WEJO - Earnings call transcript Q4 2021

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Operator

Greetings and welcome to Wejo’s Fourth Quarter and Year End 2021 Business Update Webcast. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Mr. Tahmin Clarke, Senior Vice President of Investor Relations for Wejo.

Tahmin Clarke

Megan. you, Thank and call everyone year for Wejo’s joining operational Good discuss thank our update to financial full fourth business and morning, results. you quarter XXXX and the our CFO. our on With Richard today and Maxwell, CEO Barlow, me John Founder call and are projected on forward-looking. or results made objectives, today expectations, strategies, similar call this Remarks and future other about events, trends financial are items

Litigation the are Harbor provisions Securities subject Private XXXX. to Safe Reform statements of Forward-looking the Act of

as in such guarantees context our not statements of on and as as report in and future Forward-looking Form Wejo, annual be of the SEC. well should performance other of uncertainties are taken that SEC including risks filed the documents filed the XX-K are recently outlined filings with

of the only made update date to obligation speak company no statements statements in future. and such Forward-looking as the undertakes the

call, GAAP. discussing not in In will as known conform addition, generally financial do the accepted to we during accounting principles metrics better that this be U.S. certain

financial I For now, our filed And a SEC. reconciliation of to call with the Richard. Form metrics to report over on annual please turn XX-K the to will refer GAAP, these

Richard Barlow

Wejo’s XXXX year end fourth business update. and to Welcome

a additional is management wide processes. OEM services deal our quality the privacy with currently on which company a we has large include a setup North to in deal progress excited made their data customers. beneficial OEM as solutions sign have our a of us seen offer We extremely last and we data year. This are and software since extend solutions to cloud about listing public privacy, progress focused manager’s our that November This first to services range to major analytics American the but expect

an help and We innovative Palantir’s for platform system help foundry infrastructure to embraces charging utilities optimize governments points. selection EV have operating site that launched also

Wejo that of closer Microsoft vehicle. our will Neural platform Processing announced data also to allow processing groundbreaking the We Edge powered by

million vehicles in million XX.X in are we generated vehicles over perfect that gross are platform monetized XX.X we on there near hold data live XXXX, be of end a can time. active the can which currently on bookings of prior XX% data real $X.XX are XXXX, increase the vehicles These at year. As streaming which platform there and

to when Our These to us recently just Wejo. to on financing what announced continue many equity bring happening Wejo more the at deploy and it million data steam customer key up iceberg products relationships, full our stronger plan opportunities year. comes deals to sources, we strategic the the long-term more shared allows new new confident announcements With product and last committed here that investments, key to Europe why is and are $XXX Asia-Pacific and tip we is are geographies That is on region. horizon innovate, services ahead. deploy expand the and across making products, develop of

Our has even serviceable addressable the developed. that with market have of we billion solutions grown further $XX

Our data and we solutions. our and strengthening marketplace market is continue expand positioning Wejo cloud to Wejo offerings also software as in

and our connected data maintain leader the help position growing all in will expect We as the autonomous mobility efforts smart ever electric these market sector. in vehicle

management, XXXX management. Our media fleet diagnostics, and remote roadside emphasis assistance end-to-end areas insurance, and include of audience for

many high across result accelerate vehicle. that in newest lines to expansion autonomous use relationships. customers deliver to begun business. bookings enterprise will price meant lines, our new product us expanding In new addition connected that expand and This per focused path will customers has to customers insights of can The vehicle these will we existing data across our also gross on and of help more your we targeting enterprise and generating are product the electric have the areas bring and

net revenue contract gross XX%. value vehicles are key and platform, these measures annual bookings revenue financial XX%, at All XXX%, up other and Our of will indicators on XX%, recurring KPIs total versus to XX%, XXXX up and Wejo us gain performance to up XXXX grow operate. amongst up of on to XXXX we focus over hand Maxwell. revenue which you Officer, financial Wejo’s leads Chief improve And revenues to continue will This levels, share our describing over results. margins John significantly our now Financial I enable

John Maxwell

representing traffic We Net fourth the Okay. for management. year revenue this reported was XXXX. for of $X.X Thank both increase you, the performance compared the for revenue year. Most when to Net of performance and fourth strong year-over-year the up full million, the cloud Richard. in strong in a quarter XX% of year prior activity enter financial and ‘XX. solutions year, quarter quarter. fourth period performance over million was company’s that was the same customer last marketplace our revenue we and from initial Wejo’s software the in performance the new as $X.X launch Underlying build reflecting revenue reflects revenue base robust helps the

reportable reported additional are to clarity our we the results, is in to believe addition revenue, for In operating as metrics investor. add net there

customer markets customers we revenue with in to OEM We reflect our investors Historically, results. reported meaningful prepared the most metrics our goal have revenue the this we revenue look before in share revenue at our is for our Our driving metrics update goals. partners. our hard the of short-term progress a took gross as helping shared and beyond activity towards call long-term from us our to the sales providing

versus are Our key net is XX%. ‘XX performance indicators up revenue for XXXX

the estimated value was Total Total Annual $XX.X XX%. since the XX% terms $XX EBITDA practical which the recurring are are of by is up expansion fourth end bookings total The the increased quarter in as rate which vehicles the Gross our million. bookings, solution XXX% as business, cloud XXX% to-date revenue by to but signed new bookings million. Gross contracts in traffic are in growth signed management, in capabilities our the in in we in current loss over XX%. product million the first up the up defined continued the grew of customers million. we platform $X.X $X.X and value the but XXXX XXX%. of value new with company has to is reflects value And on to industry. and contract expansion its XX%. software automotive is specifically early also XXXX adjusted launch define projected acceleration that contracts period, contract seeing Our all in customer of of higher

to be gross to As increasing become of the see heavily that solutions, also our relationships the over positive contract more life its Wejo continue will in customer future years. XXXX in recognized bookings will relationship. trend subscription-based margins evolve software we customer to an will expand and This of improve help and

we product of evolution Wejo Prior business business. into our traffic XXXX, Wejo excited a are our first to has As primarily the about in management. line licensing heads been data our offering, current

purchase or customers of and Wejo data the would live Our analytics. batches to interpret that streams data relevant get

focused forward and repeat would across have which from SaaS data. our management batch can single solutions and privacy numerous year data to customer needs services gamut our visualization tools of a be and platform deal the was contract a to late tools the tailor for and cleansing on major set The for today, Wejo OEMs software Fast to purchasers others visualization analytics is initial data Marketplace Some a Wejo Wejo multiple solutions, customer Wejo licensing. Data privacy product signed Solutions, automotive lines run which solutions utilized basis. tools and that of data to applications is developing in purchase for are customers we that The management and use customer’s data. the also even includes last Studio rapidly we on up markets. multi-year

is XXXX also The the management solutions backlog, business opportunity types Data our is data data which by gross stronger multi-year Marketplace standpoint, major From management in data a customer expect industry in a but revenue of substantial of to to our Wejo mid-XXXX. the base continue the in beyond. our and performance performance. sign next starting We we this off its first the relationship customer, to management with expecting this significant of future with and relationship a are beginning and industry’s automotive a arena to the which adding Solutions. see platform to revenue is total believe well-positioned needs. contract reflects evolution provide expect to supports across bookings This We to this we that build kind accelerated OEM reflects value and the Wejo support automotive in

rate expect we As remote in accelerate product end-to-end management audience the product in Wejo excellent we the XXXX, management and to by marketplace growth beginning measurement, mentioned, assistance commercial lines. will traffic capabilities by we software X In of revenues product new management and our we the have line have to primarily launch XXXX, new marketplace. to of diagnostics, to our the an media been marketplace lines. grew launch start solutions develop and customers add is Traffic and our roadside tools and the product of Studio believe launch Traffic and fleet have new and services. visualization just end By expect we insurance, and as was XXXX driven offerings. XX%

work insurance Japanese platform build for a insurance have market. We already the digital with in started end-to-end our partnering to Sompo

remote are Hella this diagnostics dynamic product also solutions line. with on to partnering We create for

substantial expect impact growth capabilities markets but Entering example, solutions on to will have these beyond is our additional intelligence XXXX. future. dealer expected an in the the the revenue, moderate marketplace company line these a position leverage As we for will in only business XXXX

We the Form stage date have line, target development, highlighted in audience the expected and XX-K. each launch the of our product

time SaaS in as our migrating will fundamental initial recognition on As license from a Wejo relationship. software launch, its are recognition customer relationship from builds subscription of the licensing a evolve cloud developed or to our over software solutions transactional period to revenue relationships data expected. pure The and deals from commercial based business

expect revenue recognized levels term As as to periods. longer see deals, as annual revenue with multiple a increasing over well result, recurring of we being

active time customer we per data their are to the insights end various of which to a is underlie and within will important to good over we ADEPT platform of there we million continue we live grow products, Gross platform active near of on which metric there XXXX, hold generate solutions These are and on from enterprise our vehicles are that software economics on $X.XX. currently vehicle from can on lines, get that large $X.XX million platform, are per vehicles XX.X connection streaming measure real-time. our be their from up product can as This as XX.X product data monetized. have in solutions. platform. And vehicles expanded and lines data As the XX% bookings vehicle relationships was and

of adjusted we as $XX.X the year in loss incurred million million XXXX, $XX.X an For EBITDA to e XXXX. loss compared

operating compensation effect EBITDA performance and before adjusted from reminder, expenses. some use operating working believe EBITDA and our with EBITDA as the well help understand loss excludes And a stock expenses. cash financing for we a definition significant transaction-related listing to standard measure proxy As investors transaction is our adjusted as flow, takes of costs. for rough non-cash and timing adjustments non-GAAP We loss also this non-cash our the

we deployment and of to tools expect vehicle $XXX For we new greater accelerating be XXXX, into million, EBITDA sales which loss expansion on $XXX are million and to XXXX, applications because lines, presence our our and our is spending product support adjusted onboarding. newer than OEM to development

on timing At markets. that end to margin the additional million, revenue enough has as our fully and expenses of will have specific positive of XXXX for purchase and the timing Wejo evaluate timing cash subject as the the While needs expect liquidity business revenue gross $XXX both for this business using to XXXX to Apollo time, company to specific a the million and we does our agreement the we raise not of capital our in plans support customers. of a any scales additional the equity the platform. the forward and assuming margin, able capital around from until raises in not capital guiding hand operating to are committed $XX.X opportunities the draw unique facility are company turn Including we data the and will gross

would the we As marketplace seen near discussed, have organic term be will been lines, product M&A purely accelerate previously revenue in position basis. than in growth a accelerating to our earlier on and have our targeted profitability

revenue XXXX of transactions. that for would revenue, net launched to represent any we to a million, reasonable our generate with achieve a reported will the annual recurring if complete based revenue pipeline on we expect a of on to guidance visibility. update over starting To our when complete picture existing base revenue what able level, we to-date $XX products We XXXX. and XXX% of are which sight our we At and in increase of net are have M&A line for course we base

We software the the gross we believe revenue total in are value pursuing determined until final a impact recognition place. timing put that strokes deal substantial be but customer solutions on our ‘XX, each a will and of cannot robust pipeline cloud in into and fully are have contract of bookings

Additionally, will current multi-year span a be revenue it arrangements which of than reporting is time that longer will these period. the a likely deals number horizon under

While these Wejo’s of it that marketplace, very therefore is connected revenue robust are opportunities means in revenue pin and down. the data recognition performance harder for timing guidance the to also exact vehicle

we expect also that to near-term have scale, grows will revenue Wejo we significantly As predictability grow in our performance. our and revenue greater will base

in XXXX We these tools multiple lines. be in product that the the some and These will the come these be of higher growth Wejo although revenue tools percentage deploy drive visualization marketplace software a new our most and launching will to significant these of in new also beyond process marketplace the launches future. of felt in of line plan product in revenue will to over Studio recurring believe new areas. are portion impact annual base from efforts We XXXX

expect range We to vehicles on million platform. of XXXX million XX XX end with our a to

and gross listening. bookings net substantial per platform Richard. to vehicle to Back you, revenues. will Thanks our grow, it growth As our in continues drive for

Richard Barlow

How because Wejo make issues sustainable developing semiconductor less organizations commercial smarter, Wejo facing is global European into successfully transport? rising OEMs. right Neural prime innovation enormous like investments greener with of to modes space prices, chain world supply will challenges. significant address environment, and The is now of quick for from system private benefit to can The solutions help and some macroeconomic of energy smart goods investments to some shortages more and How address How can fuel we in we issues. these Public on these more How cities we these spend a is we other effectively operating energy or services? transition position and global get challenging more can infrastructure How around efficiently? less can than can deliver congested? mobility Wejo EV in the to be need Palantir questions. its continued the Edge with Microsoft. costs?

this This needs, over wide why services fully who that Wejo to customers. to where we our seamless across deliver experiences sensors starting their are from range richer is accomplish Wejo the vehicles. demand and access to of vehicle its data from customers globally. expansion employees enables accessing expanding collected critical and provide of on goal. develop mission the customers and mobility analytics are relationships to engaged To can Our on products further business the of our solutions platform to wider with insights that data our support world to have XX requested that million focus support has is datasets

level rollout that as expand new to broader to XXXX of access critical This further and more expand dataset we data to these relationships. relevant lines XXXX allows double to as nearly to regions. in expect us gain in mass in geographically continue product the We we a

business to focus margin adjusted of on remain on our but scale, Our will our revenue same. continues I long-term the and and forecast delivering goals EBITDA

economics of on understand couple discuss we in our we our XXXX, million, but terms the bookings gross we the of a we activity bookings of a will using notable Using vehicle revenue. include, without Both business demonstrate outlined, and driven on gross unit our $X.X shy long-term deal signed were in again to this track our As each on be business a in deals. desire forecast very bookings gross business Ultimately, direction reflect of using our of for will of how changes revenue much increasingly focusing Wejo And million being performance our live larger of John instead calculate now our the which sales. being proxies business. In the gross bookings help direction driver just XXXX platform. investors to on base, track these which progress as the sized better new strong business. reflected reportable performance. the changes now future the sales are KPIs target, $X.X gross of focuses revised key and A economics drives of to this our were

to are are determined a provide in of We our view transparent investors our business. we how executing

revenue versus XXXX would growing revenue on being and gross licensing XX%, focus performance that We solutions product tools of are recurring indicators have up subscriptions up products, and net our up XXXX, bookings upfront progressing and generate up beyond. continued XXX%, up you to vehicles Tracking these are with which on from key and contract XXXX XX%, performing the how revenue insights in of into recurring Wejo market give and XX%, and goals total XX%. its will value is annual platform metrics and

management. services in to each make name continue vehicles. analysis more finally, As transportation congestion congestions this provides understand Labs of vehicle and an [ph] with that is enabling leader in agencies they solutions update and new on crashes Department wanted ITS The safer we autonomous projects effectively will and Zuber timings sensors. data customers expert the Europe And with costly signal make to you points [ph] few hardware reduce software traffic and requiring our solutions we and few business cost can and confidence of typically to of To understand roads monitor signal a cases examples fatalities. safer. signal roads and traffic through that to labor hours the come end-to-end of very to with using intersection signal that analytics State of Wejo’s timing global a our and University leave manual prioritize traffic Oklahoma Flow more you improve to add will often to infrastructure give better use is to process reduce and Geothermal connected, and are expensive day, cloud update, uses ways company connected is from the customers Wejo traffic up close XX based manages so and electric efficient timing. installation to cloud tech I is per Transport that data road

globally is once and traffic I’d in traffic can reason, ways with and electric this multiple These Wejo many is verticals. society platform customers taking that customers our unique focused to in That dataset. every Wejo’s that is are are you our signals updated to time management and our illustration for traffic management X For why the benefit years. connected across vehicle earnings thank call. this join like disrupting

now you will We have. may take questions any

Operator

first Instructions] question comes Baird. Meuler you. Thank Jeff state with [Operator your question. Our Please from

Jeff Meuler

thank I looking, Yes, some with more where stand for Maybe Neural on just guess you. you Edge. clarity

was future date. something January developing maybe later think I details its sounds a be would And the launch. you would at it said it come announcement like and today

if just it? for behind or or communications So, it close is the how impact on vehicle-to-vehicle to it’s infrastructure just live about have of to question substantive Just the any being talk and live more vehicle how sense will it Wejo?

Richard Barlow

the partnership we is networks super key space, with also system where reduce vehicle broader companies I from our in or one time back say million the real-time from Wejo that. can EV, went Jeff. we XX an just vehicle, OEMs, that million the XX point having part going on the competitive go to offering we super take has initiative. benefit connected latencies where started information will focus by of are relationships Palantir. data utilities in product being is to real-time And of we any as XX we have of terms we the only data our million. latent, live with and broader low provide to part are being now we Hi, AV autonomous to now landscape with fast launched you heard at real the now company operating is latency, space, reducing to to vehicles that our And on a under our call then

product. So Neural well developing is as Edge internally a

offering autonomous some interesting to primarily, getting connected service an broader Edge being from the OEMs, vehicle how both of but they to want commercially But a are data vehicle feedback in that product. and data We is built Neural electric provider. the also use vehicle, demands

Jeff Meuler

it by around end get And to got then on XX like on year. Okay, platform million to it. looks of are vehicles the you the track

what at in some the sold You that? you with connected partnerships XXXX. if logos in us United have sales of that OEMs coming Do the you look do – or are have metric States those past. signed just like of percentage given of like already was you have in a have I we the number any would data sort vehicles from metric rights

Richard Barlow

Yes.

live that to work from present the I should connected, get the other depends of on consumer. be in and all it’s is Japan connected. and to cannot know partner think connected, marketplaces platforms. but vehicles ones that those with, we Europe, It’s do, of the you place the including OEMs the on we to have the what OEMs The do preferred a up-sell in defined have depends we consents. you. of the We it where difficult with very OEMs agreements number are with It as but vehicles been data in APAC, other that U.S. of number metric. to we number remind can including parts broader, OEMs done What different

could So, Wejo. in only that presented be OEM vehicle then defined the if the has market a connected available, to

So market claiming a good maintain we we transparency with – seen in which terms terms our live are how we position. any on of a should it’s array that up have presented show – sensors vehicle. where we vendor metric, to leading now of get vehicle been have live consider of vehicles and in terms broad vehicles, data other in million XXX of in platform not to we But XX how

Jeff Meuler

here. in But us for the say don’t sure little closing. better that I just stages closing, me, of methodology help a include new are the this late stages are what opportunities not for saying that’s you you, the just think for of you John, then guess understand exactly customer And – business include bit pipeline you of that one in new probably that in you late I pipeline the in are last guidance you the but Okay. but is

just So understand better can in is us if guidance? what exactly help you not the

John Maxwell

Yes, sure. Absolutely.

we do as business revenue pipeline. late So, growth And include and obviously have do we obviously, that well. level then into visibility contracted in we And include that some of traffic. well stage continued the as part of

multiyear several pretty will have we the from believe We then timing the to we but won’t we the one are not quarter in negotiation, the launching automotive again revenue the through of opportunities some until and arrangements have significant the contracts. the guidance, to revenue revenue, last in the marketplace fourth we year, type be that. we new contract expect bookings like contract types we products we of type know building OEM that have the where expect included that a base in those be significant And exact of ultimately signed pipeline of relationship do stages of come final very get we can from

business will we will can’t good really but book So, be. do and what we predict from revenue it expect a build of it, we yet

business. then will add we as base our year that to the good is base market tell update and would building I is and new we continue of you – a solid we see as progresses as we which what what the are So,

Jeff Meuler

you. Got it. Thank

Operator

you. Thank

Please Our comes next go Sam Wedbush question from with ahead. Securities. Brandeis

Sam Brandeis

Hi, Ives. guys. for on Sam Dan

you guys deal landscape of today, over the X about months? So, And conversations can out said say playing versus let’s the do talk with Thank going to you. that, XX OEMs past kind OEMs past year? of have changed XX like next you off those how how see with – the

Richard Barlow

our have from agreement that for that privacy our where So, are running particular area. the we OEM you secured earnings presentation we data global first substantial will had

our When of addressable terms demand marketplace market just familiar cloud deal in further solutions and we seeing recall SAM estimate for than billion you billion. are the more about service marketplace. landscape is is where we growing is broadly So, $XX $XX inbound a software the and

the of SAM. our of from We a both broad with us. our demand are Because that we and we volumes OEMs from services is happy We technology sides have want we works, that technology data. inbound SAM growing are processing they array is that getting have see huge shown shown

And have of we real-time compelling with from their using be showing data. We growing really are insights can who us insights, the enterprise now clients, is products. assets, in our we mapping trusted likes shown also the are from data Microsoft interesting validated including which

Sam Brandeis

you. Thank Great.

Operator

to additional ladies this remarks. And gentlemen, closing be and for floor you. Thank I’ll there no back appears at Thank questions time. management to the turn you.

Richard Barlow

you I earnings wanted us thank joining to today. this all call for

presenting to now add whether it’s are time. bookings whether do are want seen vehicles presentation, from it’s have view bookings, You a you a set your As gross live as comments? form you much a Thanks to any it’s you you whether on and platform, per contract this that we we cadence vehicle, are muted have whether KPIs we our John. organization. we for very gross closing to value, it’s focused is can on the total for our John, regular will on basis. be well And how scaling business,

John Maxwell

I are we No, look, am we sorry. no, where about very excited mean I are.

about XXXX. excited are We

the to and as continuing great with investors are dialogue to forward We off look progress. a start we

Operator

conclude you. webcast. today’s And you. with Thank that, Have a Thank evening. good we

Wejo Group Limited (WEJOF) 1 Apr 222021 Q4 Earnings call transcript