Increase OEM partnerships, focus on enterprise channels, and expand into key markets
Manchester, England and New York--(BUSINESS WIRE)--(BUSINESS WIRE)--Wejo Group Limited ("Wejo" or "Company") (NASDAQ: WEJO) is a cloud and The global leader in software analytics today announced progress regarding its key operational milestones throughout the year and financial highlights for the third quarter ending September 30, 2021.
Business performance highlights (compared to the same period last year)
CEO and founder Richard Barlow said: "Wejo continues to achieve its goal of changing the world through the use of software platforms that provide a safer and more convenient transportation experience. From supporting urban planning We are working hard to position Wejo as the leading supplier of software solutions for all original equipment manufacturers. Last year, we expanded our OEM relationship and strategic partners The relationship has made significant progress, clearly demonstrating the value of the insights gathered from our proprietary platform. We are only scratching the surface of this vast opportunity and are eager to continue our mission," Mr. Barlow added.
As a company that we expect to bring significant value, we focus on five main goals:
Increase our new enterprise customer channel-large customers in multiple markets will be able to use our solutions in multiple parts of their business
Expand our recurring revenue base from new and existing customers—unlock opportunities to transform customers from on-site data transactions to repeated purchases of data products, and then to subscription-based product supply
Strong innovation and execution in our OEM business-generating real-time automotive business insights can change the OEM's operating model. With the addition of 5 original equipment manufacturers and Tier 1 suppliers and fleet data providers, we achieved this goal with great success during this period
Create solutions that standardize and drive the EV/AV revolution. From simulating the results of infrastructure in urban planning to becoming a key component of communication between vehicles, Wejo's SaaS platform is positioned as a software communication stack that can accelerate the adoption of electric vehicles and autonomous vehicles
Actively enter new markets and vertical fields. Key investments in solutions such as Wejo Studio enable the company to expand its influence into new vertical market areas, such as end-to-end insurance and audience and media measurement, which will improve the unit economics of each vehicle.
Through its proprietary software platform, Wejo is able to standardize and provide data insights across various vertical markets. Most of our current revenue comes from the traffic management market, but we are developing and expanding beyond this market segment and developing solutions for other verticals, including audience and media measurement, vehicle-to-vehicle communications, end-to-end insurance, road Side assistance, remote diagnostics for parking and retail, and contactless "car to pay" commerce. Market revenue depends on revenue sharing agreements with our OEM partners.
We are also creating automotive business insight solutions (SaaS) products to provide OEMs, Tier 1 suppliers and automotive service providers with additional features to meet different privacy, regulatory, storage, visualization, and data insight needs. As our business develops, we expect that our automotive business insight solutions (SaaS) will generate higher and higher subscription and licensing revenue levels. As our portfolio shifts to OEMs and first-tier products that are not subject to revenue sharing agreements, Our profit margins will increase.
Net income for the nine months ended September 30, 2021 increased by 43% during this period to US$1.2 million. Total sales for the nine months ended September 30, 2021 increased 69% year-on-year to US$4.1 million due to the increase in vehicles on the platform and the significant increase in the number of customers, as well as the increase between net and gross The rate difference is attributable to the high-income portfolio affected by revenue sharing.
Due to the growth of our customer relationships and new business, the total contract value (TCV) of the traffic market increased by 75% year-on-year to US$20 million, and the annual recurring revenue (ARR) increased by 77% to US$4.7 million. Corporate relations.
The total number of customers increased by 104%, reflecting new relationships with companies such as Microsoft and certain universities, purchasing mobile data to generate real-time insights to measure traffic performance. The growth rate of TCV is higher than the growth rate of total customers, which means that these new customers spend more on us, and we expect this trend to continue, especially as we enter new markets.
The number of vehicles on the platform has increased by 20%, which is in line with our expectations. Due to the growth of our customers and the increase in corporate relationships, in the quarter ended September 30, 2021, total sales per vehicle on the platform increased by 53% to 59 cents per vehicle.
Data For Good™: Since its establishment, our company's values have been based on our belief that our connected vehicle data products will support the goals of reducing emissions, safer roads and a positive driver experience. The company's foundation is built on a commitment to data privacy and security, including compliance with regulations such as GDPR and CCPA. We design privacy into the core of the Wejo ADEPT platform to support compliance with existing privacy laws and regulations. We operate in accordance with the high standards of global data privacy, and we are and intend to continue to be the leader in data privacy in our industry.
The company has referenced certain non-GAAP measures, including total sales. The reconciliation of total sales and net income is as follows:
Total sales is a measure of invoicable sales after considering deferred and uninvoiced amounts. Management believes that this measure is very important to help investors better understand Wejo's business model and its relationship with the market. The company refers to our Total Addressable Market and Service Addressable Market in terms of the Marketplace of our business. Total sales are a comparable measure of market opportunities and the billing methods of Wejo's Marketplace customers in these markets. Total market sales are shared through agreements with our auto manufacturer partners.
Correct the errors in the previously submitted Form 10-Q
The company submitted Form 8-K this morning, indicating that it will submit Form 10-Q/A to correct the errors in the previously submitted financial statements for the three-month and nine-month period ending September 30, 2021, as well as the audit The Committee’s decision that such financial statements should be restated and no longer relied upon. The company determined that there was an error in allocating certain personnel and related expenses among cost categories such as revenue costs, technology and development costs, sales and marketing costs, and general and administrative expenses, and that the above matters need to be redistributed. These corrections will not affect revenue, net, total costs and operating expenses, operating losses, net losses or net cash used in operating activities, or our unaudited condensed consolidated balance sheet and unaudited condensed consolidated cash Flow meter.
Due to this error, the management conducted a comprehensive review of the error and the underlying data to assess its importance and the possibility of further misstatements. The company has assessed the major weaknesses, and continues to formulate and implement the company's rectification plan to enhance the effectiveness of the company's internal control environment design and operation. Such steps include continuing to hire additional personnel with US GAAP and financial reporting internal control experience, as well as educating, implementing and supporting internal controls for existing employees, and improving the caliber of the financial reporting system.
The company intends to submit Form 10-Q/A as of September 30, 2021 to reflect the restatement.
CEO Richard Barlow (Richard Barlow) and CFO John Maxwell (John Maxwell) will discuss these results and further updates in detail today at 8:30 am Eastern Time. Call 1-877-407-9208 (domestic) or 1-201-493-6784 (international). A webcast will also be provided on the investor relations page of the Wejo website www.wejo.com.
The replay of the business update call will be archived on the investor relations page and will also be available before December 28, 2021, at 1-844-512-2921 (domestic) or 1-412-317-6671 (international), Password 13725455.
Wejo is a global leader in connected vehicle data, transforming and interpreting historical and real-time vehicle data to revolutionize the way we live, work, and travel. The company organizes trillions of data points from approximately 12 million cars and more than 60 billion journeys across the world, across multiple brands, brands, and models, and then standardizes and enhances these data streams on a large scale to achieve smarter mobility . Wejo works with ethical and like-minded companies and organizations to turn this data into insights and unlock value for consumers. With the most comprehensive and trustworthy data, information and intelligence, Wejo is creating a smarter, safer and more sustainable world for everyone. Founded in 2014, Wejo has more than 250 employees and has offices in Manchester, UK and Wejo's global operations. For more information, please visit: www.wejo.com.
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements of historical facts, including statements about the company's future business performance and financial status, business strategies and plans, and future business management goals, are forward-looking statements. These statements are based on the company's current expectations, assumptions, estimates and forecasts. 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 about the company’s business, economy, and other future conditions.
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These forward-looking statements involve significant risks and uncertainties, which may cause actual results to differ materially from those expressed or implied in the forward-looking statements, and may have adverse effects. Most of these factors are not within the control of the company and are difficult to predict. Factors that may cause such differences include, but are not limited to: (i) the impact of the COVID-19 pandemic on the company's business; (ii) the inability to obtain or maintain the company's common stock on the Nasdaq stock market after a business merger; ( iii) The ability to confirm the expected benefits of a business combination, which may be affected by (among other things) competition, the company's ability to grow and manage growth, and the ability to retain key employees; (iv) changes in applicable laws or regulations; (v) ) The possibility that the company may be adversely affected by other economic, business and/or competitive factors, and (vi) the company's ability to maintain effective internal control over financial reporting and disclosure controls and procedures. The above list of factors is not exclusive. Wejo’s Form 10-Q as of September 30, 2021 and Wejo’s latest filing with the US Securities and Exchange Commission contain additional information about some of these and other risk factors. All readers are reminded not to rely too much on any forward-looking statements, which are only published on the date of publication. The company expressly disclaims any obligation or undertakes to publicly release any updates or revisions to any forward-looking statements contained herein to reflect any changes in their expectations of this or any changes in the events, conditions or circumstances on which any statement is based, unless Legal requirements.
Investor: Tahmin Clarke tahmin.clarke@wejo.com
Investor: Tahmin Clarke tahmin.clarke@wejo.com