Urgent.ly Inc.

Good afternoon and welcome to Urgently's first quarter 2024 conference call. As a reminder, today's call is being recorded and your 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 pound 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. You may proceed.

Thank you, Aquator. Good afternoon, everyone, and thank you for joining us for Urgently's Financial Results Conference Call for the first quarter ended March 31, 2024. On the call today, we have Urgently's 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 annual report on Form 10-K for the year ended December 31st, 2023, our quarterly reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC. 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 to 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. Good afternoon, everyone, and thank you for joining us today for our first quarter 2024 earnings call. As we have stated in previous calls and discussions, During the first half of 2024, we are primarily focused on the financial and operational improvements so we can turn our focus to accelerating profitable growth. We are on track with these improvements, and in future quarters, we look forward to discussing growth strategies and business expansion efforts more broadly. In terms of the first quarter, we're very pleased with our results, which exceeded our expectations we outlined during our last earnings conference call. Our revenue for first quarter of 2024 came in at 40.1 million, which was above our guidance range of 35 to 38 million, mostly due to higher than expected volumes. Our gross margin of 23% is our fourth consecutive quarter with gross margins of at least 20%. In addition, our non-GAAP operating loss of 5.1 million was a 35% improvement from the fourth quarter of 2023, demonstrating our progress towards achieving non-GAAP operating break-even by the beginning of the third quarter. In support of sustainable growth, I can update you on the progress we're making with our key operational and financial improvements. As it relates to our operational improvements over the last several quarters, we have transformed our customer service operations by optimizing the staffing balance between nearshore business process organizations and onshore call centers. We continue to leverage technology and optimization of our service model to drive additional improvement in this area. We've enabled real-time data streaming capabilities to improve efficiencies in our call center, such as streamlining alerts and proactively identifying high-risk jobs. We expect telematics integrations with our partners will also result in efficiencies and additional cost improvement. Improving margin continues to be a priority. In the prior quarters, margin improvement was primarily driven by our actions regarding price changes and partner mix. We have also and continue to perform technology platform upgrades that drive visibility and efficiency in the marketplace as we launch capabilities that further optimize the match of service provider to service event. In addition, we expanded our dynamic pricing algorithm to incorporate location-based pricing at a granular level to further optimize our margins. Our progress in this area over the last 12 months has been notable. When compared to Q123, our Q124 gross profit of $9.4 million is slightly higher than our Q123 gross profit of $9.3 million, but with 19% less revenue than the first quarter of 2023. Improving our gross margin and reducing our operational expenses is critical in achieving non-GAAP operating loss break even by the beginning of the third quarter. Post-merger integration is at the forefront of this effort as we eliminate redundant functions and integrate Autonomo and Urgently technology teams. We recently launched OEM telematics to improve the customer experience by speeding up the process of gathering critical data about the vehicle. In addition, we have started to capitalize software specifically related to long-term platform upgrades, scalability, alert improvements, portal enhancements, payment automations. All of these, we believe, are critical functions for additional operational improvements. Tim will provide an update on improving our balance sheet and debt refinance. We believe we are tracking well against these priorities. Overall, I'm very proud of our accomplishments this first quarter that included delivering financial results above expectations and guidance provided that I believe the team continues to make great progress in executing against our strategic priorities, shoring urgently up for the near and long-term growth opportunities ahead of us. On that note, we're pleased to announce that our launch of the top five OEM occurred in late March. The integration and launch was successful. Our operational performance is strong and we've received positive feedback on our collaboration and partnership thus far. In addition, we believe our sales pipeline is solid and we have started to return focus on our growth strategy. We look forward to sharing more about this on our future earnings calls. As we look ahead, we remain focused on expanding our existing B2B incident business through new partnerships and expanded relationships with existing partners. Second, achieving non-GAAP operating breakeven through our operational improvement margin expansion. And third, leveraging our assets from Autonomo together with UrgentLease core technologies to provide innovative and differentiated services to our partners. 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.