Urgent.ly, Inc. Q2 FY2025 earnings call

• Revenue: Secured first renewal for 2025 with a long-term customer partner, a 2-year rideshare contract renewal with auto-renewal provision, and is in contract negotiations for a third renewal.
• Insurance market: Hired VP of Sales to target mid-market insurance companies, initiated sales plan for private passenger auto insurance, launched top-of-the-funnel marketing campaign reaching over 50,000 insurance leaders, signed contract with a premium insurance provider, and in negotiations with additional insurance providers.
• AI and machine learning: Launched SPARK, an AI-powered market analyzer, which improved service performance in markets like Miami Beach, Fort Lauderdale, etc.
• Customer satisfaction: All-time high customer satisfaction score of 4.7 out of 5 stars in Q2 2025.

For the second quarter ended June 30, 2025, Urgently reported revenue of $31.7 million. Gross margin was 25%, an improvement from 21.2% in the same period last year. Non-GAAP operating loss for the quarter was approximately $200,000, which was better than the guidance of about $500,000. Revenue for the quarter was in line with expectations and marked the eighth consecutive quarter of meeting revenue guidance. Gross profit was $7.9 million, an increase of $600,000 from the same period last year due to margin improvement initiatives.

• For Q3 2025, expected revenue to be between $31 million to $34 million and target to maintain non-GAAP operating breakeven.
• Expect revenue pickup from premium insurance provider at end of Q3, beginning of Q4.
• Target 20% to 30% growth post Otonomo and integrating the Otonomo business.

• Forward-looking statements subject to risks, uncertainties, and assumptions as detailed in SEC filings.
• Impact of Otonomo business on revenue and expenses.
• Seasonality and market competition risks affecting performance.

Q: When should we expect to see revenue from the premium insurance provider that was landed?

A: End of Q3, beginning of Q4 is when we'll start to see the pickup in volume.

Q: How much of revenue do the renewals account for so far?

A: It's about 40% of the renewals that are up for this year, we've renewed so far with the other ones making very good progress.

Q: What's the sales cycle like for the insurance market?

A: No, just it depends on the company. Some can move really quickly and others just take a while given their size and complexity. It's pretty much following the standard playbook, which is big companies have a propensity to move a little bit slower and smaller, more nimble companies can move a little bit faster, but we haven't seen anything out of the ordinary.

Q: When will recurring, nonrecurring transaction costs and restructuring costs head towards 0?

A: In Otonomo, the particular one that we called out, we expect that to basically not continue any longer. On the Urgently side, there's still going to be some depending on our future transactions. And there may be some here and there, but we don't expect any large ones on an ongoing basis.