MOTORK PLC D R I V I N G T E C H N O L O G Y F O R W A R D
A N N U A L R E P O R T 2 0 2 3
1
Introduction
Our heart beats for the digital
automotive industry.
We want to design the industry's digital future and provide our customers - manufacturers and dealerships - with the best possible technology and support.
WE ARE MOTORK
"At MotorK, we are committed to excellence and relentless pursuit of innovation.
We call ourselves SparKers because within each of us a spark ignites, guiding the digital revolution in the mobility industry. In this Annual Report, we showcase the milestones that have marked our journey and inspired a future where MotorK continues to be the driving force behind positive change in the automotive landscape. It's said that technology progresses slowly and then all of a sudden. The feeling is that we are at the 's' of sudden."
Marco Marlia
Chief Executive Officer
2
Highlights
HIGHLIGHTS
Revenues
€42.9m
2022: €38.5m
Adjusted EBITDA2
-€1.4m
2022: €0.2m
PDF/PRINTED VERSION
This document is the PDF/printed version of MotorK's 2023 Annual Report and has been prepared for ease of use. The 2023 Annual Report in European Single Electronic Format (ESEF) is the official version. The ESEF reporting package is available on the Company's website. In case of any discrepancies between this PDF version and the ESEF reporting package, the latter prevails.
Acquisitions completed in 2023
1
2022: 3
Committed annual recurring revenues (CARR)3
€38.6m
2022: €29.8m
ABOUT THIS REPORT
This report is intended to inform stakeholder groups that have an impact on, or are impacted by, our business. This includes customers, investors and shareholders, regulators and supervisors, employees, government authorities and nongovernmental organisations. It aims to give our stakeholders a balanced overview of our activities and MotorK's ability to create and sustain value. We welcome reactions and views, which can be emailed to investors@motork.io. Additional disclosures are available on investors@motork.io.
Net cash1
€3.5m
2022: €19.2m
Customers4
5,200
2022: 3,200
FORWARD-LOOKING STATEMENTS
This document contains certain forward-looking statements with respect to the operations, performance and financial condition of the Group. Such forward-looking statements speak only as of the date of this Annual Report and are expressly qualified in their entirety by the cautionary statements included in this Annual Report. Without prejudice to its obligations under Dutch law and English law in relation to disclosure and ongoing information, the Company undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Nothing in this Annual Report should be construed as a profit forecast.
Chairman's Statement | 10 |
CEO's Statement | 13 |
Market Overview | 15 |
Our Business Model | 18 |
Our Strategy | 19 |
Our ESG Vision | 25 |
Stakeholder Engagement and S172 Statement | 35 |
Financial and Operating Review | 37 |
Financial and Non-Financial KPIs | 43 |
Principal Risks and Uncertainties | 44 |
CORPORATE GOVERNANCE | |
Corporate Governance Report | 51 |
Governance Overview | 52 |
Non-Executive Directors' Report | 57 |
Board of Directors | 60 |
Executive Management Team | 62 |
Directors' Report | 64 |
Remuneration Committee Report | 69 |
FINANCIAL STATEMENTS | |
Independent Auditor's Report | 84 |
Consolidated Statement of Profit and Loss and Other | |
Comprehensive Income | 93 |
Consolidated Statement of Financial Position | 94 |
Consolidated Statement of Cash Flows | 96 |
Consolidated Statement of Changes in Equity | 97 |
Notes Forming Part of the Consolidated Financial Statements | 99 |
MotorK Plc Statement of Financial Position | 138 |
MotorK Plc Statement of Changes in Equity | 139 |
Notes Forming Part of the MotorK Plc Financial Statements | 141 |
Group Alternative Performance Measure | 152 |
- It is equivalent to the caption Cash and cash equivalents reported in the Consolidated Statement of Financial Position on page 94 of this Annual Report.
- This is a non-GAAP measure considered relevant by management and it is considered a Group Alternative Performance Measure ("APM"). Reconciliation with the accounts is provided on page 154 of this Annual Report.
- This is a non-GAAP measure considered relevant by management and it is considered a Group APM. Reconciliation with the accounts is provided on page 152 of this Annual Report.
- Including customers of the companies acquired in FY2023.
Company Information | 156 |
STATEMENTS |
3
At a Glance
W E A R E
MOTO R K
Tech mindset, automotive focus
SIMPLIFYING THE DIGITAL LANDSCAPE We are a leading and fast-growingsoftware as a service (SaaS) provider for the automotive retail industry in the Europe, Middle East and Africa (EMEA) region.
We empower car dealers and original equipment manufacturers (OEMs) to improve their customer experience through a broad suite of fully integrated digital products and services.
OUR PLATFORM
Our open and scalable automotive retail platform, SparK, enables dealers and OEMs to move in step with changing consumer behaviour by integrating sales, marketing and operations activities into a single, cost-effective outsourced solution.
Integrations
200+
automotive-specific features
A TRUSTED PARTNER
Enterprise customers
38
2022: 20
Retail customer base
5,200
2022: 3,200
Innovation is at the heart of our DNA
READ MORE ABOUT OUR
BUSINESS MODEL:
PAGE 18
BROAD
GEOGRAPHICAL
FOOTPRINT
We operate through
12 offices in 8 countries, employing 449 people1.
1 This is the number of employees at the end of the reporting period (please refer to the Financial and Non-Financial KPIs section on page 43).
REVENUE
Revenue mix
SaaS platform 76% (2022: 73%)*
Digital marketing 18% (2022: 19%)
Other revenues 6% (2022: 8%)
*It includes Contract start-up revenue. Please refer to the Financial and Operating review Section on page 38 for further details.
4
Our Strategic Framework
D R IV I N G I N N OVATI O N A N D G ROW TH
Everything we do is aligned to achieve our vision.
OUR VISION | OUR MISSION |
To be the most trusted | We shape the future of mobility. |
technology partner for | |
mobility distribution. |
Our strategic elements:
Innovate, Land and Expand, Consolidate
OUR VALUES
CUSTOMER | FORWARD | RESULT | ALWAYS | EMPOWERING | ||||||||
OBSESSED | THINKING | DRIVEN | AMBITIOUS | INCLUSION | ||||||||
READ MORE: PAGE 19 | ||||||||||||
OUR FOUNDATIONS | ||||||||||||
TECHNOLOGY | MOBILITY | PEOPLE | ||||||||||
We are a natively digital company: | We speak the language of mobility: | We design technology to create value | ||||||||||
innovation is deeply rooted in our DNA. | we understand the industry and its | for mobility players and customers. | ||||||||||
challenges. | ||||||||||||
READ MORE: PAGE 5 | READ MORE: PAGE 6 | READ MORE: PAGE 7 | ||||||||||
OUR
MISSION
Our values, foundations
OUR BUSINESS MODEL
Providing innovative digital solutions to meet the specific needs of OEMs and dealers, including managing the entire vehicle sales process, customer loyalty and after-sales relationships, with significant investment in research and development (R&D).
OUR STRATEGIC ELEMENTS
Based on MotorK's core values, our Innovate, Land and Expand and Consolidate pillars positions us well to achieve our vision and mission.
CORPORATE GOVERNANCE |
and business model
READ MORE: PAGE 18 | READ MORE: PAGES 19 - 24 | |
FINANCIAL STATEMENTS | |
5
Our Foundations
"With continuous innovation guiding all aspects of our business, we recognised the cross-cutting potential of artificial intelligence and made it a cornerstone of our strategy, anticipating its disruptive influence across all industries, automotive being no exception."
WE ARE A NATIVELY DIGITAL
COMPANY
WE ARE A NATIVELY DIGITAL
COMPANY: INNOVATION IS
DEEPLY ROOTED IN OUR DNA.
TECHNOLOGY
Leveraging our extensive R&D expertise, we provide our clients with state-of-the-art digital solutions to support their business, integrated into a single platform. This year, we accelerated our artificial intelligence (AI) research and launched Tech LABS to confirm our position as a leading industry innovator. This programme supports our aim to design and implement new technologies to improve the automotive customer experience, making
this increasingly seamless and customised and to optimise business operations, reducing costs while facilitating the daily activities of dealers.
READ MORE: PAGES 20 - 21
6
Our Foundations continued
WE UNDERSTAND THE INDUSTRY AND
ITS CHALLENGES
WE SPEAK THE LANGUAGE OF
MOBILITY: WE UNDERSTAND THE
INDUSTRY AND ITS CHALLENGES.
MOBILITY
We recognise the importance of standing in our customers' shoes: that's why all of us have a deep knowledge and passion for the automotive industry. From senior managers to operational roles, we work with a common goal in mind: embrace the challenges within the industry and identify future-proof solutions to change the mobility world for the better. This year we kept improving the platform, also through AI integration. In
parallel, we focused on data security and consolidating the reliability of our services by starting the implementation of ISO 27001:2022 and by introducing two-factor authentication into our core solutions.
We believe this a step forward in delivering the Group's vision and providing dealers and car manufacturers with reliable tools, which can ensure the safety and confidentiality of client information.
"Our vision to be the most trusted technology partner for mobility distribution can only be achieved if we maintain a customer-centric approach in everything we do."
GOVERNANCE | CORPORATE | |
STATEMENTS | FINANCIAL |
READ MORE: PAGE 20
7
Our Foundations continued
"We are people working for people, putting our technology at the service of our partners and their end customers."
WE SUPPORT
OUR PEOPLE TO CREATE VALUE
WE DESIGN TECHNOLOGY TO
CREATE VALUE FOR MOBILITY
PLAYERS AND CUSTOMERS.
PEOPLE
Our colleagues, known as "SparKers", have a strong desire and commitment to make a positive impact with what we do and to create value. Working together, we truly believe we can shape the future of mobility, putting our technology at the service of our partners and their end customers. This year we appointed Daria Grazzi as our Chief Human Resources Officer (CHRO), confirming the centrality of people in the Group's strategy and reinforcing our commitment to Equity, Diversity and Inclusion (ED&I).
READ MORE: PAGES 26 - 31
8
Our Investment Case
D R IV I N G
I N N OVATI O N A N D G ROW TH
Committed to continuous innovation, MotorK has rapidly grown into a high-performing company leading the European SaaS scene for automotive distribution.
DIFFERENTIATED | SOLID FINANCIAL | FAVOURABLE MARKET | CLEAR STRATEGY FOR | |||||||||||
SOLUTIONS | PERFORMANCE | DYNAMICS | GROWTH | |||||||||||
■ First at-scale,one-stop- | ■ Strong growth, both organic | ■ Sizeable addressable market, | ■ | Innovate: ongoing investment | ||||||||||
shop SaaS platform for | and via acquisition | still largely underserved | in innovation to extend product | |||||||||||
automotive retail | ■ | Recurring revenues from | ■ Well-positioned in terms | categories and embrace | ||||||||||
■ | Attractive features support | SaaS model | of scale, product suite and | industry trends | ||||||||||
customers throughout | ■ | Exceptional unit economics | regional exposure in EMEA | ■ Land and Expand: upselling | ||||||||||
vehicle lifecycle | driving organic growth | to leverage consolidation | and cross-selling to loyal and | |||||||||||
■ Extensive app and solutions | ■ Track record of successfully | opportunities in a highly | growing customer base | |||||||||||
partner ecosystem | integrating acquisitions | fragmented market | ■ | Consolidate: selected | ||||||||||
■ | Open, scalable and | ■ Growth and long-term-oriented | acquisitions to enter new | |||||||||||
integrated technology | investments slightly impacting | markets and expanding | ||||||||||||
■ | Ongoing investment | EBITDA in the reporting period | presence in existing markets | |||||||||||
in innovation and | to consolidate market share | |||||||||||||
product launches | and strengthen position as | |||||||||||||
European leader | ||||||||||||||
READ MORE: | READ MORE: | READ MORE: | READ MORE: | |||||||||||
PAGE 18 | PAGES 83 - 155 | PAGES 15 - 17 | PAGES 19 - 24 | |||||||||||
R&D investments as a % of Group | Committed annual recurring | Addressable market2 | Acquisitions | |||||||||||
total revenues | revenues (CARR)1 | €6.2bn | 9 | |||||||||||
34% | €38.6m | 2022: €5.4bn (EU10 and UK) | since 2016 | |||||||||||
2022: 37% | 2022: €29.8m | |||||||||||||
API integrations3 | Adjusted EBITDA4 | Market share5 | ||||||||||||
200+ | -€1.4m | 1.1% | ||||||||||||
2022: 200+ | 2022: €0.2m | 2022: 0.8% |
- This is a non-GAAP measure considered relevant by management and it is considered a Group APM. Reconciliation with the accounts is provided on page 152 of this Annual Report.
- Addressable market including EU10 and UK.
- Application Programming Interface is defined as a set of rules, protocols and tools that allows different software applications to communicate and interact with each other.
- This is a non-GAAP measure considered relevant by management and it is considered a Group APM. Reconciliation with the accounts is provided on page 154 of this Annual Report.
- It is calculated as a percentage of total Group revenues over addressable market where the Group operates (EU5, €4bn).
9
Strategic Report
Chairman's Statement | 10 |
CEO's Statement | 13 |
Market Overview | 15 |
Our Business Model | 18 |
Our Strategy | 19 |
Our ESG Vision | 25 |
Stakeholder Engagement and S172 Statement | 35 |
Financial and Operating Review | 37 |
Financial and Non-Financial KPIs | 43 |
Principal Risks and Uncertainties | 44 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Motork plc published this content on 16 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 April 2024 15:57:08 UTC.
