Wejo Announces Second Quarter 2022 Results

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:

1. 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;
2. 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;
3. 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;
4. 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;
5. 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
6. 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.

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