Urgent.ly, Inc. Q1 FY2024 earnings call

• Matt Booth highlighted that the first quarter results exceeded expectations, with progress on financial and operational improvements. Key operational efforts include transforming customer service operations, leveraging technology for efficiencies, margin improvement through price changes, partner mix, and technology platform upgrades. Post-merger integration is ongoing, with launches like OEM telematics and capitalizing software for operational improvements. - Tim Huffmyer discussed employee reductions, with a decrease in total employees to 292, and updates on the balance sheet, including cash, cash equivalents, short-term investments of $40.7 million, and net principal debt balance of $54.3 million. He also mentioned the company's efforts to address the capital structure and enhance liquidity.

For the first quarter of 2024, Urgent.ly's revenue was $40.1 million, which was above the guidance range of $35 million to $38 million. Gross profit was $9.4 million, with a gross margin of 23%, marking the fourth consecutive quarter with gross margins of at least 20%. Year-over-year, revenue decreased by 19% or $9.5 million, primarily due to moving away from less profitable revenue and a customer partner non-renewal, but was partially offset by volume and rate increases from new and existing customer partners.

• For the second quarter of 2024, revenue is expected to be between $32 million to $35 million. - The company remains on track to achieve non-GAAP operating breakeven by the beginning of the third quarter of 2024.

• Risks related to debt refinance, as the company is actively working with lenders to address the $52 million in debt and align maturity with future cash flows. - Market volumes affecting revenue, as volumes drive revenue given the company's business model of being paid on every dispatch. - Operational execution risks, particularly in achieving margin targets and maintaining operational improvements.

Q: You spoke to higher than expected volumes in Q1, what drove that?

A: Matt Booth said it was weather-related and additional share from partners due to longer term performance. Tim Huffmyer added volumes drive revenue and they do their best to estimate.

Q: When you say you're taking share, is it longer term performance or competitors unable to get service providers?

A: Matt Booth said mostly longer term performance from partners and shifting volume from other competitors.

Q: Talk about decrease in first call costs and further room?

A: Matt Booth said it's about customer partners transferring calls to help desk and there's room with technology and innovations like IVR and AI.

Q: Speak about strategic investors and relationships?

A: Matt Booth mentioned strategic investors like BMW, Porsche, etc., with collaborative relationships and they take reference calls.

Q: Feedback from fleet clients on adding additional fleet clients?

A: Matt Booth said feedback includes diversifying sole source and focusing on quality and technology.

Q: How does OEM telematics show up in the model?

A: Tim Huffmyer said it improves gross margin as vehicle info is taken algorithmically without agent intervention.