Urgent.ly Inc.

Good afternoon, and welcome to Urgently's first quarter 2025 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 a 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 the pound, then zero on your telephone keypad. With that, I would like to turn the call over to Ms. Jenny Mitchell, Vice President of Finance Strategy and Investor Relations. You may proceed, ma'am.

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Urgently's Financial Results Conference Call for the first quarter ended March 31st, 2025. On the call today, we have Urgently CEO Matt Booth and CFO Tim Huffmeyer. Following Matt and Tim's prepared remarks, we'll 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 31, 2024, 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.

Thanks, Jenny. Good afternoon, everyone, and thank you for joining us today. I'm very pleased with our performance during the first quarter, and I'm excited to provide an update on our recent progress. Across many key metrics, our first quarter performance was our best quarter as a public company to date. We delivered revenue of $31.3 million, which was in line with our expectations, and notably, our seventh consecutive quarter where we delivered on our revenue guidance commitment. We achieved record gross margin of 25.5%, which is now within our midterm outlook for the 25% to 30% range that we established 18 months ago. It's an incredible achievement by the team to increase gross margin by 5.6 percentage points over that time. During the first quarter, we also made tremendous strides in reducing both non-GAAP operating expense and non-GAAP operating loss. I'm elated to report that our non-GAAP operating loss for the quarter was approximately $400,000, the best ever reported to date, and will be well below our guidance of $1 million. Further, for the first time in our reporting history, urgently achieved non-GAAP operating break-even during the month of March of this year. While we do not report monthly numbers, we wanted to celebrate this important milestone as it demonstrates our continued and positive momentum and the significant progress we have made to date to deliver on our financial commitments. This is a remarkable achievement for Urgently and a direct result of the tireless work from the management team and every single one of our employees. Sustaining non-GAAP operating loss break-even and moving the company closer to cash flow positive will be an ongoing focus for us this year. Now, turning to growth, we expect to start reporting positive sequential revenue growth numbers in Q3 as new contracts come online and we finish cycling through our non-comparable quarters due to the autonomous acquisition and other factors where we focused on unit economics and profitability over top-line revenue growth. First, let me discuss our core revenue. Given the nature of our customer partner contracts, the average three-year duration, and the length of the RFP process, a portion of our annual capacity and effort will always be dedicated to securing our revenue through renewals. With that, I'm happy to announce that we secured our first renewal for 2025 with one of our largest fleet management companies, which is the largest global fleet in terms of vehicles managed. This has been a great partnership for us over the years, and we look forward to continuing and expanding this relationship into the future. The second area of focus is working with our existing customer partner base to expand our services and offerings within an account. This is where our product and technology team shines. Last year, we discussed some of the great innovations from our product and technology team As previously mentioned, an important differentiator, specifically our dynamic pricing capabilities, which not only allow us to deliver a higher end and differentiated VIP service, but this technology can also be optimized to combat pricing pressure. We continue to be well positioned to service our fleet partners and their aging fleets with our foothold and connected vehicle data urgently can activate on predictive and preventative maintenance solutions to help our fleet partners maximize their vehicle uptime. Working together with our customer partners, we will work to drive value in our relationship by solving real pain points. Recently, we worked together with one of our fleet management companies to define new processes and data gathering in the call center, which had a direct impact on reducing the number of their missing units, an unfortunate issue experienced by rental car companies. As another example, we are working with one of our OEM partners to offer an expanded network in their top markets to drive a measurable lift their customer satisfaction scores we are having great outcomes from our vip programs for our luxury oem brands these solutions have contributed to some of the highest customer satisfaction ratings we have seen and we believe these efforts not only drive incremental revenue but further integrate urgently offerings and create stickiness within our customer partners in addition There are some new industry-specific dynamics that we believe will offer growth opportunities in other areas. Today, most insurance providers currently have a single-source roadside solution, which we believe will change as insurance providers reevaluate their contracts and partnerships. We believe that most of the single-source roadside contracts will have two providers in the future. The champion-challenger model is shown to produce better results for partners. We expect this trend to start in the near term. We believe this shift could be a growth driver for Urgently as we re-enter the insurance vertical as the dual source provider. In support of this strategy, we have recently hired a new VP of sales who is targeting these mid-market insurance companies. He has 15 years of experience and relationships within this market segment. As for the rest of Urgently, over the last 12 months, we've made significant progress in right-sizing our organization post our merger with Autonomo. We reduced our total headcount by 50% in the last 12 months and looked across all functions of the business to improve procedures and processes. As part of this process, we are also cultivating a culture where employees are encouraged to ask questions and propose ideas for improvements. We believe we have a team in place that has the capacity to scale for growth and maintain urgently standard of delivering exceptional service, visibility, and transparency to our customers. On that front, we are proud to have again achieved a customer service score of 4.6 out of five stars in Q1 2025. As we look ahead in 2025, our core priorities remain, one, return to growth. by expanding our B2B incident business through securing renewals, expanding relationships with existing partners, and developing new customer partner opportunities. Two, continuing to maintain non-GAAP operating break-evens for our operational improvements, margin expansion, and managed growth. And three, transforming the market for roadside solutions with product innovations that differentiate urgently from our competitors. and improve our margin and provide exceptional experiences for our customer partners and drivers. I am proud of the progress we have made this past quarter. The momentum is strong, and I look forward to the remainder of the year ahead. Thank you for your time and continued support. I'll now turn the call over to Tim to discuss our financial results.