Otonomo Technologies Ltd.

Good morning and welcome to the Autonomo fourth quarter and full year 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Juliette McGinnis, Senior Director of Communications at Autonomo. Please go ahead.

Thank you, Operator, and thank you all for joining us today. Welcome to Autonomo's fourth quarter and full year 2022 earnings call. Before we begin, I would like to remind you that our discussions today will include forward-looking statements that are subject to risk and uncertainties relating to future events and the future financial performance of Autonomo. Actual results could differ materially from those anticipated in forward-looking statements. Forward-looking statements made today speak only to our expectations as of today and we undertake no obligation to publicly update or revise them. For 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 Autonomo's form 20F, filed with the SEC on March 31st, 2022, 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. you are welcome to view the presentation on Autonomo's Investor Relations website. Please follow the call. A replay of this webcast will be available on Autonomo's Investor Relations website. Please also note that we will present non-GAAP operating laws on today's call, which is a historical non-GAAP financial measure. Because of this financial measure is used in Autonomo's internal analysis of financial and operating performance. Autonomo believes that it provides increased transparency to investors of management's view of 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. 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 Falcao, CEO and co-founder of Autonomo, Bonnie Moev, CFO of Autonomo, and Ben will start us off with an update on the current state of the market, Q4 results, and a summary of 2022. Next, Bonnie Moev will give us an overview of the company's financial results for Q4 and the full year 2022. We will then open the call up for a live Q&A session. During the Q&A section of this call, Ben will be joined by Bonnie. With that, I'd like to pass the call over to Ben Volkow. Ben, please go ahead.

Thank you, Juliette. Hi, everyone, and thank you for joining Autonomous Fourth Quarter and Full Year 2022 Financial Results Conference Call. Before I get into our Q4 results, let me first address the need of our agreement to enter into a merger transaction with Urgently that was announced last week. We couldn't be more excited about the merger. It is highly complementary and synergetic and will enable us to create exceptional customer-centric assistance experiences and accelerate growth by advancing delivery of preventive and predictive mobility services and products, digital platform integration for faster assistance response with multi-channel delivery, value creation across the mobility ecosystem of OEM, transportation, insurance carriers, fleet companies, and mobility assistance service providers. The combined company will be extremely well capitalized, with revenues north of $185 million in 2022, with solutions operating in more than 26 countries with more than 100 partnerships agreements across the automotive, OEM, transportation, insurance, fleet, and rental sectors, covering more than 70 million vehicles, and more than 80,000 connected assistance service professionals. And of course, 36 registered and pending patents. With over 1.7 billion connected vehicles expected to be on the road by the next decade, the combined company will serve markets totaling more than $100 billion. This all-stock transaction is expected to close in the third quarter of 2022. Upon closing, Matt Booth, currently CEO of Urgently, will be the CEO of the combined company. I will continue on the journey and will be joining the board of directors of the combined company. I'll be happy to address your questions regarding the merger at the end of our prepared remarks today. Now let's shift our focus to Q4 and year-end 2022 results for Autonomo. Q4 was yet another record-breaking quarter for Autonomo, with positive revenue growth and continued strong bookings. All of our key metrics were positive quarter-on-quarter, and we signed substantial new contracts that will position the company well for continued growth in the coming quarters. Q4 also marked a significant shift in our operating strategy, as we took the difficult but necessary steps to reduce costs to be more in line with our revenue outlook and the overall market adoption. We estimate the year-over-year impact of these cost reductions will result in substantial cost savings for the company. We think that this sets Autonomo up well in preserving the necessary capital to build a sustainable and scalable business. For the full year 2022, our revenue growth, product development, and customer success has been nothing short of remarkable. We grew revenues from $1.7 million to $7 million, and we exited the year with an 82% recurring revenue run rate. While we did not meet our expectations on the top line for the year, and we would have preferred to have less disruption in the business, we remain optimistic about the future of the market and our strategy. From a market perspective, the back half of 2022 was all about extended decision cycles with our ecosystem. As a result, the strong demand we see for autonomous data services did not translate into revenues as quickly as we expected. We anticipate that these macro-factors will persist well into 2023, and thus are positioning the company accordingly from a financial perspective. The next two to three years will be pivotal in the mobility sector, as we believe the industry will reach a tipping point in the adoption of software-defined telematics because of the increasing number of connected vehicles on the road, as well as the rate of electric vehicle adoption, because the maturation of key applications and use cases, and because of the adoption of new transformative economic models for our segment of the industry. Q4 continued our momentum across key metrics. Some of the Q4 highlights are revenue for the fourth quarter of 2022 grew by 6% quarter over quarter. Recurring revenue reflects 82% of autonomous revenue for the fourth quarter 2022. Bookings for the fourth quarter grew by 65% quarter over quarter, to $3.6 million, of which 79% is recurring revenues. Backlog as of December 1, 2022, was $6.3 million. Annual recurring revenues, ARR, was $7 million, an increase of 5% quarter over quarter. For 2022, here are some of our highlights. Revenue for 2022 was $7 million, compared to $1.7 million in 2021. For the full year 2022, recurring revenues was $4.8 million. Booking for 2022 were 9.3 million. We increased also our current OEM contracts from 22 to 24. We added 55 new customers for connected vehicle data and insurance in 2022. We completed the flow acquisition to address motor insurance, one of the largest segments in the mobility sector. We launched fleet mileage and maintenance management consoles as well as FlowFusion that combines phone and car data to create a 1 plus 1 equals 3 offering to insurance carriers. And we increased the number of fleet vehicles on the platform by more than 5.5x. I want to touch some of the strategic partnerships announced in the quarter. First, Microsoft. Microsoft has selected Autonomo to support and improve its global mapping products and services. The streaming connected vehicle data provided by Autonomo will allow Microsoft to develop enhancements to its mapping services for Microsoft Map users. across Microsoft Azure, Windows, and Bing, including providing current traffic conditions, accident notification, and route optimization. Microsoft will use connected vehicle data, including traffic data, road safety events, and road sign data, to enrich and validate its current road network data. With this additional data set, Microsoft can derive additional insights to support its mapping products and services, such as new road geometry or turn restrictions, for example. Microsoft mapping products and services include its own branded solutions and licensed third-party offerings. We also signed a multi-year partnership with global automobile manufacturer Renault Group to provide its fleet customers easier and cost-effective access to reach actionable vehicle data insights across multiple vehicle brands. Unlike other solutions that require aftermarket hardware, such as OBD dongle to be installed to gain access to the data, Autonomo is able to access the vehicle data directly from Renault Group through Renault Cloud Platform. Easy connect for fleet. So moving from hardware to software-based telematics. This will reduce installation and maintenance costs for fleet customers. as well as time spent managing these aftermarket devices. We also signed a multi-year agreement with ITERIS, the World Trusted Technology Ecosystem for Smart Mobility Infrastructure Management, to integrate connected vehicle data available through the Autonomous Smart Mobility Data Platform into ITERIS Clear Mobility Platform. The additional data source will help Iteris unlock new mobility insights from its multiple sources of traffic intelligence, advance its digital mobility infrastructure solutions for the public sector and commercial enterprise customers, and deliver on its mission of creating a future of smarter and connected transportation. And finally, Michelin DDI, the business unit within Michelin Group, specialized in driving behavioral data analysis, has selected Autonomo to advance the development of its near-miss zoning identification service in Europe. Michelin DDI will leverage acceleration and deacceleration connected vehicle data events available through the Autonomous Smart Mobility Data Platform to identify potential accidents, hotspots, and help European road authorities reduce risk and improve road safety for drivers, beginning in France and followed by additional countries across Europe. Now, for more detail on our Q4 and full year 2022 financials, I'll hand it over to Autonomous CFO Bonnie Mohan.