Financial Data and Key Metrics Changes - For Q3 2025, the company achieved revenue of $32.9 million, marking a 9% decline or $3.3 million from the same quarter last year, primarily due to reduced dispatch volume from a top OEM customer and decreased revenue from the autonomous business [14] - Gross margin improved to 25%, up from 21% in the same period last year, driven by service dispatch mix and technology optimizations [15] - Non-GAAP operating income for Q3 2025 was $123,000, a significant improvement from a non-GAAP operating loss of $2.9 million in the prior year period, indicating a profitability inflection point [18] Business Line Data and Key Metrics Changes - The company is focusing on new account growth and expanding market share, particularly in the insurance markets, with a new contract launching soon and additional contracts in negotiation [7][8] - The company is also gaining momentum in securing revenue from new logos across various verticals, including fleet and autonomous vehicles [9] Market Data and Key Metrics Changes - The company is positioned to benefit from a potential economic downturn, as increased vehicle breakdowns may lead to higher revenue, particularly from premium OEMs and insurance customers [22][23] - The company anticipates a strong renewal cycle with existing customers, which is crucial for maintaining revenue stability [25][26] Company Strategy and Development Direction - The company aims to return to growth by expanding its existing B2B incident business, securing renewals, and developing new customer partnerships [12] - The company is also focused on transforming the roadside solutions market through product innovations that differentiate it from competitors [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, suggesting that a weakening economy could lead to increased demand for their services [23] - The company expects to maintain non-GAAP operating break-even in Q4 2025, with revenue guidance set between $30-$33 million [19] Other Important Information - The company received a continued listing extension from NASDAQ through February 16, 2026, after presenting a plan to regain compliance with listing rules [4] - The company is actively pursuing strategies to recapitalize its balance sheet to unlock incremental value for shareholders [11] Q&A Session Summary Question: How should investors think about Urgent.ly's positioning in a weakening economy? - Management indicated that the company is somewhat anti-cyclical, as economic downturns may lead to increased vehicle breakdowns, potentially improving revenue [22][23] Question: How should investors view the company's future renewals and customer wins? - Management highlighted strong opportunities in the pipeline, including new insurance contracts and a positive outlook for renewals, suggesting a strong finish to the year [25][26]

Core Insights - Urgently, a leading provider of roadside and mobility assistance using AI technology, has partnered with Sony Honda Mobility of America to offer nationwide coverage for AFEELA vehicle owners starting in 2026 [1][2][3] Company Overview - Urgently focuses on providing safe and seamless mobility solutions through a digitally native software platform that integrates location-based services, real-time data, AI, and machine-to-machine communication [7] - Sony Honda Mobility of America is a joint venture between Sony Group Corporation and Honda Motor Co., Ltd., aiming to redefine mobility by combining entertainment innovation with automotive engineering [6] Partnership Details - The partnership will ensure that AFEELA customers receive reliable roadside assistance from day one of the vehicle's delivery, enhancing the overall customer experience [2][3] - Both companies are preparing for service integration to align with the AFEELA 1 launch, emphasizing a commitment to innovation and customer support [3][4] Customer Experience - The collaboration aims to provide AFEELA drivers with a premium, connected experience, leveraging Urgently's extensive network and digital-first platform [4] - The AFEELA brand is designed to offer a next-generation driving experience that incorporates advanced sensing and interactive technology [5]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $31.7 million, marking an 8% decline year-over-year, primarily due to reduced dispatch volume from a top customer and the autonomous business [21][22] - Gross profit increased to $7.9 million, with a gross margin of 25%, up from 21.2% in the same period last year, driven by margin improvement initiatives [22] - Non-GAAP operating loss was approximately $199,000, a 97% improvement compared to $6.2 million in the prior year [27] Business Line Data and Key Metrics Changes - The company secured two renewals for 2025, contributing to revenue stability, with 40% of the renewals completed so far [38] - The focus on the insurance market has led to a new contract with a premium insurance provider and ongoing negotiations with two additional providers [13][41] Market Data and Key Metrics Changes - The company is targeting mid-tier insurance providers, which are currently underserved, and has initiated a sales plan to reach these markets [12][41] - The AI-powered market analyzer, Spark, has been launched to enhance service performance across urban markets, showing significant improvements in wait times [15][16] Company Strategy and Development Direction - The company aims to return to growth by expanding existing B2B incident business and developing new customer partnerships [18] - Continued investment in AI and machine learning is seen as critical for maintaining competitive advantage and improving customer satisfaction [14][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving non-GAAP operating breakeven in Q3 2025, with expectations for revenue growth to begin in late Q3 or early Q4 [29][31] - The company anticipates a flattening of seasonal revenue drops due to AI and machine learning initiatives [32] Other Important Information - As of June 30, 2025, the company had cash and cash equivalents of $4.8 million and a principal debt balance of $55.3 million [27][28] - The company has entered into a sales agreement to sell shares through an ATM program, although no shares have been sold yet [28] Q&A Session Summary Question: When should revenue growth from the premium insurance provider be expected? - Management expects to see revenue growth from the premium insurance provider by the end of Q3 or beginning of Q4, targeting 20% to 30% growth post-autonomous business [31] Question: Will the new revenue overwhelm typical seasonality in Q4? - Management noted that the seasonality curve is flattening due to AI work, suggesting continued revenue growth despite typical seasonal drops [32] Question: How much of the revenue do the renewals account for? - Renewals completed so far account for 40% of the revenue expected for the year [38] Question: What is the status of the sales cycle for new contracts? - The sales cycle is consistent with expectations, with larger companies moving slower and smaller companies moving faster [44] Question: When will nonrecurring transaction costs head towards zero? - Management indicated that the specific costs related to the autonomous business are expected to cease, with minimal ongoing costs anticipated [47]

Summary of Urgently Inc. Conference Call Company Overview - **Company**: Urgently Inc. - **Founded**: 2013 - **Business Model**: Technology-driven roadside assistance service aimed at improving customer experience compared to traditional services like AAA [5][6] Key Industry Insights - **Market Size**: The roadside assistance market is approximately $25 billion globally, with about $12.5 billion in the U.S. [45] - **Competitors**: - A family business from Boston with $1.2 billion in insurance contracts [16] - AAA, which has a long-standing presence in the subscription model [17] - **Growth Opportunity**: Urgently aims to capture a share of the subscription market, which is currently dominated by AAA [18][47] Financial Performance - **Revenue**: Approximately $150 million, with a significant portion derived from long-term contracts with OEMs and fleet companies [7][21] - **Margins**: Improved from 2% to 25% over time, with a goal of reaching 25-30% in the long run [15][36] - **Recurring Revenue**: Business model closely resembles Annual Recurring Revenue (ARR) due to long-term contracts, although revenue is generated per job [24][26] Technology and Innovation - **Technological Edge**: Utilizes real-time analytics, machine learning, and dynamic pricing to optimize service delivery and customer experience [9][55] - **Geospatial Database**: A sophisticated system that tracks vehicles and service providers in real-time, enhancing operational efficiency [13][14] - **Future Developments**: Plans to expand into connected vehicle data services, which could notify customers of potential vehicle issues before they occur [45][46] Market Strategy - **Go-to-Market Approach**: Engages in pilot programs with potential clients, gradually increasing service penetration [42][44] - **Customer Base**: Currently has high penetration rates with existing OEM contracts, with opportunities for new programs [63] Economic Considerations - **Impact of Tariffs**: Initial concerns about tariffs affecting vehicle parts have not significantly impacted sales; dealers reported strong sales following tariff announcements [27][28] - **Profitability by Vehicle Type**: Service types, rather than vehicle types, determine profitability; tire changes and battery services are more profitable than towing [29][30] Future Outlook - **Growth Drivers**: Focus on signing new clients and expanding service offerings to increase revenue [65] - **Financial Health**: The company is nearing non-GAAP operating breakeven and aims for positive cash generation in the coming quarters [61][69] Conclusion - **Management's Confidence**: The management team expresses optimism about future growth and profitability, emphasizing their commitment to achieving financial milestones and expanding market presence [68][69]

Financial Data and Key Metrics Changes - The company reported revenue of $31.3 million for Q1 2025, a decline of 22% or $9 million from the same quarter last year, primarily due to reduced dispatch volume from non-renewed customer partners and the Autonimo business [17] - Gross profit was $8 million, down $1.4 million year-over-year, but gross margin improved to 25.5% from 23% in the same period last year, attributed to service dispatch mix and technology optimizations [18] - Non-GAAP operating loss for the quarter was approximately $374,000, an improvement of 93% compared to $5.1 million in the prior year [21] Business Line Data and Key Metrics Changes - The company achieved record gross margin of 25.5%, aligning with its mid-term outlook of 25% to 30% [6] - Non-GAAP operating expenses decreased by 42% to $8.4 million from $14.5 million in the prior period, reflecting operational efficiencies [20] Market Data and Key Metrics Changes - The company secured its first renewal for 2025 with a major fleet management partner, indicating strong relationships in the market [9] - The company anticipates a shift in the insurance market towards a dual-source model, which could drive growth as it reenters this vertical [12] Company Strategy and Development Direction - The company aims to return to growth by expanding its B2B incident business, maintaining non-GAAP operating breakeven, and transforming the roadside solutions market through product innovations [14] - A new VP of Sales has been hired to target mid-market insurance companies, indicating a strategic focus on this segment [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive sequential revenue growth starting in Q3 2025 as new contracts come online [8] - The company is focused on sustaining non-GAAP operating loss breakeven and moving closer to cash flow positive [6] Other Important Information - As of March 31, 2025, the company had cash and cash equivalents of $6.4 million and a net principal debt balance of $56.7 million [22] - The company capitalized approximately $1.1 million in software enhancements during the first quarter, with similar capitalizations expected in Q2 2025 [23] Q&A Session Summary Question: Can you provide updates on the new OEM partner and the mid-market insurance opportunity? - Management highlighted the successful renewal with a major fleet partner and readiness to reenter the mid-market insurance space with improved technology and unit economics [28] Question: Are there more cost reductions expected in operating expenses? - Management indicated that while most significant reductions were made, there is still room for further efficiencies throughout 2025 [30][31] Question: What is the outlook for operating expenses with new market entries? - Operating expenses are expected to slightly decrease throughout the year, with potential additional costs related to new contracts being manageable [38] Question: Can you clarify the cash reduction and its implications? - The cash reduction was primarily due to debt repayments and accrued fees, with expectations of normalized levels moving forward [39][40] Question: What is the expectation for sequential growth in the second half of the year? - Management anticipates modest sequential growth, with any significant changes being communicated through future guidance [44]

Financial Data and Key Metrics Changes - The company reported revenue of $31.3 million for Q1 2025, a decline of 22% or $9 million from the same quarter last year, primarily due to reduced dispatch volume from non-renewed customer partners and the Autonimo business [17][18] - Gross profit was $8 million, down $1.4 million year-over-year, but gross margin improved to 25.5% from 23% in the same period last year, attributed to service dispatch mix and technology optimizations [18][21] - Non-GAAP operating loss for the quarter was approximately $374,000, an improvement of 93% compared to $5.1 million in the prior year [21] Business Line Data and Key Metrics Changes - The company achieved record gross margin of 25.5%, aligning with its mid-term outlook of 25% to 30% [7] - Non-GAAP operating expenses decreased by 42% to $8.4 million from $14.5 million in the prior period, reflecting operational efficiencies [20][21] Market Data and Key Metrics Changes - The company secured its first renewal for 2025 with a major fleet management company, indicating strong relationships with existing partners [9] - The company is targeting mid-market insurance companies with a dual-source model, anticipating a shift in the industry that could drive growth [13] Company Strategy and Development Direction - The company aims to return to growth by expanding its B2B incident business, maintaining non-GAAP operating breakeven, and transforming the roadside solutions market through product innovations [15] - The management emphasized a focus on unit economics and profitability over top-line revenue growth [8] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive sequential revenue growth starting in Q3 2025 as new contracts come online [8][24] - The company expects revenues for Q2 2025 to be between $30 million to $33 million, with a non-GAAP operating loss of less than $500,000 [24] Other Important Information - As of March 31, 2025, the company had cash and cash equivalents of $6.4 million and a net principal debt balance of $56.7 million [22] - The company capitalized approximately $1.1 million in software enhancements during the first quarter, with similar amounts expected in Q2 2025 [23] Q&A Session Summary Question: Can you provide updates on the new OEM partner and the mid-market insurance opportunity? - Management highlighted the successful renewal with a major fleet partner and readiness to reenter the mid-market insurance space with improved technology and unit economics [28] Question: Are there more cost reductions expected in operating expenses? - Management indicated that while most significant reductions were made, there is still room for further efficiencies throughout 2025 [30][31] Question: What is the expected trend for operating expenses as new contracts are launched? - Operating expenses are expected to slightly decrease throughout the year, with potential increases only for very large contracts [37] Question: Can you explain the cash reduction and its implications? - The cash decrease was primarily due to debt repayments and working capital changes, with expectations of normalized levels moving forward [39][42] Question: What is the outlook for sequential growth in the second half of the year? - Management confirmed expectations for modest sequential growth, with a focus on maintaining unit economics [45]