Wejo Announces Fourth Quarter and Full-Year 2021 Results; Provides 2022 Outlook
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 Operational Key Performance Indicators (KPIs) for the fourth quarter and full year ended December 31, 2021.
Richard Barlow, Chief Executive Officer and Founder said, "We are extremely excited about our Company's progress in 2021. In addition to completing our public listing, we added several OEMs and Tier 1 relationships, and developed platforms and applications that add significant value to our customers' businesses. Our value proposition is resonating in the marketplace, driven by several recently launched ground-breaking services, including Wejo Neural Edge and an EV Infrastructure Operating System solution that will help accelerate EV adoption. In 2022, we will deliver on our revenue targets by moving into several new product lines, expanding our presence with major enterprises, and developing global solutions for current challenges. We believe our performance in 2021 and our expected performance in 2022 positions us well to execute our long-term strategic plan in an expanding Serviceable Addressable Market (SAM). All our business activities are focused around fulfilling our mission of transforming data from connected vehicles, EVs and AVs into rich insights powered by our Smart Mobility for GoodTM products and solutions."
Full-Year 2021 Financial Highlights
Fourth-Quarter 2021 Financial Highlights (Compared to Fourth Quarter 2020)
Over the past year, Wejo has notably:
John Maxwell, Chief Financial Officer, said "Wejo's ability to raise up to $100 million through a committed equity facility reflects confidence in Wejo's market-leading position and ability to achieve its mission for the benefit of its customers. The expected proceeds from this facility bolsters the Company's liquidity position, and we believe when combined with the expected proceeds from the Apollo forward purchase agreement and current cash on the balance sheet will collectively provide us with sufficient cash to fund our business through the end of 2023. These funding mechanisms are important to building our business with the talent, technology and OEM relationships that support our strong pipeline of new products and customers and reinforces our position to accelerate our growth in our markets."
Key Strategic Priorities for 2022
Wejo is focused on several major objectives in 2022 that are expected to drive significant value, including:
Outlook for 2022
Wejo is providing the following guidance for full-year 2022 on Vehicles on Platform, Net Revenue and Adjusted EBITDA:
Vehicles on Platform: We expect to end 2022 with approximately 27 to 32 million vehicles on our Neural Edge platform, and we expect to continue to increase our Gross Bookings per vehicle on platform.
Net Revenue: Wejo expects to generate a base of Net Revenue of $10 million, which at this level would represent a 285% increase over 2021 reported net revenue. The Company's base net revenue estimate is primarily driven by our Marketplace Data Solutions offerings and reflects contracted customers and our pipeline of new business in late stages of closing. This base also includes completed customer wins in Software and Cloud Solutions. Our base Net Revenue guidance does not include new product lines expected to be launched later in 2022 or our pipeline of new customer opportunities that are now in late stages of closing.
Wejo currently has a significant pipeline of customer opportunities in both Wejo Software and Cloud Solutions as well as Wejo Marketplace Data Solutions. Timing of revenue recognition cannot be determined until these new deals are finalized, so we have left them out of our base Net Revenue projections of $10 million. Irrespective of the timing of the revenue recognition from the pipeline, we expect our revenue base will grow significantly as we exit 2022, and we will see strong growth in Gross Bookings and Total Contract Value.
Adjusted EBITDA: Wejo expects Adjusted EBITDA loss to be in the range of a $110 million to $120 million, reflecting continued spending in technology and product development, OEM onboarding, and geographic expansion.
Wejo continues to invest in its exciting market and related growth opportunities, and as such, any additional needs beyond the Committed Equity Facility, Apollo Forward Purchase Agreement and available cash on hand, and timing of such capital to fund our investments, will be assessed in the future.
Wejo's financial outlook is driven by the Company's ability to commercialize its core data asset into discrete end use markets, which we refer to as Wejo Marketplace Data Solutions and Wejo Cloud and Software Solutions, described in more detail in our Comprehensive Annual Report on Form 10-K, which we are filing with the SEC later today (the "Form 10-K").
As further discussed in our Current Report on Form 8-K, filed with the SEC on March 29, 2022, and in our Form 10-K, the Company identified valuation errors in the consolidated financial statements of Wejo Limited ("Legacy Wejo") related to the derivative liabilities that were bifurcated from Legacy Wejo's Convertible Loan Notes ("CLNs"), which were converted to common shares of Wejo Group Limited on November 18, 2021. These errors were related to the misinterpretation of certain conversion terms of the CLN agreement and using the wrong output from the valuation report, which led to the fair value of derivative liabilities being valued incorrectly. As a consequence, the valuation of Legacy Wejo's ordinary shares was affected, resulting in a misstatement of the beneficial conversion feature of the CLNs recorded in Additional Paid in Capital ("APIC") as well as the fair value of Advanced Subscription Agreements ("ASAs"). The financial statements for the year ended December 31, 2020 (the "Affected Period") will be restated to correct this error. Our Form 10-K includes a correction of this error in the financial statements as of and for the three months ended March 31, 2021 and for the three and six months ended June 30, 2021, which were included in our initial registration statements on Form S-4 and S-4/A filed in connection with the Company's initial business combination. These corrections have no impact on net revenue, loss from operations, Adjusted EBITDA or Net cash used in operations.
Wejo will host a business update call to discuss 2021 results as well as key financial and strategic priorities for 2022 later today at 5:00 pm EST. The call will be hosted by Chief Executive Officer, Richard Barlow and Chief Financial Officer, John T. Maxwell, and can be accessed on the Investor Relations page of Wejo's website at www.wejo.com/investors/investor-relations.
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.
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 16 million vehicles, of which 11.8 million were active on the platform during the prior six months transmitting data in near real-time, and over 64.8 billion journeys globally as of December 31, 2021, 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 more than 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.
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 Form 10-K, which we are filing with the SEC later today, and future filings with the SEC.
Non-GAAP Financial Measures and Key Performance Indicators
This release includes Adjusted EBITDA, which is a non-GAAP financial measure, as well as key metrics such as Total Contract Value, Annual Recurring Revenue, Gross Billings, Gross Bookings 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 GAAP measure, Net Loss. The Company and its management believe that these non-GAAP measure and key performance indicators 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 income 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 GAAP financial measure is not available without unreasonable effort.