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]
Urgent.ly (ULY) - 2025 Q2 - Earnings Call Transcript