WEJO - Earnings call transcript Q2 2022

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Operator

Hello. And welcome to the Wejo’s Second Quarter 2022 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. to call pleasure Clarke. to my now turn over the Tahmin It’s go Please ahead.

Tahmin Clarke

And joining our financial you call morning, CEO; are thank Good everyone. Founder our for on call our and quarter Richard Barlow, me John to second Wejo’s business With and Maxwell, results. and the today CFO. discuss update business

that written not may third for or broadcast recorded As matter, note please transcribed, transcripts responsibility the a in parties. no that our appear be consent. express of preliminary any by take inaccuracies this call may call We without this

follow Our are copyrighted future remarks and forward-looking. projected financial the Q&A today or call trends Wejo that made Limited. about on results, objectives, this are Remarks and items Group similar strategies, events, expectations, by other

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

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

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

GAAP. In certain Generally do as not U.S. will Accepted the addition, conform Accounting be this we financial during known better to call, discussing metrics that Principles in

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

Richard Barlow

market-leading the that smart proud that Frost disrupting & second connected quarter of is Wejo’s well-positioned market. the report an overview business number Research in Wejo building which global mobility ranking joining validated idea sector, I’m strategic process dominate for is by one update. you for Sullivan Thank startups, to continues of the business a car a XXXX

Transportation. during of the activity We’ve customer and for insurance, global significant with arrangements wide included measurement, deals is SaaS retail signed companies, value relationships immediate and with new continuing the close our and reflecting also XX our and in paths to per customer automotive, expanding to- sectors services these premier revenue their names companies are increasing partner efforts revenue business. of Departments customers build who sustainable also of with pipeline including, date players range audience enhance to a quarter, sectors additional a within Our strong which realized have agreements The and contract. products and contractual smaller of wide range contractual

of proxy will profitability, we’re small, accelerate to million net the result just we a actions these aggressive and actions t nearly these our a EBITDA wins, As our rate believe big our not XXX%. by to to and monthly increased our path by we’ve revenue, as reduce million But also adjusted structure taken four. on $XX cash million with $X customer’s to reduce focused quarter turn $X cost burn revenue using doubled to cash, from

part This on of are PIPE additional and the raised have and that and broader our some all are the million the position to capital on revenue ahead announced provides a company actions $XX.X strengthens business for supporting We the opportunity XXXX for beyond. company. deliver in process existing a whom raise excited our investors liquidity We’re without us. generation we by new of our investments, of objectives and focusing to spending our effort on and these recently efforts position financial

we that low our The to and Kansas for ensures and need impact our We funds in cash are environment, late capital in challenging City this proceeds, have spending see proud Apollo raise business. combination funding the our testament XXXX. which is to value access investors to facilities through levels the of to our we

Our our in year, but and of current over contract approximately details, continuing demonstrating a most our KPIs. are I accomplished Chief up gross XXX% have Maxwell both versus of and last market the to value few array Total all despite wanted Financial the the deep bookings John and quarter environment. period highlight financial up customers facing are in while gross quarter, this, diverse delve strong billings XXX% are company’s same will the we the business of the companies or progress into the challenges Officer, TCB, total economic

ways We data our trajectory connected impact continue KPIs drivers demonstrate of positive vehicle today. meaningful to that expect and in can customers

X-X-X vehicles using RoadMedic RTTI. recent comprehensive Traffic millions example, real-time Solution Time Real traffic For allows with data our from our first access to responders connected partnership of or

which tons our data safe First to our crash save EMTs possible. provides will analytics roadside the first and paper generation of route times crash utilize and to and can the of responders of improve from lives. in intelligent that response literally RTTI This as assistance safest this emergency partnership any incident This technology. cancel from to operating validates that which an embedded we’re only revenue It evolving to fastest accurate a going the injured assessments [ph] accident. data of forward. RoadMedic, more enhanced providers to detection. will insight partnership of solution an the passengers RTTI allows capabilities and solution bystanders severity quickly systems This with of the the provider, quite find provides supplier an for faster assist scene instant as is motorists, responders

been revenue number the Our vehicle data. grow labs. products product new Patterns space when platform comes it for traffic connected one to is Traffic is RTTI, have in including key accelerating Wejo with as to continues HTP foundation Historic supplier real-time data RTTI strong roles, the and These or

be benefiting our In immediate to addition audience foundation to we to the company have as additional building verticals proven expand end-to-end we and insurance with applied are we can new the our data measurement. and products,

deals portfolio, upward expanding KPIs, trending pipeline activity Our of our finally, new and improving securing and illustrated by, capital additional XX% the the cost strong our of is with half in operational our product momentum our execution first structure. customer year, strong

CFO, in Maxwell progress discussion, our made good our John. Speaking we to of we’ve financial this KPIs, you, discuss John that’s and to-date. can KPIs Thank a bring into opportunity so

John Maxwell

Richard. you, Thank

continue We’re in a reported good offering as marketplace ARR story These into customer the we so the to Richard or revenue have a and can derived strong, Net business bookings the the we are waking the our our powerful strong but of add over business. that as start our do off are where build up period. KPIs anticipate Gross solutions. our billings tell continues as more year for traffic of to to recurring record level continue bookings We year. product revenue we customers discussed, annual very new QX revenue we momentum a in to activity XXX% from nearly up gross value to and Wejo and our be continued of Most in be growth clear verticals, prior focused will to we on SaaS delivering business. as translated segment multiple as across and leader, services well products our and deliver. is

has same trend. continuing over customers growth strong of number the year, total last customer period Our doubled a

continue we to significant customer in number And to value compared doubled and year. our expand marketplaces, continue grow. opportunities, as Total more similar expand expand our bringing the of the smaller into to contract by to expect as activity SAS organizations activity new activity We a prior than customer period will well. customer to

Gross period, has continue up future are is we on QX at for in TCV illustrates of current building revenue same in business and bookings impact from While company the growth. revenue last moderate a the strong it book like a the pace period year. XXX% really the saw

traffic timing, and congestion of road most analysis. new ones highlighted came management, signal Our traffic significant safety bookings the customers from outside doing

during bookings at on product We our $X.XX. which to per base a we that are expect broadening model other record the market one-time focused are see indicates of expand. second a This further period larger subscription-based a offerings over vehicle number also to at versus grew ARR, XXXX. will was a our our and XXX% as levels quarter opposed of customer purchaser. was as moving that verticals customers of to Gross being the up XX%

subscription-based business all these million, for months XXX% of XX this revenue to compared mature $X.X Our was of About increase to with of quarter opportunities from to engagement longer is as revenue when the the continues XX With prior a the from two-thirds months. customers are and net factors, representing year. same seeing well. we period from to marketplace in SaaS proof-of-concept revenue early contracts

of are year our guidance for XXXX. revenue full the net $XX million We maintaining plus

the year. that of just in $X.X XXX% consensus is which revenue under revenue million, will analysts’ line to-date Our million in half we year-over-year with the back of and performance additional implies to generate have of $X up

of As have on pipeline. into of the four-year million $X us of anything the million $XX That this based range stage bookings in call, to later previous a of we $X our our adding new to of combination XX% million places plus pipeline. visibility without to XX% our target

deal. pipeline, factors, we million recognition the that of final and large also To revenue numbers including, reflect new the deals progress structure and impacted potentially automotive by will Of can know on of Revenue insurance in of adding deals we in but have difference, marketplace believe today. to course, the but plus, we these course, the be up in as to depending of $XX always the what are deal. number get make the we our timing structure the SaaS of timing, a several

a has over the licensing the impact the deal level. paid For amount a the of in while example, is revenue customer the whether period, or that is will have license around fee a often TCV with agreement done a one-time meaningful SaaS services same agreement on time, software as

over our time, license of will a level generally upfront a Specifically, software recognized of agreement. deal while recognition, drive with life smaller be revenue the over a will recognized more SaaS the to revenue deal

large adding but As deal in revenue can TCV, SaaS to same major increase may OEM such, significantly period. the drive a not booking, a

relationship will deals the its revenue year. total types $XX.X gross for Any quarter second monetizable meet we natural versus could significant treatment, and our one backlog, EBITDA will prior our adjusted these We accounting. in The dialogue new a and enough our other of remainder loss on generate guidance dollars take financials several a beat million be are, believe bookings, Irrespective of of for differences drivers these drive in customer the revenue for value platform. year focus customer KPIs these course. But incremental million of and on is to the will what deals increase an accounting revenue accounting will best of and customer of customer XX% or and the year. of contract vehicles

to to support outside U.S. into platform vehicles our expect continue add the to geographies expansion of to We multiple

management cost our Our was adjusted efforts. the loss EBITDA by during period impacted

cost announced initiatives previously our in second the EBITDA further reduce Our losses half. reduction will adjusted

burn burn, The proxy year structure continue the our exit expect be a month. goals of expectations of revenue of into our Using hiring $X based some driven as to revenue adjusted on Despite exception improvement for are which workflows modest XXXX. rate million for and per freeze, to product million as been XXXX. these launches month cost about delivering that of for XXXX. move that per $XX we prioritization by rate will projects to squarely only $X cash timing to cut These verticals, Our elimination and the guidance full non-revenue the not our was changed, some in of for has plans million a we generating with have about had XXXX. will actions, new focused of on EBITDA

revenue We audience of the balance year the verticals drivers. measurement on as the of media and insurance, and continue for be laser key to focused our traffic,

focused to additional pushed non-revenue have future for projects to We flexibility. non-essential allow periods

development million beta revenue initiatives, and also our possible. adjusted measures And focused We for are have efficient improved the costs business that EBITDA range expansion the making in commercial full a to XXXX will time. million and year. targeting an on that and finally, these over our focused of loss product as we’re $XX as our margin in We impacts result believe on spending XXXX. has scales we lead of these $XX all the as of And as cloud

vehicle $XX year XXXX. Apollo Finally, on are full the the maintaining range, cost $XX million the for our to our with million raise electric year, almost this and end we maximize respect results, data, midpoint additional also of that will million. balance on cash rich will plans. sensor range prioritization support PII capital vehicles revenue our efforts, our incremental we This XX% is $XX at cash at to vehicles the we including us and vehicles deliver runway, vehicle guidance committed to which improve the driver vehicles and represent onboard sheet, Despite from focusing our and XXXX vehicles data, give about to at equity are still on that our platform with insights partners our cash growth forma quarter of reducing the capital leveraging facility FPA. was burn, PIPE the of To pro accessing XXXX and

current and access FPA, assuming to access the market through these to conditions XXXX. Back will while the With Richard. and we have CEF that sufficient initiatives we liquidity late you, persist

Richard Barlow

mobility datasets public and we’re landscape. vehicles, John. science connected, to in value OEMs you, sector pivotal that still in and Thank those organizations and some We and about are the even how smart success recognize the electric the of educating private and the data autonomous

continue our product which rapidly access marketplace grow opportunity will to we’re update, by highlighting $XX entering. quarter’s us to for verticals capabilities, For want this enable billion spend product data some to time I

studies First, we conditions, weather effort purchase and also Wejo road road vehicles inclement from all from traffic tens billions of completed data vehicle scientists that packages. driving and locations across the cause in U.S. across journeys identifying self-serve hazardous to Labs, data and an safety. where data be can Detail launched researchers the in enhance data continuous to through of gives analysis situations Europe millions the access

HTP. RTTI Traffic complementary last launched During Patterns also the we our we this Intelligence update, called new Real quarter Historic discussed Traffic Time or solution, solution a and

mapping. have across the from our Wejo $X.X traffic location America’s all safety with product announcement anticipated historical of roadways, to and from Our insurance mapped and and habits real will generate create We’ve their information of limited Europe can to have experience insurance of HTP by impact created data any API type the ability to solutions intelligence and from plan Imagine proposal of with an region. and which having vehicle solution emissions. European end-to-end for the XX% solution reducing and an policies traffic for market marks derived initial with been and generate a access customers recurring available efficiency. based share a by delivers companies goals any Ford anticipated position analytics us insights has has the an time billion their the XXXX ask into for customize traffic and driver insurers major the deploy for also This deal improving to combined and of solutions data we XXXX. XXXX new billion billion will Consulting traffic on foray customer savings other strategic to for our sent expands to in an information trying which by insights, are from global These industry or the driving $XX Ptolemus for relationship optimize in to solution mileage. This be and revenue relying serve problem their in they marketplace the anticipated When on to according with $X.X XXXX, already and dominant combined Group. traffic our logistics industry for pipeline

of and traffic a able also marketplace. System automotive historical events to that revenue range Traffic industries. Historic an vehicles we position designed capabilities vehicle expand to product the this We’re Operating and solutions breadth accelerate opportunity. Patterns to or anticipating broaden deepen of global vehicle develop of enable marketplace to and our Time using to to to billions leveraging autonomous launches our simulation of platform adoption autonomous like Long-term, across and part testing Autonomous globally. Vehicle AVOS platform They locations miles allow creates full This be manufacturers see real Traffic connected spectrum our positions and understand Insights environment well data, and These solutions wide Real safety. developing time improve our enhance generate design

how it to product We’re they just for multiple with effects broad to scale accelerate plan build not revenue important? and are strategy to we we services reusable this Why one and products allows developing new to success our these verticals. Well, be to marketplace flexible a believe us It’s profile. across is as our capabilities, or capabilities underpin product across verticals product with replicate technology that’s our vertical, dynamic investment. serve minimal

come the business future brighter that showcase for key the points close to a reiterate just builds is this Wejo update, some want of As I that we building to our investors. foundation now

We have customer Europe, new with Microsoft. some deals RoadMedic Ford and partnerships and

$XXX raise the outlook As John during the extend further get runway. one public being $XX from we of that to our economy tech improving to and few capital by million year $XXX our companies adjusted advanced mentioned, EBITDA the to to million financial difficult progress this economic to million $XX times, the million capital in recent

premier strong the marketplace XXX% revenue in take SaaS financial time. our survey, you overview continued research building and rollout the for market custom other electric bookings, data. John the the highlight discipline quarter by Frost that how These disrupting by your in metrics global one I’d key market. financial and ranked billings, powered our the into SaaS, both and gross long-term quarter. and also demonstrate and thank These autonomous to questions. of is connected, your our Thank product reporting connected solutions their wins, vehicle We’re net customer metrics like and Wejo strategic that evolving & car I number you. analyses strong on towards will startup now the Sullivan in demonstrating provider goals nearly we’re expanding increase TCV business nicely

Operator

Meuler from Baird. Our Thank first question you. Instructions] [Operator coming is from today Jeff

is line live. now Your

Jeff Meuler

you. Thank Yeah.

guidance. think I XX% want guidance, it, was visibility to ask the there XX% but maintained you commentary I revenue first, the to of So, about about some to

this was at time was, a Just contracted pipeline. late-stage and it based revenue from because year, upon guidance you the base hoping that my could original that with of understanding in contrast earlier you customers said,

to upon just I already pipeline. the was a because based using So methodology trying understand was it difference, thought existing that

pipeline of sort small. the cost structure macro, prioritization progression and prioritization marketplace like it with slowing sounded relatively any So was the from impact

from $X pipeline? to just million original understand without $X to to on difference guidance the of the So, the this commentary trying million visibility adding

John Maxwell

Sure.

So, right. yeah, you’re

It can well to deals easily closed the the right, get, maintaining possible that announced that other what about guidance if You’re about the guidance really in range various when on plus the very March, everything up mean, we $XX we exactly that, that million then we did, is in we are talk we could XX%. have of we we’re outcome. that’s plus we add the today discussion is $XX are deals in pipeline at we we’re our still the think we of that immediately line with $XX talking year as wide stages when that. pretty in very I million know of will Jeff. built a we close, above but And when to much the beginning pipeline XX% of that million, have based that activity,

that in can much we’re wanted to kind occur. with line the still sure very understood you what would But make to we cause at range have expected So point. of what this we

Jeff Meuler

-- be types there vehicles prioritizing of the was And a it. data Got you’re comment of to about still the I data. bit maybe number for I part seem there of talking a where partnerships reiterating that and nuanced get on still point guidance a little then, of certain platform. Okay. onboarding

be you expense I of of opportunities? as that So with structure, focus on number expect monetization multiyear about part and burn rate vehicle the on vehicles have platform that for types as your outlooks your guess, the you is more online trade-offs cost should that better over per number several and years, instead the unchanged bringing we talking the to of next are vehicles, out or you’re the we maybe data the that the of be management look

John Maxwell

doing. mean, continue to I’ll you Maybe what critical relationships Richard very of and strong start look, add. set that central know, and as going We’ve we’re then we’re I can to we’ve built is to build. data,

So, has nothing changed. strategically, really

is revenue it’s with prioritizing not In has focused in of we long-term be partners, as terms the fundamentally, OEM on the what’s our we short-term, to But really We’ll of in data. change going and nothing how it view can fleet generate near-term. going try reach money the spend the where changed. when we manage to as efficient our relationships we but to

Richard Barlow

our things to when field about need our we’re a of critical platform, to said, costs clearly intention that and sake or number it’s Yeah. the territory in on cloud unit we much going to very a the of But aware whether fundamentally have of vehicles will cloud up. in one as and mass we process costs. hitting onboarding scaling up But we our is very as possible drive will be of particular do then of economics a John of manage but that’s we’re managing unit for do data even when as on processing focused point any curtail live use, particular onboarding not vigorous vehicles we’re cloud much economics state the on of -- of opposed we varying our on as managing

Jeff Meuler

I cost you how structure that, bit and related initiative any it. but just an important costs, generally? does Got guess, cloud on remain Neural manage manage also And a as that update as -- Edge does how to

Richard Barlow

the join how version Neural our been demonstrate where we in investing do we’re you’ve latest to of key So, further one demand of accepted believe OEMs. Analysts Edge, Jeff, from platform. I intend which debt our seeing technologies, Day, is will which Tech we’ve include to That

we expenditure, spending So demand but OEMs. we’re inbound seeing from in controlled where continue be to areas our in

Jeff Meuler

Got on marketplace, it good remains initiative. me seems the it. and making on for which a just last insurance progress like key you’re And then

be you year? U.S. one potentially relationship? is on in large And get to partnership, million you is market that along, then the I thought on would that have far the Where still conversations, $XX would Ford the are help as I sample said, you the the opening market. Japan, the think, Europe could given So first I saw of the that insurer that deals

Richard Barlow

relationships it we our plan new progressing long So Japan Sompo, time a structure, announced very to insurance takes and we for in with much ago, in from in the with a time. additional Japan, established rollout well corporate which weeks but of takes foundationally progression generally establish OEMs this investment territories, with of on Japan. are in we’re couple It

the U.S. are the of specifics, won’t in including Europe, that, of much earnings, line and you but as into market terms go more previous mentioned, insurance I advanced we as conversations us very in in terms the for in U.S., In our market. OEM in Europe Ford having offering with in carriers said we’re with And to the is insurance very more the now foundational broad a a launch U.K. European we

Jeff Meuler

Got over. it. I’ll it you. Thank turn

John Maxwell

Jeff. Thanks,

Richard Barlow

Jeff. Thanks,

Operator

[Operator you. for Thank or further there over any time, turn management I’ll at this If are comments. the no floor to back further questions Thanks. Instructions] closing

Richard Barlow

we’ve with of a all for developed on great clear this your very attendees with numbers in happy we future seen Wejo had how tough environment. the had excited with Thank you -- the year, We continue QX be this a you today. cost macroeconomic the We’ve eye we’ve to you’re hope Thank some by capital on for and a time. management Wejo. We’ve raise, great demand attendance morning. since

Operator

Thank teleconference you. today’s and conclude That does webcast.

you… line have We this disconnect day. time a at You may your thank wonderful and

Richard Barlow

Thank you.

Operator

today. your … for participation

Wejo Group Limited (WEJOF) 15 Aug 222022 Q2 Earnings call transcript