Wejo Group Limited Q3 2022 Earnings Call Transcript

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Operator: Thank you. And we do have someone else in the queue here. Our next question comes from the line of Ryan Koontz with Needham & Company. Please proceed with your questions.

Ryan Koontz: Hi, thanks for the opportunity here and thanks for color on the update on the company. I want to get more color you could share around go-to-market with regards to your kind of updated near-term view on different market verticals around the traffic insurance and fleet, et cetera. Like, are you still, what’s the balance of kind of direct versus indirect and can you find ways to plug into other vendors, other established vendors solutions to kind of minimize your investment levels required on go-to-market? Thanks.

Richard Barlow: So Ryan, as you know, partnerships important to us and we set out in our Q2 business update that we’d be investing in partnerships. We publicly talk about a partnership with Microsoft. We’re building partnerships with other corporates and blue chips as well. So direct sales, we feel is still important to us in terms of winning the larger contracts with especially the DOTs where we have a unique product offering that’s difficult to market through partnerships. But we’re very mindful that and especially going to next year, the partnerships will with the right quality products, be a very powerful inbound source in new sales inquiries. So we’re very much minded on not duplicating what partnerships can do in terms of our own cost base.

Ryan Koontz: Got it. Okay, helpful. Thanks. And on the cloud cost, it sounds like you’re trying to onboard vehicles now closer to revenue generation. How should we think about kind of optimization of cloud costs here going forward? And is that a concern for you that we should consider also in terms of keeping the burn rate down?

Richard Barlow: I mean our strategic partners and our own partners to being very supportive about how we prioritize the onboarding of vehicles. We’re not varying our guidance for onboarding vehicles. And we have a robust pipeline, but at the same point as you noticed, we’re now at a point where we’re processing 18 billion data points a day and more, we’re aiming for 27 plus million vehicle life on platform. We have critical masks in a lot of places in the U.S. and we expect to start seeing the same in other parts of the world as well. So we are being very selective now about how we onboard and when we onboard and the business case needs to support onboarding. So we’re not reducing our margins by having vehicles being processed on platforms which don’t make an immediate revenue contribution or near immediate revenue contribution. It’s very much where part of our focus and the support we’ve had from our partners is helping us get that methodology refined.

Ryan Koontz: Got it. Helpful. Thanks so much.

Richard Barlow: Thanks, Ryan.

John Maxwell: Thank you, Ryan.

Operator: Thank you. There are no further questions at this time. I would like to hand the call back over to management for any closing comments.

Richard Barlow: Thank you all for attending today. We’ve had a great number of attendees considering our last minute notes to make this business update. We will continue to inform the market. We are very much focused to deliver ahead of guidance this year and to continue to monitor our costs and to maximize the margin, the opportunity for you all as stakeholders in Wejo. Thank you for your time.

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