Wejo raises FY23 adjusted EBITDA loss view to $45M-$55M from $60M-$70M

Wejo (WEJO) announced the implementation of additional cost reductions to extend Wejo’s capital runway and materially accelerate its anticipated free cash flow breakeven point from previous projections of mid-2024 to mid-2025. The company is focusing its revenue growth opportunities, streamlining operations, lowering spend on marketing, reducing its office footprint and implementing strategic workforce reductions. Additionally, Wejo is advancing in its efforts to raise $100M anchored by its previously announced business combination with TKB Critical Technologies 1 (USCT), which to date has retained $57M in its trust, and the company’s push to secure strategic investors in the first step of its PIPE equity financing process. Wejo is also reducing its cash burn by focusing on the acceleration of revenue in the public sector market, the launch of audience and media measurement solutions, the delivery of new end-to-end insurance products, and the development of SaaS automotive solutions. The company expects to generate higher contribution margins from our products and services, leverage its partners to accelerate efficiency and product development, use share-based payments for a portion of our costs with key vendors, and generally be more efficient as an organization. These initiatives will be implemented immediately and are expected to reduce our cash burn by over 50% from $6M per month at the start of 2023 to a projected $2M-3M per month by the end of 2023. As a result of the company’s projected reduced cash burn, Wejo is updating its 2023 financial outlook with respect to Adjusted EBITDA. The Company now expects its 2023 adjusted EBITDA loss to be reduced to $45M to $55M for 2023, compared to its previous guidance of $60M to $70M.