Otonomo Technologies Ltd., an Israeli mobility intelligence company, is the latest Israel Startup Nation firm to make cutbacks in its workforce and is even in danger of being dropped from the NASDAQ as a publicly traded company. The company, which only went public on the NASDAQ a little over a year ago and once held a market cap of well over $1 billion, lost 90% of its value over time and is now worth just $62 million.
The company’s stock has plummeted so low – just $0.45 as of Friday’s close of trading – that the NASDAQ was forced to issue Ontonomo with a notification that it no longer satisfies Nasdaq Listing Rule 5450(a)(1) based upon a closing bid price of less than $1.00 per share for the Company’s ordinary shares for the prior 30 consecutive business day period. This could lead to being delisted unless Ontonomo is able to meet the minimum bid price requirement under the Nasdaq Listing Rules for ten consecutive business days over the next 180 days, or until February 20, 2023.
The new comes just six months after Otonomo acquired British insurtech company The Floow, an SaaS provider of connected insurance technology for major carriers globally, in a Cash and Stock deal valued at up to $69 million, including up to $37.5 million performance-based earnout.
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At that time Ben Volkow, CEO of Otonomo. Said, “Together, we believe Otonomo and The Floow will create the opportunity for both OEMs and insurance companies to accelerate the utilization of their data, create new products, improve customer experiences and accelerate business transformation.” Well, things obviously did not work put the way the company thought that it would.
Ontonomo posted paltry revenues for Q2 2022. Total revenue for the second quarter 2022 was $1.9 million for the company, which was actually an increase compared to $0.3 million for the second quarter 2021. GAAP operating loss for the second quarter 2022 was $65.6 million, including an impairment charge of $45.8 million, compared to a loss of $5.6 million for the second quarter 2021. Non-GAAP operating loss* for the second quarter 2022 was $15.8 million compared to a loss of $5.0 million for the second quarter 2021.
Founded in 2015, Otonomo boasts that it is building the “preeminent mobility intelligence platform for powering the next generation of automotive, fleet, insurance, transportation, and mobility services.” Otonomo’s cloud native platform uses artificial intelligence, sensor data and behavioral pattern mapping from more than 50 million accessible connected vehicles and more than 430 million accessible mobility end devices to provide the critical insights needed to optimize vehicle insurance, emergency services, mapping, traffic management, EV management, micro-mobility, predictive maintenance, and dozens of smart city solutions.