Strong Gross Profit Growth Reflects
Operational Execution Against Strategic Initiatives
Urgent.ly Inc. (Nasdaq: ULY) (“Urgently”), a U.S.-based leading
provider of digital roadside and mobility assistance technology and
services, today reported financial results for the third quarter
ended September 30, 2023.
As previously announced, the acquisition by Urgently of Otonomo
Technologies Ltd. (“Otonomo”) (the “Merger”) closed on October 19,
2023 during Urgently’s fourth quarter, and Urgently’s common stock
began trading on Nasdaq on the same day. This press release
reflects financial results for the three and nine months ended
September 30, 2023 and 2022 for each of Urgently and Otonomo on a
standalone basis. Also presented herein are certain non-GAAP
financial measures presented on a standalone basis for each of
Urgently and Otonomo and on a combined company basis. Urgently’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
2023 that will be filed with the Securities and Exchange Commission
(the “SEC”) only reflects Urgently’s financial results for the
periods presented therein. The Annual Report on Form 10-K for the
fiscal year ended December 31, 2023 that Urgently will file with
the SEC will be presented on a combined company basis.
Urgently's Third Quarter 2023 Highlights:
- Revenue of $46.0 million, a decrease of 12% year over
year.
- Gross profit of $9.2 million, an increase of 52% year over
year.
- Gross margin of 20% compared to 12% from the prior year
period.
- GAAP operating loss of $5.8 million compared to GAAP operating
loss of $13.1 million from the prior year period, a reduction of
55%.
- Non-GAAP operating loss of $3.5 million compared to Non-GAAP
operating loss of $12.4 million from the prior year period, a
reduction of 71%.
- Approximately 290,000 dispatches completed.
- Consumer satisfaction score of 4.5.
Urgently's Third Quarter Year-to-Date 2023
Highlights:
- Revenue of $139.6 million, an increase of 3% year over
year.
- Gross profit of $27.7 million, an increase of 136% year over
year.
- Gross margin of 20% compared to 9% from the prior year
period.
- GAAP operating loss of $22.3 million compared to GAAP operating
loss of $45.1 million from the prior year period, a reduction of
51%.
- Non-GAAP operating loss of $13.1 million compared to Non-GAAP
operating loss of $42.1 million from the prior year period, a
reduction of 69%.
- Approximately 879,000 dispatches completed.
- Consumer satisfaction score of 4.5.
“I’m pleased with our solid performance during the third
quarter, which reflects the progress of our profitability-driven
organizational optimization initiatives,” said Matt Booth, CEO of
Urgently. “We believe we are in the very early stages of a large
and transformative market opportunity driven by technological
innovations. As we look ahead, we are committed to leading the
transformation to connected mobility and we look forward to
continuing to improve proactive and preventative customer
experiences.”
Booth continued, “We are incredibly proud of the significant
milestones we achieved over the past month. We successfully
completed the acquisition of Otonomo, which further strengthens
Urgently’s unique market position as a leading roadside assistance
software provider. In addition, we completed our listing on Nasdaq,
which underscores our belief in the long-term growth prospects of
this business and the strategic steps we are taking to drive value
to shareholders. Finally, we are showing tremendous improvements
from our profitability led initiatives.”
Earnings Conference Call and Audio Webcast
Urgently will host a conference call to discuss the third
quarter 2023 financial results on November 14, 2023 at 8:00 a.m.
Eastern Time. The conference call can be accessed live over the
phone by dialing 1-844-825-9789 (USA) or 1-412-317-5180
(International). The conference call replay will be available from
11:00 a.m. Eastern Time on November 14, 2023, through November 28,
2023, by dialing 1-844-512-2921 (USA) or 1-412-317-6671
(International). The replay passcode will be 10183996.
The call will also be webcast live from Urgently’s investor
relations website at https://investors.geturgently.com. Following
the completion of the call, a recorded replay of the webcast will
be available on the website.
About Urgently
Urgently keeps vehicles and people moving by delivering safe,
innovative, and exceptional mobility assistance experiences. The
company’s digitally native software platform combines
location-based services, real-time data, AI and machine-to-machine
communication to power roadside assistance solutions for leading
brands across automotive, insurance, telematics and other
transportation-focused verticals. Urgently fulfills the demand for
connected roadside assistance services, enabling its partners to
deliver exceptional user experiences that drive high customer
satisfaction and loyalty, by delivering innovative, transparent and
exceptional connected mobility assistance experiences on a global
scale. For more information, visit www.geturgently.com.
Non-GAAP Financial Measures
In addition to our financial information presented in accordance
with GAAP, we believe Non-GAAP Operating Loss is useful to
investors in evaluating our operating performance. We use the
non-GAAP financial measure to evaluate our ongoing operations and
for internal planning and forecasting purposes. We believe that the
non-GAAP financial measure, when taken together with the
corresponding GAAP financial measure, may be helpful to investors
because it provides consistency and comparability with past
financial performance and meaningful supplemental information
regarding our performance by excluding certain items that may not
be indicative of our business, results of operations, or outlook.
The non-GAAP financial measure is presented for supplemental
informational purposes only, has limitations as an analytical tool,
and should not be considered in isolation or as a substitute for
financial information presented in accordance with GAAP and may be
different from a similarly-titled non-GAAP financial measure used
by other companies. In addition, other companies, including
companies in our industry, may calculate a similarly-titled
non-GAAP financial measure differently or may use other measures to
evaluate their performance, which could reduce the usefulness of
the non-GAAP financial measure presented herein as a tool for
comparison.
A reconciliation is provided below for the non-GAAP financial
measure to the most directly comparable financial measure stated in
accordance with GAAP. Investors are encouraged to review the
related GAAP financial measure and the reconciliation of the
non-GAAP financial measure to our most directly comparable GAAP
financial measure, and not to rely on any single financial measure
to evaluate our business. We define Non-GAAP Operating Loss as
operating loss, excluding depreciation and amortization expense,
stock-based compensation expense, and non-recurring charges (or
income) such as transaction and restructuring costs.
For a discussion of Non-GAAP Operating Expenses, please see the
section titled “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in Urgently’s Quarterly Report
on Form 10-Q for the quarter ended September 30, 2023, which will
be filed with the SEC by November 14, 2023.
Forward Looking Statements
This press release contains or may contain “forward-looking
statements” within the meaning of the Securities Act of 1933, as
amended, and Section 21E of the Exchange Act of 1934, as amended,
which statements involve substantial risks and uncertainties.
Forward-looking statements generally relate to future events or
Urgently’s future financial or operating performance. Such
statements are based upon current plans, estimates and expectations
of management of Urgently in light of historical results and
trends, current conditions and potential future developments, and
are subject to various risks and uncertainties that could cause
actual results to differ materially from such statements. The
inclusion of forward-looking statements should not be regarded as a
representation that such plans, estimates and expectations will be
achieved. Forward-looking terms such as “may,” “will,” “could,”
“should,” “would,” “plan,” “potential,” “intend,” “anticipate,”
“project,” “predict,” “target,” “believe,” “continue,” “estimate”
or “expect” or the negative of these words or other words, terms
and phrases of similar nature are often intended to identify
forward-looking statements, although not all forward-looking
statements contain these identifying words. All statements, other
than historical facts, including, without limitation, statements
regarding Urgently’s profitability; the expected benefits of the
Merger; the market position of the combined company against current
and future competitors; and any assumptions underlying any of the
foregoing, are forward-looking statements.
There are a significant number of factors that could cause
actual results to differ materially from statements made in this
press release and our earnings call, including but not limited to:
risks associated with our ability to raise funds through future
financings and the sufficiency of our cash and cash equivalents to
meet our liquidity needs; our history of losses; our limited
operating history; our ability to integrate and realize potential
benefits from the Merger; our ability to service our debt and
comply with our debt agreements; our ability to retain customers
and expand existing customers’ use of our platform; our ability to
attract new customers; our ability to expand into new solutions,
technologies and geographic regions; our ability to adequately
forecast consumer demand and optimize our network of service
providers; our ability to compete in the markets in which we
participate; our ability to comply with laws and regulations
applicable to our business; and expectations regarding the impact
of weather events, natural disasters or health epidemics, including
the COVID-19 pandemic and the war between Hamas and Israel, on our
business. Our actual results could differ materially from those
stated or implied in forward-looking statements due to a number of
factors, including but not limited to, risks detailed in our
filings with the Securities and Exchange Commission, including in
our Registration Statement on Form S-1, as amended, which was
declared effective by the SEC on October 19, 2023 (the
“Registration Statement”), our quarterly reports on Form 10-Q, and
other filings and reports that we may file from time to time with
the SEC. Forward-looking statements represent our beliefs and
assumptions only as of the date of this press release. We disclaim
any obligation to update forward-looking statements.
Unaudited Condensed Consolidated
Balance Sheets for Urgently
(in thousands)
September 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
8,673
$
6,357
Restricted cash
1,050
1,050
Accounts receivable, net
25,719
33,966
Prepaid expenses and other current
assets
1,773
2,102
Total current assets
37,215
43,475
Right-of-use assets
1,977
2,485
Property and equipment, net
308
414
Intangible assets, net
31
31
Other non-current assets
456
538
Total assets
$
39,987
$
46,943
LIABILITIES, REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
12,692
$
7,536
Accrued expenses
18,203
13,122
Accrued interest
13,368
6,689
Deferred revenue, current
154
349
Current lease liabilities
636
740
Derivative liability, current
31,142
—
Current portion of long-term debt, net
62,710
—
Total current liabilities
138,905
28,436
Long-term lease liabilities
1,674
2,120
Long-term debt, net
65,560
99,443
Derivative liability
928
32,765
Warrant liability
11,479
13,957
Other long-term liabilities
9,076
5,059
Total liabilities
227,622
181,780
Redeemable convertible preferred stock
46,334
46,334
Stockholders' deficit:
Common stock
—
—
Additional paid-in capital
48,549
48,327
Accumulated deficit
(282,518
)
(229,498
)
Total stockholders' deficit
(233,969
)
(181,171
)
Total liabilities, redeemable convertible
preferred stock and stockholders' deficit
$
39,987
$
46,943
Unaudited Condensed Consolidated
Balance Sheets for Otonomo
(in thousands)
September 30, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
45,448
$
22,448
Restricted cash
291
346
Short-term deposits
10,423
62,262
Marketable securities
57,456
55,587
Accounts receivable, net
930
1,271
Prepaid expenses and other current
assets
1,004
3,043
Total current assets
115,552
144,957
Right-of-use assets
1,061
2,040
Property and equipment, net
657
1,043
Other non-current assets
426
606
Total assets
$
117,696
$
148,646
LIABILITIES, REDEEMABLE CONVERTIBLE
PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable
$
775
$
1,020
Accrued expenses and other payables
8,725
11,123
Deferred revenue, current
378
216
Current lease liabilities
441
729
Total current liabilities
10,319
13,088
Long-term lease liabilities
560
1,225
Warrant liability
—
155
Other long-term liabilities
—
750
Total liabilities
10,879
15,218
Stockholders' deficit:
Common stock
—
—
Additional paid-in capital
374,957
370,412
Accumulated deficit
(268,140
)
(236,984
)
Total stockholders' deficit
106,817
133,428
Total liabilities, redeemable convertible
preferred stock and stockholders' deficit
$
117,696
$
148,646
Unaudited Condensed Statements of
Operations for the Three Months Ended September 30, 2023
(in thousands)
Urgently
Otonomo
Revenue
$
46,047
$
1,570
Cost of revenue
36,869
442
Cloud infrastructure
—
493
Gross profit
9,178
635
Operating expenses:
Research and development
3,667
2,683
Sales and marketing
899
1,407
Operations and support
5,418
—
General and administrative
4,978
4,874
Depreciation and amortization
64
164
Contingent consideration expense
—
6
Total operating expenses
15,026
9,134
Operating loss
(5,848
)
(8,499
)
Other income (expense), net:
Interest expense
(15,438
)
—
Interest income
—
1,159
Change in fair value of derivative
liability
(5,504
)
—
Change in fair value of warrant
liability
(2,035
)
—
Other
(27
)
(610
)
Total other expense, net
(23,004
)
549
Loss before income taxes
(28,852
)
(7,950
)
Provision for income taxes
—
298
Net loss
$
(28,852
)
$
(8,248
)
Unaudited Condensed Statements of
Operations for the Three Months Ended September 30, 2022
(in thousands)
Urgently
Otonomo
Revenue
$
52,134
$
1,965
Cost of revenue
46,078
1,002
Cloud infrastructure
—
1,342
Gross profit (loss)
6,056
(379
)
Operating expenses:
Research and development
4,552
5,750
Sales and marketing
1,431
5,398
Operations and support
9,976
—
General and administrative
3,152
4,417
Depreciation and amortization
77
955
Contingent consideration income
—
(6,191
)
Impairment of goodwill
—
12,687
Impairment of intangible assets
—
13,569
Total operating expenses
19,188
36,585
Operating loss
(13,132
)
(36,964
)
Other income (expense), net:
Interest expense
(11,324
)
—
Interest income
3
219
Change in fair value of warrant
liability
2,144
—
Warrant expense
(736
)
—
Other
(12
)
(300
)
Total other expense, net
(9,925
)
(81
)
Loss before income taxes
(23,057
)
(37,045
)
Provision for income taxes
—
288
Net loss
$
(23,057
)
$
(37,333
)
Unaudited Condensed Statements of
Operations for the Nine Months Ended September 30, 2023
(in thousands)
Urgently
Otonomo
Revenue
$
139,602
$
5,035
Cost of revenue
111,905
2,086
Cloud infrastructure
—
1,782
Gross profit
27,697
1,167
Operating expenses:
Research and development
11,077
8,888
Sales and marketing
2,846
7,919
Operations and support
18,665
—
General and administrative
17,215
15,782
Depreciation and amortization
198
312
Contingent consideration expense
—
2,067
Total operating expenses
50,001
34,968
Operating loss
(22,304
)
(33,801
)
Other income (expense), net:
Interest expense
(39,608
)
—
Interest income
—
3,540
Change in fair value of derivative
liability
1,523
—
Change in fair value of warrant
liability
3,525
—
Warrant expense
(1,047
)
—
Gain on debt extinguishment
4,913
—
Other
(22
)
(410
)
Total other expense, net
(30,716
)
3,130
Loss before income taxes
(53,020
)
(30,671
)
Provision for income taxes
—
374
Net loss
$
(53,020
)
$
(31,045
)
Unaudited Condensed Statements of
Operations for the Nine Months Ended September 30, 2022
(in thousands)
Urgently
Otonomo
Revenue
$
135,623
$
4,916
Cost of revenue
123,870
2,343
Cloud infrastructure
—
3,834
Gross profit (loss)
11,753
(1,261
)
Operating expenses:
Research and development
12,951
16,406
Sales and marketing
4,275
15,901
Operations and support
28,918
—
General and administrative
10,515
15,489
Depreciation and amortization
221
2,683
Contingent consideration income
—
(7,732
)
Impairment of goodwill
—
49,687
Impairment of intangible assets
—
22,354
Total operating expenses
56,880
114,788
Operating loss
(45,127
)
(116,049
)
Other income (expense), net:
Interest expense
(20,523
)
—
Interest income
6
221
Change in fair value of warrant
liability
3,916
—
Warrant expense
(962
)
—
Other
(75
)
128
Total other expense, net
(17,638
)
349
Loss before income taxes
(62,765
)
(115,700
)
Provision for income taxes
—
568
Net loss
$
(62,765
)
$
(116,268
)
Non-GAAP Financial Measures: Reconciliation of Operating Loss to
Non-GAAP Operating Loss (in thousands)
For the Three
Months Ended September 30, 2023
Urgently
Otonomo
Combined
Operating loss
$
(5,848
)
$
(8,499
)
$
(14,347
)
Add: Depreciation and amortization
expense
64
164
228
Add: Stock-based compensation expense
69
1,052
1,121
Add: Non-recurring transaction costs
1,970
852
2,822
Add: Restructuring costs
201
46
247
Add: Contingent consideration expense
(income)
—
6
6
Non-GAAP operating loss
$
(3,544
)
$
(6,379
)
$
(9,923
)
For the Three
Months Ended September 30, 2022
Urgently
Otonomo
Combined
Operating loss
$
(13,132
)
$
(36,964
)
$
(50,096
)
Add: Depreciation and amortization
expense
77
955
1,032
Add: Stock-based compensation expense
110
2,571
2,681
Add: Non-recurring transaction costs
120
31
151
Add: Restructuring costs
427
—
427
Add: Contingent consideration expense
(income)
—
(6,191
)
(6,191
)
Add: Impairment of goodwill and intangible
assets
—
26,256
26,256
Non-GAAP operating loss
$
(12,398
)
$
(13,342
)
$
(25,740
)
For the Nine
Months Ended September 30, 2023
Urgently
Otonomo
Combined
Operating loss
$
(22,304
)
$
(33,801
)
$
(56,105
)
Add: Depreciation and amortization
expense
198
312
510
Add: Stock-based compensation expense
222
4,231
4,453
Add: Non-recurring transaction costs
8,449
4,920
13,369
Add: Restructuring costs
337
1,654
1,991
Add: Contingent consideration expense
(income)
—
2,067
2,067
Non-GAAP operating loss
$
(13,098
)
$
(20,617
)
$
(33,715
)
For the Nine
Months Ended September 30, 2022
Urgently
Otonomo
Combined
Operating loss
$
(45,127
)
$
(116,049
)
$
(161,176
)
Add: Depreciation and amortization
expense
221
2,683
2,904
Add: Stock-based compensation expense
411
7,451
7,862
Add: Non-recurring transaction costs
1,339
1,083
2,422
Add: Restructuring costs
1,054
—
1,054
Add: Contingent consideration expense
(income)
—
(7,732
)
(7,732
)
Add: Impairment of goodwill and intangible
assets
—
72,041
72,041
Non-GAAP operating loss
$
(42,102
)
$
(40,523
)
$
(82,625
)
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