Diverse customer base further recognizes the
value of Wejo's products and services to transform their Smart
Mobility mission
Wejo Group Limited (NASDAQ: WEJO) (“Wejo” or the “Company”), a
global leader in cloud and software analytics for connected,
electric, and autonomous mobility, today announced financial
results and key performance indicators (“KPIs,” as defined under
the Non-GAAP Financial Measures and Key Performance Indicators
section below) for the third quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
- Net Revenue increased to $2.6 million, up 632% compared to the
third quarter of 2021, driven by the completion of a Wejo Software
& Cloud Solutions project and strong growth in the Traffic
Management product line of Wejo Marketplace Data Solutions. For the
nine months ended September 30, 2022, net revenue was $4.8 million,
up 297% over the same period last year.
- Net loss was $31.5 million and Adjusted EBITDA loss was $22.0
million in the period as a result of expansion into new markets,
product development, and higher public company costs, partially
offset by increased revenues.
- Gross Bookings were $1.0 million in the third quarter and $13.5
million on a year-to-date basis. The decrease in the third quarter
of 71% compared to the prior year period, was driven by timing of
deal closures and a change in the estimate of prior period
bookings. The year-over-year increase of approximately 75% to $13.5
million for the nine months ended September 30, 2022 demonstrates
growth in additional new customers and expansion of existing
customer relationships in 2022.
- Gross Billings were $1.7 million, a decrease of 19% compared to
the third quarter of 2021, reflecting the timing of services and
the corresponding billing to customers. The 54% increase to $6.3
million for the nine months ended September 30, 2022 as compared to
the nine months ended September 30, 2021 illustrates our ability to
bill customers in a timely manner.
- Annual Recurring Revenue (“ARR”) as of September 30, 2022 was
$7.2 million, a 64% increase compared to the third quarter of 2021,
as the Company remains focused on delivering multi-year
subscription deals. ARR was also up $1 million sequentially as our
average contract length continues to increase.
- Total Contract Value (“TCV”) as of September 30, 2022 increased
71% to $34.0 million compared to the quarter ended September 30,
2021, as the Company continues to secure additional new business
and expand opportunities with existing customers. The increase in
Total Contract Value represents an opportunity for the Company to
deliver greater net revenue in the future.
- Annualized Gross Bookings per average monetizable connected
vehicle on a rolling four quarter basis were $1.11 for the quarter,
up 44% over the same period last year.
Business Highlights
Over the quarter, Wejo notably:
- Was awarded new contracts from state Departments of
Transportation (DOT) subsequent to the end of the quarter,
including Texas, Georgia and Virginia. In addition to data
insights, Real Time Traffic Intelligence (RTTI) will be included in
the contract award with the state of Texas, which will provide an
up-to-the-minute, accurate and comprehensive picture of traffic and
road conditions at any given time, to help improve overall
efficiency and safety on road networks.
- Expanded the Company’s relationship with Ford to offer
End-to-End Insurance Solutions in the United States. Wejo offerings
will include data and insights to help insurers understand driver
behavior in better assessing their risk profile, minimize fraud and
reduce risks for safer journeys.
- Hosted its first Analyst Day, "Data in the Desert," outside of
Las Vegas. This event assisted media and investor community
attendees in better understanding Wejo's strategic initiatives. The
focus was on catalysts that drive long-term growth and create
significant revenue opportunities for the Company by leveraging
connected vehicle data and translating that information into
actionable insights.
- Unveiled integration of live, real-time connected vehicle data
with a prototype autonomous vehicle, DLIVEREE.
- Signed a co-development agreement with Sompo Light Vortex to
work towards the joint creation and acceleration of the adoption of
smart mobility solutions into the multi-billion dollar market
opportunity in Japan and southern Asia.
Richard Barlow, Chief Executive Officer and Founder, said,
“Wejo's business momentum is accelerating as evidenced by our
strong operational success in the third quarter, and we truly
believe we are at an inflection point to take our company to the
next level. Subsequent to the quarter, our momentum was validated
with Wejo being awarded multiple DOT contracts that we expect are
just the beginning as we focus on providing additional services
that will benefit those clients. We expect to create a web effect
that will bring in new public sector clients who are now beginning
to see the power of our solutions and how it can transform their
operations and Smart Mobility."
Guidance
Wejo is maintaining its prior full-year 2022 guidance of net
revenue of $10 million and Adjusted EBITDA loss of $85 million to
$95 million. Wejo is likely to end the year lower than its
originally anticipated guidance for total vehicles on platform (27
million to 32 million) as the Company onboards new vehicles closer
to the time they are expected to generate revenue, saving data,
cloud, and people costs.
Business Update Call Details
Wejo will host a business update call to discuss the third
quarter results today, Wednesday, November 30, at 8:30 am EST. The
call will be hosted by Chief Executive Officer, Richard Barlow and
Chief Financial Officer, John Maxwell, and can be accessed on the
Investor Relations page of Wejo’s website at
investors.wejo.com.
Investors and other stakeholders should note that Wejo currently
announces material information using SEC filings, press releases,
public conference calls, and webcasts. In the future, Wejo will
continue to use these channels to distribute material information
about the Company and may also utilize its website and/or various
social media sites to communicate vital information about the
Company, key personnel, latest brands and services, trends, novel
marketing campaigns, corporate initiatives, and other matters.
Information that the Company posts on its website or on social
media channels could be deemed material; therefore, the Company
encourages investors, the media, our customers, business partners
and other stakeholders interested in Wejo to review the information
posted on its website, as well as the following social media
channels: LinkedIn, Twitter, and Instagram.
About Wejo
Wejo Group Limited is a global leader in cloud and software
analytics for connected, electric, and autonomous mobility,
revolutionizing the way we live, work and travel by transforming
and interpreting historic and real-time vehicle data. The Company
enables smarter mobility by organizing trillions of data points
from 20.1 million vehicles, of which 13.7 million were active on
the platform transmitting data in near real-time, and over 87.2
billion journeys globally as of September 30, 2022, across multiple
brands, makes and models, and then standardizing and enhancing
those streams of data on a vast scale. Wejo partners with ethical,
like-minded companies and organizations to turn that data into
insights that unlock value for consumers. With the most
comprehensive and trusted data, information, and intelligence, Wejo
is creating a smarter, safer, more sustainable world for all.
Founded in 2014, Wejo employs approximately 300 people and has
offices in Manchester, UK and in regions where Wejo does business
around the world. For more information, visit: www.wejo.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the “safe harbor” provisions of the United States
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact contained in this release,
including statements regarding the Company’s future operating
results and financial position, business strategy and plans,
objectives of management for future operations, expected funding
mechanism, pipeline, and our future SEC filings, are
forward-looking statements. These statements are based on the
Company’s current expectations, assumptions, estimates and
projections. These statements involve known and unknown risks,
uncertainties and other important factors that may cause the
Company’s actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Forward-looking statements are based on management’s
current expectations and assumptions regarding the Company’s
business, the economy and other future conditions.
Words such as “expect,” “estimate,” “project,” “forecast,”
“anticipate,” “plan,” “may,” “will,” “could,” “believes,”
“predicts,” “continue,” and similar expressions (or the negative
versions of such words or expressions) are intended to identify
such forward-looking statements. Many factors could cause actual
future events to differ materially from the forward-looking
statements in this press release, including, without limitation,
those factors described in the Company’s filings with the
Securities and Exchange Commission (SEC), including the risk
factors set forth in our Comprehensive Annual Report on Form 10-K/A
filed with the SEC on April 11, 2022, subsequent Quarterly Reports
on Form 10-Q, and future filings with the SEC.
Non-GAAP Financial Measures and Key Performance
Indicators
This release discloses the Company’s Adjusted EBITDA, which is a
non-GAAP financial measure (defined as Loss from operations
excluding: (1) share-based expense; (2) depreciation of equipment
and amortization of intangible assets; and (3) transaction related
costs, when applicable). Other key performance indicators include:
Total Contract Value (defined as the projected value of all
contracts we have ever signed to-date with our customers), Annual
Recurring Revenue (calculated by taking the gross Monthly Recurring
Revenue (“MRR”) for the last month of the reporting period and
multiplying it by twelve months. MRR for each month is calculated
by aggregating revenue from customers with contracts with more than
four months in duration and includes recurring software licenses,
data licenses, and subscription agreements), Gross Billings
(defined as the amounts billed to customers in the relevant period,
excluding taxes, a portion of which often will be shared with
certain OEM preferred partners), Gross Bookings (defined as the
total projected value of contracts signed in the relevant period,
excluding taxes and renewal options available to customers in
future periods), and monetizable vehicles on platform. Important
information regarding such measures is contained in the definitions
included in this release and in Appendix I, the reconciliation of
Adjusted EBITDA to the closest comparable U.S. GAAP measure, Net
loss. The Company and its management believe that these non-GAAP
measures and KPIs are useful to investors in measuring the
comparable results of the Company period-over-period. Wejo does not
reconcile its forward-looking non-GAAP financial measure, Adjusted
EBITDA, to the corresponding U.S. GAAP measure, Net loss, due to
variability and difficulty in making accurate forecasts and
projections and/or certain information not being ascertainable or
accessible. Wejo is unable to provide guidance for this reconciling
item because we cannot determine its probable significance, as
certain items are outside of our control and cannot be reasonably
predicted due to the fact that these items could vary significantly
from period to period. Accordingly, reconciliations to the
corresponding U.S. GAAP financial measure is not available without
unreasonable effort.
Wejo Group Limited
Condensed Consolidated Balance
Sheets
(unaudited)
(in thousands, except share
and per share amount)
September 30, 2022
December 31, 2021
Assets
Current assets:
Cash
$
14,715
$
67,322
Accounts receivable, net
3,343
1,416
Forward Purchase Agreement
6,131
45,611
Prepaid expenses and other current
assets
8,707
17,518
Total current assets
32,896
131,867
Property and equipment, net
501
651
Operating lease right-of-use asset
2,513
—
Intangible assets, net
7,120
9,489
Income tax receivables
378
—
Other assets
640
—
Total assets
$
44,048
$
142,007
Liabilities and Shareholders’ (Deficit)
Equity
Current liabilities:
Accounts payable, including due to related
party of $760 and $1,464, respectively
$
16,661
$
15,433
Accrued expenses and other current
liabilities
20,739
21,089
Current portion of operating lease
liability
748
—
Income tax payable
—
282
Total current liabilities
38,148
36,804
Non-current liabilities:
Long term portion of operating lease
liability
1,768
—
Long term debt, net of unamortized debt
discount and debt issuance costs
35,984
33,705
Public Warrants
1,098
12,650
Exchangeable right liability
688
11,154
Total liabilities
77,686
94,313
Commitments and contingencies
Shareholders’ (deficit) equity
Common shares, $0.001 par value,
634,000,000 shares authorized; 108,593,517 and 93,950,205
shares issued and outstanding as of
September 30, 2022 and December 31, 2021, respectively
109
94
Additional paid in capital
443,448
415,304
Accumulated deficit
(497,152
)
(369,951
)
Accumulated other comprehensive income
19,957
2,247
Total shareholders’ (deficit) equity
(33,638
)
47,694
Total liabilities and shareholders’
(deficit) equity
$
44,048
$
142,007
Wejo Group Limited
Condensed Consolidated
Statements of Operations and Comprehensive Loss
(unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Revenue, net
$
2,570
$
351
$
4,753
$
1,198
Costs and operating expenses:
Cost of revenue (exclusive of depreciation
and amortization shown separately below)
1,586
888
4,836
1,864
Technology and development
8,228
7,691
24,942
14,075
Sales and marketing
4,552
4,963
16,614
10,947
General and administrative
12,641
6,665
44,367
16,246
Depreciation and amortization
1,001
1,108
3,115
3,263
Total costs and operating expenses
28,008
21,315
93,874
46,395
Loss from operations
(25,438
)
(20,964
)
(89,121
)
(45,197
)
Loss on issuance of convertible loan
notes
—
—
—
(53,967
)
Gain (loss) on fair value of derivative
liability
—
3,268
—
(11,601
)
Gain on fair value of public warrant
liabilities
689
—
11,552
—
Loss on fair value of Forward Purchase
Agreement
(563
)
—
(37,043
)
—
Gain on fair value of exchangeable right
liability
472
—
10,466
—
Gain (loss) on fair value of Advanced
Subscription Agreements, including related party of nil and $155
and nil and $(3,665), respectively
—
162
—
(4,470
)
Interest expense
(1,362
)
(2,954
)
(3,879
)
(7,271
)
Other expense, net
(5,111
)
(383
)
(18,832
)
(468
)
Loss before taxation
(31,313
)
(20,871
)
(126,857
)
(122,974
)
Income tax expense
(153
)
—
(344
)
—
Net Loss
(31,466
)
(20,871
)
(127,201
)
(122,974
)
Other comprehensive income:
Foreign currency exchange translation
adjustment
4,901
2,821
17,710
2,505
Total comprehensive loss
$
(26,565
)
$
(18,050
)
$
(109,491
)
$
(120,469
)
Net loss per common share - basic and
diluted
$
(0.30
)
$
(0.56
)
$
(1.30
)
$
(3.35
)
Weighted-average common shares - basic and
diluted
104,573,505
37,162,062
98,053,335
36,699,038
Wejo Group Limited
Condensed Consolidated
Statements of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended September
30,
2022
2021
Operating activities
Net loss
$
(127,201
)
$
(122,974
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Non-cash interest expense
2,204
4,230
Loss on issuance of convertible loans
—
53,967
Gain on disposal of property and
equipment
—
(4
)
Depreciation and amortization
3,115
3,263
Non-cash share-based compensation
expense
4,945
—
Non-cash expense settled by issuance of
commitment shares
3,000
—
Non-cash lease expense
397
—
Non-cash loss on foreign currency
remeasurement
19,143
527
Loss on fair value of Advanced
Subscription Agreements
—
4,470
Loss on fair value of derivative
liability
—
11,601
Gain on fair value of warrant
liabilities
(11,552
)
—
Loss on fair value of Forward Purchase
Agreement
37,043
—
Gain on fair value of Exchangeable Right
liability
(10,466
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(1,927
)
(244
)
Prepaid expenses and other current
assets
6,749
3,662
Accounts payable
4,628
5,171
Operating lease liability
(393
)
—
Other assets
(721
)
—
Accrued expenses and other liabilities
4,614
6,404
Income tax provision
(667
)
—
Net cash used in operating activities
(67,089
)
(29,927
)
Investing activities
Purchases of property and equipment
(302
)
(482
)
Development of internal software
(2,126
)
(2,136
)
Net cash used in investing activities
(2,428
)
(2,618
)
Financing activities
Proceeds from issuance of convertible
loans, net of transaction costs
—
16,222
Proceeds from issuance of common shares,
net of transaction costs
18,320
—
Proceeds from issuance of warrants
1,894
—
Payment of issuance costs of convertible
loans
—
(1,004
)
Net proceeds from issuance of long-term
debt
—
25,631
Payment of transaction costs
(2,317
)
—
Payment of issuance costs of long-term
debt
—
(638
)
Repayment of other loan
—
(84
)
Payment of deferred financing costs
—
(3,148
)
Settlement of Forward Purchase
Agreement
2,437
—
Repayment of related party debt
—
(10,143
)
Net cash provided by financing
activities
20,334
26,836
Effect of exchange rate changes on
cash
(3,424
)
(101
)
Net decrease in cash
(52,607
)
(5,810
)
Cash at beginning of period
67,322
14,421
Cash at end of period
$
14,715
$
8,611
Non-cash financing and investing
activities
Property and equipment purchases in
accounts payable
$
4
$
40
Advanced Subscription Agreements converted
into common shares
$
—
$
12,757
Transaction costs included in accounts
payable and accrued expenses
$
6,379
$
—
Convertible notes issued through
settlement of accounts payable and recognition of prepaid revenue
share costs
$
—
$
4,714
Right-of-use asset obtained in exchange
for new operating lease liability
$
3,232
$
—
Deferred offering costs included in
accounts payable and accrued expenses
$
—
$
5,392
Wejo Group Limited
Reconciliation of Net Loss to
Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended September
30,
Nine Months Ended
September 30,
2022
2021
2022
2021
Net loss
$
(31,466
)
$
(20,871
)
$
(127,201
)
$
(122,974
)
Income tax expense
153
—
344
—
Loss before taxation
(31,313
)
(20,871
)
(126,857
)
(122,974
)
Interest expense
1,362
2,954
3,879
7,271
Loss on issuance of convertible loan
notes
—
—
—
53,967
(Gain) loss on fair value of derivative
liability
—
(3,268
)
—
11,601
Gain on fair value of public warrant
liabilities
(689
)
—
(11,552
)
—
Loss on fair value of Forward Purchase
Agreement
563
—
37,043
—
Gain on fair value of Exchangeable Right
liability
(472
)
—
(10,466
)
—
(Gain) loss on fair value of Advanced
Subscription Agreements
—
(162
)
—
4,470
Other expense, net
5,111
383
18,832
468
Loss from operations
(25,438
)
(20,964
)
(89,121
)
(45,197
)
Add (Subtract):
Depreciation and amortization
1,001
1,108
3,115
3,263
Transaction-related costs
220
—
5,021
—
Share-based compensation expense
2,254
—
4,945
—
Adjusted EBITDA
$
(21,963
)
$
(19,856
)
$
(76,040
)
$
(41,934
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221130005419/en/
Investors: Tahmin Clarke investor.relations@wejo.com
Idalia Rodriguez Arbor Advisory Group
investor.relations@wejo.com
Press: Ben Hohmann Ben.Hohmann@wejo.com
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