, the was included million in in by million of loss mainly was not driven loss contingent of XXXX. initiatives million $X compared GAAP restructuring the to of QX

to was in costs first mainly In million the The and following first compared cost. is by our XXXX. $XX.X quarter, the cost decrease non-GAAP and quarter operational reduction initiatives, million flow the by of to costs operating reduction driven payroll operational transaction for $XX related loss offset

services, consisted decreased QX to infrastructure $X.X in $X.X also third-party in which related XX% decrease to from The million initiatives. billion our cloud costs is XXXX QX reduction the to of Our by XXXX. cost expenses primarily attributed cloud

used which provided to to for year-over-year, cost flow the was include Cost the reflects related data of data in cost of XX% $X.X services $X.X data pay OEM of customers services the to which an million, million, the $X.X the and increase other of the million, to purchasing related and we the product. of which restructuring. providers is

quarter sales million, expenses marketing including respectively. restructuring $X.X for expenses million of expenses, our and and restructuring first $X.X $X.X the and research development million, million $X.X including were expenses Our XXXX and

expenses, mainly respectively, same transaction excluding XX%, expenses quarter cost our were restructuring XXXX the and expenses, mainly Net and expenses $X million due in to and Net by $X.X restructuring to a ago. XX%, and to year compared XX% of first expenses, year-over-year, million expenses, initiatives. the $X.X expenses initiatives. million transaction decreased restructuring due including excluding the decreased million reduction General cost period reduction by administrative for $X.X

ended XXXX, cash and $XXX.X million operating in cash, marketable in with short-term mostly cash cash used short-term $XX.X restricted decrease sheet; and balance the a the million to activities. we by year-end driven securities, quarter of from equivalents, Turning deposits

Operator, we ready take are now to questions.

Operator

with Instructions] [Operator Riley. Nichols question And Josh the from B. will come first

Josh Nichols

and there? combined little a access on or the things how could like the insurance entity. the that elaborate near-term also Could opportunity help focus the bigger you for the have you're vehicle integrate specific you provide Clearly, biggest bit Urgently on Otonomo biggest a guys taking for fleet opportunities and synergies, probably X that the and on company end data opportunity to those markets

Ben Volkow

focus. we we and And as highlighted, pool think quoting to X I business, acquired, In Urgently than different take I'm many, on in by aggregate synergetic which with also that organic we the doing really to and Hi, technology is on segments. time, it's the pretty the Urgently well which need all suites Otonomo, of insurance maybe And is we not to largest have us, has and And insurance opportunities. more large same McKinsey, cannot fleet us as data. much cost to segments side try I Yes. it. to were [indiscernible] part this customers Floow many mind growing enterprise that on that is Josh, focus fleet will and our the continue the I such very is Ben, understood those The the its that reduction of would fast; and reasons companies. run so insurance as that we a for right add business,

front Urgently intention Otonomo. lot really the and because on strong solution larger there's after and a is the of So with a unified to merger of a that come synergy

a and really equal the here. And markets, out same one we three see same opportunity customers, are accessing the plus one we

or around maintenance on we with work to or so and Urgently, get example. EV a accident insurance terms the In imagine is is do today around and may with capabilities with tow doing you for fusion, things those insights usage, And Otonomo world access call you can send suites, intention we data need different use together which for later a and The data into fleet, use really what where truck to cases, then specific of reconstruction. embedded we of rescue, different to connected a some get fuel to also car world, connected looking the where for using is are imagine and you then predictive also suites. to

as get roadside offering, like a of enterprise, but question, for route the not, I scoring, can more. answers by we bit hope happy this also that part to suites it example, start you And assistance the especially if for to driving [indiscernible]. elaborate

Josh Nichols

what aggressive with those done of follow-up. there's the you going You and going a to finished cash that this I burn may around cash cash expectations has company I'm at quarter, million I since the about wondering look And cuts. or or just $XXX implemented cuts. be any just equivalents with of then believe, you the been know these the as how Are could cost point? cash reductions, trended has if like? the other talk forward, some

Ben Volkow

Bonnie, of it? you want to take -- course. Bonnie

Bonnie Moav

Yes.

our what for goes did And line we cut the XXXX. with putting with expected. this with So costing starting we budget

the we occurred the are we focus continue headcount focus currently, insurance fleets. we that it best served that at to or point company a that believe area at So

With with day lease additional headcount has. is we of can cut. said, This company that lot X. amount feel effort make measure and comfortable we costs we to currently, in focus to something other to of that costs like a office take places been other we've So that investigate very cuts the the AWS that of and continue from

that keep well. we initiative forward as So going

Operator

come Chang Our next Riva from will Ridge. with question Hansen

Hansen Chang

And the filed? you certain when of on the the we missed the can and like the beginning transaction, see this call, I apologize if of Urgently timing filings could at an statement proxy regulatory provide I but update

Bonnie Moav

another will -- the we're be approved is we next somewhere comments. the that be believe SX, file call, be get not Urgently So to or round sure But ago the something publicly public to the announced XX. going we days would SEC, review. of on Since set XXXX. closing for as QX that available is for whether we mentioned This the it's -- May approved whether to X by on -- has in on public the this

Operator

We us. has you joining forward for Thank everyone, you, call. today's next Thank to our session. you The question-and-answer seeing look officially conference our concludes earnings This call. concluded. attending Instructions] [Operator on for

You disconnect. may now

Juliet McGinnis	Senior Director of Communications
Ben Volkow	Co-Founder, Chief Executive Officer & Chairman of the Board
Bonnie Moav	Chief Financial Officer
Josh Nichols	B. Riley
Hansen Chang	Riva Ridge

Otonomo Technologies (OTMO) 17 May 232023 Q1 Earnings call transcript