Urgent.ly Inc.

Good afternoon and welcome to UrgentMe's third 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 star then zero on your telephone keypad. With that, I'd like to turn the call over to Jenny Mitchell, Vice President of Finance Strategy and Investor Relations. You may proceed.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for Urgently's Financial Results Conference Call for the third quarter ended September 30, 2024. On the call today, we have Urgently's CEO, Matt Booth, and CFO, Tim Huffmeyer. 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. 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 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. Replay of today's call will also be posted on the website. With that, I'll now turn the call over to Matt.

Thanks, Jenny. Good afternoon, everyone, and thank you for joining us today for our third quarter 2024 earnings call. I am pleased with our performance during the third quarter where we delivered revenue of $36.2 million, which was in line with our expectations while making improvements in both non-GAAP operating expense and non-GAAP operating loss. Notably, this is our fourth consecutive quarter where we delivered on our revenue guidance commitment. As we close out the year, we remain focused on the continued execution of our strategic initiatives, which are aligned with accelerating profitable growth, delivering exceptional customer service, achieving operational efficiencies, and improving our capital structure. We were active across all areas of the business during the third quarter, and we have again made progress on renewing several significant customer partner contracts. Let me spend a few minutes to provide some highlights. As previously mentioned, we secured a three-year contract renewal with a global automotive fleet management company. The renewal extends our long-term customer partner relationship to nine years, Under this renewed contract, our customer partner will leverage UrgentLase comprehensive technology stack capabilities in the US and Canada to provide capabilities encompassing vehicle classes one through six, which is light duty passenger cars, vans, small pickup trucks through medium duty and commercial vehicles. They will also leverage our AI driven yield based pricing technology with predictive location aware capabilities drive network pricing and actionable insights with the goal of minimizing vehicle downtime. Also, as previously released, we secured a two-year contract renewal with one of our largest worldwide vehicle rental companies. With this renewal, our relationship, which began in 2022, will extend through 2026. Urgently's Connected Assistance Platform will continue to provide their roadside assistance program, enabling exceptional mobility assistance services including knowledgeable support for electric vehicles in the U.S. and Canada. Our recent contract renewals reflect Urgently's ability to foster growth, stability, and collaboration across our existing client base. Each renewal underscores our client's satisfaction and trust in our mobility assistance platform. We look forward to deepening our relationship with each of our customer partners and remain dedicated to supporting their long-term success. Looking back on our progress over the first nine months of 2024, we successfully renewed and expanded eight existing customer partners and acquired three new customer partners. I'm proud of the hard work across the organization, which have led to these successful outcomes. Despite this positive momentum, our business is not immune to some of the challenging market conditions facing our partners. In October 2024, we were informed that a customer partner, which is our top five global OEM, has shifted their internal strategy. As a result, this customer partner has decided to close its mobile technical support trucks and eliminate dealer technicians providing remote services, which is the program that we're specifically selected to integrate and support. The strategy change includes a contract wind down. This global OEM will be rolling this brand back under the vendor currently serving its other suite of brands. This customer partner currently represents less than 5% of our revenue for the first nine months of 2024. We remain focused on winning new business and renewing, expanding relationships with our customer partners. An ongoing priority remains improving our margin profile to deliver profitable growth. As such, we are constantly looking at the business to find opportunities to drive operation and improvements and efficiencies. On September 19th, we completed our divestiture of Autonomo business unit, The Flow. This action is part of our strategic effort to divest non-core assets and dedicate our resources to advancing our core business. Under this divestiture, we returned 51% of the ownership to the business unit's management and retained 49% equity ownership. In addition, urgently retained a perpetual royalty-free license to integrate the flow software into the platform, which includes driver behavior, driver scoring, crash detection, and analytics platform. The divestiture and license will also enable us to continue to leverage the flow software to advance our connected vehicle offerings while enabling the flow management team to focus on its own growth opportunities and seek outside capital to grow independently without continued investment from urgently. We would also expect to opportunistically partner with the flow in the future. Separately, we believe the product innovation that leverages our technology platform and data insights will not only drive further optimization of our margin profile, but also will enable our customer partners to build ground-side assistance programs that best fit their goals. On this front, I'm very pleased that Urgently was recently recognized in October by Auto Tech Breakthrough Award for the overall transportation tech of the year. Our next generation yield-based pricing technology, which was introduced this year, This AI-driven pricing technology makes it possible to reliably predict and optimize job prices for roadside assistance services, leading to higher quality customer experiences. Real-time yield-based pricing allows urgently to better manage surges in roadside assistance demand, similar to surge pricing used by ride hail services. This award is the result of our hard work data engineering teams who developed our yield-based pricing technology and who continually look for ways to apply technology to advance the roadside experience. Our location aggregation system has been tested nationwide for RSA-4 dispatches, which include four roadside service events of fuel, jumpstart, auto lockout, and flat tire. We were successful in increasing the digital engagement with our service providers and reducing our cost to provide this service within this test segment. On the customer service side, we saw improvements in our time to assign and reduction in wait times for stranded drivers. As testing validated our assumptions, we recently rolled out our location aggregation system to 15% of our network for all RSA-4 dispatches. In closing, the team had a productive third quarter and I'm pleased with our progress, which included securing customer contract renewals, continuing our focus on break-even through operational initiatives and improving our gross margin for the quarter and year-to-date over the prior year. We continue to take significant steps forward in our path to break even during the third quarter as evident by the 16% year-over-year improvement in our quarterly non-GAAP operating expenses and 17% year-over-year improvement in our quarterly non-GAAP operating loss. We believe this progress positions us well for capturing new and long-term growth opportunities ahead. As we look ahead, our core priorities remain expanding our existing B2B incident business through securing renewals, expanding relationships with existing partners, and developing new customer partner opportunities, achieving non-GAAP operating break-even through our operational improvements, margin expansion, and managed growth, and continuing 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.