Otonomo Technologies Ltd.

Good morning, ladies and gentlemen. My name is Keith, and I will be your host operator on this call. Everybody, please note this event is being recorded. I would like to turn the meeting over to your host for today's call, Mary Segal, CEO of MSIR. Please go ahead, Mary.

Thank you, operator, and thank you all for joining us today. Welcome to Autonomous Third Quarter Financial Results Conference Call. Before we begin, I would like to remind you, that our discussions today will include forward-looking statements and are subject to risks and uncertainties relating to future events and the future financial performance of autonomous. Actual results could differ materially from those anticipated in the forward-looking statements. Forward-looking statements made today speak only to our expectations as of today and we undertake no obligations to publicly update or revise them. For a discussion of some of the important risk factors that could cause actual results to differ materially from any forward-looking statements, please see the Risk Factors section of Autonomous Form 20-F filed with the SEC and other documents filed by Autonomo from time to time with the SEC. If you have not received a copy of the earnings press release, please download one from the investor relations section of the company's website. Today's call will be accompanied by a PowerPoint presentation. You're welcome to view the presentation on Autonomous Investor Relations website. Following the call, a replay of this webcast will be available on the Autonomous Investor Relations website. Please also note that we will present non-GAAP operating loss on today's call, which is a historical non-GAAP financial measure. Because this financial measure is used in autonomous internal analysis of financial and operating performance, Autonomo believes that it provides increased transparency to investors of management's view of its economic performance. Autonomo also believes the presentation of this measure allows investors to more effectively evaluate and compare the performance of Autonomo to that of its peers. Although Autonomo's presentation of this non-GAAP measure may not be comparable to other similarly titled measures of other companies. A reconciliation of this measure to its most directly comparable GAAP financial measure is included in our earnings release. Today we are joined by Ben Volkow, CEO, Director, and Co-Founder of Autonomo, and Bonnie Moav, CFO of Autonomo. Ben will begin the discussion with an update on the current state of the market and the business. Next, Bonnie will share an overview of the company's financial results. We will then open the call for the live question and answer session. With that, I'd like to turn the call over to Ben Volko, Autonomous CEO. Ben, please go ahead.

Thank you, Miri. Hi, everyone, and thank you for joining Autonomous' third quarter 2022 financial results conference call. Q3 continued our run of strong quarters with all of our key performance indicators eating new high watermarks. We did see some softness in our top-line growth, primarily due to macro-related headwinds we encountered in the market, but we still saw positive growth on the quarter-over-quarter basis. Even as we continue to see growing demand across our focus areas in the mobility sector, we recognize that our rate of adoption in some segments and services we offer continues to be challenging. Accordingly, in Q3, we continue to evaluate and adjust our investments in line with our strategy. We will continue to be conservative in our cash management. Our highlights in Q3 include new product releases, customer adoption success, and key strategic alliance announcements. To start, we unveiled Flow Fusion, a breakthrough capability that marries the Flow's leading smartphone-based solution with connected vehicle data. We think that Flow Fusion will be a catalyst to accelerate the transformation underway in the insurance sector to meet growing demands for usage-based insurance. With Flow Fusion, insurance providers can easily leverage mobile and vehicle telematics data to create new connected insurance policy offerings, as well as bolster existing offerings with additional highly accurate data sources to deliver a competitive advantage. Since the announcement in September, we have received very positive market feedback. and have had a number of meaningful discussions with large insurance carriers that continue to progress. In Q3, we also saw significant progress in the fleet sector for autonomous. First, the number of fleet vehicles on the autonomous platform increased 4.5x In one particular example, we worked closely with a partner to onboard more than 10,000 vehicles to the Autonomo platform. This process would normally take thousands and thousands of hours using hardware-based telematics. However, our partner, through the use of our system, was able to onboard the vehicles in one day. all the while compiling with privacy regulations and achieving operational readiness. This is a fraction of the time and cost fleet operators currently have to set aside for other telematics installation and maintenance. This level of automation via software-defined telematics clearly demonstrates the economic value Autonomo can bring to the fleet sector and why we continue to see interest and demand from fleet operators. We also continue to develop and scale our go-to market in the fleet sector via our strategic partnerships. In July, we announced an update to the Autonomo app for Salesforce and provided key technology that is powering the new Salesforce AutoCloud product. As a Salesforce launch partner, we are providing the telematics layer to empower a Salesforce solution with connected car data. We are targeting dealerships, fleets, and the financial mobility ecosystem and are super excited about this close partnership. The latest version allows customers to build upon workflows trigger specific actions, access distance and dispatch data, execute geofencing, and enhance driver safety capabilities. The Autonomo app enables customers to extract rich vehicle data insights and monitor the location and status of entire fleets. Utilizing software-based telematics from OEM connected car data, Customers can enjoy a solution without costly and expensive hardware. Finally, we also recently announced the integration of our Autonomo Smart Mobility Data Platform with SAP's Digital Vehicle Hub. The integration will help enable clients to derive new insights for fleet management and maintenance. based on connected vehicle data and generate new value and revenue streams. The SAP Digital Vehicle Hub is a central cloud-based repository for vehicle-related data. The solution will help companies share vehicle data between relevant stakeholders and enables collaborative business models and value streams along the automotive and mobility value chain. By combining vehicle data with SAP Digital Vehicle Hub, we offer new insights for clients that in turn can create additional value or new revenue streams for their businesses. I will just close on Q3 highlights by mentioning that we continue to be active both on the OEM and Strategic Alliance fronts and hope to have exciting news in the coming weeks and months. As I indicated earlier, we continue to see momentum in attributes that are key to our business. Some of the highlights. Recurring revenues for the third quarter of 2022 grew by 24% quarter over quarter. and reflects 83% of autonomous revenues for the third quarter of 2022. Bookings for the third quarter grew to $2.2 million, of which 90% is generating recurring revenues. Backlog as of September 30, 2022, was $4.8 million, Annual recurring revenue was $6.7 million, an increase of 11% quarter over quarter. And we signed 19 new customer agreements in Q3. Those are remarkable results and show the strength of autonomous business and our continued growth in the markets. we had a record number of new customer agreements during the third quarter, as we continue to see interest and demand for our whole market of connected car use cases increase. For example, Mobility Thinking, a research and analytics firm that uses historical and current floating car data for modeling purposes, to understand the impact of infrastructure development in Sydney, Australia. JUA, an AI company developing weather prediction models, chose Autonomo as its sole connected vehicle data source due to the wide geographical coverage and GDPR compliance we provide. In addition, Yesterday, we announced our latest press release. Rumble, a global leading consultancy delivering integrated and sustainable solutions, is creating value for clients by using historical and real-time data from Autonomo to improve safety, accessibility, and efficiency for our users. In the fleet segment, we are seeing tremendous momentum with new customer agreements. Some of these include Legentic, a fraud detection company that shows Autonomo as its connected vehicle data platform provider to enable product offering such as vehicle recovery across the EU. M2M Apicestios, a fleet management provider that selected Autonomo to support its transition away from hardware-based telematics to better support hundreds of fleet customers using the power of software. And finally, GPS Trackit, a fleet and asset management company which turned to Autonomo for expertise in working with OEM and connected card data. As you can see, it was yet another strong quarter across product development, customer adoption, strategic alliances, and new customer wins. Now, for more detail on our Q3 financials, I'll hand it over to Autonomous CFO Bonnie Moab.