Q1 2022 Wejo Group Ltd Earnings Call
and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Wee Joe's Senior Vice President in Investor Relations, Cumming Clark. Please go ahead.
We will follow the formal presentation, if anyone should require operator assistance. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded its now my pleasure to turn the call over to be Joe's Senior Vice President of Investor Relations coming Clark. Please go ahead.
Thank you, Kevin. Good morning, everyone. And thank you for joining Weejo's business update call to discuss our first quarter 2022 operational and financial results.
Thank you Kevin.
Morning, everyone and thank you for joining regions business update call to discuss our first quarter of 2022 operational and financial results.
With me on the call today are Richard Barlow are founder and CEO .
With the Honourable Call today, our Richard Barlow, our founder and CEO .
John Maxwell our CFO .
John Maxwell, our CFO . Remarks made today on this call about future expectations, events, strategies, objectives, trends, or projected financial results, and other similar items are forward-looking. Forward-looking statements are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Remarks made today on this call about future expectations events strategies objectives trends or projected financial results and other similar items are forward looking.
Looking statements are subject to the safe Harbor provisions of the private Securities Litigation Reform Act of $19 95.
Forward-looking statements are not guarantees of future performance, and as such should be taken in the context of the risks and uncertainties that are outlined in the SEC filings of Wee Joe, including our recently filed FOIL Report on Form 10-2, as well as other documents filed with the SEC.
Forward looking statements are not guarantees of future performance and as such should be taken in the context of the risks and uncertainties that are outlined in the SEC filings of huizhou, including our recently filed quarterly report on Form 10-Q, as well as other documents filed with the SEC.
For statements, speak only as of the date made and the company undertakes no obligation to update such statements in the future.
Forward statements speak only as of the date made and the company undertakes no obligation to update such statements in the future.
In addition, during this call, we will be discussing certain financial metrics that do not conform to generally accepted accounting principles in the U.S., better known as GAAP. For a reconciliation of these financial metrics to GAAP, please refer to our quarterly report on Form 10-Q , followed by SEC. And now, I'll turn the call.
In addition, during this call we will be discussing certain financial metrics that do not to form to generally accepted accounting principles in the U S better known as GAAP for a reconciliation of these financial metrics to GAAP. Please refer to our quarterly report on Form 10-Q filed with the SEC and now I will turn the call over to Richard.
Yeah.
Thank you for joining wages first quarter 'twenty to 'twenty two business updates. So much progress has been made the shift wagers are smart mobility solutions gain traction across wide range of sectors and some of that.
Thank you for joining WeJo's first quarter 2022 business update. So much progress has been made this year for WeJo as our smart mobility solutions gain traction across a wide range of sectors and some of the biggest corporations in the world are starting to utilise autonomous, electric and connected vehicle data to unlock incredible untapped value and revenue. Every day across the US, we are having conversations with public sector, governmental organisations about how WeJo can help deliver on the goals of the Infrastructure Investment and Jobs Act. As a result...
Biggest coal prices in the world are starting to utilize autonomous electric and connected vehicle data and the incredible untapped value and revenue every day across the U S. We are having conversations with public sector governmental organizations about how we joke helped deliver on the goals of the infrastructure investments and jobs acts as a result of these conversations.
and deal that the Reacy comes to fruition. We, Joe, is on track to deliver our results consistent with our guys.
Is that a reason he comes to fruition, we Joe is on track to deliver our results consistent with our guidance full year 2022, and we are excited about the price that we have made so far during the period, we expanded our relationship with Microsoft and are now using us to deliver the data set to power. Their mapping solutions. We also continues to be a primary data post Amazon Flex does.
full year 2022. And we are excited about the progress that we have made so far. During the period, we expanded our relationship with Microsoft and they are now using us to deliver the data sets that power their mapping solution.
We also continue to be a primary data source to Amazon Flex, delivering solutions that enhance our global logistics and help enable to deliver millions of packages every day. I'm also pleased to announce that we now have Renault live on platform, which supports our guidance for having more than 27 million vehicles live on platform, giving us data as well as supporting our substantial moves into Europe .
Living installations at a half a global logistics and help enable deliver millions of packages a day.
Today I'm also placed in US we know when a life on platform, which supports our guidance having more than 27 million vehicles lives on platform, giving us data as well as posted on our substantial moves into Europe Enel.
Another significant update is with Honda. This is our first global OEM framework agreement.
another significant update is with Honda. This is our first global OEM framework agreement where we'll have coverage including the Asia-Pacific region.
We will have coverage, including the Asia Pacific regions, which brings is the Paramount question why it allows companies like Microsoft and Amazon languages size that traffic and Mac installations. The reason they rely on wages, because creating real Sunday dispositions in connected vehicles is hard work and not easily replicated we just killer app is processing.
Which brings us to the paramount question, why do large companies like Microsoft and Amazon rely on WeJay's size for their traffic and mapping solutions?
The reason they rely on WeJo is because creating real-time data solutions from connected vehicles is hard work and not easy replicated. WeJo's killer app is processing real-time data at scale, at speed. This is why some of the world's largest companies work with WeJo. It's our moat. No one else processes so much data as WeJo. Let me give you four examples of the type of companies we are attracting.
Real time data at scale apps paid this is why some of the world's largest companies work with Huizhou <unk> no one else processes. So much stages Vijay let me give you four examples of the type of companies we are attracting.
First, there's a major US Automotive company who are trusting us to design and manage the privacy operations around their connected vehicle data. Privacy platforms are going to be paramount as more OEMs engage in using vehicle data to deliver more valuable services to their customers. As part of our suite of products, we can customize privacy solutions to meet the specific needs of our OEM partners and we expect to execute similar deals.
There's a major U S automotive company, who are trusting us to design and manage in a privacy operations around that connected vehicle data.
Privacy platforms guidance department as more Oems engaging using vehicle data to have a more valuable sensitive to their customers as part of our suite of products. We can customize privacy solutions to meet the specific needs of our OEM partners and we expect to execute similar deals.
Second the reinsurance John in the U S are in discussions with Windows helped develop <unk> and 'twenty shows products on breakdown services are suffering constellations pad by autonomous electric vehicle data will adjacent insurance fraud, and premiums improve or pipelines ultimately help them improve their business offerings of millions of Americans.
The second that insurance giant in the US are in discussions with Weedews to help develop its N20 shows products and breakdown services. Our software and cloud solutions, Power BIOTONOMIS, Electric and Connective Vehicle Data will reduce insurance fraud and premiums, improve repair times, ultimately help them improve their business offering some millions of Americans.
The third relationship is with Japanese ensures provider SOMPO, who have progressed significantly over the last few months, resulting in the stunningver seconds versus agreements. The fourth relationship is with Palantir, and please announce that in addition to our recent announced, electric vehicle infrastructure operating system, EVOS, that we've built in collaboration with Palantir, our relationship is now running deeper as we're also using Palantir's platform to build an autonomous vehicle operating system, AVOS, to help accelerate evalcitable autonomous vehicle future.
Third relationship is with Japanese insurers provide us some time.
Progressed significantly over the last few months, resulting in the funding of a second services agreements are false.
Both relationship is with Palin, Sir I am pleased to announce that in addition to our recently announced <unk>.
<unk> vehicle infrastructure operating system Evos, and we've built in collaboration with <unk>. Our relationship is now running deeper as we're all season imbalances platform to build an autonomous vehicle operating system avs to help accelerate advancement of autonomous vehicle future.
Of these sales adjust the tipped the iceberg as we closed other made sales in the period, including telling us.
and these deals are just the tip of the iceberg as we closed other major deals in the period including Telinef, Recall and Inrix, which substantially accelerated our gross bookings when compared to last year.
Recall, and Inrix, which substantially accelerates our gross bookings when compared to last year.
While we generated new business and larger accounts mentioned, we also added a number of small accounts resulting in 25 new customer agreements in the first quarter.
While we generated new business from larger accounts mentioned, we also added a number of smaller accounts, resulting in 25, new customer agreements in the first quarter.
This and the scores, the significant cuss-back to the Ouija's experience.
This underscores the significant customer activity to the wage is experiencing.
To speak more about the strength of our garage support canes and other key performance indicators, here is our CFO , John McAuliffe.
To speak more about the strength of our gross bookings and other key performance indicators here is our CFO John Maxwell.
Thank you Richard we're off to an excellent start in 2022 net revenue for the quarter was $600000, representing an 86% increase over the same period in the prior year. Most of this revenue performance reflects strong year over year growth in our traffic product traffic as we restarted informs our revenue base and.
Thank you, Richard. We are off to an excellent start in 2022. Net revenue for the quarter was $600,000, representing an 86% increase over the same period in the prior year.
Most of this revenue performance reflects strong year-over-year growth in our traffic product.
Traffic is where we started and forms our revenue base, and we believe that traffic management alone will be a several hundred million dollar revenue stream in a few years.
We believe the traffic management alone will be a several hundred million dollars revenue stream and a few years, but we are not just relying on traffic we expect to launch additional regional marketplace data product lines and are expecting strong software and cloud solutions growth all of which will help accelerate our growth in 2022 and beyond we are seeing accelerate.
But we are not just relying on traffic. We expect to launch additional regional marketplace data product lines and are expecting strong software and cloud solutions growth, all of which will help accelerate our growth in 2022 and beyond. We are seeing acceleration in our most prominent KPI metrics to support our 2022 four-year guidance.
And in our most prominent kpis and metrics to support our 2022 full year guidance the real exciting news as dose we will complete a number of major customer deals over the next several months as we continue to build regional commercially across multiple markets and products I want to highlight evidence of significant traction we are experiencing in the business.
The real exciting news is this, we will complete a number of major customer deals over the next several months.
As we continue to build redo commercially across multiple markets and products, I want to highlight evidence of significant traction we are experiencing in the business that isn't yet reflected in our gap revenue.
That isn't yet reflected in our GAAP revenue.
Our inbound customer activity is very strong. Large enterprises, small businesses, governments and colleges and universities all recognize the value that our unique platform can bring. Our total number of customers is up 122% over the same period last year, continuing an accelerating trend that was highlighted in our fourth quarter and year end business up.
Our inbound customer activity is very strong large enterprises small businesses governments and colleges and universities all recognize the value that our unique platform can bring our total number of customers is up 122% over the same period last year, continuing and accelerating trim that was highlighted.
Our fourth quarter and year end business update new customer activity will help drive our revenue base as we progress towards our long term revenue goals.
New customer activity will help drive our revenue base as we progress towards our long-term revenue goals. Beyond revenue and new customers, total contract value is another metric that shows how customers are signing up at an increasing rate.
Revenue in new customers total contract value is another metric that shows how customers are signing up at an increasing rate GCB, which is the total value of all contracts Huizhou have signed to date is up $13 million or over 97% when compared to last year acceleration in PCB comes from strong traction with.
TCV, which is the total value of all contracts WEDO has signed to date, is up $13 million, or over 97% when compared to last year.
Acceleration in TCV comes from strong traction we are seeing in Traffic Data Marketplace, which we entered in 2020. As we add new marketplace product lines and sign additional business in software and cloud solutions,
We're seeing in traffic data marketplace, which we entered 2020 as we add new marketplace product lines and sign additional business in software and cloud solutions, we expect to see more growth in this metric. Additionally, gross bookings are up substantially of 312% increase from the same period last year.
we expect to see more growth in this metric. Additionally, gross bookings are up substantially, a 312% increase from the same period last year. We have strong bookings at these levels reflecting continued demand, which will generate significant value for WEGO over a multi-year horizon. Most of this quarter's bookings are in the traffic marketplace, our most prominent product introduced to date.
We have strong bookings at these levels, reflecting continued demand, which will generate significant value for huizhou over a multiyear horizon. Most of this quarter's bookings are in the traffic marketplace. Our most prominent product introduced to date. The common refrain is that we are in the early stages of our business and reported net revenue is not.
The common refrain is that we are in the early stages of our business and reported net revenue is not the only determinant of the progress we are achieving.
The only determinant of the progress we are achieving we believe that given our stage of maturity. These other kpis like customer growth GCB and gross bookings are better indicators of that success vehicles on platform or higher by 35% and gross bookings per monetize of all vehicle LIBOR plus.
We believe that given our stage of maturity, these other KPIs like customer growth, PCV and gross bookings are better indicators of that success. Vehicles on platform are higher by 35% and gross bookings per monetizable vehicle live on platform is up 57% to $1.18 on a row in four quarter.
<unk> was up 57% to $1 18 on a rolling four quarter basis.
Turning to specific financial performance, our adjusted EBITDA loss was $25 million. This was ahead of our expectations for the quarter as we managed expenses to be lower than planned based on phasing of hiring of new employees and other efficiencies in our spend.
Turning to specific financial performance, our adjusted EBITDA loss was $25 million. This was ahead of our expectations for the quarter as we managed expenses to be lower than planned based on phasing of hiring of new employees and other efficiencies in our spending.
As we discussed, when we provided our outlook for the evolution of our customer relationships, these will move from transactional data licenses to a more subscription-based model that generates recurring revenues. Moving our business in this direction generated ARR of $4.5 million, which was up 46% when compared to last year. Our expansion to new product lines in marketplace should enable additional growth in ARR, along with the business that we expect in software and cloud solutions.
As we discussed when we provided our outlook for the evolution of our customer relationships. These will move from transactional data licenses to a more subscription based model that generates recurring revenues moving our business in this direction generated a $4 $5 million, which was up 46% when compared to last year our <unk>.
Spansion to new product lines and marketplace should enable additional growth in IRR, along with the business that we expect in software and cloud solutions to support greater subscription based revenue models. We're currently developing tools and solutions and the traffic product line that will drive increased <unk>, we've been developing tools and the <unk>.
To support greater subscription based revenue models, we are currently developing tools and solutions in the traffic product line that will drive increased ARR. We've been developing tools in the traffic marketplace. Many of them will be able to be allowed for additional product lines, improving our overall efficiency and return on and bust.
Traffic marketplace, many of them will be able to be leveraged for additional product lines, improving our overall efficiency and return on investment we expect that our expansion into five new product lines, we will accelerate our customer activity, even further and continue to accelerate the pace of our gross bookings as Richard expressed our.
We expect that our expansion into five new product lines will accelerate our customer activity even further and continue to accelerate the pace of our gross book.
As Richard expressed, our success in the traffic product line is readily apparent. But it is important to emphasize that the other data marketplace product lines are within our reach now. While we think traffic revenue will create a large and highly valuable company itself, these additional marketplaces and our software and cloud solutions can significantly increase revenue over time. To give a little context, let's talk about our strategy in three of the product lines that we were working to launch in the near term.
<unk> on the traffic product line is readily apparent but it is important to emphasize that the other data marketplace product lines are within our reach now while we think traffic revenue will create a large and highly valuable company itself. These additional marketplaces, and our software and cloud solutions can significantly increase revenue over.
Time to give a little context, let's talk about our strategy in three of the product lines that we're working to launch in the near term.
with a focus on end-to-end insurance instead of usage-based insurance.
With a focus on end to end insurance instead of usage based insurance.
We are in discussions with several insurance providers.
In discussions with several insurance providers, which love our analytics and solutions in the end to end insurance product line that can make their businesses more efficient minimizing fraud and claims leakage to help customers receive car repairs faster there are quite a few companies focused on Upi, but we believe focus on supporting the <unk>.
which love our analytics and solutions in the end-to-end insurance product line that can make their businesses more efficient, minimizing fraud and claims leakage to help customers receive car repair as pass.
There are quite a few companies focused on UBI, but we believe focus on supporting the insurers' management of claims process and efficiency is significantly more valuable, and we are uniquely positioned to deliver these types of analytics. WeJOE is built on smart mobility for good products and services, and the product...
<unk> management of claims process and efficiency is significantly more valuable and we are uniquely positioned to deliver these types of analytics huizhou is built on smart mobility for good products and services and the products developed an end to end insurance will stay true to that mantra and share benefits derived from these services to the <unk>.
developed in end to end insurance will stay true to that mantra and share benefits derived from these services to the consumers. In remote diagnostics, we plan to work with the service departments of dealerships to enhance the customer experience.
<unk> and remote diagnostics, we plan to work with the service departments of dealerships to enhance the customer experience. This includes automatic ordering of parts worn or defective parts from remote scheduling of vehicle maintenance and repairs and using connected vehicle data to analyze driver behavior and determined the best.
This includes automatic ordering of parts worn or defective parts, the remote scheduling of vehicle maintenance and repairs, and using connected vehicle data to analyze driver behavior, and determine the best hours of operation of the service department to be open for their customers.
<unk> of operation of the service Department to be open for their customers. These services will boost profitability enhance customer loyalty and improve business operations. Finally in audience and media measurement, we have signed a memo of understanding with a large media company to generate insights around driver behavior inside the.
These services will boost profitability, enhance customer loyalty, and improve business operation.
Finally, in audience and media measurement, we have signed a memo of understanding with a large media company to generate insights around driver behavior inside the vehicle. As a result of our rich data sets and insights, we believe this MOU will expand into a significant contract in the future as more products and solutions are developed and rolled out.
The vehicle as a result of our rich datasets and insights. We believe this mou will expand into a significant contract in the future as more products and solutions are developed and rolled out. These insights will allow media companies to understand the effectiveness of their advertising products and their subsequent impacts on dry.
These insights will allow media companies to understand the effectiveness of their advertising products and their subsequent impacts on driver behavior.
Her behavior for example, if a user listens to our retail commercial and then shortly thereafter goes to that retailer. The media company would have access to anonymised analytics that deliver robust insights and return profiles of the effectiveness of the various media.
For example, if a user listens to a retail commercial and then shortly thereafter goes to that retailer, the media company would have access to anonymized analytics that deliver robust insights and return profiles of the effectiveness of the various media. These are just a few of the use cases that will be applicable to these products.
These are just a few of the use cases that will be applicable to these product lines. The most important takeaway is that we are already in discussions with private and public sector organizations, including some very large enterprises that will want to leverage these product lines today by the end of 2022, we expect to have new.
The most important takeaway is that we are already in discussions with private and public sector organizations, including some very large enterprises that will want to leverage these product lines today. By the end of 2022, we expect to have new customers in multiple end user markets, and we expect to generate multi-year and multi-million dollar deals from these.
Customers in multiple end user markets, and we expect to generate multiyear and multimillion dollar deals from these relationships. We believe the successful expansion into these additional product lines will result in accelerated gross bookings per vehicle as of the end of the first quarter of 'twenty. Two there are approximately 16.
We believe that successful expansion into these additional product lines will result in accelerated gross bookings per vehicle. As of the end of the first quarter of 22, there are approximately 16.9 million vehicles on platform that can be monetized. Gross bookings per active vehicle was $1.18, representing a 57% increase versus the prior year.
9 million vehicles on platform that can be monetized gross bookings per active vehicle was $1 18, representing a 57% increase versus the prior year. We believe that this metric will continue to grow as we gain traction in our new product lines increased large enterprise customer relationships and add.
We believe that this metric will continue to grow as we gain traction in our new product lines, increase large enterprise customer relationships, and add various software solutions within our products.
Various software solutions within our product lines, we have demonstrated that we can generate additional revenue just by bringing more vehicles on platform. The multiplier effect occurs when we drive our gross bookings per vehicle higher by expanding beyond the traffic to other product lines.
We have demonstrated that we can generate additional revenue just by bringing more vehicles on platform. The multiplier effect occurs when we drive our gross bookings per vehicle higher by expanding beyond the traffic to other product lines.
Based on the ongoing engagement with major enterprise customers in these areas, we are well on our way.
Just on the ongoing engagement with major enterprise customers in these areas. We are well on our way currently we have 24 tier one OEM and fleet partnerships up from 'twenty to which we can or expect in the future to generate data and we expect to sign more OEM partnerships. This year historically, we have primarily.
Currently we have 24 Tier 1 OEM and fleet partnerships, up from 22, which we can or expect in the future to generate data, and we expect to find more OEM partnerships this year. Historically, we have primarily received data in the U.S., but this year we are adding to our OEM relationships internationally, including expansion in Japan.
We received data in the U S. But this year, we are adding to our OEM relationships internationally, including expansion in Japan, We believe our international growth will generate rich new datasets in regions, where we can offer analytics and solutions to businesses and government organizations looking to improve their mobility presence this will drive bookings.
We believe our international growth will generate rich new data sets in regions where we can offer analytics and solutions to businesses and government organizations looking to improve their mobility presence. This will drive bookings.
Across our business consistent with our previous guidance. We continue to expect net revenue of over $10 million adjusted EBITDA loss between 110, and $120 million and vehicles on platform in the range of $27 million to $32 million, we Joe will make careful decisions about the timing of expenses.
Consistent with our previous guidance, we continue to expect net revenue of over $10 million, adjusted EBITDA loss between $110 and $120 million, and vehicles on platform in the range of $27 to $32 million.
WEJO will make careful decisions about the timing of expenses and new capital raises based on the opportunities in front of us.
And new capital raises based on the opportunities in front of US at this time the company does expect to access our committed equity facility and the proceeds from our Apollo forward purchase agreement as noted earlier this year over to you Richard.
At this time, the company does expect to access our committed equity facility and the proceeds from our Apollo forward purchase agreement as noted earlier this year over.
Thank you Joe.
We are the industry leaders in autonomous electric vehicle data and our commitment to investments in people and technology are lost that race is paying off we are.
We are the industry leaders in autonomous, electric and connected vehicle data, and our commitment to investment in people and technology for the last eight years is paying off. We are the only company that has real-time processing of data from vehicles, and we are the only provider of real-time mapping.
Only company that has real time processing of data from vehicles and we are the only provider of real time mapping stations that can help understand changing shopping behaviors.
that can help understand the change of traffic behaviours in real time. Simply put, we know what is happening on 95% of US roads right now. We know how to help AVs operate on our roads with over 600 billion miles of data. We know how to supply real-time connected vehicle data to make maps smart and highly accurate. We know that our cloud-based SaaS products and solutions, such as WeJay Studio, unlock incredible real-time insights that show the true human value of smart mobility movements. How do we know all this?
Real time simply put we know what is happening a 95% of U S flows right now we now have <unk> operates in a REIT. So they have a 600 billion miles of data. We now have supply real time connected vehicle data to make maps smart and highly accurate, we know that our cloud based SaaS products installations, such as we just.
And look incredible real time insights that show the true human finance smart mobility movements, how do we know this.
WeJO's Real-Time Traffic Intelligence, or RTTI. WeJO RTTI is our new revolutionary traffic management product that we launched recently. WeJO RTTI provides a holistic view on traffic conditions and safety conditions on the road to predict faster and safer vehicle routing, reinforcing why proprietary solutions are utilized by leaders in industry. To demonstrate the capability
<unk> real time traffic intelligence or at GTI Huizhou, <unk> as our new rapidly shrink traffic management product that we launched recently <unk> provides a holistic view on traffic conditions and safety cushions on the rates predictors faster and safer decorating reinforcing why if a project relations are utilized by leaders in industry.
Demonstrate the capabilities traffic intelligence, let heath slides, our visualization tool and take a look at our surrounding area around named times slab.
Let's utilise our visualisation tool and take a look at the surrounding area around me in Times Square.
We are able to illustrate detailed traffic patterns, traffic volume and density, average speeds and travel times and even trigger alerts to warn of trouble areas ahead in real time. And to reiterate, we are the only company that can deliver these type solutions to the marketplace, underscoring while we Jo continues to see an acceleration of customer activity and gross booking trends. To conclude, our commitment to innovation is really paying dividends to Wee Jo and our partners.
We are able to clearly state detailed patents traffic volume and density average states and Charlotte times, and even trigger that toward a troubled areas ahead.
Real time and to reiterate we are the only company that can deliver these types of solutions to the marketplace.
Scoring while wager continues to see an acceleration of customer activity and gross booking trends to conclude.
Commitment to innovation is really paying dividends, the huizhou and our partners and customers. This is evidenced by the for example, the type of energy prices. We are attracting first there is a major U S. Automates the company, who are trusting us to design and manage that previous operations around the connected vehicle data second of insurance in the U S are in discussions with wages helped develop if and financials.
This is evidenced by the four examples of the type of enterprises we are attracting. First, there is a major US automotive company who are trusting us to design and manage their privacy operations around their connected vehicle data.
Second, that insurance giant in the US are in discussions with WIJODE help developers end-twending shows products and breakdown services. Third, the Japanese insurance provider Somto, a strategic partner WIJODE, has progressed significantly over the last few months. The fourth relationship is with Palancy, and we're using Palancy's platform to build autonomous vehicle opposites.
Products and breakdown services third the Japanese insurance provide a subtype a strategic part of <unk> has progressed significantly over the last few months. The Philips relationship has with talent there and we're using talented platforms that autonomous vehicle outpacing system.
AES, leveraging over 600 billion miles of data. We also close incredible deals with Rano, Honda, Telenab, Recoin in Rix. We are the market leader. As John mentioned, we have made significant process with our financial...
Leveraging over 600 billion miles of data. We also likely is incredible deals with Renault Honda talent re coin and risks we are the market leader as John mentioned, we have made significant prices with our financials.
Gross bookings are 312% total contract value of 97% annual recurring revenue of 46% and vehicles on platform up 35%. I'd like to thank you for your time. John and I will now take your question.
Gross bookings up 312% total contract value of 97% annual recurring revenue up 46% of vehicles on the platform up 35%.
Like to thank you for your time, John and I will now take your questions.
Thank you well now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad.
Thank you. We'll now be conducting a question and answer session. If you'd like to be placed into question two, please press star one on your telephone keypad. One moment, please, while we poll for questions.
Please while we poll for questions.
Our first question today is coming from Jeff Mueller from Baird. Your line is now live.
Our first question today is coming from Jeff Mueller from Baird. Your line is now live. Yeah, thank you. So, totally understand why revenue is not the best metric at this point, and you give us various other metrics, but the one I'm struggling with reconciling is ARR. It's been running flat a couple of quarters sequentially now. So, just help us understand what's going on with ARR and why the growth in billings and bookings isn't accruing to an ARR bill.
Yes. Thank you so totally understand why revenue is not the best metric at this point can you give us various other metrics, but the one I'm struggling with reconciling as.
It's been running flat a couple of quarters.
Sequentially now so just help us understand what's going on with <unk> and why the growth in billings and bookings isn't occurring to an IRR build.
Sure. Hi Jeff. Good morning.
Sure.
Hi, Jeff Good morning.
We, so at the end of last year, we actually had a, we had a customer that, because they lost a customer, had, had canceled their order. So it showed up in the ARR metric. The way we measure the ARR is the month of the quarter end.
So at the end of last year, we actually had a we had a customer event because they lost a customer.
Cancel their order so it showed up in the air metric the way we measure the IRR is the month of the quarter end.
times 12, so we do it on a monthly basis, and it just happens that at that point in time, there was a customer that churned out. That same customer is churning back in, and so we will see them pick back up over time. So we'll see that continue to build over time.
<unk> 12, so we do it on a monthly basis and it just happens there at that point in time, there was a customer that churned out that same customer is churning back in and so we will see them pick back up over time. So we'll see that continue to build over time.
Okay, and then on traffic.
OK, and then on traffic.
So naming Microsoft, which you've named in the past, and Amazon Flex as customers, obviously.
So gaming Microsoft Richard named in the past and Amazon Flex as customers, obviously, some great logos.
some great logos. And I guess one question that we continue to get is just within traffic.
And I guess one question that we continue to get is just within traffic why we Jo how are they different including relative to providers.
Why WIJO, how are they different, including relative to providers like Google Ways? So what type of incremental information do you have, what types of sensors data do you bring in beyond kind of just location or accelerometer and help us understand the development of the RTTI solution?
Like Google ways, So what type of incremental information do you have what types of sensors data do you bring in beyond kind of just location or accelerometer and help us understand.
The development of the RTP isolation.
Yes.
So this is the proxy, so we've got sensors such as seatbelt and deployment, which is a great proxy for measuring traffic.
So we've got centers, such as seatbelt and deployment, which is a great proxy.
Measuring traffic.
But there's other sensors as well, including radio station changes that we also get now. But you shouldn't underestimate the fact that we real-time process all data. You know, that's why we're working with more than Microsoft as a client provider. We mentioned in Rix and that call now, and that call as well as recall as other examples, there are other mapping providers we work with and traffic providers we work with that we don't mention.
But.
So the fences as well, including radio station changes that we also got now.
But you shouldn't underestimate the fact that we will time process all data.
That's why we are working with more of the Microsoft.
I will provide a we mentioned and mix not coal now not coal as well as recourse. Other examples there are other that can provide as we work with in chocolate products, we work with that.
We don't mention.
None of them do complete real-time processing of data. It's a huge heavy lift that only Weijo does. So the most, and we receive data 95% of roads every day, the fact we can identify real-time congestion on any road in any parts of the US, at any point in time is a huge value.
None of Us do.
<unk> real time processing of data, it's a huge heavy lift that any huizhou does so the nice thing that we received 95% at various everyday.
We can identify real time congestion on any road.
Asset.
At any point in time is a huge value add for us we benchmark our congestion analysis that says the key leading Matt can provide us.
We benchmark our congestion analysis versus the key, the leading mapping providers out there. And we show consistently, even versus as you mentioned, ways, we show consistently that our congestion analysis is a much higher quality and a much more accurate result than anything out there because of our real time processing. So it's not just a sense of availability, it's the heavy lifting of processing today over 13 trillion data points and over 17 billion a day.
We show consistently even versus as you mentioned ways we showed consistently.
I'll conjecture analysis is a much higher quality at a much at a much much more accurate result, but anything on that because of our real time processing. So it's not just a sense of visibility if the heavy lifting of processing to date I would say, it's interesting data point 717 billion a day.
But other senses include the fact that because we are, because we don't rely on mobile data, our accuracy means we lane index as well. So, whereas you can't do that with a mobile data asset. So, because we said CurePlay is a connected vehicle, electric vehicle and autonomous vehicle data asset, it provides a much higher outcome, high quality outcome.
But other census include the fact that because we are because we don't really I may about data accuracy means we laid index as well.
You can't do that with mobile data I'll say, so because we expect youll players as the connected vehicle that you based on alternative data.
<unk> said it provides a much higher higher outcome <unk> outcome.
Okay, and then on the insurance end market as you mentioned, there's other players that are Tac UBI and in other ways. So I guess just first how.
Okay, and then on the insurance and market, as you mentioned, there's other players that attack UBI and in other ways. So I guess just first, how is your data superior just for UBI and then help us understand what's all included in the broader end to end solution. It sounds like there's some claims and fraud prevention. That's part of it as well.
As your data superior just for UBI, and then help US understand what's all included in the broader end to end solution. It sounds like there's some claims and fraud prevention, that's part of it as well.
Yeah, so we so we call it end-to-end insurance deliberately. And that's because we believe the biggest area we're going to well, biggest area we are seeing traction from the insurance industry is UBI is is plain vanilla. It's become commoditized in industry. There's arguably there's very little difference between any of the providers out there in terms of how they score driving behavior. The big saving of industry is is the estimated claim shrinkage of between eight and 12 percent of all claims costs.
Yes.
We call it and fund insurance deliberately and Thats, because we believe the biggest sorry.
<unk> biggest thing we are seeing traction from insurance industry is <unk> is plain vanilla rates become commoditized and industry arguably there's very little difference between any of providers out there in terms of how they score driving behavior. The biggest savings are industry.
The estimated claim shrinkage of between eight and 12% of all claims cost which is in the U S. Atlanta at $10 billion saving.
which is in the US alone at a $10 billion saving.
With our data, we can help insurers have earlier intervention, have quicker recovery, that reduces the tow cost, that reduces the storage cost.
Our data we can help insurers have earlier intervention, how quicker recovery that reduced the tow costs that reduced storage costs and then in terms of the data you're getting from vehicles have example manufacturers.
And then in terms of data we're getting from vehicles, so for example, there's certain motor manufacturers where we can identify real-time panel damage, we can identify real-time parts failures, and that means in terms of the supply chain of getting parts delivered to body shops for vehicles to be repaired, we actually shorten, significantly shorten,
We can identify real time panel damage. We can real time, we can identify realtime pausanias that means incentives of the supply chain is getting a getting parts of the body shop's Baker, Steve or Pat we actually shorten.
Definitely shorten.
the repair times of vehicle, which again, reduces the credit high cost of the insurance provider, as well as potentially reducing other parts costs that may well be inaccurately identified in a manual sort of process.
We've had tons of acre, which again, we Jason set of credit high cost insurance provider as.
Essentially what you're saying.
Policy cost that may will be.
And Im not currently identified in the manual sort of process.
That's why we were in final discussions with one of the largest U.S. insurance carriers who haven't done UBI or telematics insurance before and why our relationship with Sompo has matured so much in the last quarter alone, never mind since they became investors last year.
That's why we are in final discussions with one of the largest U S insurance carriers they haven't done.
<unk> or telematics insurance before.
And why our relationship with Sunpower has matured very much.
And the last last quarter. Nevertheless, since they became investors last year.
Okay. Thank you.
Okay.
Thank you. We reach end of our question and answer session. I'd like to turn the floor back over for any further opposing comments.
Thank you we've reached end of our question and answer session I would like to turn the floor back over for any further closing comments.
Thank you all for joining our call today. As you as you'll see, we've shown significantly more contracts being added to our base of total contract value.
Thank you all for joining our call today as you'll see.
We've shown cyclically more contracts being added.
The total contract value, we've shown that we are deploying more and more products that leverage our dominant position of being the only pure real time provider of traffic information, but I'll say that but I will say we've added further Oems to our client base. So we know as John mentioned, we have 24 Oems tier ones. The fleet partners, where we have an interest.
We've shown that we're deploying more and more products that leverage our dominant position of being the only pure real-time provider of traffic information, but also we've added further OEMs to our client base, where we now, as John mentioned, we now have 24 OEMs, tier ones, and fleet partners, where we have an industry-leading position of over 16.9 million vehicles on platform, which we receive data from.
Leading position of over $16 9 million vehicles on platform, which we received data from where in a market leading position with scaling our business and we're happy with the guidance <unk> given state and we look forward to meeting and various of the calls on our next earnings call.
We're in a market leading position, we're scaling our business and we're happy with the guidance we've given to date and we look forward to meeting you in various other calls on our next earnings call.
Thank you. That does conclude today's business update. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.
Thank you that does conclude today's business update you may disconnect. Your line at this time and have a wonderful day, we thank you for your participation today.
Thank you.