Customer Partners and Service Providers - As of March 31, 2024, the company has 57 Customer Partners and over 71,000 participating Service Provider vehicle drivers in its network[96]. Dispatches and Revenue - For the three months ended March 31, 2024, the company completed approximately 231,000 dispatches, a decrease from 319,000 dispatches in the same period of 2023[112]. - Total revenue decreased by $9.5 million, or 19%, to $40.1 million for the three months ended March 31, 2024, compared to $49.6 million for the same period in 2023[132]. - The company experienced a significant revenue impact from one Customer Partner that accounted for approximately 25% of its revenue in 2023, which did not renew its agreement[101]. Operating Loss and Expenses - The company's non-GAAP operating loss for the three months ended March 31, 2024, was $5.1 million, compared to a non-GAAP operating loss of $5.4 million in the same period of 2023[118]. - The company expects operating expenses to decrease in the short term due to a realignment strategy but anticipates an increase in the long term as it continues targeted investments in growth[104]. - Operations and support expenses decreased by $2.9 million, or 40%, to $4.3 million for the three months ended March 31, 2024, due to optimization initiatives[140]. - General and administrative expenses decreased by $1.5 million, or 20%, to $6.0 million for the three months ended March 31, 2024, mainly due to reduced transaction-related expenses[142]. - Research and development expenses increased by $0.5 million, or 13%, to $4.2 million for the three months ended March 31, 2024, driven by Otonomo-related expenses[136]. - Sales and marketing expenses rose by $0.9 million, or 88%, to $2.0 million for the three months ended March 31, 2024, primarily due to Otonomo-related expenses[138]. Cash Flow and Debt - As of March 31, 2024, the company had $34.2 million in cash, cash equivalents, and restricted cash, with a principal debt balance of $54.3 million[147]. - In Q1 2024, the company reported a net cash used in operating activities of $9.7 million, primarily due to a net loss of $13.0 million[154]. - Net cash used in financing activities for Q1 2024 was $18.1 million, mainly due to $17.5 million in payments on the Structural term loan[157]. - As of March 31, 2024, the company's total debt amounted to $54.3 million, with 18% of this debt accruing interest at a variable rate[166]. - The company anticipates seeking additional capital through equity securities or debt financing arrangements if current liquidity is insufficient[151]. Workforce and Employment Changes - The company eliminated 63 employees in Q1 and Q2 2024, representing a total reduction of approximately 19% of its workforce as of March 31, 2024[152]. - The company plans to continue actions to align operating expenses with revenue, indicating potential further workforce reductions[152]. Customer Satisfaction and Service Requests - The company has historically averaged a consumer satisfaction score of 4.5 out of 5 stars, with a score of 4.6 for the three months ended March 31, 2024[110]. - The company has observed increased roadside assistance service requests during economic downturns, as consumers may delay vehicle maintenance[107]. Technology and Integration - The company capitalized $1.6 million in costs associated with internal development of its technology platform in Q1 2024 and expects to invest an additional $2.5 million to $4.5 million during the remainder of 2024[105]. - The company anticipates that the integration of Otonomo's Mobility Platform will enhance customer service experience by improving data capabilities and features[97]. Other Financial Metrics - Gross profit for the three months ended March 31, 2024, was $9.4 million, a slight increase of 1% compared to $9.3 million for the same period in 2023[135]. - Depreciation and amortization expense increased to $1.1 million for the three months ended March 31, 2024, from less than $0.1 million in the same period in 2023[144]. - Other expense, net decreased by $2.8 million, or 38%, to $4.6 million for the three months ended March 31, 2024, primarily due to a decrease in interest expense[145]. Currency Exposure - The company has not engaged in hedging foreign currency transactions to date, which may expose it to exchange rate fluctuations[169]. - A hypothetical 10% change in the relative value of the U.S. dollar to other currencies would not have had a material effect on the company's financial statements[170].
Urgent.ly (ULY) - 2024 Q1 - Quarterly Report