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

Business overview and strategy

• Provides technology-driven roadside assistance and mechanical services for fleets and auto manufacturers, focusing on quality and transparency.

• Achieved about $185 million in revenue last year while maintaining high service quality and customer satisfaction ratings.

• Partners and investors include major OEMs such as BMW, Porsche, Jaguar, Land Rover, and Enterprise.

• Focuses on expanding relationships with existing customers by adding new services like subscriptions, collision, and VIP programs.

• Contracts typically run three years, with renewals providing opportunities for expansion.

Technology and competitive differentiation

• Technology platform enables real-time job tracking, transparency, and predictive analytics using machine learning.

• Machine learning optimizes provider selection, margin, and service quality, resulting in a 10-15 point margin improvement over 24 months.

• Competes against legacy players like AAA and a large B2B provider, leveraging technology and scale to win large accounts.

• Positioned to benefit as large accounts seek to diversify providers for risk management.

Revenue model and financial outlook

• 95% of revenue is incident-based, paid per service event by OEMs or fleets; remaining revenue comes from subscriptions and SaaS.

• Revenue is forecastable due to multi-year contracts and historical breakdown data, with some seasonality and lumpiness from new contracts.

• Gross margin initiatives target 25%-30% in the incident business, with current performance nearing the lower end of that range.

• Expects to reach non-GAAP breakeven in Q1 2025, with cash burn decreasing and growth of 25%-30% projected after internal acquisitions.