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]
Urgent.ly (ULY) - 2025 Q1 - Earnings Call Transcript