ULY - Earnings call transcript Q4 2023 | Urgent.ly Inc. Common Stock

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Operator

Good afternoon, and welcome to Urgently's Fourth Quarter and Full-Year 2023 Conference Call.

As a reminder, today's call is being recorded and your participation implies consent to such recording. [Operator Instructions]With that, I would like to turn the call over to Jenny Mitchell, Vice President of Finance, Strategy and Investor Relations. Jenny, you may proceed.

Jenny Mitchell

Thank you, operator. thank call joining and for December XXXX. and financial for full-year everyone, XX, conference results the afternoon, you us for Urgently's ended Good fourth quarter

CFO we Matt On have call today Booth; the and Tim Huffmyer. CEO,

these most prove and Matt differ Should could statements your to we materialize and take XX-Q and to that risks statements.A these results filings, you results be SEC some recent are begin, we assumptions other incorrect, today any comments uncertainties actual remind questions.Before of any to subject our Tim's in our our our uncertainties remarks, affect materially assumptions description like may report company could included should Following on change. risks, that forward-looking from assumptions SEC and that will is of which these Form prepared factors filings. financial could I'd contain or risks, and other our of including forward-looking

now be our do statement.During not XX, will we responsibility set in required call of also non-GAAP discuss call, we reconciliation XXXX. replay law, website Additional December financial also information be update non-GAAP the our GAAP which these by to on forth over certain Except ended measures. will on turn will annual Form undertake for A year are in on today's call today's materials also measures posted as our the XX-K forward-looking website.With report any is to and included earnings available release, to A I'll that, press at of Matt. the investors.geturgently.com.

Matthew Booth

during fourth call. for in third year, pleased quarter call. joining good you and with our year outlined expectations XXXX were earnings our afternoon, earnings thank Jenny, We're for Thank full us which with we our today for and and that quarter line results the you, everyone,

long term.Our priority profitable beginning As longer part paying position second to down to our debt was by execute the was will term of Tim sustainable growth Urgently our and for to we as our previously to our year discuss, discussed, our liabilities. operational over had improve last sheet restructure key against improvements balance priority, and

Our our XXX for well margin delivered reflect XXXX, And to longer significant the gross year. gross towards the of year towards XX.X%, XX% as quarter, we as XX.X%, these achieved improvement term.During improvement margin prior the gross of and quarter year. point of goals target margin point over we the fourth a XX% full over year prior XXX progress delivered fourth basis over full the a results basis the we've

operating drive the converted reduced In full gross million And quarter his We're year, year million pleased pave first into way operating company addition, paid with here initiatives we thinking margin breakeven capital non-GAAP target we to third beginning And talk non-GAAP in the investors listing, our our $XX.X during in that our our several our Tim equity. in as debuted quarter, more in a to to very public XXXX.We for key the loss on we down remains line about will $XXX.X million of section.During another by working credit. of embarked debt. the improvement. $XX.X proper XX%. achieve

to fresh revenue accounts, shift First, look profitable also partner an driving partners. we eye more profitable pursue a existing our growth, revenue with towards at with rationalized from pricing profitable relationships and away which less included

partnerships for away of of call purpose-built. believe integrations which we on operations that And support functions be digital instead service and telematics nearshore process our transformed balancing on in-house.Finally, and reliant to steps digital-first enable a interactions. by integrations service organization to profile, light to taken carried improving organizations. telematics been an our market to opportunity the with late also in future platform our which we support technology and service, most business the as providers significant we've primarily margin Consequently, focused to that customer current has primary the access cost keeping higher contract roadside moved matching interactions pricing, from partnerships also side, rightsize We upgrade align more a service first costs and our required our with complex its the will January to We with efficient our not have incremental way technology of critical in us. platform conducted protect a of partner OEM decision events.On on particularly optimal renew focus service

we not technology our While we outcome, the with disappointed decision was of platform. believe their are a reflection

consumer, their actionable repair mobility channel extension solutions, We Urgently aggregate, positioned and a The believe to to in proprietary to to a a receiving including including a communication dispatch all dealer continues via captured basis technology, delivering service of data service for towing live customers a for at broad requests road. more customers. customer following and job Urgently and on vehicle digitized fully to Software-as-a-Service a both dynamically and is their technology enable and assistance and representatives work layer.And service analog from and believe customer to differentiator professionals our provider dealers allows outside footprint match managing help completion, consumer revenue a from per and on native that disposition.Integrated assistance multichannel job that accessibility, the digitally mobile application, mobile the the a via enabled journey among a ecosystems. be fleet services, roadside key capabilities, facility platform in the onward of final experience our management service and companies exceptional towing dealership related continue repair to key competitors and technician finally, then service owners that Live best service proprietary digital and customer platforms and continue dispatch data mobility We home, for extend the to be dealers partner, at or event. to algorithms service services by mobility service the by tracking, OEM collision include provider dealer connecting by and real-time our impound brand marketplace.Our software capabilities

proposition I in last resonating is wins we previously the to 'XX. we of to garnered well mentioned, we OEM, by have we year.As customer of expect as a is marketplace X one key some because evidenced which expand believe significant tier which value the our positioned Our launch with market, next global reflects them. penetration signed in are within QX into the This it partners we top

company. in Urgently in product of to the a our business our a is hybrid space ability the top represents a and competitor first program costly leading with program take a We fleet important X-year were management complex with leading for as a and financial service demonstrating global strategy, luxury on this which platform partner, am competitor. in generation our also point quality acquisition support I for fleet OEM, NASDAQ with XXXX.We public an and EV partners. another next with that our believe a line a the perceives on and demonstrating win that proud functionality with our and to our company is a existing delivery away provide. of are accomplishments launched that Delivering vehicles. This we executed downtime. pleased proof critical with launch scaled in U.S. renewal selling we delivery the will a our offering which expansion play Uptime role are a land the included We logistics and point, that with of that that an significant increased from launched results to expand expectations. that And XXXX, our yet all proof market them.Overall, expected is electric for to Renewals and We we're the on Otonomo also pleased listing partners with volume.

financial progress incident long-term structure accelerate team our have our within look into and relationships existing continuing on the strategic improving initiatives call new results assets and enhanced integrate to have connected against BXB year, to remain Otonomo growth actions our turn to a our our efficiencies winning and time efficiencies, and and rightsize greater in to taken we in expanding capitalize focused business proactive operational expansion margin Tim for vehicle made this expand balance our to clients tremendous integrations profits, and services.Thank achieving your operational detail. we now management from during ahead.As by the breakeven disciplined drive and preventative continued The significant discuss us opportunities driving to over and partnerships, to existing operating to I'll you the support. Our we expense organization year. non-GAAP expanding positioning capital foundation, on of executing near strong and built

Timothy Huffmyer

Matt, XXXX Today, discuss and fourth year results. you, our will quarter afternoon, good Thank everyone. and full I

on the a gain Otonomo of completed I quarter let's do value.As merger employees subsidiary the the we quarter, few became of million, review listing a of technology a mostly our accounting reported gain few though, previously on purchase acquisition of business, The day. wholly was million. during was with Technologies XX, Otonomo acquisition asset Before recorded of our balance net that, in was was contracts, our $XX.X with merger, we the merger Otonomo, fourth The call the reason direct events.On our and completed The $XXX.X consolidated Otonomo Form value earnings Urgently, from delisted which operations. consideration October recent and statement third for the owned XX-Q, fourth located and Kingdom, the other Otonomo attributable principal acquired merger with debt which coincided and and included the same the Inc. had a the assets.Following in NASDAQ Israel details to the on XXX exceeding net the conference in completed net a United the quarter resulting revenue bargain

warrants net quarter of gain $XX.X the operations. the was on direct third conversion million XX% debt our approximately call terms the related fourth combined Urgently's value new which other the as of merger, earnings and compared notes However, to the at the outstanding our time fair gain issued.Additionally, was of to liability.And gain liability we which liabilities, of ownership value convertible down conference time operations. XX of conversions, the the stock million existing essentially of debt statement owned from warrants, and various convertible debt XX.X consolidated and principal Otonomo $XX.X all at following was approximately principal entire million.Now gain the October on to our Otonomo an The common of in primarily XXXX.At net pay on merger the the of of times all XXXX XX-Q, today. cash former These net the Urgently results. including shares nearly the the Form value exercise December in previously company. include Urgently a XXXX This the approximately of nearly the previously of $XX tables, resulted XXXX, in percentages of focus capitalization activity additional recorded XX, all of the Urgently's transaction, at full The time million October debt for the XX% resulting related warrants; to on $XX.X and in used mentioned, quarter million stock with company and the approximately listing outstanding the results debt conversion on extinguishment, an shareholders net resulted common reported due of primarily let's the Urgently statement in XX, owned resulting Urgently on in of debt as of of encapsulated was merger, new previously through recorded count January were and warrant the carrying This net the stock. January company. a of and fair share former Otonomo exercise of XXXX voluntary Otonomo warrant combined eliminating announced in along of and shareholders converted activity common the elimination the to notes $XX.X of hand technology principal for and net year consolidated the million based on as combined the debt derivative exercised debt finally, matures This we This transaction of to derivative and XXXX. net warrant exchange, extinguishment

The quarter, year-over-year to fourth million, XX% same is from down For primarily decision Otonomo decision the million. to and the quarter volume by offset to was revenue, year. quarter the fourth business.Despite away revenue, move we the existing partner or $X.X partially move less growth. profit from million from decline of approximately away were profitable our to excited loss strategy, existing last rate quality revenue in revenues revenue of for change increases $XX.X insurance due the revenue one are from including related our this the profitable less about $X.X

existing down For lower away same OEM $XXX.X customer was revenue revenue sales in year. from our the last based decrease fourth volume $XX.X vehicle management quarter revenue, the quarter primarily X% the profit was year, $X.X same partner Gross or million, last Otonomo's offset XXXX up move gross profit decision million profit $XXX,XXX. increase was grew fleet partially The partners.For a revenue compared the fourth was the and million, period to profitable driven period period of dispatch year. year. partner to with decline specifically $X.X from gross from the one the XX% of one including with comparing for rates by on loss same fourth of and to lower insurance the and our volume in partners, when to compared million less OEM by an partner, XX% last quarter,

year, from previous For XX% including to decline initiatives $XX compared costs associated benefit was for year.Now made of South and resources the by XX% digital is organizations previous the focusing last same charges profit. business to services. from the change the and profit reducing our operations Gross XXXX, optimization America. fourth United $X.X entry for labor XX% compared operating the gross including year operating model, year contract gross increase of the respectively. period from on revenue Operating was model customer both fourth of States the to for move contributing XX% quarter full on $XX.X X% item rates expenses expenses This merger as in XX% to changes on been million margin of for previous within a was first and partner increase operational and year XX% same million, on support and the the migrated, were our $XX quarter support the the process we technology-led and the expenses. in Gross million we our million, operations XXX% last compared quarter profit for grew line of the previous adjusting to XXXX, a transaction notably, $XX.X Otonomo's or profit impacted period last year. XX%, and the focused and which a fourth located the XXXX, XX% expenses fourth for focus $XX.X gross Most is portion year realized expenses million.Most in $XX.X up were an of Gross and $XX.X an fourth million the reduction compared Central to of for with or expenses efficiencies, we to Operating operating increasing year. margin the business the approximately result by the $XX.X a and million, optimization, part for in compared on year, operating a have quarter transforming was year. to support lowered call focus XX% path year. and to full million, quarter respectively.During let's year.Over million of was

a reduction was This $X.X operating and direct beginning employees same of a loss, had million, end the XX% changes.GAAP fourth and Non-GAAP nonrecurring operating loss, GAAP $XX.X of we $X.X XXX% from the for third also employees. quarter employees $X.X the of of to was quarter year is Otonomo or operating areas same for compensation million model XX loss quarter XXXX or operating was a for Compared year.During Otonomo restructuring million. quarter the earnings period, the had year, $X.X loss $X.X quarter of This fourth an depreciation our the previous which of had employees. the million, as plus related of fourth Urgently of combined transaction Removing XXX last previous $XX.X non-GAAP fourth year, the of GAAP million, we operational stock-based third and expense, and operating $X.X the the and respectively.At stock-based This costs the and compensation quarter reduction an conference or was amortization earnings from XX% the year.We or year. million included expense, reduction million release, impacted the defined the $XX.X costs. this million quarter result during results. increase the in business all we for was loss non-GAAP the discussed last period to expense our employees; Additionally, company loss call reviewed included Urgently operating XX%. press of company third million, the merger. XXX from XXX combined increase Otonomo

Our loss non-GAAP capital Non-GAAP or a was fourth operating was comments for our our in $X a quarter of which million, reduced to was non-GAAP consistent reduction same non-GAAP a with compared period loss XXXX operating XX% our on XXXX our expectations.Additionally, few million, This year. operating XX% previous reduction loss the was year.Now, operating in was from quarter-over-quarter. last loss significantly reduction structure. $XX.X $X.X of when million million $XX the or

agreement cash on of loan hand banking and reported of my million. XX, previously in of structure debt $XX.X $X XXXX.As was principal all cash, to our to the earnings equivalents earlier under net in our million structural comments, million and enhance fees mentioned repay expenses. short-term in had by $XX.X on of cash cash net quarter As XXXX, of $XX.X transaction equivalents Urgently steps we the forma maturity important and with time proactive credit. quarters, related had the proper line took take We XXXX.We million cash and January XXXX. conference of balance extending of pro as January short-term take equivalents investments X balance continue million capital date following cash approximately next using a of third provide debt respect Urgently while and our flexibility. also address intend investment merger December investments balance the the maturities This of to company and cash, with debt to call, combined to was a short-term company $XX.X at $XX.X to enhanced steps Therefore, of with actions position of the liquidity financial a repayment; structure, of up our the million additional setting maturity our further January a net within the including in capital principal working balance to and

XX, December of now XX.X XXXX, we outstanding.Turning shares to stock had our outlook. million common As

quarter For million. the between first we $XX to million revenue of expect XXXX, $XX to be

are we Additionally, operating third quarter non-GAAP to XXXX. breakeven the the on by beginning of achieve of track

we're Our at expected the quarter, open the common happy stock now open shares first for Q&A. of end is to questions. XX.X that, Operator, will you the line million.With up call for please outstanding the

Operator

Instructions] Pierce first with Chris [Operator from Needham. Today's comes question

Christopher Pierce

go you point side to of kind time about and positive the cross-reference Just away, that why you had little you kind leave? the negative And kind in that can this relationship just then what of things. kind XX% customer? to a relationship? walk into pipeline kind of they chose of How replace -- of detail you guys decided to have from of at long that the Could into what went customer more went into the the with

Matthew Booth

joining on turn if that a It's margin has earlier unfortunate, is customers Matt. had. that cost. then they Thanks the off just to call. ahead than was I'll like don't vendors Tim add.So customer. anything some our leverage of it he think it's customer it I'll on customers, start one they long newer The or and and believe lower to it consolidated profile slightly particular that. anything of over the because to for go we that the platform I'll early.We Chris, it Sure. were our other technology of Urgently and they is was it came that way, way a given left reflection able We

specifically. given to announce him this as on the did we Tim pipeline, month, OEM guidance launch future a global this the talk of of and call.And X of of at that I'll terms pipeline, end about is forward let has top the think the kind that mentioned we I expected In rest

Timothy Huffmyer

will Chris, that the we new next help of or XX% some revenue the revenue, roughly so revenue, not to of we the that XX% late this launching lost, here of partner we're revenue but that replace entire quarter early quarter lost. the of

of which good feel expect in well, new come scene.So back year, which organically confident we'll from we renewals start sitting and about, term feel then the we Matt have posted listed opportunities to And presentation continue of the the rest point investor new growing that our we have got it some minutes So -- we half The the to some in the in as pretty here is on of this spoke I about then year. I ago. a about of the guidance, few longer that.

that, We obviously, build up are the to We'll sticking back to customer loss. with have this XX%. with XX% to

XX% of So end we'll that probably than which, end on now. historically, a are rather at XX% closer run guidance, to the grown company to be the average, has we 'XX again, year. XX% of with about, sticking the revenue it's the But rate 'XX,

for in gaps Chris. So you, some filled hope that

Christopher Pierce

Perfect. customer. detail into an that? on of for you existing And are And then same along Can you lines? conquest guys the spoke kind go at what conquest further of opportunities those some a

Matthew Booth

the So Matt. customer we that reference winning competitor made about question? Are it's a about those talking earlier of a you Chris, from

Christopher Pierce

Yes.

Matthew Booth

there's to Yes. that in a more No, do of think us kind of lot we of our around consolidation opportunity platform. look front see I

pretty this of you finally imagine. as one the overall, be that as looks think lot mentioned, we we can finally So of global glass of and this will, year. kind come brand on is that well. pipeline, that possible top us has mentioned and the that launch we other We we renewal companies been announce that and We once early the believe as X as of that we're ceiling, others. working for the if can which will we got once That's the think something ones on call, with through -- in we a OEM, there gone with a And that different company just lot Tim partners will conversations strong.And you work of to that entice years. magnitude years -- this of we of kind partner

we about So don't Tim, anything to you add? pretty you positive know, if feel that.I have want

Timothy Huffmyer

No, nothing further.

Christopher Pierce

then referring that kind when And Okay. that is OEM and you well what that's and that fall top that's lastly, done you're mass glass guys of think within little sort in? this we brand about category within puncturing just the more ceiling. their the umbrella. luxury market this Does of of to Or have about kind a something

Matthew Booth

Yes. OEM. It a is mass market

are one the imagine new previously change. step mass magnitude that sold market would new OEM. work But say, of you vehicles portfolio. a over magnitude just out are We cars It's from with that the a can of OEM brand sold, versus that have the a premium we

it brand then it's within work additional is So down stepping that believe to that and partner that also the caliber. with with increase while of one that partners business portfolio, we

Operator

The with next Brian Capital Markets. question from Chardan Dobson comes

Brian Dobson

revisit again. guidance your to just So

outlook, that is new XXXX much range revenue wins? you're within growth what As figure? client percentage comes considering And that of that how from organic

Timothy Huffmyer

thought year, is step year that rest a to the right? of XX% to the it's back And out And sorry, just our of earlier, first the step what referenced rest take growth. that a towards expect think There's our do for back XX% is a expect we quarter probably had we guidance basically year. for so XX% growth to be there. Yes. the the Brian, our be we I'm XX% to that probably were about -- going I about straightforward. haven't work that way we the organic be -- XXXX, be is it how to When we step we will yet roughly had to because back. X% of working back should So function provided XX% about. will to guidance This

roughly step forward that X% going we're So take in to organic will XX% be and range. a growth that to

Brian Dobson

about from partners. refer you misspoke. relationships meant with XQ. speak broader actually a the guess, perspective, customers and to potential look perhaps Can feedback scale the to a little I I some through marketplace. you type your little then, penetration of a I and to about in bit with that having rates as the business you're provide clients conversations enterprise may And at you color receiving existing of bit that be

Matthew Booth

with go or most of where Yes. little a terms with probably conversations, It's one-on-one specific But for the generally early to bit you we are. of given us start what in sit a too to expand prove about of then to is, XX% client going of has where we we mentioned service how relationships we grew other into which XX% can partner, it that and think of we deliver anything? do with, XXX%. and add our the OEM we they land call brands getting we operating the -- that Many portfolio and an is have.Tim, XX% is want over company quality the that and relationships the starting say, with time, business part across have between we which business off to started forward, the previously.So level important is then client I expand,

Timothy Huffmyer

No, nothing further.

Operator

back the Seeing conference [Operator now Please questions, further ahead. turn go like no I to over. would Instructions]

Matthew Booth

month. attending this As we're XX through going the March be XX the California a quick to ROTH on Conference at Southern in reminder,

meeting have you'd a please the one-on-one contact desk. with conference attending, us, you're like If to and

you're your Urgently for to intent schedule call you'd If meet again attending us with like and for investorrelations@geturgently.com. joining in a at not management, We're your to today. please call happy convenience. the reach at out to Thanks and

Operator

has you Thank concluded. participation. now The your for conference

disconnect You may your lines. now

Urgent.ly Inc. Common Stock (ULY) 14 Mar 242023 Q4 Earnings call transcript