Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Urgently Inc (NASDAQ:ULY) delivered revenue of $32 million in Q4 2024, meeting their expectations and marking the fifth consecutive quarter of meeting revenue guidance.
• The company achieved a 57% improvement in gross profit from $20.1 million in 2022 to $31.6 million in 2024.
• There was a 29% reduction in non-GAAP operating expenses from $68.8 million in 2022 to $48.8 million in 2024.
• Urgently Inc (NASDAQ:ULY) renewed nearly half of its run rate revenue in 2024, securing significant contracts with major automotive OEMs and fleet management companies.
• The company has made significant technological advancements, including AI-driven dynamic pricing technology, which earned them the Auto Tech Breakthrough Award for Overall Transportation Tech of the Year.

Negative Points

• Urgently Inc (NASDAQ:ULY) experienced a 29% decline in Q4 2024 revenue compared to the same quarter last year, primarily due to the non-renewal of a major auto manufacturer customer partner.
• Full-year 2024 revenues were down 23% from the previous year, driven by reduced dispatch volume and the decision to move away from less profitable revenue.
• The company recorded a one-time business tax expense of approximately $800,000 related to a multi-year audit, which was not anticipated.
• There was a $500,000 write-off of contract fulfillment costs due to the termination of a major OEM contract in Q4 2024.
• Urgently Inc (NASDAQ:ULY) is still targeting non-GAAP operating break-even by mid-2025, indicating ongoing financial challenges.

Q & A Highlights

• Warning! GuruFocus has detected 5 Warning Signs with ULY.

Q: Can you characterize the pricing of the renewals? Were they at the same price, or did they change? A: (Tim Hofmeyer, CFO) Generally, pricing has held well. We included CPI-type price escalators in our contracts, allowing us to revalue and reprice as needed. We feel confident in the pricing, maintaining strong partnerships and delivering value without significant concessions.

Q: Regarding the expansion and new customer activity, how will this be layered over the course of the year? A: (Tim Hofmeyer, CFO) We launched a new customer partner late in the fourth quarter, which had minimal impact on our results. It will ramp through the first quarter of 2025 and is expected to be fully ramped early in Q2. Some contracts start at full capacity, while others have a gradual ramp for transition and technology adjustments.

Q: The guidance for Q1 is similar to Q4. Is there a seasonality issue, or is it due to contract layering? A: (Tim Hofmeyer, CFO) The main change is due to a contract cancellation announced in November, which was larger than the new contract added. While there is some seasonality with holidays and weather, the primary reason for the flat guidance is the contract transition.

Q: How have you ensured that moving customer service locations won't affect service quality and increase churn? A: (Matt Booth, CEO) We started this process 18 months ago, thoroughly testing to ensure quality. Our customer service scores have consistently been 4.5 out of 5 stars. We strategically use nearshore call centers for specific tasks, ensuring no degradation in service quality.

Q: What are the risks of customer dissatisfaction with the reorganization of customer service? A: (Matt Booth, CEO) We have not seen a degradation in quality. We strategically balance domestic and nearshore operations, ensuring high service levels. The impact has been positive, and we do not foresee risks due to this reorganization.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.