MotorK Concludes FY23 Strong, Anticipates Solid Momentum in 2024

Regulatory News:

MotorK Plc (AMS: MTRK) (“MotorK” or the “Group") today releases a comprehensive trading update in respect of its financial results for the fourth quarter (“Q4 23”) and full year ended December 31, 2023 (“FY 23”).

MotorK concludes FY23 on a robust note, anticipating substantial momentum in 2024. Key financial highlights for Q4 23 and FY 23 include:

• Annual Recurring Revenue (ARR¹): MotorK achieved a Committed Annual Recurring Revenues (CARR²) of €38.6 million, including €4.5 million in backlog, contractual price increases, and Enterprise contracts yet to be delivered. The solid commercial momentum in Q4 23 propelled ARR to €34.1 million, marking a 39% increase from the previous year.
• Retail: Retail ARR reached €26.7 million, up 27% from the previous year. During the year the Group continued to maintain healthy operational metrics with a low churn rate of 5.8%, overall Net Retention Revenue (NRR³) of 113.1% and Annual Contract Value (ACV)⁴ of €19.5k€. These results underscore the effectiveness of retail customer retention strategies and the continued multi-product adoption across its customer base.
• Enterprise: The Enterprise segment witnessed substantial growth achieving an ARR of €7.4 million, more than doubling the FY22 level. The Enterprise segment confirmed its solid potential for expansion showcasing 129.4% NRR. The Enterprise segment now accounts for more than 22% of the Group’s ARR, compared to 14% in FY 22.
• Recurring Billings: Recurring Billings rose to €30.0 million, indicating a substantial 50% increase from the previous year, reflecting sustained demand for the Group’s services. Recurring Billings now constitute 78% of total billings, confirming the strategic shift towards a recurring business model initiated over the past two years.
• Operational Leverage: Having already made substantial investments in the team and infrastructure, the Group is well-positioned to benefit from full operating leverage. MotorK looks ahead with confidence toward positive Cash EBITDA for FY24, sustaining continued growth at scale.

The Group is currently in advanced discussions with potential investors to fortify its liquidity profile and address its cash requirements for achieving profitability in 2024. Through a strategic combination of equity and debt financing, MotorK aims to ensure a robust financial position to support its growth initiatives and sustain the positive trajectory in the coming year.