Acquisition and Partnerships - The company completed the acquisition of Otonomo Technologies Ltd. on October 19, 2023, issuing 5,435,568 shares of Common Stock to former Otonomo shareholders[283]. - The company renewed and expanded nine existing Customer Partners and acquired four new ones in 2024[288]. - A key Customer Partner, accounting for approximately 25% of revenue in 2023, did not renew its agreement in January 2024[288]. Financial Performance - Total revenue decreased by $41.7 million, or 23%, to $142.9 million in 2024 from $184.7 million in 2023, primarily due to a decrease in dispatch volumes and the non-renewal of a major customer partner[321]. - Cost of revenue decreased by $35.4 million, or 24%, to $111.3 million in 2024 from $146.8 million in 2023, mainly due to a decline in dispatch volume and reduced Service Provider fees[322]. - Gross profit for 2024 was $31.6 million, with a gross margin of 22%, compared to $37.9 million and a 21% margin in 2023, reflecting an increase in revenue per dispatch[323]. - The non-GAAP operating loss for 2024 was $17.20 million, an improvement from a loss of $20.96 million in 2023[304]. Operating Expenses - The company generated non-GAAP operating expenses of $48.76 million in 2024, down from $58.84 million in 2023[302]. - Research and development expenses decreased by $3.0 million, or 18%, to $13.9 million in 2024, with a 1% increase in R&D expense as a percentage of total revenue to 10%[324][326]. - Sales and marketing expenses increased by $0.8 million, or 16%, to $5.9 million in 2024, with a 1% increase in this expense as a percentage of total revenue to 4%[327][328]. - Operations and support expenses decreased by $10.9 million, or 45%, to $13.4 million in 2024, with a 4% decrease in this expense as a percentage of total revenue to 9%[329][330]. - General and administrative expenses decreased by $15.4 million, or 42%, to $21.3 million in 2024, with a 6% decrease in this expense as a percentage of total revenue to 14%[331][332]. - Depreciation and amortization expense increased by $3.2 million, or 327%, to $4.2 million in 2024, primarily due to amortization of intangible assets acquired in the merger[333]. Cash Flow and Liquidity - The company reported a net cash used in operating activities of $30.8 million for the year ended December 31, 2024, primarily due to a net loss of $44.0 million[351]. - For the year ended December 31, 2024, net cash provided by investing activities was $24.7 million, mainly from the sale of marketable securities totaling $32.3 million[353]. - The company has a working capital deficit, with current liabilities exceeding current assets, impacting liquidity needs[345]. - Total material cash requirements for the next 12 months amount to $22.5 million, with total obligations beyond 12 months reaching $48.5 million, resulting in total cash obligations of $71.0 million[349]. - The company amended its Highbridge Loan Agreement to extend the maturity date to July 31, 2026, and modified the interest rate to 16.0% per annum for a specified period[341]. - In February 2025, the company entered into a MidCap Credit Agreement with a principal amount not exceeding $20.0 million, with $10.7 million in revolving loans outstanding as of February 26, 2025[340]. Future Outlook - The company expects operating expenses to decrease in the short term but increase in the long term as it continues targeted investments in growth[291]. - The company expects to capitalize software costs between $4.0 million and $5.0 million during 2025 for internal development and Customer Partner implementations[354]. - The company may seek additional capital through equity securities or debt financing arrangements to support future operations and growth initiatives[346]. - The company has consistently maintained a working capital deficit due to the nature of its business model, which affects cash flow timing[345]. Customer Satisfaction - Customer satisfaction ratings (CSAT) were 4.5 for both 2024 and 2023, indicating consistent consumer service quality[297]. Dispatch and Service Metrics - As of December 31, 2024, the company had 49 Customer Partners and over 75,400 participating Service Provider vehicle drivers in its network[280]. - In 2024, the company completed approximately 0.9 million dispatches, a decrease from 1.1 million in 2023[299].
Urgent.ly (ULY) - 2024 Q4 - Annual Report