Urgent.ly Inc.

good afternoon and welcome to urgently's fourth quarter and full year 2023 conference call as a reminder today's call is being recorded and your partition participation implies consent to such recording at this time all participants are in listen only mode a brief question and answer session will follow the formal presentation if anyone should require operator assistance during the conference please press star then zero on your telephone keypad. With that, I would like to turn the call over to Jenny Mitchell, Vice President of Finance Strategy and Investor Relations. Jenny, you may proceed.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Urgently's financial results conference call for the fourth quarter and full year ended December 31st, 2023. On the call today, we have CEO, Matt Booth, and CFO Tim Hofmeyer. Following Matt and Tim's prepared remarks, we will take your questions. Before we begin, I'd like to remind you that some of our comments today may contain forward-looking statements that are subject to risks, uncertainties, and assumptions which could change. Should any of these risks materialize, or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements. A description of these risks, uncertainties, and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent report on Form 10Q and any other SEC filings. Additional information will also be set forth in our annual report on Form 10K for the year ended December 31, 2023. Except as required by law, we do not undertake any responsibility to update these forward-looking statements. During today's call, we will also discuss certain non-GAAP financial measures. A reconciliation of GAAP and non-GAAP measures is included in our earnings materials and press release, which are available on our website at investors.geturgently.com. A replay of today's call will also be posted on the website. With that, I'll now turn the call over to Matt.

Thank you, Jenny, and good afternoon, everyone, and thank you for joining us today for our fourth quarter and full year 2023 earnings call. We're pleased with the results for the year, which were in line with expectations that we outlined during our third quarter earnings call. As we had previously discussed, our key priority last year was to execute against our operational improvements to position urgently for sustainable and profitable growth over the long term. Our second priority, as Tim will discuss, was to improve our balance sheet by paying down part of our debt and beginning to restructure our longer term liabilities. Our fourth quarter and full year results reflect the significant progress we've achieved towards these goals, as well as towards our target gross margin of 25 to 30% over the longer term. During the fourth quarter, we delivered gross margin of 22.6%, a 650 basis point improvement over the prior year. And for the full year, 2023, we delivered gross margin of 20.5%, a 980 basis point improvement over the prior year. In addition, we reduced our full-year non-GAAP operating loss by 57 percent, and our target remains to achieve non-GAAP operating break-even beginning in the third quarter of 2024. We debuted as a public company with $142.2 million in debt, and we're very pleased that during our listing, our investors converted $70.4 million into equity And in the first quarter, we paid down another $17.5 million to pave the way for proper working capital line of credit. Tim will talk more about our thinking here in his section. During the year, we embarked on several key initiatives to drive gross margin improvement. First, with an eye towards driving profitable growth, we rationalized our partner relationships to shift away from less profitable revenue and pursue more profitable revenue accounts. which also included a fresh look at pricing with existing partners. We also conducted a technology platform upgrade to enable more optimal pricing, efficient matching of service providers to service events. On the cost side, we moved away from partnerships that required first call support as a primary way to access our service, which carried higher incremental costs and instead focused on partnerships that support digital-first interactions. We believe the future of roadside service will primarily be reliant on telematics integrations and digital interactions for which our technology platform has been purpose-built. Consequently, we have transformed our customer service operations by balancing near-shore business process organizations and telematics integrations with a focus on keeping the most critical and complex functions in-house. Finally, We've also taken significant steps to right-size our organization to align with our current market opportunity and protect our improving margin profile, particularly in light of the decision in late January of an OEM partner not to renew its contract with us. While we are disappointed with the outcome, we believe their decision was not a reflection of our technology platform. We continue to believe that our proprietary digitally native software platform is a key differentiator for Urgently in the Marketplace. Our mobility assistance and dealer platforms dynamically match vehicle owners and service professionals enabled by proprietary technology, algorithms, and data ecosystems. The key capabilities include real-time tracking, connecting the customer partner, consumer, service provider, and repair facility via a digital and analog communication channel from dispatch to final disposition. Integrated dealer technology that allows dealers to extend their service technician footprint outside of the dealership to help dealers capture more service revenue by receiving and managing service requests for customers at home, at work, or on the road. Live job management and actionable data from dispatch to completion, both on a per job basis and in the aggregate. Multi-channel consumer and service provider accessibility. including a fully digitized experience via a mobile application, live customer service representatives, and a software as a service layer. And finally, broad mobility assistance capabilities, including towing solutions, mobile repair services, collision and impound-related towing, and onward mobility services that enable a customer to continue their journey following a roadside event. We believe Urgently continues to be best positioned among our competitors to be a brand extension for OEM and fleet companies by delivering exceptional service to all of our customers. Our value proposition is resonating in the marketplace as evidenced by some of our key customer wins we garnered last year. As I had previously mentioned, we signed a top five global OEM, which we expect to launch in Q2 24. This one is significant because we believe it reflects penetration into the next tier of partners within the market, which we are well positioned to expand within. We also believe that this first win represents a proof point that the market perceives Urgently as the top competitor in the space with a platform that is scaled for volume. Delivering on our land and expand strategy, we increased our product offering with an existing partner, which will take business away from a competitor. This expansion is expected to also launch in 2024. We executed a one-year renewal with a leading fleet management company. Renewals are yet another proof point, demonstrating that partners are pleased with the functionality and quality of the service that we provide. We launched a program with a luxury US EV OEM, demonstrating our ability to support the next generation of hybrid and all-electric vehicles. We launched a program with a leading global delivery and logistics company solving for complex and costly delivery downtime. Uptime is critical to our fleet partners, and we're proud to play an important role in that for them. Overall, I am pleased with our significant accomplishments in 2023, which included the acquisition of Autonomo and our public listing on NASDAQ, and our financial results that were in line with our expectations. Our team made tremendous progress in executing against our strategic initiatives to drive profits, operational efficiencies, and disciplined expense management during the year. The significant actions we have taken to right-size our organization and enhance our capital structure have built a strong foundation positioning us to capitalize on near and long-term growth opportunities ahead. As we look to the balance of this year, we remain focused on expanding our existing B2B incident business by winning new clients and expanding our relationships within existing partnerships, improving operational efficiencies, driving margin expansion and achieving non-GAAP operating breakeven, and continuing to integrate assets from Autonomo to accelerate connected vehicle integrations and expand into proactive and preventative services. Thank you for your time and continued support. I'll now turn the call over to Tim to discuss our financial results in greater detail.