Urgent.ly Inc ((ULY)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Urgent.ly Inc’s recent earnings call conveyed a positive sentiment, highlighting significant achievements in gross margin, operating breakeven, and cost reductions. Despite challenges such as a revenue decline due to past customer nonrenewals and ongoing cash issues, the company remains optimistic about its financial trajectory.
Record Gross Margin Achievement
Urgent.ly Inc reported a record gross margin of 25.5%, aligning with their midterm outlook of 25% to 30%. This marks a substantial increase of 5.6 percentage points over the past 18 months, showcasing the company’s effective cost management strategies.
Non-GAAP Operating Breakeven Milestone
For the first time, Urgent.ly achieved non-GAAP operating breakeven in March 2025. This milestone reflects positive momentum and significant progress towards fulfilling their financial commitments, indicating a promising future for the company.
Substantial Reduction in Operating Expenses
The company successfully reduced operating expenses by 41% year-over-year. Notable reductions were seen in R&D (54%), Sales and Marketing (65%), and Operations and Support (44%), demonstrating a strong focus on cost efficiency.
Customer Service Excellence
Urgent.ly maintained a high customer service score of 4.6 out of 5 stars in Q1 2025, underscoring their commitment to exceptional service delivery and customer satisfaction.
Strategic Partnerships and Renewals
The company secured a renewal with one of the largest global fleet management companies, highlighting its strong and expanding partnerships, which are crucial for sustained growth.
Revenue Decline
First-quarter revenue was reported at $31.3 million, a 22% decline from the previous year. This decrease was primarily due to a nonrenewal with a customer partner and reductions related to Otonomo, presenting a challenge for the company.
Reduced Cash and Increased Debt
Urgent.ly’s cash and cash equivalents decreased to $6.4 million, while the net principal debt balance increased to $56.7 million, reflecting ongoing financial challenges that the company needs to address.
Forward-Looking Guidance
Urgent.ly anticipates positive sequential revenue growth in Q3 2025 and aims for non-GAAP operating breakeven by mid-2025. The company plans to expand into the mid-market insurance sector using a Champion Challenger model, signaling a strategic approach to future growth.
In summary, Urgent.ly Inc’s earnings call highlighted a positive outlook despite some financial challenges. The company’s achievements in gross margin, operating breakeven, and cost reductions are commendable, and their strategic partnerships and customer service excellence provide a solid foundation for future growth.