Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Urgently Inc (ULY, Financial) delivered revenue of $36.2 million, meeting their expectations and marking the fourth consecutive quarter of meeting revenue guidance.
- The company successfully renewed and expanded eight existing customer partnerships and acquired three new customer partners in 2024.
- Urgently Inc (ULY) secured significant contract renewals, including a three-year contract with a global automotive fleet management company and a two-year contract with a major vehicle rental company.
- The company achieved a 16% year-over-year improvement in non-GAAP operating expenses and a 17% improvement in non-GAAP operating loss.
- Urgently Inc (ULY) was recognized by the AutoTech Breakthrough Award for their AI-driven yield-based pricing technology, enhancing customer experience and operational efficiency.
Negative Points
- Urgently Inc (ULY) experienced a 21% year-over-year decline in revenue, primarily due to the non-renewal of a customer partner announced in January 2024.
- A top-five global OEM customer partner decided to close its mobile technical support trucks, impacting Urgently's revenue, although it represented less than 5% of revenue for the first nine months of 2024.
- The company reported a book loss of $3.3 million in the third quarter due to the divestiture of a business unit.
- Urgently Inc (ULY) faces challenges in addressing its capital structure, with a net principal debt balance of $54.3 million maturing in January 2025.
- The company is navigating complex negotiations with lenders to secure a working capital line of credit and address unsecured notes that matured in June 2024.
Q & A Highlights
Q: Can you provide a breakdown of the new partners and how they compare to the partner that is pulling back?
A: The renewals have been successful, covering about 50% of our revenue. The three new partners will more than compensate for the partner discontinuing with us in terms of topline revenue. They are larger in scale and contribute equally or more to our margin. These new partners are a mix of fleets, insurance, and B2B2C. - Matt Booth, CEO
Q: Are the new partners global OEMs or fleet managers?
A: The new partners are a combination of fleets, insurance, and B2B2C. - Matt Booth, CEO
Q: Is the first quarter of 2025 expected to be a challenging comparison due to the non-renewal of a large customer?
A: Yes, the first quarter of 2025 will be a challenging comparison because the larger customer that didn't renew will still be part of the revenue in the first quarter. The comparisons will become more organic in the second quarter. - Tim Hoffmeyer, CFO
Q: Can you explain the improvement in gross margins despite the typical seasonal challenges?
A: The improvement in gross margins is due to a mix of job types and their margin profiles. Although summer travel typically affects margins, the mix of jobs this quarter helped improve margins. - Tim Hoffmeyer, CFO
Q: How should we think about gross margins moving forward?
A: Gross margins are influenced by the mix of jobs and their respective margin profiles. We continue to focus on optimizing our operations to improve margins. - Tim Hoffmeyer, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
