Wejo, a mobility data provider, reported a net revenue growth of 166% YoY to USD 3.6 million in Q4 2022, below the consensus estimate of USD 4.1 million. For FY2022, the company reported a revenue growth of 227% YoY to USD 8.4 million, driven by the completion of its software and cloud solutions project and an increase in demand for its traffic management solutions. The annual recurring revenue (ARR) was USD 8.4 million (up 87% YoY) by the end of the year. 

In Q4 2022, gross bookings rose by 74% YoY to reach USD 5.4 million, while FY2022 reported a YoY increase of 124% in gross bookings to USD 18.8 million. This growth can be attributed to the acquisition of new customers and the expansion of existing customer relationships. Additionally, the total contract value (TCV) increased by 92% YoY to USD 39.4 million in FY2022, largely due to the addition of new clients and the strengthening of business ties with existing ones.

The operating loss narrowed 24% YoY to USD 119.9 million in FY2022, due to the growth in topline and a reduction of administrative costs, which decreased by 40% YoY. The adjusted EBITDA loss increased by 44% YoY to USD 97.2 million.

Wejo reported that it made progress towards its projected cash flow breakeven point in mid-2024 by partnering with TKB Critical Technologies 1 and is targeting to raise USD 100+ million through a PIPE raise. The company has reduced its cash burn by 40% in 2022 and aims to reduce it by another 50% by the end of 2023, resulting in an earlier cash flow breakeven point of mid-2024 instead of mid-2025. 

The company announced its full-year 2023 guidance; net revenue is expected to range from USD 20 million–30 million, and adjusted EBITDA loss to range from USD 45 million–55 million.

Analyst QuickTake: Wejo's latest financial results show strong growth in gross bookings and total contract value, with a narrowing of the operating loss. The company's initiatives for 2023 include partnerships with Toyota and Renault, the adoption of Microsoft Connected Fleet’s reference architecture, the expansion of the Road Health solution, and a partnership with UCGIS , which indicate a commitment to innovation and growth in the smart Mobility industry. This is expected to support Wejo in achieving its projected cash flow breakeven point in mid-2024, which will be further aided by the anticipated PIPE raise.