- Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Wejo's Third Quarter Business Update Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded. It is now my pleasure to turn the call over to Wejo's Senior Vice President and Investor Relations, Tahmin Clarke. ahead. go Please

Tahmin Clarke

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

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

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

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

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

Richard. For the report our Over filed on XX-Q to of with financial you, please quarterly refer Form to these a GAAP, reconciliation to SEC. metrics

Richard Barlow

one for you, solutions quarter connected, Thank on the electric global my a thank autonomous Cementing goals. of joining Wejo's as primary Mobility Wejo's for and XXXX has us and Tahmin, you third status update. in been always business market Smart vehicles leader

markets, delivered plan to capital we given conditions, access challenging this tight the very date. We labor quarter. economic to are strong operation that starting generated to Wejo momentum on that on the deliver successfully goal restrictive our has and Despite

successfully challenges our significant product and created [cultured our values] managed made investments a technology platform have with value We resource innovation. and in portfolio,

partners, and positive and Traffic investments engagement significant strategic market automated company signs development with new base opportunities accelerate offerings. marketplace to our paying insurance, strengthening with our early audience are Management customer software-as-a-service in measurement, development. we are U.S. media These in plans end-to-end Palantir our off including Additionally, strong of and

our [indiscernible] XXX% We $X.X and delivered that clear the indication quarter, is all customers, generated revenue its Revenue. levels on Value, up are platform. prior-year the which expanding in We strong of generated Our number strong are more million Recurring record Total period heading business in right which increasing in over performance and the TCV direction. revenue of we product by Contract driven we engaged XXXX. of was Annual with We portfolio and our than vehicles

we and customer achieve adding in support near and strong half in million new we the building tangible has form to pipeline full-year more entire the currently had ensure record the plan net our of $XX we team marketplaces booked contracts To revenue are roadmap also the plus future. of anticipate of future we've QX that on looks execution. what of of created like delivering a Not testament in is success the focus this only Wejo guidance executing of but revenues revenue. XXXX products on and to All the a plan, date, track our than our consistent

expect attain goal. that that revenue We pipeline to balance will our the and need strong generate to

is will their they operating the both on XXXX. times value our performance be the We all our strength and are operations. solutions products customers how customer Critical revenue for transformative and and pipeline, future in positioned current to our based profitability recognized of expect that and we our accelerate acceleration base to well of revenue

public both is time base sector. since customer year we translating into are and broadening, in private sizable doubling several Our last success nearly that this and opportunities

signing to Also, offering Wejo's of examples fraud will the safer is risks we start these help will insurance insurers relationship United journeys. services in Ford These quarter. the in is solutions expansion and to the the SaaS longer large licensing driver licensing in is and term a relationship reduce offer very end-to-end Wejo to a platforms. few you. a PaaS, Wejo’s the in the minimize platform revenue software-as-a-service, specific insights fourth be for American profile, better of deal with company’s the highlight assessing platform-as-a-service, risk as providing Expanded which their SaaS of understand automotive announced, me of North large for OEM States. This a previously major and Let for include behavior with which include Wejo opportunity industry. data of a entire

awarded the fourth parts other Transportations, of and been Virginia Texas, from During three quarter, have contracts Georgia. we of new the including state Departments

Traffic We also of business given Transport two revenue We and the RTTIs we U.S. call Intelligence. to numerous organizations Real other significant the like it, the another or the which Texas. with Time there for This have is we gain RTTI XX are and important will Time our the of Real part State mentioned Texas on firmly public as are future, Departments Traffic focused sustainability. Intelligence deal in private as of value see believe sector first and stream and award customer are immense states, see previously especially that in safety other

our capabilities. that insights see counter-cities benefit will and in they are how and be In states after firsthand addition, municipalities platform will these Wejo’s from there interested

and DOT in vehicle to adoption. focused state charging the opportunities electric believe enhance leverage also Jobs on money $X tangible including opportunities We We accelerate over the billion in number help infrastructure award serve The this expects the be will government the space. will increase to stations, to there very grants, of bill future. believe and federal U.S. and in EV to customers

merged our create used. any determine as well expect station that and demonstrate effect located charging run The how opportunities of to platform, from EV the solution breadth the derive best Infrastructure that or EVOS when solutions can from be where EVOS. city an be the DOTs web We help multiple state, will our municipality we should including as EV insights should

out with the relationships, we revenue agreement our profitability. the start to We at South the Smart to co-development customer customer Sompo broaden safety year solutions, deliver sustainability Finally, Mobility that our to Asian deliver a products and accelerates of set signed enhancing base and including and markets. Japanese on

We our performance that. substantiated, attraction is doing in and This seeing financial KPIs. are are that we

financial performance, good that's bring John Speaking opportunity John. to discussion. of a this you, our CFO, to Over into Maxwell

John Maxwell

have Thank the and to you, place. foundation Richard. performance about into the are we put strong I'm benefits our QX fact beginning very excited the we experience that of

As have do is and Richard now on starting deliver success are performance we record including of and KPIs continuing that we said manifest revenue, our to our would revenue. show to ARR levels we mentioned, net The total customers. in attained we what

the record strong are execution are We that building positioned growth also we a of strong future have. we for pipeline and track well given

base over the grew than last customer more same year period strong Our continuing XX% a trend.

of contract not fits line. in we with of base, the increasing to customers XX% to large me thousands broadening the customers company customer to will also similar we value enterprises, the only from and will over base sector on all over not Total rely smaller business small products enterprises up universities growth Wejo's that and but support activity realms at excites the time from but Wejo's last customer is customer public year. was and As look customer vision, variety large of businesses our ranging of what most just The the base, our government that leverage platform agencies.

eyes to their the strong basis sequential compared new up offer. building growing with on period continues year-to-date will long-term, to TCV even as that the basis the are is when engage bolster company book on proposition year. for to Our of a year-over-year Gross our to and customers on number to were value demonstrate we we QX same of continue bookings further down pipeline the last a compared that business we but or a nine-month were when XXXX, XX% a year-over-year bookings, open

during some quarter on ARR has expected a summer timing booking we seasonality strongest date to longer around QX levels offerings current to million based the up expect who customers are will at deals our The our impact a of the having in QX mix. us the service was activity few increased third be closings the period, of vacation our next our weeks. of QX, ARR few deal as also affected contracts. as XX% that increased $X.X and for opting subscription-based total on sequentially highlighting product million between $X record the contracts that percentage and quarter up

$X.X XX plus million, guidance factors, the the Our representing versus the of average was of reaffirming XXX% contract XX for same point has are we increased months now for in XXXX. to all a a With compared net for quarter year. the million period prior Today, our net to $XX when increase revenue full-year revenue months year-ago. these

are on to $XX over little a fourth revenue to additional today, performance a million in Based deals of process. leaves exceed few and date we revenue in we quarter. complete to the $X.X of are need they million Our $X million where

As are and that in days order is are tied to we occur state needed and few complete several in that. that's in their instance and end $XXX,XXX few signed Richard $XXX,XXX of to that about mentioned, there DOTs a have revenue one process in the large the on to delivery steps expected to next

of final We working automotive being before that first technical deal, also the major our the points are solutions final signed. through is and signed stages in cloud deal

that just at recognized have will we revenue signature. million after resolved, are points those Assuming under $X be XXXX

that platform in late contract. $XXX,XXX discussions stage completion to depends of that R&D of Finally, we about upon to is tied have $XXX,XXX and it an with revenue

occur guidance. we All of these deals are likely therefore XXXX maintain and in our to

the to our and which of demonstrate multimillion Wejo's a reaching to with levels. for multiple Japanese about accelerate global all an solutions inflection state or Wejo's company mean we deal We the for major very beginning first They insurance is how R&D or about excited point these first are building deal talking market. opportunities the at what all DOTs, business. the growth us, with cloud dollar and they Whether of deal business a automotive platform are is

this of bolster our will also year increase in that on loss we these contract expenses. be value. Adjusted place financials progresses platform. live and our vehicles which the We the also weakening to want total as to by that the initiatives and was dollar, million metrics, deals pound and other key are our bookings and impacted put gross expect XX% financial $XX versus loss Irrespective our remainder impactful we on our in EBITDA about in this timing, business of impacted of adjusted the The continue forward. talk cost reduction a EBITDA performance of

that will down XXXX. exit adjusted million also as towards burn cash step we in a to as million as rate of proxy EBITDA move we a $X expect $X further quarter burn for We this

burn cash focus to and our XXXX drive cost efficiency and growth. rate, continue enter continuing exit our to will while XXXX revenue we We on further to strong as base improve

that on year. million loss traction, respect adjusted than come will that be by our of range we for Given we in to platform, $XX With believe less year-end to $XX million vehicles of the hit to the EBITDA $XX target million are in we guidance $XX likely to our XXXX. million and

onboarding are We time. closer new to vehicles the

Completion them transaction the third of X-K long-term. convertible with We due cloud of people we expect the respect agreements, and binding expect revenue, to from sale the term incorporating sheet to the million in with negotiation raised a our notes a will hand on strategic we million in enhances this so. week profitable $XX.X cash On subject saves ability July. warrants. the data, a partner or ended and the announcing and of PIPE the with We in become to generate a filed occur offering quarter definitive is we and of which to cost diligence a executed cash after $XX of ultimately an Monday, company

$X dialogue in raise with convertible participating occurs. will to update are and you to offering the potential we other that additional $XX to investors million that million also We in as try are several an

notes strategies are working financing and our are will long-term that to completed We equity and positions PIPE also continuing that our company and capital July we like on and cash continue flow we that plug utilize facilities complete strategies capital have will capital the until the expect to currently liquidity raise we in that the financing offering to we we convertible pursue use breakeven. positively provide to picture

strategies and become market the Richard. these disclosable. update pursued will Back being you, We certain to as

Richard Barlow

expand to the broaden John. positions to find use design need our profile, Thank deliver continue our products on innovation. To we to cases services you, to that power ways new revenue of revenue to current and deliver and

path within EV today only can RTTI, near all company the we and a can Real an is traffic. we can our provide, as that to data can the we the Because but platform basic offer can on Time the AV example of traffic used Why? mobility monetize which one full resources customers. need level Intelligence build solidify deliver with integral segments, investment our in to prime of the future. [indiscernible] portfolio insights AVOS innovative building time insight become Our that in RTTI AVOS our the part RTTI traffic In is an accelerating have [indiscernible] solutions not are AV time ecosystem, capabilities platform, new and future. and of are analytics suite in space in These granularity aggressively in positioning marketplace, that application is that while real just to market a to day revolutionary that we generate To focused toughens our service that our have forward. are consumers, we Traffic

As media offering its into in risk behavior. end-to-end will and RTTI on a of media and the measurement audience pivotal profiles assessing efficiency continues driving company – efficacy role to markets, play insurance, expand the measuring

to key we continue want we the update, continuing to demonstrate reiterate some build. Operationally, of As on business the I close we for to the elements out to this year. progress we come goals the that business set just are deliver

verticals Sompo signing broadening and our a our the and agreement the levels customer new ARR. signed And to DOTs. base, as backward reaffirming reporting deals product Virginia We enhanced for mentioned, with increasing accelerate marketplace. we've the partnerships year, over partnership Texas, are and for in John expanding Palantir progress co-development likes the our guidance advanced financial for We our significantly financial Ford of the have customer of by the of with quarter Georgia, and with [XXX%] we and development revenue

drive exit as XXXX efficiencies rate continue We we growth. are or also the our improve to on and XXXX space of further to focus continuing burn revenue enter cash to cost our strong

a In on a terms John highlighted of with million Monday, announcing partner respect of binding we notes and with strategic capital, convertible an warrants. of as X-K sheet sale filed to $XX term

[indiscernible] additional also the needed. capital. in the expected are to are equity participating with investors to in are to of that an facilities and to update million as Most potential dialogue We raise $XX $X try our will several million raise of

to certain the We you. John pursued now will and these disclosable. I your thank time being Thank and for market, you update will and today strategies take more become questions. I'd like your

Operator

first Thank you. with We'll comes Meuler Jeff line now Please be conducting questions. proceed Baird. a question-and-answer session. from [Operator your with Instructions] question Our of the

Jeffrey Meuler

I any the long-term of perspective you. facilities. raising capital Thank more Yes. and the on on kind would just equity strategies love

share drawdown a impacted some pretty you there price. is restrictions think been I minimal there's stock how impact is by can I in and much on which the turn count, think

already, at to a wondering just past lot but still of perspective funding this, the further given mechanism just any like per us of the a you So would current other other how rate, viable $XX tried as know the price. love terms burn are into getting stock give But steps term I those rate million any longer current burn plans funding or on turn, $XX XXXX? to contemplating to reduce million in

John Maxwell

Sure.

once strategic Let tend it a but partnership long-term us that to well. look a Those and that at strategy, stock that more we'll is significant With promise we've right. that doing PIPE hopefully me you're enable supports way works, company has add our in the to be to timing, exactly be we acquisition the – we're solution that limited provide capital the if a the as or we of whether capital it fund can't did and equity it color market also respect do as and the a Richard some to the going take doing would is can. we got us in respect capital will by business. and in to an could update can the to we've approach, those summer robust reason anything But and that that equity on once are markets equity our found it the are facilities solution, sheet we're soon, we I more that reason tough volume we them. which found could by dialogue The strengthen enable that we've the soon shape deal they're really to position, really strengthen sure a we're in facilities. With They're creative so limited of trades us also facilities, and limited. make of significantly convertible now would beyond are but The cash that'll price as we our that stock. the balance at our several be think actually

So we're talked do are then to successfully we near-term that to focus find have with to which things but continuing revenue. deprioritized to some that, we've as fund, on been really to about able to not we've date. means respect critical And prioritization, where we've other burn, cash to

on need do. We to have focused what efficiency doing we

We are more internally or customers our and terms we automate we now can we focused do. needed get we working where where with on to can automation partners even of where deliver how in

to our reduce right-size to So it happens working of our our relationship, the is those that other continue revenue. factor through with through course whatever we do. will be to vendors of And burn we to need then measures, types

really is Our well. revenue inflecting

pipeline obviously reduce very We revenue cash grows, have a also will as our and strong burn. that

Richard Barlow

we're how capital, of for us example bringing mentioned strategic, to whether, only automation John support terms are us great with is helping Palantir. not helping John the working a more of saying example, business, but the with in was they're also

available scale rate. market our cost and space fair of us at whilst maintaining strategics a capital reducing to revenue business we're terms in are our making or to So continuing the

visibility have next we improves scale without how as to scale business. margin costs, significant which improves profitability, fundamentally So our revenues year our we a

Jeffrey Meuler

see the progress about perspective? know building that a made monetization cases? Can from pipeline access insurer how I to in just to use use data for you the a insurance large come curious don't talk you're insurance is conversations fruition, that's on to with. in then And Got In out just on case. it. references the think more a you've that horizon. the on bit I great the the to the U.S. the don't monetizing past far potential

Richard Barlow

So announcement and Ford for Europe the U.S. we where as both yesterday noted, insurance their you now represent in made we marketplace.

firm yet We may with helps but our cyclical on. are or we have the product from in next puts and U.S.-based support us short-term. the not and later offering we be year. an first APAC further Sompo not Japan giving guidance, OEM insurance products contribution deployment, revenues to in now field the revenues very XXXX scale wide and European – place make our expect aligned strategic taking that a to which Meanwhile an drive That having our without and will us from in unnecessary partner expensive a

support base on U.S. but Ford So the not somewhere is European XXXX can now next year, insurance do we're and giving through support about we're from this Sompo, yet navigating from great guidance. we're what excited

Jeffrey Meuler

estimate of and other bookings, what's of then the revisions on and the the gross potential And that? metric in of quality prior how the understand the Right. periods. material guess period I gross is to prior bookings to bookings for just trying cause Just the change

John Maxwell

there us much of periods as prior is way how you to was. business. revision booking is we're timing, important no help understand metric The gross There bookings to the as to

in September, of we and million would were slated dollars a booked actually us for the quarter didn't. take actually. originally in had you come we that dollars that in QX, low October they early in, So they deals were thought that signed We million several that's

into in shows talk quarter. continue timing the We're that the slip have get very is in our really building we And we there's gross so business, revenue, on it's could I business to to and the factors next we strong. going up expect but always something you're bookings. our to cause of our timing million even That It's and up plus, to showing about as building come we ARR always the revenue and we showing though the go. think in up focused will as $XX that of end into year, as

So there's other any that not really cause would than… that factor

Jeffrey Meuler

in Doesn't the release also bookings? say estimate period change the prior of there was a

John Maxwell

to get what know. don't sure have you. I'm I back I I that guess, not is, to so.

Jeffrey Meuler

Okay. you on got And like guidance. into contract some specifics then the full-year

$X.X and quarter. things correct? over guess sell little recognize already a a million subsequently month this to about in then Is you little you that I that have and over need booked revenue, you sold that the still that revenue of So the final of from

John Maxwell

Yes. I mean that's…

Jeffrey Meuler

your understand sounds there's revenue always longer just guess maybe periods to in contracts given confidence or some recognized period, time, of number. of that just being potentially like just I and not result trying line a getting It that slips. in that of over sight it risk to decent

John Maxwell

I sign possibly out sign clear SaaS points you for revenue revenue recognized the with take setup I what in can once of be we will type get then Well, that There's deal. the relationship in to that associated be we the most actually as as way, transparent to example, as technical if and that the of future an done the then a towards, we're get we And recognized a would contract build will be. want periods. deal just work period that resolved already that the we've we lot actually working

certain until revenue in basically. it's $XXX,XXX are about, their organization It's the period be roughly details. waiting it's and just If the a won't revenue. a state but there, through of the on, also amount significant that waiting multi-party take contracted process DOT, that's dollar and a there's that's now signatures received, it's contract for, So we've take done, of working delivery multimillion we're to I

we their don't go them kinds we sign, but to And and working are own that and work are of when they with the they that they complete we we're those things internal ready for. So through when control sign, paperwork.

it but I for transparent. the the was to depend of described positioned I assuming out wanted look, completing, I million, we it to position we're does are in So revenue, get to $XX And completed. that was, are to a those laying on things in you just be pieces all excess deliver

Jeffrey Meuler

on future say I be for are state and Texas you past buying of other And And like seems what as lot it DOTs, the, Texas of expansion you Okay. for DOTs to think then RTTI, the sense in just the where RTTI so relationship? a guess particular, then make lot a of would about in those conversations?

Richard Barlow

without idea where giving can much, being [AVOS] away then we're really the Jeff, getting. seeing see we we're DOTs. that's And supporting of indeed So feedback too charging where the the powerful demands proposition of advise on amalgamation our that RTTI companies of live products for we on vehicles, grid, utilities

time real are range starting significant of into contracts it's value data's with source active data. identifying and understanding or responding for being terms DOTs But car. radio and devices real or So there on how media time data, real news one time measurement, example is example the scale not real of go in the million knowing of dollar to of by crashes other in just TCV, people demand now in are to our terms time broadcasts from only another or going as the of vehicles, from audience example, location real charging time we see

time real millions So we're seeing from vehicles. of having output of tens marketing we're data an unique amalgamation this from of doing

Jeffrey Meuler

question, referenced, get just it. with John's if our else acquire one option structures risk Could how of of first my would of complimentary you'd a cetera? just cannibalization, aligns or be through, criteria any in data? company with there of expense Got be he sizeable answer et expense acquisition of to the material sort the company a kind how we your part how could what space, in and could sense then duplicative cash position. another talk acquiring that Is synergies you And is some

Richard Barlow

lower at benefit from with quality the cost, the own our lake, also acquisition then which are we data a that there build mapping, that, as we business original make, are better operating of terms benefit, a of costs. where replacing a There number mean, what margin. businesses, being high see would net are in and we'd revenue time feedback I provide terms as are data. see net higher from such the provides the marketplace in quality data margining fundamentally we from that a source we net of asset fit learned location have that subjects and to tests, from as we only to other of data applied we a one we industries on And quality a how can real poor we've done recall access of be you we deals And data the – to we in have. set an asset in fact, businesses flow, M&A our contributing would intended to time asset that produce synthetic that being our model, capital we've on S-X S-X massive filing, data which where build fundamentally

Operator

And you. queue the in we Thank have here. else do someone

& Company. of the questions. from line your comes Please Needham question Ryan proceed next with Our Koontz with

Ryan Koontz

fleet, on go-to-market? for you find on versus established company. you color the kind still, kind cetera. plug different kind of to and minimize vendors get other levels to the market vendors, balance color direct update want your required can other to around more and to the and investment the indirect et of share I solutions Thanks. thanks opportunity here ways the what's thanks Like, of of near-term go-to-market insurance could verticals you regards on updated for your view Hi, around on with traffic are into

Richard Barlow

a We and in our partnerships. QX set Ryan, investing in partnerships business blue we and publicly as to important as We're out we'd corporates building know, partnerships update Microsoft. be other with So partnership well. with us chips you talk that about

products, winning larger offering with that we next where be DOTs partnerships. of sales, important partnerships feel to and going a But sales unique in quality product the contracts direct new source the especially year, still terms us So to very powerful inbound with have inquiries. a the the through mindful especially right we in very will we're is difficult to that's market

much what minded very own our do we're in not terms can on duplicating base. partnerships of So cost

Ryan Koontz

it. Got

And now helpful. concern to optimization Okay, we onboard consider cost, kind revenue down? vehicles the should also closer to here it you're going cloud of keeping of trying that costs for the you rate that forward? in is Thanks. burn we think a of sounds cloud on like about How terms And generation. should

Richard Barlow

but strategic And not about to onboarding robust more, being own as we're have million a now We're the where you and at very point a platform. pipeline, for we varying the supportive mean prioritize aiming we're points we partners our same processing vehicles. I at plus our on onboarding noticed, life data our of XX vehicles. for partners XX billion how point and day vehicle a guidance we're

We a the as the masks same world in well. we of U.S. and of seeing expect critical to places start in lot the in have parts other

So onboard selective case we support we and about being needs the are very when we how onboarding. onboard and now business to

from that which the having our very near revenue focus partners make processed our an platforms where part contribution and support we've It's not we're So margins had immediate by revenue much don't vehicles helping methodology our refined. us immediate get being or reducing on is contribution. of

Ryan Koontz

so much. Thanks Helpful. it. Got

Richard Barlow

Ryan. Thanks,

John Maxwell

you, Thank Ryan.

Operator

hand any are at the to you. this Thank like would comments. I no back for over management further There time. call questions to closing

Richard Barlow

last business attending considering Thank for to great our minute today. We've make update. you attendees a had number notes all this of

the inform to will market. We continue

are this Thank the you much of continue monitor focused time. all margin, guidance to you maximize the to your for to and to costs our in opportunity Wejo. very as stakeholders We for and year ahead deliver

Wejo Group Limited (WEJOF) 2 Dec 222022 Q3 Earnings call transcript