Urgent.ly Inc ((ULY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Urgent.ly Inc’s latest earnings call painted a picture of resilience and innovation, despite facing some challenges. The company reported record revenue performance and improved gross margins, while also acknowledging a decline in revenue due to customer termination and a non-GAAP operating loss. Nevertheless, Urgent.ly’s commitment to innovation and operational efficiency suggests a positive outlook for the future.
Record Revenue Achievement
Urgent.ly Inc achieved a remarkable milestone by reporting a revenue of $31.7 million, marking its best quarter since becoming a public company. This achievement also signifies the eighth consecutive quarter of meeting revenue guidance, showcasing the company’s consistent performance.
Gross Margin Improvement
The company reported an improvement in gross margin to 25%, which falls within its midterm outlook range of 25% to 30%. This represents a 4-point increase compared to the same period last year, highlighting the company’s operational efficiencies.
Reduction in Operating Expenses
Urgent.ly successfully reduced its operating expenses by $5.6 million, a 36% decrease from the previous year. This reduction underscores the company’s focus on achieving significant operational efficiencies.
Successful Contract Renewals
The company secured renewals with long-term customer partners, including a rideshare company, and is in ongoing negotiations for additional renewals. These renewals are crucial for maintaining steady revenue streams and customer relationships.
Innovative AI Deployment
Urgent.ly launched SPARK, an AI-powered market analyzer, which has significantly reduced wait times in urban areas, particularly in Miami Beach. This innovation has improved customer experience and satisfaction.
Revenue Decline
Despite the positive highlights, Urgent.ly experienced an 8% year-over-year revenue decline, amounting to $3 million. This was primarily due to the termination of a major OEM customer and a reduction in the Otonomo business.
Non-GAAP Operating Loss
The company reported a non-GAAP operating loss of $199,000, attributed to a one-time cost from the remaining portion of the Otonomo business. However, this was better than the anticipated loss of $500,000, indicating progress in operational efficiency.
Forward-Looking Guidance
Looking ahead, Urgent.ly aims for a 20% to 30% growth following the Otonomo merger, with a focus on expanding its B2B incident business and entering new markets. The company also plans to leverage its AI and machine learning platform to optimize operations further, as evidenced by the recent launch of SPARK.
In summary, Urgent.ly Inc’s earnings call highlighted a strong performance with record revenue and improved margins, despite facing some revenue challenges. The company’s focus on innovation and operational efficiency, along with its forward-looking growth strategies, suggests a promising future.