ULY - Earnings call transcript Q2 2024 | Urgent.ly Inc. Common Stock

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Operator

Good afternoon, and welcome to Urgently's Second Quarter 2024 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.

You may proceed.

Jenny Mitchell

operator. you, Thank and financial everyone, ended for us joining XX, Good conference thank call Urgently's results quarter for for XXXX. afternoon, you the June second

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

that, your take we questions. Tim's remarks, Following in will prepared

comments should subject change. begin, our or to risks assumptions and which would could risks, any be company some I forward-looking of incorrect, materialize contain we materially results to remind uncertainties may Before that prove to could statements Should these statements. you from our like of today that are actual forward-looking these assumptions differ

quarterly annual these reports of and responsibility on time the required other for ended undertake do on is that description time that in Form the not we Form by SEC. could our XX-Q to December assumptions our year and XX, risks, A forward-looking recent statements. and included from as other including update factors these report Except uncertainties we and filings, with our XX-K file filings results reports law, financial to SEC may XXXX, affect any most our

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

to Matt. I'll over that, the call With now turn

Matthew Booth

operational providing specifically to on operating in experience Overall, executing eliminating our second exceptional in are afternoon, the our drive remain everyone, the line We quarter pleased financial our Jenny. Good you against were call. expectations. of joining results, today Thank thank we which focused with quarter strategic second revenue you, loss. for and post-merger us XXXX customer areas earnings initiatives and improvements, for and with our

last our growth. focus in have to we In quarter, highlighted the and addition, profitable accelerating as we have also shifted

large of am by to launched. drive revenue lumpy the our I historically team across additional they reminder, effort has group enterprise deliver to As and proud conclude contracts generated growth the been driven end, a at which are that entire the today, for once that of we the renewals were X/X our more of contracts quarter that second collectively for quarter. $XX.X revenue X reported partner all set which customer and million To than

In addition, new We of the customer expansion we contracts. deliver significant partners with partners partner and contract not well to and did strength secured we are expansions renewals, we new our customer customer our value validation the these further leading as existing portfolio intentionally and our terminate customer service technology. a wins as any believe of through

a and well spend as minutes expansions. business customer as discussing efforts partner more our renewals me few let and providing expansion broadly our on details Now growth

is length average X the stated, previously years. partner customer have we contract As about a of

as an So approximately our proof but relationships only our not contracts the shore up innovator demonstrate up to partner of also forecast, strength each points come marketplace Renewals revenue the in and our believe industry. X/X they customer year. customer we for service for our roadside long-term in commitment renewal

customer via announced partner which partners, press contracts releases. quarter, OEM global second renewals, the our During customer renewed our of X we among with we

Canada we X warranty-based and on safety, as power roadside The innovation, our years. automotive will the well its another U.S., program, OEM first to known post-warranty a assistance assistance for membership extended the their plans relationship continue Under Mexico. global their focus for has as quality in renewal, roadside and contract

into its center technology includes partner relationship operations leverage stack, assistance, its we integration outsourced to for addition, provide management accident-related products. our will to full services. also and telling breakdowns support as customer-facing customer mechanical technical comprehensive to In which as call operational, OEM continue assistance well The and continue API-based roadside

renewed The as with United also assistance assistance driving a will to to extension Under engineering its post-warranty delivering an second the precision for well unparalleled we as the plan and roadside experience. membership roadside commitment their in States. global is program warranty-based known OEM contract, a its X-year continue power

renewal, we'll addition expansions In with OEM also have X. quarter, -- agreement addition also we signed expand customer launched a to insurance global to agreement direct-to-consumer into aggregator, and on we a this our customer In the This to subscription X-year year. expansion recently this with X-year new geographically partner Canada. a We new which partner this launch signed later and renewals August

to expansion the extremely team renewals, always contracts successful terms and these to quarter All of in I'm an the in excited business. appreciative talk results. deliver to it's new of very all, been of efforts We're our growth historically partner initiatives the see integration differentiator about that best-in-class We retention has reaccelerate as for with expansion. Urgently. and we customer experience QX primary been post-merger believe delivering our a customer

reflected This and customer on the of and second at X.X scale satisfaction is quarter, the on during achieved satisfaction for we X.X scores service out focused remain scores X which quarter year. delivering quality the exceptional

to are look we advance data the launch we believe margin announced performance as outcomes across higher continue deliver customer next-generation for pricing and and recently teams engineering data competitive around Much product service the and to apply other our differentiate provider the a motorists' like yield-based experience, network. a to Our pricing our experience. advantage technology ways customer analytics to To improvement. of further the quality and industries,

prices product, our AI-driven of Urgently weather location-based much a which a job optimizes data. and either micro model, data, key other leverages with a in smaller are relevant make, reliably population code predicts or rural and this for pricing technology time quality, And now service assistance. day, service area dynamic together target, ZIP of density, feature areas historical geographic roadside As

leads shorter improved service roadside for agent demand use Tim faster which in and in manage technology resulting shortly. will We job acceptance handle all stranded time, believe reflected to driver which times better to by quality to this searches expect customer on results in which providers, wait for expenses, we the systems lower partners. review our we continue to higher outcome operational our This be a

develop pricing best One predictive fit increase by differentiated is from offering. partners, build help partner, customer premium models roadside to For these VIP market to allows our performance example for makes generally, a goals. to that OEM while them to also stable empower and a a program business specific their luxury programs performance our maintaining it More structure and service insights assistance for us partners. maximize cost customer

products partners We tailor future for include ability on their experience the customers. based expect to that segment the how they will customer

to customer now experience under into Product customer Technology and Gab reports Huerta, leadership the team, structure and exceptional Urgently's single Officer. our we product into reorganized commitment service, which the operations team Finally, furthering a Chief and

regardless Our based of motorists goal service. is the customer how on ourselves to journey access the continue differentiating

human. integrating channels, experience believe an and We both product digital and across that singular and operations will team unparalleled promote our all a and providing ownership vision

Turning now we to update that margin margin maximized partner improvements margin. us. related to continues the we ongoing calls. and an the changes an Improving near pricing on on to term, outlined be for have previous gross In priority have mix

efficiencies driven to by margin additional marketplace. the in further improvement expect be creating We

pricing one is boundaries. as costs. will geographic our network primary constrained by of margins area yield-based believe geographic the service next-generation positively launched the We that First, or recently that ZIP drivers was in impact code we market a of product initiative once the

implementation industries in well. successful similarly We have pricing as of the predictive other observed optimized

so very far Our well. initiatives performed have

June Our June our a is and point XX% XX% with over gross our of XXXX increase basis consistent margin that and of 'XX, is for of year-to-date more XX%. margin QX XXX 'XX QX margin notably, XXXX -- year-to-date

has January customer this and our continuing revenue, While future are partner our demonstrated OEM potential nonrenewal, we past bolster through impacted wins, renewals which to revenues we announced expansions.

operating in and this is we our important remain focused operational our non-GAAP Improving and breakeven margin achieving gross milestone. reducing expenses critical on

during operating our quarter which earlier encountered second beginning XXXX. we However, XXXX quarter revise of versus for breakeven first our the to targeting us several outlook of third caused the to non-GAAP expectation the of for quarter, have factors

non-GAAP below XXXX. the expect $X.X that, XXXX, of the fourth to loss which be fourth is quarter in in $X million we million from quarter of operating said down Having of

And -- through in walk me let detail. factors greater these

The first return managed is a growth. factor to

after large us margin our and opportunities wide quarters to expense projects, improvements margin required projects completed. expansion contracts efforts QX but of the decision that to are This We resources Given is to make and renewals that of longer-term to These reduction and for focus projects on margin instead business. pursue operating new the the and quarter. testing of planned. technology have RFP in expect AB and of or prioritize back deliberate these on us capitalize we process, see still sense importance expansions move to to X deployment contract a the intend after improvement renewals, to given push in cycles expansions new ability expense integration length around we wanted launches, we X scope,

related some as review factor post-merger acted certain still we of Otonomo to second to is last is swiftly including Otonomo the teams, phase while redundant look and strategic combined across to under functions The Urgently the continue reduce team alternatives assets. international integration, the complexity,

we to nature dependent revenue fleet margins, routing saw ranging policies And given factors. partners factors from customer schemas by new impact our vehicles from transaction-based met our the an the trends finally, produced related a in of we to is changes guidance, our customer or coverage change few. on mix our service miles a travel, with several fewer name just external volume in When events behavior on external new to our business, OEM, by providers,

our job higher revenue collection and lower-margin contributed on And of from while the event the service mix jobs singular no past basis. lower We pro reduced service mix and expected higher-margin a jobs changes, this volume events from margin. quarter volume to saw

during profitable capturing achieving renewals our The team look business accomplishments exciting focused to reaccelerating against strategic the Again, non-GAAP we sustainable I'm opportunities growth ahead. financial the breakeven, of growth optimize priorities by evidenced operating and growth which proud and as and quarter, is and execution forward to our our very continued contract on second and long-term wins, operations, our included while near- expansions.

business closing, our and managed breakeven developing renewals, innovative our customer provide margin and new and expanding continuing partner growth In differentiated we partners, expansion -- and with BXB non-GAAP relationships services focused expanding through our remain improvement, operating incident opportunities, to securing partners. to on existing achieving through operational

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

Timothy Huffmyer

Matt, XXXX. you, afternoon, year. million for will or revenues million quarter quarter, guidance XX% and the of And and the range quarter end from to the ended same $X.X million, for $XX.X last of Thank second June decline towards results were -- a of $XX second discuss our Today, million was everyone. our $XX good which I upper XX, the

customer the partner decline by our that of previously the line revenue January was in year-over-year rate customer was we volume by in had with nonrenewal driven in This and The existing and from primarily XXXX. was partially reduction increases from partners. announced offset and volume dispatch new expectations

quarter profitable long-term growth million and second gross the and $X.X with period. consistent the period, is primarily for exceeding against This of customer XX%. quarter, quarter on compared the second by in focused million and profit initiatives targets the For to remain executing consecutive achieve XX%, again, of partner was -- prior our XX%, margin gross driven drive our prior nonrenewal. we margin Gross $X.X the gross was strategic year XX% margins to the fifth year to

year was on move Urgently Prior and which included was to the results. the second expenses Operating Now expenses. $XX.X million, year quarter the let's transaction premerger financial costs of prior was part similar for to period. operating

on As Matt to improvements changes which operational to efficiencies. focus continue process the include operational business we in indicated, drive

within of redundancies eliminating these we to organization part expect the reduce continue improvements, expenses. operating and As

related, of of the million second from XXX At $X.X $X.X operating year headcount costs we most are last and a operational discussed, same in compared completed fourth Otonomo. In of during further or this resulting $X during of period this driving reduction on employees, initially. quarter XX%. year our second operational of year, of with will total million end we last merger quarter As so the when to efficiencies, a previously million of this expenses was the focus we year, the the had support our of decrease support quarter XX%

our through We our employed partners. also support reliance are reduced on customer who representatives BPO

period quarter the XXX of teams In year, customer technology this XXX had or These processes from are to is same expenses. support XXX reduction reduced the hard to which XX%. and representatives the due technologies new work last quarters, operational second customer reductions over year, support compared several to we the resulting of and business modify during a representatives last full-time in the implement operating

this of an debt that $XXX,XXX within due our bringing quarter to customer this during our approximately bankruptcy, EV we expense filed recently total year. year Also of this the bad debt expenses, general to recorded for partner during second customer to and $XXX,XXX administrative related expense partner bad

on period. Urgently due This Overall, with to increase $X.X we stand-alone structure year continue prior reporting year post-merger [indiscernible] to was $X.X and our million, of more last the focus doing million increase to Otonomo an the operating compared is combined mostly year. during this

which operating loss quarter We plus also million, combined as Non-GAAP loss compensation to GAAP and of expense, second $X.X period. of increase stand-alone due to year. also million operating and this primarily This compared Urgently the for amortization increase prior from defined year is nonrecurring the costs. costs $X transaction non-GAAP the was year last reviewed is an reporting Otonomo depreciation restructuring expense, loss operating stock-based

drive realign to structure current opportunities. with operational as our corporate improvement initiatives Otonomo we our integrate and continue market We

significant are loss, the of reflected to operating in which the both million. $X.X combined to second non-GAAP compared quarter these and XX% Urgently improvement efforts non-GAAP Otonomo, fourth of non-GAAP XXXX loss our operating company of of was improvement when XXXX operating million which XX% when third in was $X.X Our loss, and compared quarter quarter including

sheet. Now a few balance comments on our

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

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

continue this liquidity provide quarter additional including with to company proactive million capital our take during XXXX, continue and we to the structure, steps expect position of We in important to flexibility. address practice approximately enhance $X.X financial The our third XXXX. the --

action our taking are expect respect and further before results debt of our maturities earnings with call. We next to measured conference

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

the Turning now for outlook XXXX. to quarter of third our

revenue range expect to million. the in We $XX of $XX million

towards breakeven expect we of make progress addition, during targeting Matt In non-GAAP previously highlighted. to as has XXXX, quarter to continue the first operating

that, for Our shares With of please is XX.X outstanding third million. expected at we end quarter line call Q&A. open Operator, the stock open common questions. will for the the the

Operator

[Operator Instructions].

is first Pearce from question The Chris with Needham.

Christopher Pierce

of a some about higher Is in your at on out when high that you and forward. Is about And you is guided from quarterly you fluctuates QX, going that? basis? jobs. to revenue largely think jobs it just there revenue end, how way to seasonality of control? about to something a think Or but think kind lower the there came that to cited I from low-margin high-margin want that is

Matthew Booth

you Do or you want to take take want me Tim, that to it? one,

Timothy Huffmyer

it of rolling of out highlighted jobs start, of control. as on the that's does Matt I'll all his remarks, It -- the are it's and out Chris, Yes. of Matt. just there. some fluctuate. depends prepared there -- in or our activity And how some it's

factor. out control. as do guide side, predict our the to difficult and be it's Matt, that add margin our to So anything on We side of revenue there? a on able best the you largely, but directionally it's can to

Matthew Booth

I'm that below trends, that's The that control. it's Yes, shift it's say going mix is can to not we right. but not something -- historical

Christopher Pierce

gross see third something offset then margins Or that because year? I'm expect but And the quarter summer should me quarter travel. of Is if in does in second factors of wrong, sequential usually I the we Okay. this lower think kind that? unique correct the we

Timothy Huffmyer

the been that's Chris. mean trend, I

way expect projects. push the some Certainly, discussion that at that that making around from the on on team that working modeling metric isn't of to better look and based us. off and improving margins margin on trend of bad continue, perspective, for it. So could the constantly activity one our based just also a But to a

Christopher Pierce

-- non-GAAP that Okay. you in well. year? of non-GAAP on want if throughout And would but you way right that type and income the right about income of -- the Is to I operating about based might be according negative? the Or seasonality between quarter see could talked Or to that fluctuation assumption then see thing, lumpiness some in to positive you about plan, the goes all first would think as operating and you there just and that think positive 'XX.

Timothy Huffmyer

we Good we able achieve Chris, line Once it that, and question. Yes. we'll pretty feel improve be hold the on there. confident to from

could -- here there, -- to it revert wouldn't back could it So loss So materially a it linear, is not that right? expectation not but -- or happen. everything is our it could

Christopher Pierce

last just one then And me. for Okay.

Or and the balance have some maturity investors? debt what's the kind think You we about? right longer-dated just you'll of next 'XX X or debt right Jan the like then and message cash debt cash up -- the months Or resolution think in ahead should guess, should your we be talked how something -- debt about a things like I of here to potentially what's earnings about? debt? -- lining on the the to there'll sort in equity expect right way of know now? within versus and about holders the a Or sheet I call, think of what's

Timothy Huffmyer

hope resolution the out didn't of goes, do maybe about can as earnings the to credit, activity, next that with more us about but working maybe we that If of past, Well, to allows a related way talked in before talked talked definitely flex that kind debt talk that's rest. we've the we've certainly some prepared and capital we're growth of terming of look -- some we've these then as at which provide resolution. And maturities. line X remarks, would the our about X is to that's in tiers call, we of I accomplish. to what certainly we longer The it goal far --

it today. still thinking is consistently about those we've about pieces consistently talked But previously of in we're that X something thinking and

Christopher Pierce

that. Okay. appreciate I

Operator

our to I would closing This Matt back to remarks. question-and-answer session. like concludes the turn Booth for over conference any

Matthew Booth

for of forward the calls. updates to position on We're progress company the everyone, further made future closing. proud very and providing joining our progress on with profitable significant Thanks, look that to you we've and growth, for we

on -- As via and replay at a as the August Conference Virtual to August scheduled Relations attending have also Sidoti or on XX, access to fireside a a.m. be and our XX we're reminder, Investor a chat host Micro-Cap can August and Eastern XX, Investor live we'll which website. you XX

you're meeting like one-on-one have your If planning attending and a on contact representative. to Sidoti us, with please

If we're you're and out and your interest the and not planning us you'd attending, on with reach again happy a Urgently, to follow-up to like management, for joining to schedule meet in call today. Thanks investorrelations@geturgently.com call. thanks at for please

Operator

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

You may now disconnect.

Urgent.ly Inc. Common Stock (ULY) 12 Aug 242024 Q2 Earnings call transcript