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Urgent.ly Inc. (ULY)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $32.0M, down 29% y/y; gross margin was 22% (vs 23% y/y), and GAAP operating loss improved 81% to $(4.6)M; non-GAAP operating loss improved 62% to $(3.0)M .
  • Management cited a previously announced OEM non‑renewal as the primary driver of revenue decline; renewals and new customers partially offset, with revenue delivered “in line with expectations” .
  • Capital structure actions post-quarter: new $20M asset-based revolver with MidCap (plus potential $5M add-on) and extension of second lien maturity to July 31, 2026; reverse stock split at 1-for-12 to regain Nasdaq compliance .
  • Q1 2025 outlook: revenue $30–33M and non‑GAAP operating loss “less than $1M”; target non‑GAAP breakeven moved to mid‑2025 (prior guidance targeted Q1 2025), a modest timing setback .

What Went Well and What Went Wrong

  • What Went Well

    • Continued cost discipline: GAAP operating expenses fell 65% y/y in Q4 to $11.7M; non‑GAAP operating expenses fell 44% y/y to $10.1M .
    • Margin resiliency: Q4 gross margin 22%; full‑year gross margin improved 160 bps to 22%, driven by mix and pricing/technology optimizations (AI‑driven dynamic pricing) .
    • Contract execution: management highlighted multiple renewals (global OEM, fleet manager, rental company) and new launches; “fifth consecutive quarter” of delivering revenue guidance .

  • What Went Wrong

    • Top-line headwind: Q4 revenue down 29% y/y due to the OEM non‑renewal; dispatches declined to ~201K (from ~219K in Q3) .
    • Non‑GAAP operating loss came in at $(3.0)M for Q4, above prior expectation from Q3 call (~$(2)M) largely due to an ~$0.8M business tax expense and ~$0.5M write-off tied to a terminated OEM integration .
    • Breakeven timing: target for non‑GAAP operating breakeven pushed from Q1 2025 to mid‑2025 despite ongoing cost reductions .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$34.5 $36.2 $32.0
Gross Profit ($USD Millions)$7.3 $7.8 $7.1
Gross Margin (%)21% 21% 22%
GAAP Operating Loss ($USD Millions)$(8.34) $(5.89) $(4.62)
Non‑GAAP Operating Loss ($USD Millions)$(6.17) $(2.95) $(2.99)
Net Income (Loss) ($USD Millions)$(11.67) $(10.61) $(8.73)
Diluted EPS ($USD)$(0.87) $(0.79) $(0.65)

KPIs

KPIQ2 2024Q3 2024Q4 2024
Dispatches (Approx.)~205,000 ~219,000 ~201,000
Consumer Satisfaction Score4.5/5 (Q2); 4.6/5 YTD 4.5/5 4.5/5

Estimate Comparison (Wall Street)

MetricQ4 2024 ActualQ4 2024 Street Consensus
Revenue ($USD Millions)$32.0 N/A (Unavailable via S&P Global due to access limits)
Diluted EPS ($USD)$(0.65) N/A (Unavailable via S&P Global due to access limits)
Note: Estimates unavailable via S&P Global at time of writing; we will update once available.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q4 2024$30–33 (Q3 call) Actual $32.0 Delivered in range
Non‑GAAP Operating Loss ($USD Millions)Q4 2024~$(2.0) (Q3 call) Actual $(3.0) Miss (higher loss)
Revenue ($USD Millions)Q1 2025N/A$30–33 New
Non‑GAAP Operating Loss ($USD Millions)Q1 2025Target breakeven Q1 2025 (implied) “Less than $1M” loss Lowered
Non‑GAAP Breakeven Timing2025Q1 2025 target Mid‑2025 target Deferred
Long‑term Gross Margin TargetMulti‑year25–30% reiterated 25–30% reiterated Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/dynamic pricing & techLaunching AI-driven yield-based pricing; 22% YTD gross margin (+200 bps) Continued tech optimizations cited for margin; industry award recognition carried over Improving
Customer renewals/new logosMultiple OEM/fleet/rental renewals; 3 new partners; renewals ~50% of run-rate revenue Renewed/expanded contracts; late Q4 launch of RV lifestyle brand; D2C aggregator launching 2025 Stable/positive
Revenue mix/seasonalityMix shift to lower-margin jobs; summer travel can compress margins Q4 revenue in line; margins 22%; noted OEM termination impact Mixed
Cost optimization/headcountBPO migration cuts; ops/support down; headcount reductions post-merger Opex down 65% y/y; continued process/tech efficiencies Improving
Capital structure & liquidityWorking capital line & maturities under negotiation $20M ABL signed; 2nd lien maturity to 7/31/2026; reverse split to regain Nasdaq compliance Improving
Breakeven pathTarget Q1 2025 non‑GAAP breakeven Target mid‑2025 breakeven; Q1 loss < $1M Slightly worse timing

Management Commentary

  • “We delivered revenue of $32 million… our fifth consecutive quarter where we delivered on our revenue guidance commitment. We also continue to make improvements in both non‑GAAP operating expense and non‑GAAP operating loss.” – CEO Matt Booth .
  • “We significantly improved our capital structure… an asset-based revolving credit facility for up to $20 million with MidCap Financial… and extended our second lien term loan until July 31, 2026.” – CFO Tim Huffmyer .
  • “We are targeting non‑GAAP operating breakeven in mid‑2025.” – CEO/CFO .
  • “We developed AI-driven dynamic pricing technology… to reliably predict and optimize job prices for roadside assistance services…” – CEO Matt Booth .

Q&A Highlights

  • Pricing & renewals: Pricing “holding pretty well” with CPI escalators; VIP tiers priced higher; renewals not requiring concessions .
  • New customer ramp layering: Late Q4 launch with gradual ramp into Q1; full run-rate anticipated early Q2 2025 .
  • Q1 guidance vs Q4: Flattish due to loss of a larger contract offset by smaller additions; limited seasonality impact .
  • Call center/BPO reorg: Quality maintained at 4.5/5 CSAT; nearshore used strategically; no expected churn risk from shift .

Estimates Context

  • Consensus estimates for Q4 2024 revenue and EPS were unavailable via S&P Global at time of writing; we will update when accessible. Management delivered revenue in line with internal expectations, but Street comparisons cannot be made without consensus data .
    Note: S&P Global access limitation prevented retrieval of consensus estimates.

Key Takeaways for Investors

  • Cost control is working: GAAP opex down 65% y/y and non‑GAAP opex down 44% y/y in Q4; expect continued leverage from BPO, process optimization, and tech .
  • Top-line stabilization in sight: Renewals/new launches and Q1 revenue guide ($30–33M) suggest near-term stability after OEM non‑renewal; monitor ramp of new D2C and RV programs .
  • Margin trajectory positive but mixed: Q4 gross margin 22% and full-year +160 bps improvement, aided by AI pricing; mix/seasonality remains a swing factor .
  • Breakeven timing slips: Non‑GAAP breakeven shifted to mid‑2025; Q1 2025 non‑GAAP loss guided to < $1M—watch quarter-to-quarter execution and incremental margin projects .
  • Capital structure risk mitigated: $20M ABL and second lien extension reduce near-term refinancing risk; reverse split to regain Nasdaq compliance is a potential stock catalyst .
  • Trading implications (short term): Expect range-bound trading around guidance cadence and capital structure headlines; upside on execution of new contracts and margin initiatives; downside if mix/seasonality or customer changes pressure margins .
  • Medium-term thesis: If renewals/new logos sustain revenue base and AI/pricing plus BPO efficiencies lift margins to the 25–30% target over time, mid‑2025 breakeven is achievable; capital structure steps support operating runway .

Additional references:

  • Full-year 2024 results and balance sheet (included in Q4 8‑K press release exhibit) .
  • Reverse stock split details (1-for-12; effective March 17, 2025) .