Positive Start of the Year in Q1
2024
Continued Growth Trajectory
Maintaining Healthy Operational KPIs On Track Toward Full
Year Guidance
* * *
€1.7 Million Reserved Capital
Increase
* * *
Helen Protopapas Appointed as New
Non-Executive Director in Replacement of Mauro Pretolani
Regulatory News:
MotorK plc (AMS: MTRK) (“MotorK” or the “Group") today published
a trading update in respect of its financial results for the first
quarter of the year, ended March 31, 2024 (“Q1 24”). The Group has
delivered another positive start of year, reflecting its track
record of consistent growth. The current level of Committed
Recurring Revenues confirms a positive tone for the Company's
growth in FY 2024.
Q1 24 FINANCIAL HIGHLIGHTS
- Annual Recurring Revenue (ARR)1 reached €35.1 million,
compared to €27.9 million in Q1 23, up 26% year-over-year,
confirming the Group's high pace of growth.
- Committed Annual Recurring Revenue (CARR)2 increased to
€39.1 million in Q1 24, up 16% compared to Q1 23, including
enterprise deals, backlog and contractual price increases,
providing significant visibility for the Group's revenue growth in
FY 2024.
- Strong operational KPIs, including a low churn rate of
6.3% and Net Revenue Retention (“NRR”)3 of 111.1%, confirming the
Group’s superior efficiency in cross-selling and upselling to its
customer base.
- Average annual contract value (ACV)4 reached €19.7k in
Q1 24, up 10% year-over-year (“YoY”), reflecting continued growth
in multi-product adoption within customers’ base, fueled by
continuous innovation in the offer.
- Reported Revenues5 recorded €11.2 million, stable
year-over-year, reflecting a higher proportion of
non-immediate-delivery contracts booked in the quarter, that will
contribute to the next quarters’ revenues.
- Recurring billings amounted to €8.5 million, up 30% from
the prior year, and representing 76% of total revenues,
demonstrating continued improvement in the revenue mix.
With a €20 million pipeline in Retail and Enterprise segments,
MotorK benefits from significant revenue visibility for the year.
The current combined level of recognized and committed Annual
Recurring
Revenues provides a positive outlook for the Group's recurring
revenue growth in FY 2024, confirmed in the trajectory to meet the
FY guidance of CARR to reach €50 million.
In tandem with the continued growth of the top-line, the Group
is improving its operating leverage, given the mostly fixed nature
of its cost base, in line with its communicated objective of
achieving Cash EBITDA positivity on a full year basis by FY 24.
Marco Marlia, Co-founder & CEO of MotorK said: “In Q1
we delivered another quarter of growth. The year-over-year increase
of the ARR confirms our strategy and execution in recent periods.
We will work diligently in the next quarters to deliver additional
growth and continued discipline on costs, to meet our targets for
the full year.”
Q1 2024 REVENUES BY PRODUCT AND SERVICES LINE
In k€
Q1 2024
Q1 2023
y-o-y change
SaaS platform revenue
8,515
8,741
(3%)
Digital marketing revenue
2,364
1,787
32%
Other revenue
374
906
(59%)
Total revenue
11,253
11,434
(2%)
Q1 2024 SAAS PLATFORM REVENUES
In k€
Q1 2024
Q1 2023
y-o-y change
SaaS Recurring revenue
8,438
8,633
(2%)
Contract start-up revenue
77
108
(29%)
SaaS platform revenue
8,515
8,741
(3%)
SaaS platform revenue as % of total revenue
76%
76%
(1%)
Q1 2024 REVENUES BY GEOGRAPHY*
In k€
Q1 2024
Q1 2023
y-o-y change
Italy
6,977
6,254
12%
Spain
1,182
1,272
(7%)
France
1,633
1,640
(0%)
Germany
719
1,526
(53%)
Benelux
742
742
0%
Total revenue
11,253
11,434
(2%)
* It represents revenues broken down by the countries in
which the legal entities are established, independently of the
geographical location of the customers.
€1.7 MILLION RESERVED CAPITAL INCREASE
Along with the Q1 24 results, MotorK announces the successful
implementation of a reserved capital increase totaling
approximately €1.7 million, in continuation with the strategy to
strengthen its financial position and to welcome new investors,
supporting its commitment to the growth strategy and path to
profitability.
The reserved capital increase, based on a reference price per
share of €4.00, results in the issue of 425,000 new ordinary
shares. In addition, these newly-issued shares will be subject to a
6-month lock-up period, underlining the investors' long-term vision
and dedication to the Group's success.
NEW DIRECTOR APPOINTMENT
MotorK Board of Directors announced today the appointment of Ms.
Helen Protopapas as Non-Executive Director of the Company, after
Mauro Pretolani’s resignation.
Ms. Protopapas, 56, English, has a proven international
background and skills as “Commercial CFO», together with a
successful track record in areas such as private equity and venture
capital in internet technologies, M&A and fundraising, as well
as cash flow management.
Furthermore, the new Director has been selected in accordance
with the "Board Profile“ and the “Diversity Policy” adopted by the
Company. She also meets the independence requirements.
Amir Rosentuler, Executive Chairman of MotorK said:
“Mauro Pretolani has been precious in supporting the Company since
its early stage and accompanying us to this level of maturity. We
are grateful for his contribution and wish him the best for his
future professional endeavors.
With Helen Protopapas, we welcome into the Board an accomplished
finance professional, who will further strengthen our compliance
and governance profile. Also, her appointment improves the Board’s
gender balance.”
The appointment will be submitted to the next AGM on May 30 for
confirmation.
NEXT PUBLICATION: HY 2024 RESULTS, 25 JULY 2024
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 440 employees and twelve offices in eight countries
(Italy, Spain, France, Germany, Portugal, Belgium, 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 and has 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: 5th Floor One New Change, London, England, EC4M
9AF - 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 2 Committed ARR
(“CARR”) includes ARR and Committed Recurring Revenues (“CRR”). CRR
refers to signed contracts to be delivered and billed 3 Net
Retention Revenues (“NRR”) is defined as the percentage of
Recurring Revenues retained from existing customers 4 Core Retail
base, excluding recently acquired companies (Dapda, FranceProNet
and Fidcar) currently under migration 5 Under IFRS 15, revenue from
the applicable subscription agreement is recognized for the entire
value of the contract, regardless of its duration, at the time of
its delivery; conversely, ARR shows revenue as if it were received
on a straight-line basis over the life of the contract
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240423448306/en/
FOR FURTHER INFORMATION MotorK Investor Relations Boaz
Zilberman boaz.zilberman@motork.io +972 532 819 810