Otonomo Technologies Ltd. (NASDAQ:OTMO) Q3 2022 Earnings Call Transcript

Bonnie Moav: So I think we’ve shared in the past that it will take us around two years to three years to breakeven. I think we can stand up behind this years as we grow. I can’t share with you at what point revenues will — what is the number of revenues that will make us a breakeven, depends on a lot of other things and a lot of other products that we have on the road map. So I can’t give you an accurate answer to that question.

Josh Nichols: Okay. Thank you. I will hop back in the queue.

Bonnie Moav: Thank you.

Ben Volkow: Thank you.

Operator: Thank you. And the next question comes from Harry Wilmerding with Needham & Company.

Ryan Koontz: Hi, sir. Sorry, this is Ryan Koontz with Needham. Can you hear me?

Ben Volkow: Hi, Ryan.

Ryan Koontz: Hi, Ben. I wanted to ask about the Salesforce relationship. It sounds like this is a new market for Salesforce to penetrate in terms of the dealerships. Is that correct?

Ben Volkow: I agree. I think that they are doing some business there, but I think it was much more limited compared to what they are planning to get going in the next few months.

Ryan Koontz: Got it. So hopefully your data gives them a much more powerful product to go after that market. That’s great. And with regards — I think not the big picture here and your kind of agreements and near-term pipeline, I assume that fleet insurance remain your prime focus for the company and between those two, which one do you think could be more material to kind of the next 12 months revenue as you look at your pipeline?

Bonnie Moav: So the insurance segment, obviously, more matured. We acquired the flow its more mature company that already have existing and ongoing relationship with insurance companies. So obviously, this remains our most significant generating revenues in the coming year. And for the fleet, this is like a new market for us. We do see an increase in the numbers of connected beams we have from fleet and we will see them growing in a very drastic percentage throughout Q4 and 2023. So it will continue to grow that I think insurance continues to lead in 2023 and our fleet is definitely there to bring and generate the growth that we are anticipating in next year results.

Ryan Koontz: Got it. That’s helpful. And lastly, kind of circle back on your commentary around cloud costs there. I assume you’re not keeping like a history of all the data you’re ingesting. You’re basically processing — you’re focused on process and the data that your customers are paying for rather than collecting the history of all data on all cars, which would really probably wouldn’t be very financially advantages for you. Is that correct?

Ben Volkow: No, that’s not always the case. In some scenarios, we maintain the data for longer. Historical data for some use cases is a more value than real-time data. For example, cities or DOTs that want to understand what changes they need to do, they usually like to go not just in what’s happening today, but also what happened six months ago or nine months ago. Having said that, the historical data, we maintained in a much lower cost archive in the cloud, because it’s not real time, it can take a fee. It’s okay. The access to the data will take out of second and not millisecond. So we maintain historic data in some cases, but we maintain it in a way that the cost associated to it is low and not impacting in a current way our costs. I hope it answers the question.

Ryan Koontz: It does very much. So, thanks. That’s it for me. Thank you.