LONDON--(BUSINESS WIRE)--Regulatory News:
MotorK Plc (AMS: MTRK) (“MotorK” or the “Group") announced strong financial results for the quarter ended March 31, 2022. The Group also confirmed it remains on track to meet its financial guidance for the full year 2022.
Q1 2022 FINANCIAL HIGHLIGHTS
- Revenues of €8.3 million, up 52% year-on-year, in line with management expectations and on track to meet financial guidance for the year
- SaaS recurring revenues of €5.4 million, up 149% year-on-year, now representing 65% of total revenues, driven by continued traction from OEMs
- Annual recurring revenues (ARR)1 of €16.3 million, including €2.9 million from M&A, up 31% organically, compared to €10.3 million in the prior year, and up 58% including M&A
- Average annual contract value of €16.1k, up 10% against €14.6k in the same period last year, as the Group continues to grow its loyal customer base by upselling its software services
- Churn trending positively towards pre-Covid level
OPERATIONAL HIGHLIGHTS
Continued Momentum
The strong momentum in MotorK’s business from 2021 has continued into the current year, reflected in the robust results for the first quarter. Revenues and ARR growth rates continue to position the company as the best-in-class among its SaaS peers, driven by steady customer gains and improving net revenue retention.
During the period, the Group generated €8.3 million in revenues, up 52% year-on-year overall or 34% excluding acquisitions. Organic growth was particularly strong in France, where revenues more than doubled, supported by double-digit underlying growth in Spain, Italy and Germany. Following the acquisition of Dapda, revenues from Spain tripled, making it the second largest geographic market for the Group after Italy.
Total recurring revenues from the SaaS business grew by 149% (or 116% on an organic basis) and now represent 65% of total Group revenues, compared to 40% in the prior year period. This healthy improvement drove ARR to €16.3 million, including €2.9 million from M&A, up 31% organically compared to €10.3 million in the prior year period, and up 58% including M&A. The accelerated growth in the SaaS business offset softer revenues in the lower-margin Digital Marketing impacted by ongoing industry uncertainty.
The strategy of leveraging the Group’s strong customer relationships by delivering a strong value core platform proposition and then upselling them into new modules or enhanced functionality products continues to work well. As a result, average contract value increased by 10% to €16.1k, compared to the prior year period value of €14.6k.
The Group’s ability to retain its customers is also reflected in its customer churn rate trend. The volatility experienced during the pandemic is now stabilizing to what the Group believes are normalized levels.
The mix of business towards OEM, which was commented on in the previous quarter, is also gathering momentum. In April 2022, MotorK’s FIDCAR subsidiary signed a commercial agreement with Stellantis &You, Sales and Services in the domain of predictive marketing after-sales, putting artificial intelligence at the service of tailor-made customer relationships. After-sales predictive marketing is a tool designed to offer the end-customer individually packaged offers, in a targeted way, at the right time, corresponding to the state of his vehicle and to his actual maintenance needs.
The integration of the three recent acquisitions remains on track and the Group is confident that the identified cost synergies for 2022 will underpin progress towards the EBITDA margin guidance previously disclosed. The Group continues to evaluate strategic M&A opportunities to expand the footprint of the business across Europe.
Industry conditions unchanged
The headwinds experienced by the automotive industry in 2021 have continued unabated into 2022 as the continued shortage of microprocessors together with the current uncertain macroeconomic conditions in Europe are likely to negatively impact automotive sales and car registrations for the foreseeable future. Although most industry professionals and market analysts expect the chip shortage to start easing only in the second half of 2022, the Group remains cautious and is prepared for an extended period of supply chain disruption.
The Group will keep monitoring the impact of the current political environment on its clients, its business, and the industry as a whole and provide updates as necessary.
OUTLOOK
Guidance Confirmed
At this stage and given the recurring nature of its business, MotorK confirms its previously stated financial guidance. For the full year 2022, MotorK currently expects to achieve revenues of €45-47 million, with ARRs of €28-30 million. The trend towards increasing average contract value as the Group continues to upsell services to its existing customer base and the integration of recent acquisitions as the year progresses will lead to an acceleration of performance over the coming quarters to the end of the year. For reference, the guidance is based on the existing Group’s perimeter but does not factor any additional value accretive acquisitions the Group might seize as part of its external growth strategy.
EARNINGS CONFERENCE CALL
MotorK will hold a conference call in connection with its Q1 2022 financial results on 21 April, 2022 at 9:00 AM Central European Time (CET). Details to register for the call are available on MotorK’s website (www.investors.motork.io), and registered participants will have access to a replay of the webcast.
NEXT PUBLICATION: H1 2022 TRADING UPDATE, 25 JULY 2022
Revenue by product and service line (€'000) |
Q1 '22 |
Q1 '21 |
y.o.y.
|
y.o.y.
|
||
Organic |
M&A* |
Total |
||||
SaaS platform revenue |
5,080 |
733 |
5,813 |
2,499 |
103% |
133% |
Digital Marketing revenue |
1,661 |
111 |
1,772 |
2,018 |
(18%) |
(12%) |
Other revenue |
611 |
143 |
754 |
961 |
(36%) |
(22%) |
Total |
7,352 |
987 |
8,339 |
5,478 |
34% |
52% |
SaaS platform revenue (€'000) |
Q1 '22 |
Q1 '21 |
y.o.y.
|
y.o.y.
|
||
Organic |
M&A* |
Total |
||||
Recurring revenue |
4,737 |
706 |
5,443 |
2,190 |
116% |
149% |
Contract start-up revenue |
343 |
27 |
370 |
309 |
11% |
20% |
SaaS platform revenue |
5,080 |
733 |
5,813 |
2,499 |
103% |
133% |
% Recurring revenue on Total Revenue |
64% |
72% |
65% |
40% |
61% |
63% |
% SaaS platform revenue on Total Revenue |
69% |
74% |
70% |
46% |
51% |
53% |
Revenue by country (€'000) |
Q1 '22 |
Q1 '21 |
y.o.y.
|
y.o.y.
|
||
Organic |
M&A* |
Total |
||||
Italy |
6,017 |
- |
6,017 |
4,644 |
30% |
30% |
Spain |
436 |
622 |
1,058 |
353 |
24% |
200% |
France |
673 |
365 |
1,038 |
310 |
117% |
235% |
Germany |
226 |
- |
226 |
171 |
32% |
32% |
Total |
7,352 |
987 |
8,339 |
5,478 |
34% |
52% |
*Fidcar, Liotey, DAPDA, DAPDA MEDIA, Francepronet, SFD. Francepronet and SFD consolidated from the 1st February 2022 |
||||||
Forward-looking information and disclaimer
This press release may include forward-looking statements. Other than reported financial results and historical information, all statements included in this press release, including, without limitation, those regarding our financial position, business strategy and management plans and objectives for future operations, may be deemed to be forward-looking statements. Without limitation, any statements preceded or followed by or that include the words “targets”, “plans”, “believes”, “expects”, “aims”, “intends”, “anticipates”, “estimates”, “projects”, “will”, “may”, “would”, “could” or “should”, or words or terms of similar substance or the negative thereof, are forward-looking statements. These forward-looking statements are based on our current expectations, projections and key assumptions about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond MotorK’s ability to control or estimate precisely, such as future market conditions, the behavior of other market participants and the actions of governmental regulators. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and are subject to change without notice. Other than as required by applicable law or the applicable rules of any exchange on which our securities may be traded, we expressly disclaim any obligation or undertaking to update or revise publicly any forward-looking statements, whether because of new information, future events or otherwise.
Important information
This press release contains information within the meaning of Article 7(1) of the Market Abuse Regulation (596/2014).
ABOUT MOTORK PLC
MotorK (AMS: MTRK) is a leading software as a service (“SaaS”) provider for the automotive retail industry in the EMEA region, with over 400 employees and ten offices in seven countries Italy, Spain, France, Germany, Portugal, the UK and Israel). MotorK empowers car manufacturers and dealers to improve their customer experience through a broad suite of fully integrated digital products and services. MotorK provides its customers with an innovative combination of digital solutions, SaaS cloud products and the largest R&D department in the automotive digital sales and marketing industry in Europe. MotorK is a company registered in England and Wales. Registered office: Kemp House, 152 City Road, London EC1V 2NX3 - Company Registration: 9259000. For more information: www.motork.io or www.investors.motork.io.
1 Annual Recurring Revenues (“ARR”) is defined as the yearly subscription value of the customer base at the end of the reporting period.