Earnings call transcript Q4 2022

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Operator

Welcome to the fourth quarter 2022 earnings call and business update. 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.

I would now like to turn the call over to Megan LeDuc, Manager of Investor Relations. begin. may you you, Thank

Megan LeDuc

With Thank John you joining fourth thank for Founder financial everyone and are call Richard Barlow, our Good business update CFO. morning our results. and Wejo’s operational our CEO, year and on call the full today and you and XXXX Errol. me Maxwell, to quarter discuss

similar Remarks projected financial or strategies, objectives, made today trends on this and call items other about forward-looking. future expectations, events, are results

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

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

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

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

For financial GAAP, our to refer SEC. Form metrics with report these on a please annual XX-K to filed reconciliation of the

Over to Richard. you,

Richard Barlow

on and XXXX Megan, you joining quarter our us you end all and year Thank earnings fourth for call. thank

with First, I’d like start news. some to incredible

Company which in anticipated OneTrust the flow $XX Critical with path and Wejo’s say raise transaction, PIPE delighted I’m in investor, remaining to PIPE announced conditions. to financing demonstrates $XXX is the this mid closing in intent is progress new liquidity breakeven, on letter $XX to raise Technologies’ combined commitment cash The its raised of the great committing through with occur closing ongoing of targeting into a certain million a other Wejo to to has towards and to entered XXXX. anchor million million strategic be the previously subject TKB partner the

media the to in this a reflects economic business major is confidence for ability Wejo solutions, investors’ management. we including portfolio and expand in Wejo’s our fundamentals insurance, the fleet accelerate of and measurement audience [Indiscernible] as environment milestone traffic,

more will met on are conditions the announce develops when We PIPE the further. deal and

customer we strong improve on markets we operationally, and been We were to venture our entire performance base, into delivering year and significantly platform all As Wejo our on it’s while resulting new accomplish promised delivered these XXXX, to KPIs. a promises our or our capabilities, team look the case to you. objectives we back the expenses. increase Notably, certainly able decreasing in indicators, key strong

our This XXX% and XXXX, quarter ’XX. grow at activity several to Department we to of the customers partially ’XX were customer to into significant CAGR our going of of told sector, in by of XXXX. as you XXX fourth and of to fourth the our customers net grew quarter as was momentum seeing we From revenue XXX% XXXX. expanded the expansion from landed we major are XXXX XX broaden customers same Transportation public which driven the to where expect over to from base, XXXX We

to a similar going in of Later America. one to product we we insurance vertical, by agreement into moved the were a sizeable on, launch we you our companies signed expanded Ford in Sompo, a with largest told relationships also We co-development which Europe, announcing agreement with Japan. partnership insurance Ford way and to insurance

significant platform so also We capabilities. expand in ways. did our we’d We you told

both traffic intelligence insights its our to delivers time we launched public valuable road intelligence organizations of First, kind work. our who can product insights private and real that put platform, to traffic first

intelligence Second, our EV we Palantir. launched platform of

they used charge point government optimal This EV charging EV understand by by insights locations helping points necessary provide can planners their better if accelerate adoption be tool stalls. for to able is near add platform new and should charging. retailers understand providers to Our to

we markets new measurement. such working audience as to and with media penetrate platform Additionally, are value Palantir’s

to believe research our a platform to offer be their and audience to recently determine and basis We who expanded broader time assets extensive accuracy. insights paradigm have that for is, with shift and include data a to infotainment doing real traffic our infotainment real able time advertisers create on but will

As capabilities, board. the of our strong expanding lines and platform delivered metrics a result to across enhancing product new we operational

[indiscernible] revenue were For up the XXXX, annual gross bookings our compared and to XXXX XX% was up recurring full year XX%. almost per

excited business and fourth has XXXX, backlog is our since which now full quarter about XX-month building, XX% ’XX. how measured by at since every We’re one truly grown quarter our quarter

while most adjusted make cash approximate EBITDA our and ability proud While structure, as discipline cost our we our of simultaneously to reduce opportunities we’ve to administrative our revenue, of overhead on result burn our a and generating term rate investments are lowering our these operating working near critical costs. focusing hard reduced on

be will year We more the we significant expect exciting in and throughout on year capitalize we an have gained XXXX. made progress as that traction even XXXX the

In making push fleet provide a deploy partnerships to connected vehicle data. fleet We’ll leveraging into likes software stations be North vertical. XXXX, with the to America we new the are major our of Toyota

first flow anticipate XXXX, mid to to and Finally, the the the happened we positioned second we revenue we expected cost efficiencies management. growth XXXX. business year this the are new with will breakeven, to Renault the this expanded into so in transaction announced inroads vertical. TKB in quarter fund enhanced solutions which gain closing We this months we our that from our fully coupled make capital this provider of through we closing services within cash anticipate year our well activity remote Group activity All the of for partnership asset two believe fleet provide with and fleet

you more measures detail. will our capital performance, I of Speaking into who John, and will now hand financial be going over to

John Maxwell

Thank good you Richard, everyone. to and morning

in proud are operational performance strong our We of XXXX.

represents ARR tell of base of net XX% our is of recognition. and end momentum well story range, revenue Our a positioning us from accelerating a almost revenue KPIs solid up wider our XXXX with XXXX. for group the traction and key guidance a of XXXX customers in

subscribe is recurring a have our solutions value on basis. Our to services to compelling proposition a users driving that

We ARR increasing percentage expand forecast forward as believe revenue will an that products customers. of our for we be our

added real as new from customers we coming firms, public delivery companies, such estate others. companies, with energy growth entities, DoTs, and organizations from Additionally, sector XX mapping retailers,

we year, Texas, the Georgia for were business municipalities Virginia Agency to from addition During awarded like Chicago Planning. in Metropolitan the and

have momentum to other to a sector expect that add sectors. maintain that selling customers mapping We opportunities but direct also and in space, now in foothold in retail we public continue

backlog revenue to range. the XXXX. as XX% $XX represents contracted end XX% nearly XXXX on of the already our revenue XXXX start of revenue We million of This of from books contracted guidance

of start Our at revenue. our customer another probability-adjusted the backlog have XXXX pipeline XXXX guidance, our pipeline XX% between so high visibility expected we to also XX% and represents into XXXX of our

the $X.X the and unique compared over grew year to prior million in supported of quarter was by XX XX% fourth bookings Gross period customers.

For the XXX% approximately full bookings year $XX.X by to gross increased XXXX, million.

leaders Texas. as government and to enterprises the entities provider, industry and be a State like data platform of and in ecommerce well mapping of some the utilized continue largest by large as Our Ford companies, our including large Sompo, very like the world, large

an timing public growth SaaS in primarily of year; result of customer of recognized of as $X.X fell transaction and this but year. of XXXX drivers QX expectations deal of strong that the over All just awarded $X.X of revenue not first, these we short of revenue to constraints was a We things: contributed prior automotive a macroeconomic quarter million. full XXX% in year revenue late second, the our and all until revenue sector first delayed was of million in our Full to the net was environment because represents year due are facing. the two the the budget

two made have to We reporting our metrics. changes

billings We to no is it bookings, longer our gross adding value will to report discussions. gross fairly close because little

or addition, retention. customer NRR have revenue added landing, success: NRR, is our In customer of expanding existing retaining measure we and relationships. net

we We go closely as track will forward. this

with help NRR that our products grow and Based us and XXXX as we as engagement are we in customer we will to that relationships. future. for believe expand retaining shows be and add analytics, the add customer NRR date, of Our we products we customers to XXX% to able capabilities new growing on them more

Adjusted and slight obligations variance made This $XX of million, end was guidance the high prioritized in ideas. above better $XX enabling improvement timely modest Full in at prioritized a opportunities, Adjusted reductions focused most significant of what from future vendor. and investments We guidance a data critical we to of contractual beginning We management $XX revenue XXXX. loss had our cloud year least the result million. just administrative, million million is expenses, a accrual generation by EBITDA of growth our on range EBITDA costs, term estimated profitable related cloud to revenue XXXX loss of and some originally of and near in the in at $XX the shortfall our

Our $X by under XXXX. was as burn per operating just as Adjusted million measured EBITDA cash we exited month

to expect per positions cash $X flow of rate million course that cash by XXXX over exit reductions burn Wejo breakeven We further and to year progress the XXXX. our be to expect this believe we this month. under mid We

of driven XXX% XXXX, revenue the growth, for XXXX, Based We we and for be insurance by on $XX net million growth audience guidance traffic revenue XXXX. starting we our expansion a have that in of the grow SaaS, XXXX. range, the and strong $XX over a automotive measurement to of addition progress products. will media midpoint expect continued in strong nearly range of trajectory and base of customer the revenue made we XXXX position our believe and to end-to-end expect commercial million and At in

number DoT understand deals, booked a our better are backlog sector because have the represented now will win runoff. we contracted four year, sales of confident we we guidance state for of next $XX we and believe our completing public contract which million is XXXX by substantial After revenue already XXXX. in for few for a revenue awards quarters cycle awards in We the of

XX% strong we of a our on represents probability-adjusted to XXXX Additionally, basis which have XX% pipeline goals. revenue a another

to is rich they add products, existing a deals significant well pipeline take revenue but as up onboard SaaS once longer opportunity of Our in tend our and win won. as that marketplace and set are made to new automotive

our SaaS in to timing revenue our number amounts performance confident contracts of and and to annual we large start factors XXXX may including guidance, and a insurance are off feel impact quarter, that a While quarter of deals. are there in the great

our As on we as and of adjust may tighten we or contract range guidance the the revenue progress year. throughout structure gain clarity we timing,

driving $XX facilities the manage week and a along guidance on of as About ago, and have we EBITDA margin and $XX to be to significant EBITDA focused growth. to revenue we announced to possible. were million time, this further first efficient by and cost range workforce XXXX contribution positive were areas, Wejo a following XXXX. our in base that very have to growth that other At to we reducing million $XX steps with costs half loss This about our to taken million. enabled of as improve our positions half the Adjusted Adjusted us This we

targeting XXXX. expected Capitalizing are fully than cash capital point we breakeven business get critical to a with the enough in more XXXX by is mid our to capitalized goal mid Wejo, and of being flow

PIPE expected build been towards on the expected we amounts to bridge and closing a June. the have capital of of capital smaller strategy, combination capital us work continue we get to in our long TKB to business currently While term and our raising

exploring paths the different and market to they will continue with update investors several develop. We are as

are halfway capital, transaction the PIPE of bridge $XXX raising trust TKB the TKB combination, raising million, PIPE to capital are our this the over date million costs. we and a than of progress believe developing business we we a of to $XX net raise Based targeting in goal. on and With more

in strategy As our although market. previously trust is will than redemptions, is in believe TKB the we the redemptions typical result subject stated, to novel fewer

met. cost and profitable, a and flow business We reaching goals very building are high mid cash by XXXX, assuming focused breakeven reduction on revenue are growth

Our recent burn our focus. that underscore reduced in XXXX about progress along announcements with

also value of our for shareholders. We capitalization believe unlock full the business that will significant

Now pass remarks. I Richard it closing will back to his for

Richard Barlow

John. you Thank

we carry inflection into an year this start, our in the at at sits the Enhancement well XXXX, throughout is on I will gained new expansion is and Wejo positioned front mentioned that will significant through capitalize platform to enable I believe to the the in we business us expand platform scalability to opportunity accelerate of and us. of momentum us point our markets. past continued XXXX. As market our into

becomes, a platform we of effect and in our enable enable more XXXX The base operational growth at our services nearly and solutions drive are our products reusable network of revenue help of more appeal to the can faster in will We the guidance. will areas product verticals more greater the and it will revenue. we of more the that customers customers of That’s deploy better expect We scale and midpoint across more to more our opportunity. why profitable buying broader reusable structure that guiding efficiencies believe cost will also platform margins. XXX% lower new

in of Before this points to to reiterate secured have to target for our million that backlog I we like XXXX. $XX made. puts and of million on achieve million earnings include: in us key These revenue net guidance close $XX we’ve range XXXX. out call, I’d in $XX John the some already This

raising and combination. to closing get and the a expected of PIPE working been the smaller capital are capital bridge TKB business of the to on have We amounts us

We late with raising a the TKB are strategic PIPE $XX way we investor. already announced on newly business track combination million trust a quarter in XXXX, and second year. anchor are to well TKB million of $XX our retained on this with in close in has

you Thank joining take call. this will and questions. for John I Thank now you.

Operator

Thank you.

will and conducting a instructions] session. We answer now be [Operator question

press you keypad. if question, star, to a please reminder, on a telephone would your As ask like one

with Our come Please Meuler. first of the questions. Jeff questions from line proceed your

Jeff Meuler

Yes, thanks. Jeff at Meuler Baird. It’s

at investor then this like The a anything is investment it is, $XX existing who Wejo, is partner sounds say commercial investor you new contingent it more further to and Is what on can get million, details time? or it an just not, upon? but we’ll the later the just

John Maxwell

capital, conditions really publicly got--the It’s going we’re adequate a we very the but we can and have an raise that both amount not generally confident that that things they’re we’ve to that yet can we’re assuring new do. of be and which also of are relationship something investor, are we that around those disclosing,

very excited where we’re perspective. headed about We’re a from PIPE

not the but a of pieces We good of business PIPE just on, this the a lot a feel have very headed we’re combination and that going the dialog, into once towards fall other good and TKB dialog strong lot close place. of LOI all

Jeff Meuler

from build-out Got markets throughout as lot references pipeline, XXXX it, the you expecting just a it all There detail guidance, then was at meaningful or and various me, gave contracted, traffic, a and Can help etc. some or then the from to auto of commentary is us you increased well. what’s are insurance of you sounds measurement, end on what’s contribution like fleet media of this mostly the like contribution? SaaS, continued

John Maxwell

and detailed strong talked last very customer year, that know data insurance we’re the but in of process I have now we about We lot sector. negotiations. to the dialog down obviously relationship the a

you that excited details out this introduce as are basically on customers lots doing and we that’s work headed. do We about the there’s new expect product, midst of Obviously which year. are have and of the multiple the insurance very will where in we to so front, be a

of to go really we great we which On the categories meaningfully ongoing, early to as there’s underway into to now and have millions this those that XXXX well, vehicles There’s late added in year, of last customer we as the talked infotainment expect all contribute support which that. data will we of launch audience fully so capability revenue, front, interesting really our space, about really product dialog development now, gives will the us that revenue. both of year

Jeff Meuler

why the like think offsets and any NRR, higher On talk to any scale revenue, would be lower that SaaS should just bridge, that with agreements Can not like this was at expand of, cognizant that, you than guess, and XXX. anything there than land is through I motion. level XXX% it. Got I or one-time it’s I

John Maxwell

of is primarily on The increase with say and first our NRR, of our that lot do see capabilities a really you higher good type would We studying done expand of we to customers so know, a do it’s as increase, the do they on. what were customers the increasingly this, data really relationship. I we know, We going January key did those beginning have in customers. SaaS set year that benchmarking as and they is we on all do that couple set--you X, having year expansion licensing a out, our we’ve measure ultimately and a will they offerings product long, did how leave. years decrease,

We have where very, core we a progress. and retention, but in have capabilities out, as then gone very changed we strategy typically they’ve cases add very it’s the leavers, and we because couple business few they’ve by high way,

that that number as We as to you’ll development, we we number about it is. move product good where believe actually rise, forward on feel that see but

Jeff Meuler

Okay, the week, the how $X on you rate. actioning that monthly can and you reducing so get help expect with to Just understand to those just where announcement further and quickly on trying me expense then or you the saves? are burn to burn rate from million down last

John Maxwell

impact also--we cloud, space and side, but we we’re--actually the that that’s virtual will another a on for We’ve was need. employees that just at are at taken hard scrub. because hard will looked took and not point, going on-boarding expect that on really infrastructure. actions to but contractors virtual are people and things important, reduce, this process then capabilities we office so like the and we notified meet nearly we’re and third nearly the of Certainly way we’ve would have Yes, starting to of meeting really XXX% be that in data to a the virtual, people has that combination infrastructure main existing effect the the that full in felt the we of and It the quarter. employees. We’ve moving

make in all effect, We the seeing I market, by combined taken Certainly those with quarter already bit, have we’ll start quarter we’ll either effect pricing, and will that a implemented, significant really and pricing really at also look are growth, the that hard third say second being improvement. we’re of now have way improve fourth quarter. revenue the for quarter, so the lot see will the a third by or been sure a implemented to little maximum we’re with things improve would but

Jeff Meuler

I recognize or then and the initiatives it, investment beyond you base, opportunities, more on I Got that you’re revenue in? ambitious just are or as manage but expense near you’re [indiscernible] term guess, spend more that opportunities prioritizing XXXX what level prioritizing, maintaining of some revenue the

Richard Barlow

modest in the continue technology We of We is synthetic in relevant and data and modest processing end as edge-based to from and be that continues a an of investment some data. highly the to the of we important, of expect do demand some more processing combination OEMs. we asset and to call beyond, data have investments amount investment edge, of the interesting ’XX modest so neural a continue we maintain we now benefit automotive, get do of edge-based us believe becoming AI especially and build for what to so

Jeff Meuler

Got it, thank you.

Richard Barlow

Thank Jeff. you

John Maxwell

Thanks Jeff.

Operator

to closing hand are back There this further the time. comments. questions I’d any at no now over like you. Thank to Management for call

Richard Barlow

further capital revenues, for all tough you’re environment. this demonstrated sourcing questions you us by and call. after you costs business what having look I as Thank forward in by a to scaling excited from a We by today. joining hope cutting we’ve

Operator

you. your does Thank participation. today’s teleconference. We This conclude appreciate

this day. the at of disconnect Enjoy may rest your You time.

Richard Barlow

you. Thank

Richard Barlow	Chief Executive Officer
John Maxwell	Chief Financial Officer
Megan LeDuc	Manager, Investor Relations
Jeff Meuler	Baird

Wejo Group Limited (WEJOF) 3 Apr 232022 Q4 Earnings call transcript