MotorK Announces Lower-Than-Expected Q4 and FY 2024 CARR

LONDON--(BUSINESS WIRE)--Regulatory News:

MotorK PLC (AMS: MTRK) ("MotorK", the "Group" or the "Company"), a leading SaaS provider to the automotive retail industry in the EMEA region, today announced that its Committed Annual Recurring Revenues¹ (CARR) for the fourth quarter 2024 and the full financial year 2024 are lower than previously expected.

European automotive uncertainty and macroeconomics have influenced decision-making among large retailers and manufacturers, impacting MotorK’s CARR in two key ways:

• Several high-value deals originally expected to close by year-end 2024 have been deferred into 2025 and remain under negotiation.
• Client-signed and yet-to-be-delivered deals have experienced delays or have been subject to renegotiation.

In response, MotorK has adopted a more conservative criteria of CARR to better reflect the evolving business environment. This adjustment has resulted in a reduction in reported CARR, with deals that no longer meet the revised criteria being reclassified into the company’s pipeline. As a result:

• MotorK’s CARR for the fiscal year ending 31 December 2024 are expected to be approximately 15% below the guidance of EUR 45-50 million, as previously communicated.
• MotorK’s sales pipeline exceeded €24 million on 31 December 2024, reinforcing the company's strong commercial momentum and future revenue potential.

MotorK remains confident in its long-term growth strategy and continues to execute on its commitment to driving innovation and delivering value to its customers and shareholders.

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 approximately 400 employees and ten offices in seven countries (Italy, Spain, France, Germany, 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. MotorK provides its customers with an innovative combination of digital solutions, SaaS cloud products and 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 investors.motork.io.

¹ Committed ARR (“CARR”) includes ARR and Committed Recurring Revenues (“CRR”). CRR refers to signed contracts to be delivered and billed. Annual Recurring Revenues (“ARR”) are defined as the yearly subscription value of the customer base at the end of the reporting period.