Improved Capital Outlook with Successful
Capital Raise and Cost Reductions Extend Capital Runway to Late
2023
Company Continues to Validate its Value
Proposition and Market Positioning through Expanded Relationships
with Premier Companies in the Smart Mobility Space
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 second quarter ended June 30, 2022.
Second Quarter 2022 Financial Highlights
- Net Revenue increased 198% to $1.6 million during the quarter,
driven by strong growth in the Traffic Management product line of
Wejo Marketplace Data Solutions as well as a 100% increase in
customers compared to the quarter ended June 30, 2021.
- Net loss was $55.4 million and Adjusted EBITDA loss was $28.9
million, both increases over the same periods in 2021, as a result
of higher operating expenses, expansion into new markets, product
development, and higher public company costs, partially offset by
increased revenues. Net income was also affected by a $39.2 million
increase in non-operating losses.
- Gross Bookings were $6.1 million, an increase of 126% compared
to the second quarter of 2021. This increase reflects the continued
acceleration of customer activity, including a growing base of
customers in recurring contracts adding to future revenue.
- Gross Billings were $2.7 million, an increase of 125% compared
to the second quarter of 2021, and reflects the expected growth in
cash to be generated from increased customer activity.
- Annual Recurring Revenue (“ARR”) for the quarter was $6.2
million, a 51% increase compared to the quarter ended June 30,
2021, as the Company remains focused on delivering multi-year
subscription deals.
- Total Contract Value (“TCV”) increased 104% to $33.5 million
compared to the metric as of June 30, 2021, as Wejo continued to
benefit from accelerating customer activity which resulted in
expansion of commercial relationships with premier enterprise
customers.
- Annualized Gross Bookings per average monetizable connected
vehicle on a rolling four quarter basis were $1.39 for the quarter,
up 101% over the same period last year.
Business Highlights
Over the quarter, Wejo notably:
- Successfully executed a $15.9 million PIPE raise (private
investment in public equity) and took steps to reduce cash burn
from $10 million per month to an expected level of $5 million to $6
million per month by the fourth quarter. These existing capital
facilities will extend our capital runway to late 2023;
- Signed a collaboration agreement with Ford Motor Company to
leverage connected vehicle data and user-based intelligence to
enable end-to-end insurance offerings to better understand driver
behaviors and deliver efficiencies, giving the Company access to
the European end-to-end insurance market valued at $7.6 billion by
2030;
- Expanded its collaboration with Microsoft Maps to enhance the
capabilities of Microsoft’s mapping products in multiple
territories across the world, including intelligent routing, route
optimization and parking spot identification;
- Accelerated the Company's KPIs that validate its value
proposition, with Gross Billings at record levels and Gross
Bookings and Number of Customers doubling over the last year;
- Commenced development of a breakthrough Autonomous Vehicle
Operating System ("AVOS") platform focused on rapidly accelerating
worldwide AV development by enabling testing in a safe virtual
environment using live and historical data to run simulations;
and
- Joined the Russell 3000 as part of the 2022 Russell index
reconstitution.
Richard Barlow, Chief Executive Officer and Founder, said,
“Wejo's operational momentum continues to be strong as we signed
new deals and expanded existing relationships with premier
companies that recognize the value that we bring to the smart
mobility space. Our solutions in the traffic management vertical
continue to drive strong operational results and the announcement
of our deal with Ford, our first venture into insurance, will
enable us to enter into the $7.6 billion European end-to-end
insurance market. This deal showcases our continued development of
product verticals outside of traffic, where we are the unquestioned
leader. Our pursuit of cost structure improvement has been equally
successful by significantly reducing our burn rate for 2022. These
alignment efforts will ensure we have the financial flexibility to
continue developing groundbreaking platforms such as AVOS, which
will enable us to be the leading independent software and analytics
platform for connected, electric, and autonomous vehicles in the
future."
Guidance
Wejo is maintaining its prior full-year 2022 guidance of net
revenue of $10 million and vehicles on platform in the range of 27
million to 32 million. As previously announced, the Company has
raised its Adjusted EBITDA loss outlook to a loss in the range of
$85 million to $95 million as a result of the cost saving
initiatives that have been implemented.
Business Update Call Details
Wejo will host a business update call to discuss the second
quarter results today, Monday, August 15, 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 18.8 million vehicles, of which 13.0 million were active on
the platform transmitting data in near real-time, and over 79.3
billion journeys globally as of June 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, 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 compensation 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)
June 30, 2022
December 31, 2021
Assets
Current assets:
Cash
$
22,030
$
67,322
Accounts receivable, net
3,031
1,416
Forward Purchase Agreement
6,736
45,611
Prepaid expenses and other current
assets
12,078
17,518
Total current assets
43,875
131,867
Property and equipment, net
609
651
Operating lease right-of-use asset
2,919
—
Intangible assets, net
8,041
9,489
Income tax receivables
137
—
Other assets
626
—
Total assets
$
56,207
$
142,007
Liabilities and Shareholders’ (Deficit)
Equity
Current liabilities:
Accounts payable, including due to related
party of $289 and
$1,464, respectively
$
16,331
$
15,433
Accrued expenses and other current
liabilities
24,712
21,089
Current portion of operating lease
liability
618
—
Income tax payable
—
282
Total current liabilities
41,661
36,804
Non-current liabilities:
Long term portion of operating lease
liability
2,304
—
Long term debt, net of unamortized debt
discount and
debt issuance costs
35,558
33,705
Public Warrants
1,787
12,650
Exchangeable right liability
1,160
11,154
Total liabilities
82,470
94,313
Commitments and contingencies
Shareholders’ (deficit) equity
Common shares, $0.001 par value,
634,000,000 shares authorized; 96,325,512 and 93,950,205
shares issued and outstanding as of June
30, 2022 and December 31, 2021, respectively
97
94
Additional paid in capital
424,270
415,304
Accumulated deficit
(465,686
)
(369,951
)
Accumulated other comprehensive income
15,056
2,247
Total shareholders’ (deficit) equity
(26,263
)
47,694
Total liabilities and shareholders’
(deficit) equity
$
56,207
$
142,007
Wejo Group Limited
Condensed Consolidated
Statements of Operations and Comprehensive (Loss) Income
(unaudited)
(in thousands, except share
and per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Revenue, net
$
1,615
$
542
$
2,183
$
847
Costs and operating expenses:
Cost of revenue (exclusive of depreciation
and
amortization shown separately below)
1,933
623
3,250
976
Technology and development
9,417
3,902
16,714
6,384
Sales and marketing
6,848
3,530
12,062
5,984
General and administrative
13,997
6,649
31,726
9,581
Depreciation and amortization
1,016
1,130
2,114
2,155
Total costs and operating expenses
33,211
15,834
65,866
25,080
Loss from operations
(31,596
)
(15,292
)
(63,683
)
(24,233
)
Loss on issuance of convertible loan
notes
—
(20,666
)
—
(53,967
)
Gain (loss) on fair value of derivative
liability
—
42,033
—
(14,869
)
Gain on fair value of public warrant
liabilities
4,930
—
10,863
—
Loss on fair value of Forward Purchase
Agreement
(19,776
)
—
(36,480
)
—
Gain on fair value of exchangeable right
liability
3,014
—
9,994
—
Loss on fair value of Advanced
Subscription
Agreements, including related party of nil
and
$2,249 and nil and $2,656,
respectively
—
(3,360
)
—
(4,632
)
Interest expense
(1,274
)
(2,455
)
(2,517
)
(4,317
)
Other expense, net
(10,596
)
(6
)
(13,721
)
(85
)
(Loss) income before income taxes
(55,298
)
254
(95,544
)
(102,103
)
Income tax expense
(95
)
—
(191
)
—
Net (loss) income
(55,393
)
254
(95,735
)
(102,103
)
Other comprehensive (loss)
income:
Foreign currency exchange translation
adjustment
9,826
255
12,809
(316
)
Total comprehensive (loss) income
$
(45,567
)
$
509
$
(82,926
)
$
(102,419
)
Net (loss) income per common share -
basic
(0.58
)
0.01
(1.01
)
(2.80
)
Net (loss) income per common share -
diluted
(0.58
)
0.01
(1.01
)
(2.80
)
Weighted-average basic ordinary shares
95,165,493
36,463,696
94,739,215
36,463,696
Weighted-average diluted ordinary
shares
95,165,493
39,343,859
94,739,215
36,463,696
Wejo Group Limited
Condensed Consolidated
Statements of Cash Flows
(unaudited)
(in thousands)
Six Months Ended June
30,
2022
2021
Operating activities
Net loss
$
(95,735
)
$
(102,103
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Non-cash interest expense
1,804
2,245
Loss on issuance of convertible loans
—
53,967
Gain on disposal of property and
equipment
—
(4
)
Depreciation and amortization
2,114
2,155
Non-cash share-based compensation
expense
2,691
—
Non-cash expense settled by issuance of
commitment shares
3,000
—
Non-cash lease expense
250
—
Non-cash loss (gain) on foreign currency
remeasurement
13,856
(96
)
Loss on fair value of Advanced
Subscription Agreements
—
4,632
Loss on fair value of derivative
liability
—
14,869
Gain on fair value of warrant
liabilities
(10,863
)
—
Loss on fair value of Forward Purchase
Agreement
36,480
—
Gain on fair value of exchangeable right
liability
(9,994
)
—
Changes in operating assets and
liabilities:
Accounts receivable
(1,624
)
79
Prepaid expenses and other current
assets
4,127
2,795
Accounts payable
2,586
2,547
Operating lease liability
(246
)
—
Other assets
(660
)
—
Other long-term liability
—
—
Accrued expenses and other liabilities
7,527
(358
)
Income tax provision
(424
)
—
Net cash used in operating activities
(45,111
)
(19,272
)
Investing activities
Purchases of property and equipment
(186
)
(251
)
Development of internal software
(1,409
)
(1,250
)
Net cash used in investing activities
(1,595
)
(1,501
)
Financing activities
Proceeds from issuance of convertible
loans, net of transaction costs
—
16,222
Proceeds from issuance of common shares,
net of transaction costs
3,284
—
Payment of issuance costs of convertible
loans
—
(1,004
)
Net proceeds from issuance of long-term
debt
—
17,265
Payment of transaction costs
(2,148
)
—
Payment of issuance costs of long-term
debt
—
(638
)
Repayment of other loan
—
(84
)
Proceeds from issuance of related party
debt
—
35
Payment of deferred financing costs
—
(400
)
Settlement of Forward Purchase
Agreement
2,395
—
Repayment of related party debt
—
(10,000
)
Net cash provided by financing
activities
3,531
21,396
Effect of exchange rate changes on
cash
(2,117
)
231
Net (decrease) increase in cash
(45,292
)
854
Cash at beginning of period
67,322
14,421
Cash at end of period
$
22,030
$
15,275
Non-cash financing and investing
activities
Property and equipment purchases in
accounts payable
$
93
$
45
Transaction costs included in accounts
payable and accrued expenses
$
6,329
$
—
Convertible notes issued through
settlement of accounts payable and recognition of prepaid revenue
share costs
$
—
$
4,832
Right-of-use asset obtained in exchange
for new operating lease liability
$
3,326
$
—
Deferred offering costs included in
accounts payable and accrued expenses
$
—
$
5,404
Wejo Group Limited
Reconciliation of Net (Loss)
Income to Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2022
2021
2022
2021
Net (loss) income
$
(55,393
)
$
254
$
(95,735
)
$
(102,103
)
Income tax expense
95
—
191
—
(Loss) income before income taxes
(55,298
)
254
(95,544
)
(102,103
)
Interest expense
1,274
2,455
2,517
4,317
Loss on issuance of convertible loan
notes
—
20,666
—
53,967
(Gain) loss on fair value of derivative
liability
—
(42,033
)
—
14,869
Gain on fair value of public warrant
liabilities
(4,930
)
—
(10,863
)
—
Loss on fair value of Forward Purchase
Agreement
19,776
—
36,480
—
Gain on fair value of exchangeable right
liability
(3,014
)
—
(9,994
)
—
Loss on fair value of Advanced
Subscription Agreements
—
3,360
—
4,632
Other expense, net
10,596
6
13,721
85
Loss from operations
(31,596
)
(15,292
)
(63,683
)
(24,233
)
Add (Subtract):
Depreciation and amortization
1,016
1,130
2,114
2,155
Transaction Costs
—
—
4,801
—
Stock compensation
1,695
—
2,691
—
Adjusted EBITDA
$
(28,885
)
$
(14,162
)
$
(54,077
)
$
(22,078
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220815005188/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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