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01/11 03:24
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals significant challenges: a 22% revenue decline, customer nonrenewals, a high debt balance, and competitive pressures. Although there are improvements in operating expenses and gross margin, these are overshadowed by the financial risks and unclear guidance. The Q&A section highlights concerns about operational expenses and market dynamics, while the share issuance indicates potential dilution. Given these factors, the stock is likely to experience a negative reaction in the short term, with a potential decline of 2% to 8%.
Revenue $31.3 million, a decline of 22% or $9 million from the same quarter last year, primarily driven by the reduction in dispatch volume from customer partner nonrenewal and a reduction of revenue due to the Otonomo business.
Gross Profit $8 million, down $1.4 million compared to the same period last year, primarily driven by the customer partner nonrenewal.
Gross Margin 25.5%, an increase from 23% for the same period last year, primarily related to the mix of service dispatches and continued technology optimizations.
Operating Expenses $10.4 million, a decrease of $7.3 million or 41% from the same period last year, due to reductions in Otonomo-related expenses across various categories.
Non-GAAP Operating Loss $374,000, an improvement of 93% compared to $5.1 million in the prior year period.
GAAP Operating Loss $2.4 million, a decrease of $5.9 million or an improvement of 71% from the prior period.
Cash and Cash Equivalents $6.4 million as of March 31, 2025.
Net Principal Debt Balance $56.7 million as of March 31, 2025.
Shares Outstanding 1.2 million shares of common stock as of March 31, 2025.
Dynamic Pricing Capabilities: Urgent.ly's dynamic pricing technology allows for differentiated VIP services and optimization against pricing pressure.
Predictive and Preventative Maintenance Solutions: Utilizing connected vehicle data to enhance vehicle uptime for fleet partners.
VIP Programs for Luxury OEM Brands: These programs have led to high customer satisfaction ratings and incremental revenue.
Insurance Provider Contracts: Anticipation of a shift from single-source to dual-source roadside solutions, which could drive growth for Urgent.ly.
Non-GAAP Operating Loss: Achieved a non-GAAP operating loss of approximately $400,000, significantly below guidance.
Headcount Reduction: Reduced total headcount by 50% over the last 12 months post-merger with Otonomo.
Customer Service Score: Achieved a customer service score of 4.6 out of 5 stars in Q1 2025.
Renewal of Contracts: Secured first renewal for 2025 with a major fleet management company, indicating strong partner relationships.
New VP of Sales: Hired to target mid-market insurance companies, leveraging 15 years of experience in the sector.
Revenue Decline: The company experienced a year-over-year revenue decline of 22% or $9 million, primarily driven by a reduction in dispatch volume from customer partner nonrenewals and decreased revenue from the Otonomo business.
Customer Partner Nonrenewal: The reduction in dispatch volume was significantly impacted by the nonrenewal of a customer partner contract, which was previously announced in January 2024.
Debt Obligations: As of March 31, 2025, Urgent.ly had a net principal debt balance of $56.7 million, which poses a financial risk if not managed properly.
Operational Efficiency: While the company has made strides in reducing operating expenses by 41%, ongoing operational improvements are necessary to maintain non-GAAP operating breakeven.
Market Competition: Urgent.ly faces competitive pressures in the roadside assistance market, particularly as insurance providers may shift from single-source to dual-source contracts, which could impact market dynamics.
Economic Factors: The company’s performance is subject to economic factors that could affect customer spending and demand for services.
Revenue Growth: Expect to start reporting positive sequential revenue growth numbers in Q3 2025 as new contracts come online.
Renewals: Secured first renewal for 2025 with a major fleet management company.
Operational Improvements: Focus on maintaining non-GAAP operating breakeven and improving operational efficiencies.
Product Innovations: Transforming the market for roadside solutions with new product innovations.
Sales Strategy: New VP of Sales targeting mid-market insurance companies to expand partnerships.
Revenue Guidance Q2 2025: Expect revenues between $30 million to $33 million.
Non-GAAP Operating Loss Guidance Q2 2025: Expect non-GAAP operating loss to be less than $500,000.
Long-term Non-GAAP Operating Breakeven: Targeting to maintain non-GAAP operating breakeven in mid-2025.
Common Stock Shares Guidance: Expected common stock shares outstanding at the end of Q2 2025 is 1.3 million.
Share Issuance: Highbridge agreed to delay the repayment of certain back-end fees under the company's second lien agreements in exchange for the issuance of approximately 225,000 shares of Urgent.ly common stock.
The earnings call presents a mixed picture: a 9% revenue decline and high debt levels are concerning, but gross margin improvements and achieving non-GAAP breakeven are positives. The Q&A highlights potential growth in a weakening economy and strong renewals, yet competitive pressures and economic uncertainties persist. Without a clear market cap, the overall sentiment remains neutral, as positive and negative factors balance each other.
The earnings call presents a mixed picture. Financial performance shows some positive trends, like improved gross margins and reduced operating expenses, but revenue decline and economic uncertainties are concerning. Product development and market strategy show potential, with new insurance partnerships and expected revenue growth in Q3-Q4, but execution remains uncertain. The Q&A did not reveal major risks but highlighted cautious optimism. Overall, the sentiment is neutral, as improvements are counterbalanced by revenue decline and economic challenges.
The earnings call reveals significant challenges: a 22% revenue decline, customer nonrenewals, a high debt balance, and competitive pressures. Although there are improvements in operating expenses and gross margin, these are overshadowed by the financial risks and unclear guidance. The Q&A section highlights concerns about operational expenses and market dynamics, while the share issuance indicates potential dilution. Given these factors, the stock is likely to experience a negative reaction in the short term, with a potential decline of 2% to 8%.
The earnings call reveals significant challenges: a 29% revenue decline due to a lost customer, ongoing operating losses, and competitive pressures. While there are improvements in operating expenses and non-GAAP losses, the overall financial health remains concerning. The Q&A section indicates management's evasiveness on guidance specifics, adding uncertainty. Despite a credit facility and cost-cutting, the issuance of shares and reverse stock split suggest financial distress. These factors, combined with no strong positive catalysts, point to a likely negative stock price movement.
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