ULY - Earnings call transcript Q1 2024 | Urgent.ly Inc. Common Stock

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Operator

Good afternoon, and welcome to Urgently's First Quarter 2024 Conference Call. [Operator Instructions] With that, I would like to turn the call over to Jenny Mitchell, Vice President of Finance, Strategy and Investor Relations.

You may proceed.

Jenny Mitchell

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Urgently's financial results conference call for the first quarter ended March 31, 2024.

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

Tim's we prepared questions. and Matt Following remarks, will your take

and Before of affect contain and to our XX-Q like and our assumptions on including subject statements. we Form time that change. included and Quarterly uncertainties we any begin, SEC. of filings Should could we statements. some December reports any the our actual Report other our uncertainties the to with by remind risks, for SEC comments forward-looking differ from our year materially ended financial filings, undertake could risks should do assumptions our as results risks, statements could results not materialize time forward-looking these you may that file Except these prove update which is these that XX-K these factors company A XX, forward-looking may Annual Form or to and of required most responsibility assumptions to law, are to be on that today recent XXXX, incorrect, I'd in Report description from other

on will replay of of During and today's call is A also website. With non-GAAP call, over also A which I'll certain the are posted to reconciliation that, the release, press call we today's in our measures. website Matt. our GAAP investors.geturgently.com. at financial measures non-GAAP now materials to discuss included earnings available turn be on will

Matthew Booth

XXXX earnings us and you joining quarter for Good today our Jenny. everyone, first Thank thank afternoon, you, call. for

are operational focused half calls to we and turn improvements, on profitable our of stated the in XXXX, during discussions, As and previous the growth. we accelerating can focus so financial first primarily we have

more in and look We business efforts to expansion strategies quarters, improvements, we on track with forward broadly. discussing these growth future and are

last during expectations exceeded the with In earnings our pleased which outlined terms first of we results, conference our quarter, our call. very we're

range million Our which quarter $XX $XX volumes. mostly of million, in XXXX $XX.X our of first higher-than-expected for came at to million, to revenue guidance was above due

our Our least gross gross XX%. XX% quarter margin with of margins fourth of consecutive is at

In fourth can addition, non-GAAP demonstrating XXXX, by the improvement of update progress towards on of XX% of was of I $X.X making our with million, operational support loss a improvements. operating the you quarter our the from non-GAAP and breakeven beginning our sustainable third quarter. In financial the progress we're growth, key operating achieving

our over service organizations quarters, call last balance to relates our between staffing it improvements customer nearshore the operations by the business optimizing operational centers. several As have process transformed we onshore at

technology improve to We in such service streamlining of model continue efficiencies real-time improvement this to additional enabled jobs. identifying proactively and alerts to high-risk call data leverage area. We've as in drive our streaming our and optimization center, capabilities

our telematics by Improving and continues integrations also prior will be a driven in actions to changes additional primarily We quarters, with efficiencies margin partner the improvement expect was result and margin price max. partners cost regarding our improvement. priority. In

marketplace the to in and service further visibility of the we capabilities optimize also service as match perform technology to that upgrades that. and continue drive have platform We of launch efficiency that provider

In location-based granular optimize addition, incorporate a level our to dynamic to margin. at algorithm we pricing our expanded further pricing

our gross in non-GAAP revenue XX% quarter is with the but operating and loss Improving XXXX. than of achieving critical 'XX, quarter. profit $X.X gross slightly over beginning reducing notable. expense less operational of area QX Our progress 'XX higher to months breakeven by QX compared margin is in our million, our of $X.X this the 'XX million QX XX the has first than the our profit been When third last gross of

telematics to technology vehicle. critical Post-merger eliminate data as redundant up Otonomo Urgently launched customer and the by gathering functions the and teams. we integration effort improve integrate OEM this about experience of of is at the We the speeding forefront process recently

specifically platform started long-term capitalize In have to we automations. software upgrade, related portal scalability, addition, to enhancements, alert payment improvements,

for critical operational these, improvements. additional of functions believe, All we are

provide balance these refinance. that debt our proud sheet an and this tracking well first our I'm we believe are of results Overall, the update to strategic on our up priorities. us. will I financial progress near Tim believe accomplishments of opportunities improving against delivering included and very above continues urgently quarter and expectations executing great guidance long-term team provided for showing against the that priorities make growth in ahead We

the occurred we're On OEM and note, announce the successful. late launch to March, integration was pleased our in that top X that launch of

and strong, feedback received is performance far. operational and partnership positive we collaboration Our thus on our

addition, our focus earnings we on believe look our this to to have calls. pipeline in we future return solid, sharing We strategy. and more started sales our growth about In forward is

our our As our operational leveraging third, we partnerships new improvement Otonomo expanded together and partners; through look expansion; on our to with innovative technologies partners. BXB ahead, expanding through breakeven and margin differentiated second, to assets we and Urgently's operating with remain existing business incident achieving non-GAAP focused services core from relationships existing provide

your continued over financial discuss to now in Thank our and I'll Tim time results support. you detail. greater to for call turn the

Timothy Huffmyer

Thank everyone. March will results XXXX. you, Matt, for our good ended the afternoon, XX, Today, first I discuss and quarter

XX% $XX.X profitable new our is to increases have customer quarter the to we due move customer of by decision as and revenue nonrenewal calls. strategy, related and $X.X was partners. first last partner in million, partner loss And from well that change existing offset from during as previous this were partially including the discussed rate insurance primarily same from one revenue, decline or volume our million to For the year-over-year year. quarter, away The revenues the down less

quarter. million of our guidance range first last $XX.X announced The exceeded revenue quarter

profit increases compared customer gross was when in decrease gross taking period last and first first in to The same quarter, in $X.X million the first of For by driven XX% notably, partners period the call same revenue primarily the profit rate quarter account up to year. approximately costs. $XXX,XXX was year. into And a to decline last the increase the applied

Gross quarter growth exceeding consecutive of is margin quarter last XX% in first and margins quarters. the compared including same for to year. period X last the for gross was fourth XX% the the This XX%

our As continue XX% to a reminder, goals. we these target XX%, and work to gross long-term is margin towards

Operating Most the year, or operating focus move Now XX was employees employee the expenses employees decrease the XXX first so to first Otonomo let's of let's end total At same million operating our expenses are this or $XX.X had of XXX from quarter quarter and related, expenses. $X.X year. XX% for on Urgently million, period a last the employees. we of of there.

to have employee number Urgently first we year, by comparing the when Urgently of XX%, employees fourth quarter when have the last the flat. decreased last of the to remained we comparing For year, quarter of count, and

the included total To and XX all employees includes Israel Urgently XX%, technology the or For quarter by responsibilities last XX%. fourth actions of Also, took XX employee employee and an to employees we XX additional our resulted employees States. employees, Otonomo employees Urgently Israel nearly when just year, Otonomo to XX count of last action have we decrease comparing Otonomo which which in now of decrease in employees, count to April from XX employees. transferring U.S., XXX the consolidation Otonomo month, employees. decreased is the includes United primarily teams, of which further number the the summarize, XXX and This

an $X.X the quarter or year. XX% GAAP operating same improvement last $X million, of loss period the for first million was from

operating of for costs. We GAAP of transaction Non-GAAP which expense, compensation $X.X million or operating both costs loss, XX% though, X% as first XXXX depreciation our year. was non-GAAP non-GAAP restructuring notably loss, when nonrecurring was and plus $XXX,XXX which $X.X also defined as few approximately amortization and third to review company improvement of calls, the quarter the first from $X.X an XXXX last quarter improvement of and discussed loss previous Urgently Most and Otonomo, million. operating an is non-GAAP including compared loss operating the was operating expense, million, the stock-based during combined quarter our loss for of

XXXX compared was operating fourth results an of $X.X non-GAAP same these which when loss, million. also Further, XX% the quarter were to of improvement

results These comments improvement last with X the expectations Matt the are over in activities outlined line operational are that months. and with aligned our previously and

these of the work from team. improvements the all proud are We hard and

comments sheet. few our a Now on balance

investments with the million March cash, had equivalents Urgently As XXXX, $XX.X and cash of in million short-term $XX.X a of January XX, of and maturity XXXX. of debt balance principal net

net to principal million of previously while steps debt we the As hand in to $X we had repay structure structural discussed date maturity in on of enhance agreement to our and January fees using XXXX. extending million loan $XX.X also the January cash under banking of by XXXX, took capital

OEM global functionality, activities software $X.X and launching customer During top the of all platform which million X first mentioned our to developed adding to we of by quarter, our the approximately benefit capitalized support make enhancements previously in internally and partners. features

during the $X.X XXXX approximately We million XXXX. of expect this including practice to in second quarter continue

We continue to and provide enhance proactive structure, the our to liquidity capital additional important position address take flexibility. company our financial with steps

of end We the and expect by with results maturities respect are of to our debt actions taking quarter. further the those third

XXXX, shares As March XX.X XX, of we stock outstanding. had common million

$XX revenue For quarter $XX XXXX. by between million the operating achieve to third to we we remain XXXX, be beginning quarter million of the non-GAAP of track of to on the expect second breakeven Additionally,

the million. second Our shares XX.X expected end stock the common of outstanding at quarter is

open please open line for questions. to Q&A. the With that, the we're for happy will you now Operator, call

Operator

Instructions] Chris [Operator Our question come from Pierce with will first Needham.

Christopher Pierce

I questions. couple just -- a few had of a

Or QX. how way what's to way that? and Is about the is events? type -- higher-than-expected gains like partners? what of that spoke was to it your kind there Like Is in volumes with something weather it share You think that? drove a of to repeatable kind right

Matthew Booth

Chris, Matt. it's

answers So that. to X

one is and is we beyond share weather-related and what above our The the first was one anticipated. from that second partners, additional

in growing events. business a of weather-related the of then -- was it handful So some and book

Timothy Huffmyer

but Chris. as the we being I'll that, provide to the repeatable, we that Chris, to And it. best guidance far do do add can responsible drive as volumes just

you every we get on dispatch. As know, paid

we level to that. volumes matter, estimate the but do try our to best So do

Christopher Pierce

your longer-term get an decisions your your you're longer-term a -- moment? these them? are service a when period you time, provider your reasonable unable And are because incident is making that that with there of in partners partners Or are Okay. on competitors to taking say that taking performance based in share share, there's you're and

Matthew Booth

performance us longer-term to It's latter. and other the volume the shifting from partners from competitors. mostly It's

Christopher Pierce

Got it.

So continuous the that? think over that's right way gain of Okay. share time is about to a sort

about that, call this? decreasing where talked in costs? you're think of in help can Like And in from right calling -- Is partners right your talk about you kind way call a the human costs. what's room in about of the your something decrease Or like first early first this into further desk? you Okay. And it a is that's one innings? to

Matthew Booth

about thinking the are way. You it right

a So chat bunch call. down. probably one those AI on partner on room it's transfer customer answer there. There's there's their a we we're phone, and and a customers costs of have a of us live would to to the working around IVR would the -- customer that bring innovations and and technology agent And

there. So there's more room

I But feel room like of just the do overall, think do how we with we we're super pretty tight. that focused bit we on pretty business wallet with do share pleased a of partners lot and we little today. more is expand We expand have the a them it. are how on There's we're our can we where overall.

Christopher Pierce

kind of you might new then percentage And expansion upcoming there, the loop theme customer that in of can share renewals along kind that on be going horizon? talk Okay. as and of wins about

Matthew Booth

more on that we horizon. have them. and also with horizon. we of of about We handful some expect about call to very say both are a renewals that Yes, partner in lot then in that we customer to are wins where the have on coming the positive earnings next up new a sit renewals feel terms the

Christopher Pierce

Okay.

of what's of can then about the know people service staff remind are on on I summer more the time a just think perspective might away of seasonality providers you you've you've best And on most less? got got seasonality? you us drivers kind driving, for but far have Okay. kind your right Or incidents throughout the winter to way the traveling Is and since from guys year? year vacations. mix from

Matthew Booth

drive lot road, on something, volume. vacation definitely Yes. popular. are so a traffic when events winter there's a of summer months That's the of the lot but Chris,

So that's us. year for better the the of time

July, June, late time the that's period. So August

Christopher Pierce

Perfect. Okay.

the third less $XX what liabilities quarter then And million in I got to cash. versus But in year about just something can you you're million where you'll the current you in due about with $XX -- a than talk know do going be the Okay. about debt. talked in now it talk might all you've cash,

should of and balance the for So about options the X what million $XX you kind between debt? those have the in that -- how investors think

Matthew Booth

Yes.

other we're there the to confident quarter. months So company. collaboration can in that being and lenders at the for in done lenders to find goal existing looking couple We're the of get to with next with here outreach that active we in have through solution third best the our

that So fact the flows future to extend that as quarter of that of maturity. and breakeven, the -- we'll given we to projected that with non-GAAP our some pretty definitely with cash comfortable about the operating need align the we're expect to options achieve think third the company. But we feel holding maturity

Christopher Pierce

I Perfect. want -- Okay. the And just hairs, to but then just sure quite modeling I'm correctly. to make company split not

is margin get you're Or integration? kind more the after of of company in the numbers gross growth of for sort you a numbers when the 'XX terms is of 'XX of repositioning half of the and of? to that growth that speaking second event kind The

Matthew Booth

really, existing and Yes, good X follow-up When and I a be from ability expenses, breakeven. about non-GAAP been should that. proven our good One there. the to as think talking leverage last great team And operating levers demonstrating expected operating And major there's the done question should we've call. job trend even you we've at -- operating is continue a modeling, model, we've been a we've and reduce to Again, continue. that the expenses. and look

side absolutely hard to the year. margin X been would back working guiding to range very that on On we're that inside tech quarters the we've margin put in the that of you side, the expect

our that get goal. those So to that X is combine to non-GAAP operating is And you formula when elements, breakeven. of part the the

Christopher Pierce

how that able And in of in you apologize. then that bunch I speak But to Perfect. model the up the kind model? sort you're telematics Like when having Okay. vehicle there's on to I to help information spoke sooner lastly, does a of -- the of just show OEM driver. of, financial know get to or kind been without that does the how

Timothy Huffmyer

It to margin taken It's answer phone. have because in gross deploy algorithmically. an improves don't agent all the the -- we

Operator

from will Brian Dobson Our next come Chardan with question Capital Markets.

Brian Dobson

I perhaps contracts? to looking you could as and little helped suppose, with think new how you a bit OEMs investors you your Do speak those have relationships about to the you strategic companies find and additional you're they've, do

Matthew Booth

That's a good question.

that we for ingrained some Rover down say reminder, we've should able they planning be us do Enterprise great investors near we're business of strategic we the our happy hoping but talk to performance when outwardly of work. that InMotion, in so which in But a just a Jaguar we'll helpful, those need not all time. really a the you BMW, future, think partner cases, like named: least pretty And company same like often. They from they're can about So add anyone and is how they're the improve -- to lot one sit calls in take people in Porsche, our to really -- is that long-term both tell we're not a all doing collaborative relationship and Land the us we at performance today, and reference have tell with but of call I'd business their rental we're current to job, cars. we do to them, they behalf, partner portfolio. to time and at they a on time. I mention, them with of general, in where them

Brian Dobson

guess I your fleet turning Great. clients. to Yes.

penetration had right? the you rates Is within fleet. fairly recall, that high I As

Matthew Booth

correct. That's

Brian Dobson

add clients, clients from to have received I fleet additional feedback potential they And on? you're kind of you suppose what the service Yes. bringing as consider as looking

Matthew Booth

I there. think want they're twofold. we the they It's source. where consistent feedback diversify One, get pretty sole is to

then on decrease we the a sure service increase side we relationships in to number can technology of source the it to focused amount like that other want for get do to they're case them. someone to OEM and out technology how quality of dealer might of quality then we And large increasingly can the they So and companies, partners dual make very relationship. use the two, the takes use how with to fleets, time technology,

technology improving reliant really the build performance program. it's the overall of we on that So and their

Brian Dobson

final data And And maybe on to question a me. of collection business? prepared to a around but for remarks real-time a little just build how as color you know I of the that alluded kind in give your -- helps you just that this your moat could

Matthew Booth

Yes, sure.

so, in that of really or a of data So down the basis. on years business time, like we in geospatial lot spent drilling we historically the taking and last a X.X kind have the

isolate So ZIP And trade area than given we the down smaller geography, the defined can will can what's weather, predicting code a the given ZIP a we like -- geography get. want given any traffic -- day what going do good it like in day. will say we're and will what the to really part what within on is we how and things code a real-time than to take and job it use quality cost cost in at smaller and with very any level, events pricing the to kind of sorry, of the we business time other or, job, specific about what now pretty right given

and that they hear specific this hey, customers, our other to around the to versus start may about a very kind who service that get want. if of I kind experience can We say, our, experience want us is, tailor future in the wants experience. is it, call some customer of VIP think more procure to you'll what we the talk a set customer

really down. to what we're is do it's starting -- break So

be if and roll that of ensure calls, about so exceptional algorithmically this isn't we calls. will, of future the couple able to tier more about with level, out that next the you in issue partners. start creating and experience quality VIP that then and You or price a hear can more And exceptional in create really kind it we'll next to start to you'll heard

Operator

no It remarks. to Booth I session. any concludes appears back there like to turn over question-and-answer conference questions. further for closing This the Matt would our are

Matthew Booth

Great. for time. your Thanks, everyone,

Conference be we'll on Consumer B. on XX. and reminder, Conference and Media, XX & the Institutional a Needham As the Technology, May XX May also Investor attending Riley

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

not you with Relations at us to and to attending reach you're meet If please at want Investor management, out geturgently.com.

will We call. Thanks joining time interest great your for the evening. be to for happy for schedule a Urgently, call. again and Have thanks in again

Operator

The you today's conference concluded. for has attending now Thank presentation.

You now disconnect. may

Urgent.ly Inc. Common Stock (ULY) 13 May 242024 Q1 Earnings call transcript