Q2 2022 Otonomo Technologies Ltd Earnings Call HERZLIYA Aug 17, 2022 (Thomson StreetEvents) — Edited Transcript of Otonomo Technologies Ltd earnings conference call or presentation Wednesday, August 17, 2022 at 12:30:00pm GMT TEXT model of Transcript ================================================================================ Corporate Participants ================================================================================ * Aldo Monteforte Otonomo Technologies Ltd. – CEO of The Floow * Ben Volkow Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board * Bonnie Moav Otonomo Technologies Ltd. – CFO ================================================================================ Conference Call Participants ================================================================================ * Justin Barell * Michael Joshua Nichols B. Riley Securities, Inc., Research Division – Senior Analyst of Discovery Group * Ryan Boyer Koontz Needham & Company, LLC, Research Division – MD * Miri Segal-Scharia MS-IR LLC – CEO ================================================================================ Presentation ——————————————————————————– Operator [1] ——————————————————————————– Good day, and thanks for standing by. Welcome to the Otonomo Second Quarter 2022 Earnings Call. (Operator Instructions) Please be suggested that as we speak’s conference is being recorded. I’d now like handy the conference over to your first speaker as we speak, Miri Segal. Please go forward. ——————————————————————————– Miri Segal-Scharia, MS-IR LLC – CEO [2] ——————————————————————————– Thank you, operator, and thanks all for becoming a member of us as we speak. Welcome to Otonomo’s Second Quarter 2022 Conference Call. Before we start, I wish to remind you that our discussions as we speak will embrace forward-looking statements which can be topic to dangers and uncertainties regarding future occasions and the long run monetary efficiency of Otonomo. Actual outcomes may differ materially from these anticipated within the forward-looking statements. Forward-looking statements made as we speak converse solely to our expectations as of as we speak, and we undertake no obligation to publicly replace or revise them. For a dialogue of some of the essential threat components that would trigger precise outcomes to vary materially from any forward-looking statements, please see the Risk Factors part of Otonomo’s 20-F filed with the SEC on March 31, 2022. If you haven’t obtained a replica of Q2 monetary outcomes press launch, please obtain it from the Investor Relations part of the corporate’s web site. Today’s call will probably be accompanied by a PowerPoint presentation. You’re welcome to view the presentation on Otonomo’s Investor Relations web site. Following the call, a replay of the webcast will probably be out there on the Otonomo’s Investor Relations web site. Please additionally be aware that we’ll current non-GAAP working loss on as we speak’s call, which is a historic non-GAAP monetary measure. Because this monetary measure is utilized in Otonomo’s inner evaluation of monetary and working efficiency, Otonomo believes that it supplies elevated transparency of administration’s view of Otonomo’s financial efficiency. Otonomo additionally believes the presentation of this measure permits buyers to extra successfully consider and evaluate the efficiency of Otonomo to that of its friends. Although Otonomo’s presentation of this non-GAAP measure might not be similar to different equally titled measures of different firms, a reconciliation of this measure to its most straight comparable GAAP monetary measure is included within the Q2 launch. Today, we’re joined by Ben Volkow, CEO, Director and Co-Founder of Otonomo; Bonnie Moav, CFO; Doron Simon, EVP, Strategy and Corporate Development; and Aldo Monteforte, Founder and CEO of The Floow. Ben Volkow will begin with an replace on the present state of the market and the enterprise. Bonnie Moav will present an summary of the corporate’s monetary outcomes, adopted by Aldo, who will share business suggestions and alternatives, represented by the mixture of Otonomo and The Floow. We will then open the call for the dwell Q&A session. During the question-and-answer session of this call, Ben will probably be joined by Bonnie, Doron and Aldo. With that, I’d like to show the call over to Ben Volkow. Ben, please go forward. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [3] ——————————————————————————– Thank you, Miri. Hi, everybody, and thanks for becoming a member of Otonomo’s Second Quarter 2022 Financial Results Conference Call. Q2 was our strongest quarter ever and was underpinned by stable momentum in our enterprise, closing our acquisition of The Floow. While the underlying fundamentals of the enterprise are good and we stay optimistic and constructive about future development, we realized that we’re in an early stage market the place high line revenues could also be much less predictable. Further, given the present macroeconomic situations, we have now taken actions to cut back our expense line and can proceed with our value management measures. The transportation sector is present process a large disruption consequently of the distinctive development of mobility information. We imagine that information and superior information science functionality are going to allow and create a brand new mobility financial system. In truth, PTOLEMUS Consulting believes the mobility financial system will signify about 9% of the worldwide GDP masking transportation infrastructure, automobile manufacturing, automobile transportation and enabling expertise providers. Over the following 5 to 10 years, the mobility financial system will create important shifts in the direction of on-demand mobility providers and multimodal mobility underpinned by the build-out of enabling cloud and large information applied sciences. With over 1.5 billion automobiles estimated to be on the highway by 2030, Otonomo’s technique is to develop the mobility information hub that serves because the catalyst for a brand new technology of providers and experiences that we imagine will signify over $100 billion in market alternative for us by 2030. Our software-defined strategy delivers important worth creation up to now for our purchasers within the 2 largest addressable segments for Otonomo, insurance coverage and fleet, and our market engagement validates that thesis given our win fee in each sectors. This is really an enormous market in transformation and the chance is very large. As I indicated earlier, we proceed to see momentum in attributes which can be key to our enterprise. Some of the highlights. On high of the spectacular buyer base The Floow brings to Otonomo, we added extra 13 new clients in Q2. Recurring revenues for the second quarter grew by almost 10x quarter-over-quarter and was 69% of our Q2 income. Bookings elevated by 62% quarter-over-quarter. Backlog elevated by shut to five.5x quarter-over-quarter. Annual recurring revenues elevated by greater than 11x quarter-over-quarter. Those are exceptional and transformative outcomes and present the power of Otonomo enterprise and the market continued development. We had thrilling new wins in Q2 as we proceed to see curiosity and demand for our core market of related automobile use instances improve. For instance, Orbital Insight, a geospatial information and analytics firm, used the Otonomo platform to entry related automobile information to allow their purchasers to derive better, extra granular insights for his or her enterprise. And as we introduced yesterday, Geograma, a geographic data programs and site intelligence service supplier, has awarded Otonomo a multiyear contract to offer multi-layered related automobile information designed to advance highway security in Spain. In the fleet section, we have signed a number of new contracts, together with Guidepoint Systems. Guidepoint Systems is a number one provider of automobile telematics options for OEMs, dealerships and industrial fleet managers. Guidepoint has lately expanded into embedded information with Otonomo’s OEM connectivity, enabling entry throughout producers. Our continued success in successful new offers within the fleet area demonstrates that clients see the sturdy worth in our software-defined telematic resolution. In our early levels of onboarding fleet clients, we’re observing slower tempo than initially anticipated and subsequently, slower income ramp. We are engaged on a number of initiatives to streamline these processes, and we stay bullish on this house. We imagine that as these accounts scale, together with others in our superior pipeline, will probably be positively modified Otonomo’s place available in the market dramatically. Finally, Wisk Aero, a number one superior air mobility firm and developer of the primary all-electric, self-flying air taxi within the U.S., selected Otonomo’s mobility intelligence platform to assist translate quantitative inputs into quantitative insights, which permits Wisk to be extra exact in its go-to-market. On the product entrance, we had important releases for fleet and Mobility Intelligence throughout Q2. In fleet, for instance, we have launched new superior fleet upkeep and mileage administration capabilities. These are the primary of a number of new options to be launched and supply clients with a breadth of perception and in addition fleet managers a snapshot view of all related related automobile information to simply and effectively handle fleets of all sizes. Users can arrange push notifications for upkeep points, comparable to low battery cost for electrical automobiles, low gasoline ranges and for extra instant points, comparable to when warning lights are triggered. We additionally up to date the Otonomo app on Salesforce AppExchange, offering clients new methods to unlock entry to correct mobility information. For single automobiles in addition to total fleets, utilizing Salesforce gross sales cloud and repair cloud. The newest model will make the most of multifaceted performance that permits clients to construct upon workflows, set off particular actions, entry distance and dispatch information, execute geofencing and supply driver security capabilities. For Mobility Intelligence, Otonomo launched new options for 3 high-growth classes: electrical automobiles adoption, mobility-as-a-service and concrete planning. These options develop Otonomo’s present cohesive information product choices with new actionable insights derived by making use of proprietary information science, machine studying and superior analytics. Our differentiator is within the fusion of wealthy information sources to know multimodal human motion. The information depth and breadth consists of day by day after date sourcing from cell units, municipalities, charging networks, micromobility efficiency and shortly, the mixing of multi-layered related automobile information. MaaS Intelligence. Otonomo helps suppliers of mobility providers match provide with up-to-date demand information by deploying stations in optimum location primarily based on predictive efficiency metrics, relocating their sources and rebalancing their fleet to maximise ridership. This additionally helps cities drive constructive mannequin shift by growing service accessibility of clear and adaptive mobility providers. On the Electric Vehicle Intelligence, Otonomo may also help predict demand and works with EV cost level operators to pinpoint optimum places for putting future charging stations. Data-driven EV planners achieve entry to correct measurement of demand for straightforward charging websites in every metropolis and exact mapping of underserved zone throughout major EV corridors. Urban Intelligence. Otonomo supplies up-to-date visibility into mobility patterns in specified areas, together with detailed origin and vacation spot metrics, visitation charges, site visitors movement and quantity to permit transportation and metropolis planners to design and plan networks primarily based on hyper-local and multimodal mobility wants. Adding social demographic profiles and objective of journey creates much more worth for city planners. We have beforehand been restricted with fundamental transit counting information. As you possibly can see, it was a robust quarter throughout enterprise fundamentals, buyer wins and product pipeline improvement. Now for extra particulars on our Q2 financials, I’ll hand it over to Bonnie Moav, Otonomo’s CFO. ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [4] ——————————————————————————– Thank you, Ben. Revenues for the second quarter 2022 was $1.9 million in comparison with $281,000 within the second quarter of 2021. Growth was pushed by our core related automobile information and the contribution of The Floow revenues. Before I transfer additional into the numbers, I wish to remind you that our non-GAAP gadgets consists of stock-based compensation bills, depreciation, amortization of acquired intangible belongings, contingent legal responsibility bills associated to The Floow acquisition and impairment and intangible of goodwill. Non-GAAP data is offered excluding these things. Our GAAP monetary outcomes, together with the reconciliation between GAAP and non-GAAP outcomes, might be present in our earnings launch. I’ll now flip to the detailed monetary outcomes for the quarter. Our GAAP working loss for Q2 2022 was $65.6 million in comparison with $5.6 million within the second quarter of 2021. The working loss consists of $45.8 million impairment of goodwill and intangible belongings. In addition, the rise within the GAAP working loss was primarily pushed by operational growth and acquisition of new firms and associated amortization of new intangible belongings. In the second quarter, non-GAAP working loss was $15.8 million in comparison with $5 million within the second quarter of 2021, pushed by our operational bills and acquisition in addition to a rise in amortization of new acquired intangible belongings. Our cloud infrastructure bills consist primarily of prices associated to third-party cloud providers, which elevated by 128% from $586,000 in Q2 2021 to $1.3 million in Q2 2022. The improve is attributed to our development within the quantity of information the corporate ingests, processes and shops and the quantity of information utilized by our information shoppers. In addition, the fee improve is a end result of the acquisition of Neura and The Floow. Cost of revenues consists of buying of information of $0.6 million, a rise of 116% year-over-year, which displays the fee we paid to the OEMs and different information suppliers for his or her information utilized in our merchandise. In addition, $0.4 million is said to the fee of providers offered to The Floow clients. Our analysis and improvement bills and our gross sales and advertising and marketing bills for the second quarter of 2022 have been $5.9 million and $6.1 million and elevated by 155% and 297%, respectively, year-over-year, primarily because of the accelerated workforce development of 231% and 217%, respectively, and consists of the acquisition of Neura and The Floow. General and administrative bills for the second quarter of 2022 have been $6.1 million in comparison with $1.1 million in the identical interval a 12 months in the past, representing a rise of over 448%, primarily pushed from public firm bills and nonrecurring acquisition prices. In Q2 2022, the corporate carried out an interim goodwill and intangible impairment check, which was triggered by our latest decline in market capitalization. Management thought of this latest decline, together with different potential components affecting the evaluation of the corporate’s reported obligation. The end result of this impairment check resulted in a noncash cost of $45.8 million, which was recorded within the consolidated monetary assertion for Q2 2022. Turning to the stability sheet. We ended the quarter with $169.5 million in money and money equivalents, short-term investments and restricted money, a lower of $38.6 million from year-end 2021. This was primarily pushed by acquisition of The Floow utilizing $11 million in money and working money actions of $27.3 million. Moving on to the steering. We anticipate to proceed to see a development in revenues and different enterprise key metrics in H2, however that development might not be as quick as forecasted as a consequence of a mix of components, comparable to slower adoption fee by our fleet clients and macroeconomic situation including uncertainty to the tempo of new deal closings. We imagine these are near-term challenges and we’ll stay centered on scaling our enterprise and rising our buyer base whereas controlling bills. Based on these components, the forecast for 2022 ought to now not be relied upon, and we aren’t forecasting outcomes for the second half of the 12 months at the moment. And now I’ll flip it again over to Ben. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [5] ——————————————————————————– Thank you, Bonnie. Another milestone in Q2 was the completion of the acquisition of The Floow, a frontrunner in related insurance coverage. I’ve requested Aldo Monteforte, CEO and Co-founder of The Floow, to affix us and provides extra context to the technique behind the acquisition and why we expect this positions Otonomo for continued development. Aldo? ——————————————————————————– Aldo Monteforte, Otonomo Technologies Ltd. – CEO of The Floow [6] ——————————————————————————– Thank you, Ben, and good morning, of us. Ten years in the past, I had a imaginative and prescient, a imaginative and prescient that we may scale back the quantity of car accidents and the quantity of fatalities. Our North Star from day 1 was making mobility safer and to maneuver the business from an working mannequin of detect and restore to foretell and stop. Ten years later, and in no small half because of the acquisition by Otonomo, we have now by no means been nearer to creating that imaginative and prescient a actuality and assist our insurance coverage companions go to market with one of the best related insurance coverage merchandise ever conceived. So what’s it about related insurance coverage merchandise that make them particular? Number one, exact and granular understanding of threat, which implies pricing equity; second, intimacy inside customers, which implies skill to stop outcomes; and third, immediacy of service for finish customers, which implies dispatching well timed help when most important, being there for the shopper after they want it, and precisely reconstructing threat occasions, which implies extra intelligence to handle the claims. The acquisition by Otonomo has delivered us the entry to at least one of the world’s main repositories of related automobile information in addition to the monetary sources which can be required to match our technical platform to our ambition. When I step again and observe The Floow as half of Otonomo, I can’t see one other group on the planet that may provide beneath one roof all of the capabilities, information merchandise, instruments and sources that fashionable insurers require to compete and thrive within the join new world forward. The days of one-policy-fits-all strategy to auto insurance coverage are counted. Drivers have distinctive wants and may be capable of buy insurance coverage that matches their wants. It is unnecessary to pay for extra protection than required. When Ben and I stepped down simply 9 months in the past, we each sensed the immense potential in entrance of us. We noticed 3 issues. Number one, the ability of fusion, which implies the augmented precision and accuracy arising from the mixture of smartphones with related automobile information to ship a deep vista into the policyholders’ threat profile. In different phrases, a finest of each worlds, mitigating the weaknesses of every particular person information supply. The fusion is uniquely enabled by the mixture with Otonomo and represents the long run of motor insurance coverage, bringing us steps forward of everyone else. The second factor Ben and I noticed was the chance to serve industrial insurers, who’re behind private traces within the adoption of telematics and related insurance policies. So we may also help their micro and small suite clients quantify and actively handle fleet security with the added bonus of fault alerts and upkeep data arising from native related automobile information. And third, we noticed potential in superior analytics. Floow has at all times been revered for the standard and efficacy of its cores and analytics. Our information merchandise are actually present process important growth as a consequence of availability of richer authentic information units coming from native OEM tools, together with digicam and laptop imaginative and prescient information. Since we accomplished the transaction, I’ve personally launched into a world tour and met greater than 40 purchasers and companions in 7 nations and three continents and talked to them in regards to the future of their enterprise. And as we speak, I wish to share the principle insights I’ve taken away from these visits. The business is pervaded by a way of nervousness and trepidation. Insurance leaders are asking what’s going to be our position in an intensely related information and AI-driven world? Their issues emerged from 4 themes. First, the proliferation of related automobile information and the extra assertive position that OEMs take within the insurance coverage house as a consequence of their native information management. Second, shopper rising expectations for unique digital experiences and interactions, a theme accelerated by the COVID pandemic. Third, regulatory adjustments addressing discriminatory biases baked into conventional pricing standards. Think of the controversy round equity of credit score scores going down in insurance coverage within the U.S. And fourth, the seek for synthetic intelligence-powered analytics that gives a greater crystal ball, significantly close to lesser identified dangers, comparable to electrical and semiautonomous automobiles. Now you possibly can see how Floow information refinery and options naturally allow our companions to show all these threats into alternatives. In my interactions, with out exception, all purchasers have validated the strategic worth of the acquisition and confirmed our distinctive place to assist them handle existential challenges. In the courageous new world forward, insurers will wrestle to profitably function with out reliance on subtle information assortment and refinery capabilities, both developed in-house, which could be very exhausting, or offered by an information refinery accomplice. Those insurers who don’t adapt will probably be outsmarted by opponents with higher predictive capabilities and the digital contact anticipated by finish customers. And with this, over to you, Ben. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [7] ——————————————————————————– Thank you, Aldo. As you possibly can see, we’re experiencing very sturdy momentum within the enterprise. Our plan and deal with high-growth strategic recurring income sectors, comparable to fleet and insurance coverage, is bearing fruit, and we imagine that the achievements of Q2 are an indication of extra to come back as we proceed to scale and develop by way of the 12 months. We are very enthusiastic about some of the actions and engagements we have now progressing, after which to share some of them with you within the subsequent few weeks. We are in a quickly rising enterprise in a brand new and quick rising market. While we have now challenges on each the macro and micro ranges, we’re very bullish and assured on the anticipated development our market place, execution technique and the outcomes to come back in future quarters. Operator, we are actually able to take questions. ================================================================================ Questions and Answers ——————————————————————————– Operator [1] ——————————————————————————– (Operator Instructions) And your first query comes from the road of Josh Nichols from B. Riley. ——————————————————————————– Michael Joshua Nichols, B. Riley Securities, Inc., Research Division – Senior Analyst of Discovery Group [2] ——————————————————————————– Wonder should you may present a bit of bit of shade for a way the mixing with The Floow is progressing. And how a lot income did The Floow particularly account for within the second quarter? I’m curious. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [3] ——————————————————————————– Josh, that is Ben. I’m joyful to take your query. The integration with The Floow goes very properly, each on the technical degree and in addition within the group degree. On the technical degree, we began combining telephone and automobile information and actually testing the imaginative and prescient of what we’re to carry to the market, what we call the fusion, a mix of telephone and automobile information, which we imagine offers one of the best insurance coverage — to the insurance coverage market in phrases of protection but additionally in phrases of high quality and value. And in phrases of group, post-merger integration, we’re shifting properly based on the plan. A giant half of it’s actually Aldo and his administration workforce which can be actually 100% behind this, and we’re all excited in regards to the shared imaginative and prescient and what we are able to carry collectively to the market, which could be very, very distinctive. In phrases of revenues, we aren’t sharing the revenues for The Floow for Q2. We usually are not opening it up at this stage. We would possibly do it in a while relying. ——————————————————————————– Michael Joshua Nichols, B. Riley Securities, Inc., Research Division – Senior Analyst of Discovery Group [4] ——————————————————————————– Fair sufficient. And then I do know you talked about that there are some of these fleet clients which can be taking a bit of bit longer to onboard. Any element you may present on what’s inflicting that? And I do know you pulled the steering for 2022, however directionally, may you give any extra data? Like is it honest that 3Q can be greater than Q2 because you’d have The Floow for a full quarter? Or I suppose, directional steering can be a bit of bit useful. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [5] ——————————————————————————– I’d — it is a good query, and I’ll attempt to add and Bonnie will elaborate additional, if wanted. We actually see that our fleet onboarding with present clients, in phrases of including extra automobiles on the platform, is rising slower than we anticipated. We are bringing new clients. I feel we shared as we speak within the call that we had very excessive development in phrases of new clients, positively greater than the earlier quarter. But the onboarding, the increasing contained in the accounts, is slower than we anticipated. Many occasions, it is associated for our companions. They must go and convey their clients on board or generally their tendencies are slower than they shared with us or possibly some sudden slowness of their enterprise. We do not see this as a cloth affect, positively not one thing that’s altering our technique. The sturdy demand and nice feedbacks we get from fleet operators and employers within the sector. But possibly we have been a bit too optimistic in our steering or inner expectations on the expansion and the on-ramp of automobiles. Bonnie, something you wish to add? ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [6] ——————————————————————————– Yes, I simply wish to add on to your — second half of your query that though we aren’t giving any forecast for H2 and we pulled the steering for 2022, simply to remind you that in Q2, we have been solely in a position to consolidate the revenues from The Floow for two.5 months. So you possibly can anticipate extra contribution to our high line from The Floow for the second half of 2022. Of course, on high of the great momentum with the recurring revenues, as Ben talked about in his enterprise highlights and the continual development of — in income of Otonomo. ——————————————————————————– Michael Joshua Nichols, B. Riley Securities, Inc., Research Division – Senior Analyst of Discovery Group [7] ——————————————————————————– Thanks for offering some shade there. You talked about that you will be a bit of bit extra conservative on the OpEx investments going ahead given the macro threat. How a lot are these anticipated to come back down quarter-over-quarter? Or what is the goal? ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [8] ——————————————————————————– So as you understand, once we preserve repeating that from one call to a different, we’re very conservative with our money administration and our spending is — we watch very carefully, and we solely spend to help the expansion of our firm. We usually are not massively planning to recruit, and we need to take the cash on cloud providers, buying of information in journey. In phrases of share, I do not wish to commit right here. But once more, you want additionally to take into accounts that we acquired an organization, that comes clearly with improve in our value. ——————————————————————————– Michael Joshua Nichols, B. Riley Securities, Inc., Research Division – Senior Analyst of Discovery Group [9] ——————————————————————————– And then final query for me is I suppose there’s quite a bit of alternatives on the horizon long term, granted it is nonetheless comparatively early stage. What do you suppose the biggest income or actual monetization alternatives are for the corporate within the second half? And is there an opportunity that you may begin securing actual sizable contracts with some of these OEMs? Or is that also additional out? ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [10] ——————————————————————————– So I feel actually investing in areas the place we see the biggest potential, not simply us, but additionally the analysts masking the market, comparable to fleet and insurance coverage. There’s one more reason behind the dimensions for the excessive funding in these areas. We have the best expertise and the best information to strategy these segments, which is fleet and insurance coverage. And we’re additionally very properly positioned, we imagine, available in the market with distinctive expertise for these segments. Those segments additionally signify recurring revenues, virtually 100%. Not all segments within the mobility ecosystem signify excessive recurring revenues. So fleet and insurance coverage are the principle focus areas for us. We see — we have seen we have now good massive offers. For us, massive offers is 7-figure offers within the pipeline. And we hope to have the ability to win them and share some information about that within the coming quarters. I hope that solutions your query. ——————————————————————————– Operator [11] ——————————————————————————– We will now take our subsequent query. And your subsequent query comes from the road of Justin Barell from Citi. ——————————————————————————– Justin Barell, [12] ——————————————————————————– This is Justin on for Itay. So tremendous fast query. So there was a query on steering, however I suppose what I’m attempting to raised perceive, you highlighted some very sturdy momentum within the enterprise. We type of noticed it expressed as development in bookings, backlog, buyer additions. So with all that power that you just type of noticed, are you able to simply assist us higher reconcile the choice to tug the ’22 steering? There’s quite a bit of volatility given the nascency of the market. But is there a basic space the place you guys are seeing weak point relative to plan? I do know you talked a bit of bit about fleet. But is this can be maybe extra broad-based as properly? Is there any weak point that you could be be seeing type of coming by way of on the insurance coverage aspect as properly? Or is it extra simply generic finish market weak point throughout the board or simply natural? ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [13] ——————————————————————————– Thanks for the query, Justin. I feel that for us, as an organization that — a younger firm available in the market, transparency is essential, and we wish to construct the belief with the analyst group. And it was essential for us to share that with — issues like the truth that we see the fleet onboarding going slower. I agree with you that it is a bit of a double messaging right here. Because positively, we see sturdy momentum. It’s our strongest quarter ever. We are very enthusiastic about what’s to come back. But in the identical time, we additionally give the messaging that we can’t stand 100% behind our earlier forecast. I feel for us, it is primarily we see on the macro that issues are going a bit slower. We see clients ready a bit earlier than making selections as a result of what is occurring available in the market and we’re nonetheless not 100% certain the way it will affect our enterprise. This is why it was essential for us to come back with this caveat and actually to say that we can’t stand 100% behind our forecast. We imagine that ultimately of subsequent quarter, we have now higher transparency. And possibly then we may give some extra data the place we imagine we’ll finish the 12 months. Bonnie, do you wish to add something? ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [14] ——————————————————————————– No. Thank you. ——————————————————————————– Justin Barell, [15] ——————————————————————————– Is there a basic, I suppose, time line if we take into consideration, I suppose, relative to this, possibly how far out and pushed to the best versus the preliminary expectations there could also be some delay or whatnot? Is there like a good time line that we may give it some thought? I do know giving the steering is a bit exhausting, however at the least from a directional level of view. You do point out close to time period, is there any manner you possibly can, I suppose, higher quantify that for a period metric? ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [16] ——————————————————————————– I’ll attempt to reply it in a manner I really feel comfy, and I feel provides you with a greater visibility. I feel some of the thrilling issues we shared as we speak is the excessive development in recurring revenues and within the excessive development in bookings and the expansion of the pipeline. So we actually do not suppose issues will probably be pushed an excessive amount of to the best. We are actually constructing a really wholesome and steady enterprise primarily based on quantity of pillars and primarily based on quantity of geographies and primarily based on very excessive share of recurring revenues. I’m unsure I can provide extra particulars than that at the moment. ——————————————————————————– Justin Barell, [17] ——————————————————————————– That’s truly tremendous useful. So in phrases of, I suppose, the recurring income, are you able to simply stroll by way of, I suppose, the definition as to the way you’re defining this recurring income, i.e., from extra on The Floow aspect? Like is all The Floow’s income thought of recurring? Or is there that slug that the variable could be extra advert hoc? Or is that complete piece of The Floow enterprise coming by way of is recurring income? ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [18] ——————————————————————————– So as Ben talked about earlier than in his enterprise highlights, 69% of the revenues for Q2 have been recurring. So you possibly can perceive that The Floow really contributed to this excessive share. We view Otonomo as a SaaS firm and in addition The Floow is a SaaS firm, which mainly says that we’re a big half of the revenues coming from The Floow and Otonomo or recurring revenues. This additionally contributed to possibly to the pushback of the revenues. We are actually eager on closing offers, that is not lower than 12 months, securing revenues for the long run. So positively, we see ourselves because the recurring SaaS firm. ——————————————————————————– Justin Barell, [19] ——————————————————————————– Okay. Got you. So it is honest to imagine then that each one The Floow’s income was categorized as recurring? ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [20] ——————————————————————————– Significant half. ——————————————————————————– Operator [21] ——————————————————————————– (Operator Instructions) And your subsequent query comes from the road of Ryan Koontz from Needham & Company. ——————————————————————————– Ryan Boyer Koontz, Needham & Company, LLC, Research Division – MD [22] ——————————————————————————– I’m going to select up in backlog there. Can you inform me most of that came to visit from The Floow? And Obviously, it seems like a considerable portion is recurring. Any type of course you may give us on the quantity of that backlog that’s acknowledged within the subsequent 12 months and typical contract lengths, these types of issues? Any type of shade there on the backlog can be actually useful. ——————————————————————————– Bonnie Moav, Otonomo Technologies Ltd. – CFO [23] ——————————————————————————– So we’re not breaking apart The Floow and Otonomo at this second. I can inform you that almost all of our offers or contracts runs between 12 to 36 months. So clearly, the backlog displays that. ——————————————————————————– Operator [24] ——————————————————————————– There are at present no additional questions. I’ll hand the call again. ——————————————————————————– Ben Volkow, Otonomo Technologies Ltd. – Co-Founder, CEO & Chairman of the Board [25] ——————————————————————————– Thank you, operator. Thank you, everybody, for becoming a member of us as we speak. We stay up for seeing you in our subsequent call. Thank you. ——————————————————————————– Operator [26] ——————————————————————————– Thank you. This concludes as we speak’s conference call. Thank you for collaborating. You might now disconnect.
Subscribe to Updates
Get the latest creative news from FooBar about art, design and business.
Edited Transcript of OTMO.OQ earnings conference call or presentation 17-Aug-22 12:30pm GMT
Related Posts
Add A Comment