Wejo, a mobility data provider, reported a net revenue growth of 632% YoY to USD 2.6 million in Q3 2022, driven by the completion of its software & cloud solutions project and an increase in demand for its traffic management solutions. The annual recurring revenue (ARR) was USD 7.2 million (up 64% YoY) in Q3 2022.

Gross bookings declined 71% YoY to USD 1 million in Q3 2022, due to delays in contract close-out and updated estimates for bookings from earlier periods. However, total contract value (TCV) grew 71% YoY to USD 34 million in Q3 2022, with the addition of new clients and strengthening business ties with existing clients.

The operating loss widened 21.3% YoY to USD 25.4 million in Q3 2022, driven by an increase in general and administrative costs (+90% YoY), although the gain in top-line revenue partially offset this trend. The company reported an adjusted EBITDA loss of USD 22 million (+11% YoY).

Wejo’s key highlights during the quarter include securing new contracts from state Departments of Transportation (DOT), including those in Texas, Georgia, and Virginia, expanding a partnership with Ford to provide end-to-end vehicle insurance solutions in the US, unveiling a prototype autonomous vehicle called DLIVEREE with the integration of live, real-time connected vehicle data, and signing a co-development agreement with strategic investor Sompo Light Vortex to develop smart mobility solutions and to expedite its adoption in Japan and southern Asia.

The company reaffirmed its full-year 2022 guidance; net revenue is expected to be USD 10 million (+285% YoY growth), and targets  27 million–32 million vehicles to be covered on its platform; adjusted EBITDA (loss) guidance is expected to range from USD 85 million–95 million. 

Analyst QuickTake: Wejo’s strong topline performance validates its latest product offering Wejo Labs, a self-serve, cloud-based platform launched in late June 2022 which leverages its connected vehicle data to provide users access to millions of connected vehicle data for multiple use cases.