Otonomo Technologies Ltd.

Revenue in Q1 2023 was $1.8 million, compared with $1 million in Q1 2022, with growth primarily driven by The Floow, which was consolidated starting in Q2 2022. GAAP operating loss was $17.1 million versus $15.1 million a year earlier; the increase was driven by $2 million of restructuring costs, $3.4 million of transaction costs, $1.7 million of operational loss related to The Floow, and $1.4 million of contingent liability revaluation expense, partly offset by about $5 million of lower operating costs from cost reductions. Non-GAAP operating loss was $12 million versus $12.5 million in Q1 2022. Cloud infrastructure expenses decreased by 35% to $0.8 million from $1.2 million, while cost of services data purchases were $0.5 million, up 46% year over year. R&D expenses were $3.6 million and sales and marketing were $4.6 million; G&A was $7.3 million. The quarter ended with $129.8 million in cash and cash equivalents, short-term restricted cash, short-term deposits and marketable securities, down $10.9 million from year-end 2022. Management did not provide formal next-quarter or full-year financial guidance; instead, it reiterated that the Urgently merger is expected to close in Q3 2023 and said it continues to look for additional cost cuts in areas such as office leases, AWS costs, and other spend.

Ben Volkow framed the quarter around strategic focus rather than near-term scale, saying Otonomo is concentrating on insurance and fleet because those are the biggest opportunities and the best fit with Urgently. He described the combined company as highly complementary and repeatedly stressed synergy, calling it a “one plus one equal three” opportunity. His tone was upbeat and confident, especially around the merger and the company’s ability to build a larger, unified solution.

Bonnie Moav emphasized that the company’s 2023 cost-cutting plan is already in place and that current headcount is at a level management feels comfortable with for its focus areas. She pointed to lower payroll and operating costs as the main reason non-GAAP operating loss improved to $12 million, while also noting higher transaction, restructuring, and The Floow-related expenses in GAAP results. She also said the company is still pursuing savings in office leases, AWS, and other costs, and highlighted quarter-end cash and marketable securities of $129.8 million, down $10.9 million from year-end 2022 due mostly to operating cash use.

Analysts focused on the practical upside from the Urgently merger, asking how Otonomo’s vehicle data could support insurance and fleet use cases and where synergies would come from. Ben Volkow answered that Otonomo’s insurance and fleet capabilities, especially The Floow technology and embedded connected data, align well with Urgently’s customers and could support use cases like accident reconstruction, fuel and EV insights, predictive maintenance, and roadside assistance. A second question asked whether cost cuts were finished and how cash burn is trending; Bonnie Moav replied that the 2023 budget already reflects the cost reductions, headcount is comfortable, and the company will keep looking for further savings in other expense categories. On timing, management said Urgently filed its public S-4 on May 15 and still expects the transaction to close in Q3 2023, though SEC review timing remains uncertain.