Otonomo Technologies Ltd.

Thank you, operator, and thank you all for joining us today. Welcome to Autonomous 9-Month 2021 Business Update Call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the press release, Please download one from the investor relations section of the company's website. Today's call is accompanied by a PowerPoint presentation. You're welcome to view the presentation, Autonomous Investor Relations website. Changes in business such as competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. Therefore, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. Today we are joined by Ben Volkow, CEO and co-founder of Autonomo. He will start off with an update of the business. Following his prepared remarks, We will open the call for the question and answer session, and then Ben will be joined by Bonnie Moab, Chief Financial Officer, and Doron Simon, Executive Vice President, Strategy and Corporate Development. With that, I'd like to pass the call over to Ben Volko. Ben, please go ahead.

Hi, everyone, and thank you for joining Autonomo's third quarter business update conference call. Today the presentation will focus on recent developments and elaborate on our unique technology and offerings. I will also discuss market trends and our vision. Please go to slide three. Autonomo is building the world's largest mobility ecosystem powered by data and intelligence. and its associated insights are the foundation for the future of mobility. Our task at Autonomo is to make sure that data intelligence is shared, democratized, and used to support this future. Tidal data has no value. Data that cannot be analyzed has no value. The value of data flourish when you share it, use it, understand it, and capitalize on it. The power and effect of data in the mobility space are extreme and can be felt across the transportation and automotive industries and enterprises as well. The future of automotive and mobility and the ecosystem is fueled by data. It's a grand vision, but it's already our reality. and its autonomous mission to bring it to global scale. Moving to slide four. I'd like to quickly explain what we do since it's our first quarterly conference call, and I assume that we have new investors on the line with us. AutonomoFuse is a data ecosystem of OEMs, streets, and more than 100 service providers. spanning the transportation, mobility, and automotive industries. In Q3, we successfully signed two new OEM agreements, bringing our total number of contracts up to 21. This represents hundreds of types of data attributes. The total number of connected cars, S of Q3, reached over 40 million vehicles. This translates to more than 4 billion data points being generated per day, which our platform uses to support our revenue segments. Among them, SWIT, also referred to as B2B, aggregate data used by smart cities and mapping companies, and personalized data for tailored services like user-based insurance. At the moment, Autonomo has two granted patents and another gain in the Neura acquisition. There are a total of 28 patents pending, 24 from Autonomo and four more from Neura. With the Neura acquisition, we added not only amazing technology strong IP, and a top-notch technical team, but also access to data and insights from 430 million mobility devices. This opens an autonomous platform to last-mile devices, visibility into urban areas activity, such as micro-mobility, and a deeper understanding of the automotive and mobility intersections. As you can see, we are moving in big steps to realizing our vision. I will move to slide five. I'm sure that most of you are familiar with the term CASE. Analysts see the future of mobility within this four segment model. CASE stands for Connected, Autonomous, Shared, and Electrified. There are clear leaders in autonomous, shared, and electrified areas. Autonomo is the early and definitive leader in connectivity. We enable OEMs to share data and intelligence from their connected vehicles, and the whole ecosystem benefits from the resulting diverse mobility-related or mobility-based services. drivers, riders, pedestrians, citizens, all benefits. I'm delighted to share that Autonomo is in discussions with these companies mentioned on this slide and others. This is another proof point showing the value we unlock for the different segments of mobility. Slide six. We are well positioned for what is to come. Autonomo is a very strong technological base powering our data platform. Our data supply is a leader among the industry in its richness, diversity, and ease of access. As we mentioned before, data is the fuel of the industry, of our business. and the foundation for our growth. We have built a truly competitive offering with unparalleled values. We have an extensive and growing coalition of OEMs providing us data. Our ecosystem of data consumers and channel partnerships is also growing. We have a strong balance sheet that support our business plans for the next year to come. All this clearly puts us in a full position to push the mobility industry forward with our data and mobility intelligence tools. I'm moving to slide seven. Solid and profitable partnerships are top priority for us and an integral part of our go-to market. These relationships are a win-win, providing value for all. The quotes here on this slide are a sampling of some of our current partnerships. We have shared information in the past about AWS and Salesforce partnerships and some of the others, all of which we are very excited about. There's a lot more to come here. We look forward to sharing news about upcoming new partnerships in the near future. Slide eight. We are seeing traction in these areas for our data and intelligence. The first one is infrastructure and smart cities. We see more and more cities and infrastructure support organizations such as DOTs using data to reduce costs and optimize further their infrastructure and urban traffic. With the recent Biden announcement, we expect even more traction and more budgets coming in. It's amazing to see how the power of data, the power of connected cars can really show cycle and bring so much value in this domain. We see also more and more requests around traffic optimization and transportation planning. One of the rising segment is everything around impact and ESG initiatives. For example, understanding carbon footprint in areas or helping OEMs or fleets to understand their carbon footprint using cloud data. This is almost a segment that was non-existent until a couple of months ago, and now it takes more and more of the center stage. EV adoption is one of our fastest growing segments. Electric vehicles are, on one side, creating a lot of data because they are based on new architecture, but data was taken on both from the beginning. And in the same time, the ecosystem, the EV ecosystem, requires a lot of data for optimization. So understand, for example, the queues in the charging stations, to understand the health of different charging stations, to understand where to deploy new charging stations, to understand the effects on the power grid, et cetera. We really see a booming amount of requests in this segment for data and intelligence. The last and not least is the fleet management sector. We talked in the past about how using data, we really revolutionized the fleet sector. The fleet sector, based on McKinsey prediction, is expected to grow in 60% by 2030, because of , because of , because of . This is a huge blue ocean, and we are coming with a new offering that wasn't available until today, helping fleet and fleet management companies to move to a SaaS model, to a software model, using the embedded model in the car instead of an aftermarket device. Moving on to slide nine. I want to share with you some of the main growth trends that we see. To give you a bit more visibility, into some of the changes we see in the market. We see automakers shifting towards personalized services. It was always a choice that some different automakers took differently. Some automakers prefer to jump into the data waters with aggregate data. Some of them prefer to jump into those waters with personalized services. We definitely see the personalized services taking more and more of the stage. We see more and more automakers, more and more OEMs, preferring to start with personalized services. There are a number of reasons for that, and we will be happy to elaborate. We see also rising demand for diversified data types. If in the old days, what the industry was expecting from connected cars is floating car data, what is also referred to as FCD, which is a very basic and very limited data set. Today, the demands are much higher. Traffic signs, arse outs, friction data, ultrasonic data, battery data, fuel-related data, are all on the table and are all requested. It's great to see that the industry understands the power of the data, the diversity, and how much things it can enable. And we see this resulting in growing demand to reach a data set, which for us, as someone that has such a variety of data parameters, is great to see this vision happening. The third point, multi-brand offering for B2B and B2C. B2B and B2C is, of course, personal data use cases. And we see this ecosystem coming and demanding a multi-brand offering. Because if you talk to an insurance company, if you talk to a fleet, they will tell you that they have many, many OEMs in their fleet or under their insurance coverage. They have the GMs and Toyota, the Ford, the Stellantis, the Audis, etc. They need a multi-brand. They don't want to go OEM by OEM, contract by contract, API by API, data dictionary by data dictionary. They want multi-brand support. And again, this is part of the value that we bring, masquerading the different OEM complexities, and offering it as one unified data set, one unified dictionary. I will move to talk about some intelligence trends that we see. And with the new requisition, we are now able to offer intelligence and not just data to our ecosystem. The first to mention is the demand for aggregate-based intelligence. we are facing growing amount of privacy concerns. And privacy for us is another one priority to make sure that it's never jeopardized, that it's being respected. In the end, we are all drivers and we want to treat our customers the same way we want to be treated. Having the ability to offering intelligence, insights, analytics next to the raw data enable us in many places to overcome and address different privacy challenges. The ability to provide a dashboard and not erode data enables many of our ecosystem partners to get the insights they want without having to deal with complex privacy challenges. I mentioned before that we see automakers shifting towards personalized services. As part of it, we see also OEMs are asking for data intelligence partners. Either they prefer to share sometimes intelligence instead of raw data with third parties, or they want the ability to understand their data better. OEMs are generating huge amounts of data. It's not an innovation project anymore. It's something that is a big part of the LDL business. It has a huge potential and also huge cost. to understand better the data to see how they can utilize and benefit from it. And again, with our mobility intelligence capabilities, we are able to offer them more insights and understanding of their data and the business associated. I'm moving to slide 10. As recently announced, our new requisition in Q4, expanded our capabilities and intelligence offering to unprecedented levels. We doubled our total addressable market to about $140 billion. The intelligence offering adds an analytical insight layer and value for our customers. This allows Autonomo to serve as a one-stop solution for connected card data and AI-based analytics. This value is planned to materialize in our two revenue streams, the data marketplace and our SaaS tool portfolio, as we gain more and more market share and the market and OEM contracts mature. Please join me on slide 11. I'd like to discuss some of the added mobility intelligence solutions that we have been adding with the new requisition. We empower transportation planners with insights into mobility needs and multimodal demand. which is necessary for the planning and building of effective transportation networks. By delivering up-to-date, actionable mobility insights, we can support data-driven decisions that create accurate, measurable, and local network design. We also boost EV charging stations. it is going through a process of electrification by optimizing the location selection and utilization of charging station deployment, which of course maximizes ROI and service accessibility. This capability was highlighted at Move London, the leading mobility event, where we have active discussions with prominent electrification players. Data-driven electrification planners gain access to accurate measurement of demand for EV charging in every point of the city, with precise mapping of low battery zones across primary EV corridors and better understanding of EV mobility patterns. In addition, we have fleet and mass providers increase their operational efficiency and ROI by unveiling clusters of demand, which leads providers to make supply and demand through optimal station locations, reallocating their resources, and rebalancing their fleet. In addition, I want to highlight that Neura brings much more to Autonomo than its amazing technology. Their assets include a strong and fast-growing order accelerating business engagement, and top-notch engineering and data science teams. We already have OEMs as customers for the neurotechnology, utilities and power companies as customers to the neurotechnology, and smart cities and mass providers that are using the Neuron Mobility Insights technology. So we are very excited from the traction we see and what is coming. we've been really getting great feedbacks from the market. With this acquisition, Autonomo provides the data privacy consent management tools, raw application-ready data, and analytical workbench delivering actionable intelligence. Looking at slide 12, we can see the strong momentum for signing key OEM contracts continues. We have 21 OEM contracts. Five of them were signed in Q2 and Q3. We also had three data extensions to existing OEM agreements to support wider data partnerships. We are very proud of those new agreements. Five new OEM agreements in six months is not a walk in the park. and the extension is a sign that our partners are happy from the collaboration. They see the value we bring, then send the best potential for their business, and they keep supporting us further and further in building the joint business. Our pipeline is growing also in parallel to the data supply. This represents 60% growth in aggregate data revenues opportunities and a 70% increase in street activation opportunities. This is moving in line with our business plan. Those are some of the KPIs we are using to track the business progression. This is a clear indication that the maturity of the market increases quarter over quarter. and that our business plan is on target. Now on to slide 13. Here are a few more metrics on the business that we wanted to share. The sales team is growing fast to meet market demand across geographies and industries. We would be happy to move faster. but we strive to maintain quality and not compromise on talent. Having said that, we recently made a few key hires with vast industry experience. For example, our new CRO, which has joined us with TomTom recently. During Q3, we have made some significant additions to ourselves and go-to-market teams, adding key talents with vast industry experience. Taking the time to choose the best talent, we continue to expand and grow this team, putting us on a direct path to accelerate future growth. Our product team has more than doubled itself to support our product roadmap. We are bringing to market a growing set of comprehensive tools. You can see the increase in leads and engagements. It's really going through the roof. This is a result of our effective and extensive force leadership activities. Our brand activity is generating an increase in leads and engagements across all social media channels. I'm moving to slide 14. Here is an additional look at Q3 to give you some more visibility to the progress being made. Three, strong engagements for our unique offerings with user-based engagement growth, which is more than 20%. We shared in the last few months the partnership, for example, with RitzPlan. I can tell you it's live and kicking. with cars, getting data, and generating revenue. And this is one example. The Salesforce partnership. We are delighted about this. We are forming strong collaboration. We are running multiple pilots and having some very exciting industry-changing discussions. We hope to share more news in the near future. Strong OEM growth. We've shared with you that we signed five new agreements in the last six months and also three extensions to existing contracts. We have a number of additional OEM contracts in legal red line status that we hope to sign and announce soon. Mitsubishi Motor Corporation. We have discussions with Mitsubishi regarding entry into a new commercial arrangement. that will align with the technological and market needs of both parties. In the meantime, our Data Marketplace Agreement and IoT App Software License Agreement, both unique in their contract structure, are no longer in place while we work on a bigger vision and collaboration. I'm moving to slide 15. Here on slide 15, you will find four priorities that are guiding our near-term activities. Those are things that we're doing every day. We are working on increasing our channel. This will enable us to turbocharge our go-to-market plans. Our OEM relationships place us above the crowd, and we work hard to maintain our partner's trust and build relationships with new automakers in new geographies. Carrying up our organization in the right way will enable us to meet market demands. Launching new features and additional mobility intelligence tools will ensure that we continue to be on the cutting edge and provide strong value to our ecosystem. Thank you very much. Operator, we are ready for the Q&A session.

Thank you, dear participants. We will now begin the question and answer session. As a reminder, if you wish to ask a question, please press star and one on your telephone keypad and wait for a name to be announced. The first question comes from the line of Josh Nichols. Please ask your question.