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 - 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]