Urgent.ly (ULY) 2024 Sidoti Virtual Micro-Cap Conference summary

Business overview and technology

• Provides roadside assistance to fleets and OEMs, focusing on exceptional customer experience and real-time service tracking across North America.

• Technology-driven platform uses geospatial search, data science, and machine learning for efficient service matching and margin improvement.

• Over 5 million rescues completed with customer ratings averaging 4.5–4.6 out of 5 stars.

• Investors include major automotive brands and rental companies.

• Focused on connected car diagnostics and real-time vehicle signal interpretation.

Financial performance and outlook

• 2023 revenue was about $185 million; 2024 revenue expected between $141–$144 million.

• Targeting non-GAAP break-even operating loss of ~$2 million in Q4 2024 and break-even operating expense in Q1 2025.

• Achieved 20-point margin improvement over recent years through tech and business optimization.

• Post-merger, aims for 20–30% annual revenue growth and 25–30% gross margin.

• Substantial headcount reduction (340 FTEs) year-over-year, including integration of Otonomo assets.

Market and competitive landscape

• Competes mainly with AAA and a large Boston-based B2B provider; now seen as a scalable alternative.

• 100% penetration with BMW; growth strategy includes expanding services and international opportunities.

• Sales approach leverages strong service reputation and word-of-mouth in a concentrated industry.

• Pipeline targets $400–$600 million in annual B2B roadside contract opportunities.