Urgent.ly Inc (ULY) 2024 Q2 法說會逐字稿

Good afternoon, and welcome to Urgently's second-quarter 2024 conference call. As a reminder, today's call is being recorded, and your participation implies consent to such recording. (Operator Instructions)

下午好，歡迎參加 Urgently 的 2024 年第二季電話會議。謹此提醒，今天的通話正在錄音，您的參與即表示您同意此類錄音。（操作員說明）

With that, I would like to turn the call over to Jenny Mitchell, Vice President of Finance, Strategy and Investor Relations. You may proceed.

我想將電話轉給財務、策略和投資者關係副總裁珍妮·米切爾 (Jenny Mitchell)。您可以繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Urgently's financial results conference call for the second quarter ended June 30, 2024. On the call today, we have Urgently's CEO, Matt Booth; and CFO, Tim Huffmyer. Following that, in Tim's prepared remarks, we will take your questions.

謝謝你，接線生。大家下午好，感謝您參加 Urgently 截至 2024 年 6 月 30 日的第二季財務業績電話會議。今天的電話會議由 Urgently 執行長 Matt Booth 主持。和首席財務官蒂姆·赫夫邁爾。接下來，在提姆準備好的發言中，我們將回答你們的問題。

Before we begin, I would like to remind you that some of our comments today may contain forward-looking statements that are subject to risks, uncertainties and assumptions which could change. Should any of these risks materialize or should our assumptions prove to be incorrect, actual company results could differ materially from these forward-looking statements.

在開始之前，我想提醒您，我們今天的一些評論可能包含前瞻性陳述，這些陳述可能會受到可能變化的風險、不確定性和假設的影響。如果這些風險中的任何一個成為現實，或者我們的假設被證明是不正確的，公司的實際結果可能與這些前瞻性聲明有重大差異。

A description of these risks, uncertainties and assumptions and other factors that could affect our financial results is included in our SEC filings, including our most recent annual report on Form 10-K for the year ended December 31, 2023, our quarterly reports on Form 10-Q and other filings and reports that we may file from time to time with the SEC. Except as required by law, we do not undertake any responsibility to update these forward-looking statements.

這些風險、不確定性和假設以及可能影響我們財務表現的其他因素的描述包含在我們向SEC 提交的文件中，包括我們截至2023 年12 月31 日的最新10-K 表格年度報告、我們10 -K 表格的季度報告10-Q 以及我們可能不時向 SEC 提交的其他文件和報告。除法律要求外，我們不承擔更新這些前瞻性陳述的任何責任。

During today's call, we will also discuss certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings materials and press release which are available on our website at investors.urgently.com. A replay of today's call will also be posted on the website.

在今天的電話會議中，我們還將討論某些非公認會計準則財務指標。我們的獲利資料和新聞稿中包含 GAAP 與非 GAAP 衡量標準的調整表，這些資料和新聞稿可在我們的網站 Investors.urgently.com 上取得。今天電話會議的重播也將發佈在網站上。

With that, I'll now turn the call over to Matt.

現在，我將把電話轉給馬特。

Thank you, Jenny. Good afternoon, everyone, and thank you for joining us today for our second-quarter 2024 earnings call.

謝謝你，珍妮。大家下午好，感謝您今天參加我們的 2024 年第二季財報電話會議。

Overall, we are pleased with our second quarter results, which were in line with our revenue expectations. We remain focused on executing against our strategic initiatives to drive financial and operational improvements, specifically in the areas of providing exceptional customer experience and eliminating the post-merger operating loss.

整體而言，我們對第二季的業績感到滿意，這符合我們的營收預期。我們仍然專注於執行我們的策略性舉措，以推動財務和營運改進，特別是在提供卓越的客戶體驗和消除合併後營運損失方面。

In addition, and as we have highlighted in the last quarter, we have also shifted our focus to accelerating profitable growth. As a reminder, our group has historically been lumpy driven by large enterprise contracts that drive additional revenue and growth once they are launched.

此外，正如我們在上個季度所強調的那樣，我們還將重點轉向加速獲利成長。提醒一下，我們的集團歷來都是由大型企業合約推動的，這些合約一旦啟動就會帶來額外的收入和成長。

To that end, I am proud of the effort across the entire team to deliver renewals of all three customer partner contracts that were set to conclude and which collectively generated more than a third of our revenue for the second quarter which today, we reported at $34.5 million for the quarter.

為此，我為整個團隊為續簽所有三份客戶合作夥伴合約而付出的努力感到自豪，這些合約將共同為我們第二季度帶來超過三分之一的收入，今天我們報告的收入為 34.5 美元本季為100 萬元。

In addition, we secured new customer partners as well as contract expansion with our existing customer partner portfolio and we did not intentionally terminate any contracts. We believe these renewals, expansions and new customer wins are a further validation of the significant value we deliver to our customer partners through the strength of our service and leading technology.

此外，我們還獲得了新的客戶合作夥伴以及現有客戶合作夥伴組合的合約擴展，並且我們沒有故意終止任何合約。我們相信，這些更新、擴張和新客戶的贏得進一步驗證了我們透過服務實力和領先技術為客戶合作夥伴提供的重要價值。

Now let me spend a few minutes discussing our growth and business expansion efforts more broadly as well as providing details on our customer partner renewals and expansions. As we have previously stated, the average length of a customer partner contract is about three years.

現在，讓我花幾分鐘時間更廣泛地討論我們的成長和業務擴展工作，並提供有關我們的客戶合作夥伴續約和擴展的詳細資訊。正如我們之前所說，客戶合作夥伴合約的平均期限約為三年。

So approximately a third of our customer contracts come up for renewal each year. Renewals not only shore up our revenue forecast, but we believe they also demonstrate our commitment to long-term customer partner relationships and service proof points for our strength in the marketplace as an innovator in the roadside industry.

因此，每年大約有三分之一的客戶合約需要續約。續約不僅支撐了我們的收入預測，而且我們相信，它們還體現了我們對長期客戶合作夥伴關係的承諾，並證明了我們作為路邊行業創新者在市場上的實力。

During the second quarter, among our customer partner renewals, we renewed contracts with two of our global OEM customer partners, which we announced via press releases. The first a global automotive OEM known for its focus on safety, quality and innovation, has extended our relationship for another two years. Under the contract renewal, we will continue to power their warranty-based roadside assistance program, as well as their post-warranty roadside assistance membership plans in the US, Canada, and Mexico.

在第二季度，在我們的客戶合作夥伴續約中，我們與兩個全球 OEM 客戶合作夥伴續簽了合同，我們透過新聞稿宣布了這一點。作為第一家以注重安全、品質和創新而聞名的全球汽車原始設備製造商，我們的合作關係又延長了兩年。根據續約合同，我們將繼續為其基於保固的道路救援計劃以及美國、加拿大和墨西哥的保固後道路救援會員計劃提供支援。

In addition, we also continue to provide assistance for operational, technical and mechanical breakdowns as well as accident-related telling services. The OEM partner will continue to leverage our comprehensive technology stack, which includes full roadside assistance, customer relationship management to support its outsourced call center operations and API-based integration into its customer-facing products.

此外，我們也持續提供營運、技術和機械故障方面的協助以及與事故相關的告知服務。OEM 合作夥伴將繼續利用我們全面的技術堆疊，其中包括全面的路邊援助、支援其外包呼叫中心營運的客戶關係管理以及基於 API 的整合到其面向客戶的產品中。

The second is also a two-year extension with a global OEM known for its precision engineering and commitment to delivering an unparalleled driving experience. Under the renewed contract, we will continue to power their warranty-based roadside assistance program as well as its post-warranty roadside assistance membership plan in the United States.

第二個也是與一家以其精密工程和致力於提供無與倫比的駕駛體驗而聞名的全球原始設備製造商延長兩年。根據續約的合同，我們將繼續為他們在美國的基於保固的道路救援計劃以及保固後道路救援會員計劃提供支援。

In addition to the two-year renewal, we also signed a new two-year agreement with this global OEM to expand geographically into Canada. This expansion recently launched on August 1. In addition to our customer partner expansions and renewals this quarter, we have also signed a new customer partner agreement with a direct-to-consumer subscription and insurance aggregator, which we'll launch later this year.

除了兩年續約之外，我們還與這家全球 OEM 簽署了一項新的兩年協議，以將業務擴展到加拿大。該擴展最近於 8 月 1 日推出。除了本季的客戶合作夥伴擴展和續約之外，我們還與直接面向消費者的訂閱和保險聚合商簽署了新的客戶合作夥伴協議，我們將於今年稍後推出。

All in all, it's been an extremely successful quarter in terms of renewals, expansion contracts and new business. I'm very appreciative of the efforts of the team to deliver these results. We're always excited to talk about our initiatives to reaccelerate growth post-merger integration as we see with our Q2 customer partner retention and expansion. We believe that delivering the best-in-class customer experience has historically been a primary differentiator for Urgently.

總而言之，就續約、擴展合約和新業務而言，這是一個非常成功的季度。我非常感謝團隊為實現這些成果所做的努力。我們總是很高興談論我們在合併後整合後重新加速成長的舉措，正如我們在第二季的客戶合作夥伴保留和擴張中所看到的那樣。我們相信，提供一流的客戶體驗一直是 Urgently 的主要差異化因素。

This quarter, we remain focused on quality and delivering exceptional service at scale which is reflected on the 4.5 customer satisfaction scores achieved during the second quarter and 4.6 satisfaction scores out of 5 for the year.

本季度，我們仍然專注於品質和大規模提供卓越服務，這反映在第二季度取得的 4.5 分客戶滿意度得分和全年 4.6 分滿意度得分（滿分 5 分）。

Our data and engineering teams continue to look for ways to apply technology to advance the motorists' experience. To further differentiate our customer experience, we recently announced the launch of the next-generation yield-based pricing as a product across our service provider network. Much like other industries, we believe the data and analytics around pricing and performance are a competitive advantage to deliver higher quality customer outcomes and margin improvement.

我們的數據和工程團隊不斷尋找應用技術來提升駕駛者體驗的方法。為了進一步差異化我們的客戶體驗，我們最近宣佈在我們的服務供應商網路中推出下一代基於收益的定價產品。與其他行業非常相似，我們相信圍繞定價和績效的數據和分析是提供更高品質的客戶成果和提高利潤的競爭優勢。

As a key feature of this product, Urgently now leverages micro target, which are much smaller geographic areas in either a ZIP code or a rural service area together with relevant historical data, make, model, time of day, population density, service quality, weather and other location-based data. And our AI-driven dynamic pricing technology reliably predicts and optimizes job prices for roadside assistance.

作為該產品的關鍵功能，Urgently 現在利用了微觀目標，這些目標是郵政編碼或農村服務區中更小的地理區域，以及相關的歷史數據、製造商、型號、一天中的時間、人口密度、服務品質、天氣和其他基於位置的數據。我們的人工智慧驅動的動態定價技術可以可靠地預測和優化路邊援助的工作價格。

We use this technology to better manage searches on roadside systems demand which we believe leads to faster job acceptance by service providers, resulting in shorter wait times for the stranded driver and a higher quality outcome for our customer partners. This all results in lower agent handle time, which we expect to continue to be reflected in our improved operational expenses, which Tim will review shortly.

我們使用這項技術來更好地管理路邊系統需求的搜索，我們相信這可以使服務提供者更快地接受工作，從而縮短滯留司機的等待時間，並為我們的客戶合作夥伴提供更高品質的結果。這一切都會減少代理處理時間，我們預計這將繼續反映在我們改進的營運費用中，而蒂姆很快就會對此進行審查。

For our customer partners, these insights and predictive pricing also help empower them to develop roadside assistance programs that best fit their business goals. One example from a luxury OEM partner, is to increase performance by market for specific makes and models to build a differentiated premium VIP program offering.

對於我們的客戶合作夥伴來說，這些見解和預測定價也有助於他們開發最適合其業務目標的路邊援助計劃。奢侈品 OEM 合作夥伴的一個例子是，按市場提高特定品牌和型號的性能，以建立差異化的優質 VIP 計劃產品。

More generally, it allows us to maximize service performance while maintaining a stable cost structure for our customer partners. We expect that future products will include the ability for customer partners to tailor the experience based on how they segment their customers.

更一般地說，它使我們能夠最大限度地提高服務績效，同時為我們的客戶合作夥伴保持穩定的成本結構。我們預計未來的產品將包括客戶合作夥伴根據客戶細分方式客製化體驗的能力。

Finally, and furthering our commitment to exceptional customer service, we reorganized the product and operations team under a single leadership structure into the customer experience team, which now reports into Gab Huerta, Urgently's Chief Product and Technology Officer. Our goal is to continue differentiating ourselves based on the customer journey regardless of how motorists access the service.

最後，為了進一步履行我們對卓越客戶服務的承諾，我們將單一領導架構下的產品和營運團隊重組為客戶體驗團隊，該團隊現在向 Urgently 首席產品和技術長 Gab Huerta 匯報工作。我們的目標是繼續根據客戶旅程使自己脫穎而出，無論駕駛者如何獲得服務。

We believe that integrating our product and operations team will promote a singular vision and ownership and providing an unparalleled experience across all channels, both digital and human.

我們相信，整合我們的產品和營運團隊將促進單一的願景和所有權，並在所有管道（數位管道和人力管道）中提供無與倫比的體驗。

Turning now to an update on gross margin. Improving margin continues to be an ongoing priority for us. In the near term, we have maximized the margin improvements related to pricing changes and partner mix that we have outlined on previous calls. We expect additional margin improvement to be driven by creating further efficiencies in the marketplace.

現在轉向毛利率的更新。提高利潤率仍然是我們的首要任務。在短期內，我們已經最大限度地提高了與定價變化和合作夥伴組合相關的利潤率，正如我們在先前的電話會議中概述的那樣。我們預計，進一步提高市場效率將推動利潤率進一步提高。

First, geographic area is one of the primary drivers of service network costs. We believe the next-generation yield-based pricing as a product initiative that we recently launched will positively impact our margins in the market that was once constrained by geographic or ZIP code boundaries. We have observed the successful implementation of similarly predictive optimized pricing in other industries as well.

首先，地理區域是服務網路成本的主要驅動因素之一。我們相信，作為我們最近推出的一項產品計劃，下一代基於收益的定價將對我們在曾經受地理或郵遞區號邊界限制的市場中的利潤產生積極影響。我們也觀察到其他產業也成功實施了類似的預測優化定價。

Our initiatives so far have performed very well. Our 21% gross margin for Q2 '24 is consistent with that of Q2 '23, and more notably, our June 2024 year-to-date margin of 22% and -- is a 200 basis point increase over our June 2023 year-to-date margin of 20%.

到目前為止，我們的舉措效果非常好。我們24 年第二季的毛利率為21%，與23 年第二季的毛利率一致，更值得注意的是，我們2024 年6 月年初至今的毛利率為22%，比2023 年6 月年初至今增加了200 個基點- 日期保證金為 20%。

While our OEM customer partner nonrenewal, which we announced this past January has impacted revenue, we are continuing to bolster our potential future revenues through demonstrated wins, renewals and expansions.

雖然我們今年 1 月宣布的 OEM 客戶合作夥伴不再續約影響了收入，但我們將繼續透過已證明的勝利、續約和擴張來增強我們未來的潛在收入。

Improving our gross margin and reducing our operational expenses is critical in achieving non-GAAP operating breakeven and we remain focused on this important milestone. However, during the second quarter, we encountered several factors which have caused us to revise our outlook for targeting non-GAAP operating breakeven to the first quarter of 2025 versus our earlier expectation for the beginning of third quarter of 2024.

提高毛利率和減少營運費用對於實現非公認會計原則營運損益平衡至關重要，我們將繼續關注這一重要里程碑。然而，在第二季度，我們遇到了幾個因素，導致我們修改了對 2025 年第一季非 GAAP 營運盈虧平衡目標的展望，而不是我們先前對 2024 年第三季初的預期。

Having said that, we expect to be below $1 million of non-GAAP operating loss in the fourth quarter of 2024, which is down from $7.9 million in the fourth quarter of 2023.

話雖如此，我們預計 2024 年第四季的非 GAAP 營運虧損將低於 100 萬美元，低於 2023 年第四季的 790 萬美元。

And -- let me walk through these factors in greater detail. The first factor is a return to managed growth. Given the length of contract cycles and the RFP process, we wanted to prioritize our ability to capitalize on Q2 opportunities around renewals, expansions and new business.

讓我更詳細地介紹這些因素。第一個因素是恢復有管理的成長。考慮到合約週期的長度和 RFP 流程，我們希望優先考慮利用第二季續約、擴張和新業務機會的能力。

This deliberate decision required us to move technology resources to focus on new launches, integration of expansions instead of longer-term operating and margin expense projects that we have planned. These large margin projects are wide in scope, and we expect to see improvements in one or two quarters after deployment after AB testing is completed.

這項深思熟慮的決定要求我們將技術資源集中在新產品的推出、擴展的整合上，而不是我們計劃的長期營運和利潤支出項目。這些利潤率較高的項目涉及範圍很廣，我們預計在AB測試完成後部署後的一兩個季度就能看到改進。

We still intend to pursue these margin improvement projects, but given the importance of renewals and expansion contracts that make sense for us to push the expense reduction efforts back a quarter.

我們仍然打算推行這些利潤率改善項目，但考慮到續約和擴張合約的重要性，這對我們來說將削減開支的努力推遲一個季度是有意義的。

The second factor is related to post-merger integration, including some international complexity, while the team swiftly acted to reduce redundant functions across the combined Otonomo and Urgently teams, the last phase is still under review as we look to continue strategic alternatives of certain Otonomo assets.

第二個因素與合併後的整合有關，包括一些國際複雜性，雖然團隊迅速採取行動，減少合併後的Otonomo 和Urgently 團隊中的冗餘職能，但最後階段仍在審查中，因為我們希望繼續某些Otonomo 的策略替代方案資產。

And finally, given the nature of our transaction-based business, volume is dependent on several external factors. When we met our revenue guidance, we saw a change in service mix from our customer partners with impact on our margins, external factors to the events ranging from fewer new vehicles produced by an OEM, changes in coverage policies by our fleet providers, new routing schemas or customer behavior trends related to miles travel, just to name a few.

最後，考慮到我們基於交易的業務的性質，交易量取決於幾個外部因素。當我們達到收入指引時，我們看到客戶合作夥伴的服務組合發生了變化，這對我們的利潤產生了影響，外部因素包括原始設備製造商生產的新車減少、我們的車隊提供者覆蓋政策的變化、新路線等事件與里程旅行相關的模式或客戶行為趨勢，僅舉幾例。

And while no singular event contributed to the service mix changes, the collection of events this past quarter reduced our expected pro job revenue and margin. We saw higher volume from lower-margin jobs and lower volume from higher-margin jobs on a service mix basis.

雖然沒有任何單一事件導致服務組合的變化，但上個季度發生的一系列事件降低了我們預期的職業收入和利潤。在服務組合的基礎上，我們發現低利潤工作的數量增加，而高利潤工作的數量減少。

Again, I'm very proud of our accomplishments during the second quarter, which included continued execution against our strategic priorities to optimize our business and financial operations, while reaccelerating sustainable growth and profitable growth as evidenced by our exciting contract wins, renewals and expansions. The team is focused on achieving non-GAAP operating breakeven, and we look forward to capturing the near- and long-term growth opportunities ahead.

我再次對我們在第二季度取得的成就感到非常自豪，其中包括繼續執行我們的戰略重點，以優化我們的業務和財務運營，同時重新加速可持續增長和盈利增長，正如我們令人興奮的合同贏得、續簽和擴張所證明的那樣。該團隊致力於實現非公認會計原則營運損益平衡，我們期待抓住未來的近期和長期成長機會。

In closing, we remain focused on expanding our B2B incident business through securing renewals, expanding relationships with existing partners, and -- developing new customer partner opportunities, achieving non-GAAP operating breakeven through our operational improvement, margin expansion and managed growth and continuing to provide innovative and differentiated services to our partners.

最後，我們仍然專注於透過確保續約、擴大與現有合作夥伴的關係來擴展我們的B2B 事件業務，以及開發新的客戶合作夥伴機會，透過我們的營運改善、利潤率擴張和管理成長實現非GAAP 營運損益平衡，並持續為我們的合作夥伴提供創新和差異化的服務。

Thank you for your time and continued support. I'll now turn the call over to Tim to discuss our financial results.

感謝您的寶貴時間和持續的支持。我現在將把電話轉給提姆，討論我們的財務表現。

Thank you, Matt, and good afternoon, everyone. Today, I will discuss our results for the second quarter ended June 30, 2024. And -- for the second quarter, revenues were $34.5 million, which was towards the upper end of our guidance range of $32 million to $35 million and a decline of 21% or $9.4 million from the same quarter last year.

謝謝你，馬特，大家下午好。今天，我將討論截至 2024 年 6 月 30 日的第二季業績。第二季的營收為 3,450 萬美元，接近我們 3,200 萬至 3,500 萬美元指引範圍的上限，比去年同期下降 21%，即 940 萬美元。

The year-over-year revenue decline was in line with our expectations and was primarily driven by the reduction in dispatch volume from the customer partner nonrenewal that we had previously announced in January of 2024. This was partially offset by volume and rate increases from new and existing customer partners.

營收年減符合我們的預期，主要是由於我們先前於 2024 年 1 月宣布的客戶合作夥伴不續約導致派送量減少。這被新舊客戶合作夥伴的數量和費率成長所部分抵消。

For the second quarter, gross profit was $7.3 million compared to $9.3 million in the prior year period, again, driven primarily by the customer partner nonrenewal. Gross margin for the second quarter was 21%, consistent with the prior year period. This is the fifth consecutive quarter of gross margins exceeding 20%, and -- and we remain focused on executing against our strategic initiatives to drive profitable growth and achieve our long-term gross margin targets of 25% to 30%.

第二季的毛利為 730 萬美元，而去年同期為 930 萬美元，主要是由於客戶合作夥伴不再續約。第二季毛利率為 21%，與去年同期持平。這是毛利率連續第五個季度超過 20%，我們仍然專注於執行我們的策略性舉措，以推動利潤成長並實現 25% 至 30% 的長期毛利率目標。

Now let's move on to operating expenses. Operating expenses for the second quarter was $15.7 million, which was similar to the prior year period. Prior year included transaction costs and was part of the premerger Urgently financial results.

現在讓我們繼續討論營運費用。第二季營運費用為 1,570 萬美元，與去年同期持平。上一年包括交易成本，是合併前緊急財務表現的一部分。

As Matt indicated, we continue to focus on operational improvements which include changes in the business process to drive operational efficiencies. As part of these improvements, we expect to continue eliminating redundancies within the organization and reduce operating expenses.

正如馬特指出的那樣，我們繼續專注於營運改進，包括改變業務流程以提高營運效率。作為這些改進的一部分，我們希望繼續消除組織內的裁員並減少營運費用。

As previously discussed, most of our operating expenses are headcount related, so we will focus on this initially. At the end of the second quarter of this year, we had 282 total employees, a reduction of 38% from the fourth quarter of last year when we completed our merger with Otonomo.

如前所述，我們的大部分營運費用與員工人數有關，因此我們首先將重點放在這一點上。截至今年第二季末，我們的員工總數為282人，比去年第四季完成與Otonomo合併時減少了38%。

In further support of driving operational efficiencies, operational and support costs during the second quarter of this year was $3.6 million compared to $6 million during the same period last year, resulting in a decrease of $2.5 million or 41%. We also reduced our reliance on customer support representatives who are employed through our BPO partners.

為了進一步支持提高營運效率，今年第二季的營運和支援成本為 360 萬美元，而去年同期為 600 萬美元，減少了 250 萬美元，即 41%。我們也減少了對透過 BPO 合作夥伴聘用的客戶支援代表的依賴。

In the second quarter of this year, we had 220 full-time customer support representatives compared to 457 during the same period last year, which is a reduction of 237 customer support representatives or 52%. These reductions are due to the hard work from the operational and technology teams to modify business processes and implement new technologies over the last several quarters, resulting in reduced operating expenses.

今年第二季度，我們有220名全職客戶支援代表，而去年同期為457名，減少了237名客戶支援代表，即52%。這些減少是由於過去幾個季度營運和技術團隊努力修改業務流程並實施新技術，從而減少了營運費用。

Also during the second quarter of this year within our general and administrative expenses, we recorded bad debt expense of approximately $600,000 due to an EV customer partner that recently filed for bankruptcy, bringing our total bad debt expense related to this customer partner to $735,000 during this year.

此外，在今年第二季的一般和管理費用中，我們因最近申請破產的電動車客戶合作夥伴記錄了約60 萬美元的壞帳費用，使我們在此期間與該客戶合作夥伴相關的壞帳費用總額達到735,000 美元年。

Overall, we continue to focus on our operating structure and doing more with [it] was $8.3 million, an increase of $2.2 million during the prior year period. This increase is mostly due to the Otonomo post-merger combined reporting this year compared to Urgently standalone last year.

總體而言，我們繼續關注我們的營運結構並做更多的事情，金額為 830 萬美元，比去年同期增加了 220 萬美元。這一增長主要是由於 Otonomo 今年合併後的合併報告與去年的 Urgently 獨立報告相比。

We also reviewed non-GAAP operating loss which is defined as GAAP operating loss plus depreciation and amortization expense, stock-based compensation expense, nonrecurring transaction costs and restructuring costs. Non-GAAP operating loss for the second quarter was $6.2 million, an increase of $2 million from the prior year period. This increase is also primarily due to the combined reporting of Otonomo this year compared to Urgently standalone last year.

我們也檢視了非 GAAP 營運虧損，定義為 GAAP 營運虧損加上折舊和攤提費用、股票補償費用、非經常性交易成本和重組成本。第二季非 GAAP 營運虧損為 620 萬美元，比去年同期增加 200 萬美元。這一增長也主要是由於與去年的緊急獨立報告相比，今年 Otonomo 的合併報告。

We continue to drive operational improvement initiatives as we integrate Otonomo and realign our corporate structure with our current market opportunities. Our efforts are reflected in these significant improvement of 38% in our second quarter non-GAAP operating loss when compared to the third quarter of 2023 combined company non-GAAP operating loss, including both Urgently and Otonomo, which was $9.9 million and improvement of 22% when compared to the fourth quarter of 2023 non-GAAP operating loss, which was $7.9 million.

隨著我們整合 Otonomo 並根據當前的市場機會重新調整我們的公司結構，我們將繼續推動營運改善計劃。我們的努力體現在，與2023 年第三季合併後的公司非GAAP 營運虧損（包括Urgently 和Otonomo）相比，我們第二季的非GAAP 營運虧損顯著改善了38%，其中包括Urgently 和Otonomo ，虧損為990 萬美元，改善了22%與 2023 年第四季非 GAAP 營運虧損 790 萬美元相比，該虧損為 790 萬美元。

Now a few comments on our balance sheet. As of June 30, 2024, Urgently had cash, cash equivalents and short-term investment balance of $29.3 million and a net principal debt balance of $54.3 million with the maturities in January of 2025. During the second quarter, we capitalized approximately $1.5 million of internally developed software activities in support of launching the previously mentioned top 5 global OEM and to make enhancements to our platform by adding features and functionalities, which benefit all our customer partners.

現在對我們的資產負債表進行一些評論。截至 2024 年 6 月 30 日，Urgently 的現金、現金等價物和短期投資餘額為 2,930 萬美元，本金淨債務餘額為 5,430 萬美元，將於 2025 年 1 月到期。在第二季度，我們資本化了約150 萬美元的內部開發軟體活動，以支援推出前面提到的全球5 強OEM，並透過添加特性和功能來增強我們的平台，這使我們所有的客戶合作夥伴受益。

We expect this practice to continue during 2024, including approximately $1.4 million in the third quarter of 2024. The -- we continue to take important proactive steps to address our capital structure, enhance our liquidity position and provide the company with additional financial flexibility. We are taking further action with respect to maturities of our debt and expect measured results before our next earnings conference call. As of June 30, 2024, we had 13.4 million common stock shares outstanding.

我們預計這種做法將在 2024 年繼續下去，其中包括 2024 年第三季的約 140 萬美元。我們將繼續採取重要的積極措施來解決我們的資本結構問題，增強我們的流動性狀況，並為公司提供額外的財務靈活性。我們正在對債務到期採取進一步行動，並預計在下一次收益電話會議之前得到衡量結果。截至 2024 年 6 月 30 日，我們已發行普通股 1,340 萬股。

Turning now to our outlook for the third quarter of 2024. We expect revenue in the range of $35 million to $38 million. In addition, we expect to continue to make progress towards targeting non-GAAP operating breakeven during the first quarter of 2025, as Matt has previously highlighted. Our expected common stock shares outstanding at the end of the third quarter is 13.4 million.

現在轉向我們對 2024 年第三季的展望。我們預計收入在 3500 萬美元至 3800 萬美元之間。此外，正如 Matt 先前強調的那樣，我們預計將在 2025 年第一季實現非 GAAP 營運盈虧平衡目標上繼續取得進展。我們預計第三季末已發行普通股為 1,340 萬股。

With that, we will open the call for questions. Operator, please open the line for Q&A.

至此，我們將開始提問。接線員，請開通問答線。

(Operator Instructions) Chris Pearce, Needham.

（操作員說明）Chris Pearce，Needham。

Is there a way to think about when you guided Q2, you came in at the high end, but you cited higher revenue from low-margin jobs and lower revenue from high-margin jobs. Is that something that fluctuates on a quarterly basis? And is it largely out of your control? Or is there some seasonality to that? I just kind of want to think about how to think about that going forward.

有沒有辦法思考一下，當您指導第二季度時，您處於高端，但您提到低利潤工作的收入較高，而高利潤工作的收入較低。是不是每季都會有波動？這很大程度上超出了你的控制範圍嗎？或者有一些季節性嗎？我只是想思考一下如何思考未來的事。

Do you want to take that one, Tim, or you want me to take it?

提姆，你想拿那個，還是想讓我拿？

Yes. I'll start, Matt. Chris, there -- it does fluctuate. And as Matt highlighted in some of his prepared remarks, some of it's -- or all of it's out of our control. It just depends on how the jobs are rolling and the activity that's out there. So it's difficult to be able to predict that as a factor. We do our best to guide on the revenue side and directionally on the margin side, but largely, it's out of our control. Matt, you can add anything there?

是的。我要開始了，馬特。克里斯，那裡——它確實波動。正如馬特在他準備好的一些演講中所強調的那樣，其中一些——或者全部——超出了我們的控制範圍。這僅取決於工作的進展以及那裡的活動。因此很難預測這一因素。我們盡最大努力在收入方面進行指導，並在利潤方面進行定向指導，但很大程度上，這是我們無法控制的。馬特，你可以在那裡添加任何東西嗎？

Yes, I'm going to say that that's right. The mix shift is -- it's not below historical trends, but it's not something that we can control.

是的，我會說那是對的。混合轉變是——它並不低於歷史趨勢，但它不是我們可以控制的。

Okay. And then I think usually correct me if I'm wrong, but we see lower sequential gross margins in the third quarter because of summer travel. Is that something we should expect this year? Or does the unique factors in the second quarter kind of offset that?

好的。然後我想，如果我錯了，通常會糾正我，但由於夏季旅行，我們看到第三季的連續毛利率較低。這是我們今年應該期待的事嗎？或者第二季的獨特因素會抵消這一點？

I mean that's been the trend, Chris. So one could expect that trend to continue, just based on that activity and also based on our discussion around the push off of some of the margin projects. Certainly, the team constantly working on improving margins and making that better metric for us. But from a modeling perspective, that isn't a bad way to look at it.

我的意思是，這就是趨勢，克里斯。因此，僅基於該活動以及我們圍繞推遲某些利潤項目的討論，人們就可以預期這一趨勢將持續下去。當然，團隊不斷致力於提高利潤率並為我們制定更好的指標。但從建模的角度來看，這並不是一個不好的看法。

Okay. And then you talked about positive non-GAAP operating income in the first quarter of '25. Is the right assumption that you would -- if all goes according to plan, you would see that throughout the year? Or could there be some lumpiness based on seasonality and that type of thing, and you might see fluctuation in -- but non-GAAP operating income between positive and negative? Or I just want to think about the right way to think about that as well.

好的。然後您談到了 25 年第一季的非 GAAP 營業收入。如果一切按計劃進行，您全年都會看到這種情況，這是正確的假設嗎？或者是否可能存在一些基於季節性和此類因素的波動，您可能會看到非 GAAP 營業收入在正數和負數之間波動？或者我也只是想思考正確的思考方式。

Yes. Good question. Once we achieve that, Chris, we feel pretty confident we'll be able to hold the line and improve on it from there. So it could -- everything is not linear, right? So it could -- it could revert back to a loss here or there, but not -- our expectation is that it wouldn't materially happen.

是的。好問題。克里斯，一旦我們實現了這一目標，我們就非常有信心能夠堅守陣線並在此基礎上不斷改進。所以它可能——一切都不是線性的，對吧？因此，它可能會——它可能會在某些地方恢復到虧損狀態，但不會——我們的預期是，這種情況不會發生。

Okay. And then just last one for me. You talked about kind of lining up the debt maturity in Jan '25 and the cash in the balance sheet and message you'll have ahead of potentially on the next earnings call, what's something we should think about? I know some of your debt -- debt holders or equity investors? Or like what's the right way to think about? Or I guess, should we just expect a resolution within 3 months here and then things sort of -- there'll be a longer-dated debt? Or like how -- what's the right to think about the cash versus debt right now?

好的。然後是我的最後一個。您談到了 25 年 1 月的債務到期日和資產負債表中的現金，以及您可能在下一次財報電話會議上提前傳達的信息，我們應該考慮什麼？我知道你的一些債務——債權人還是股權投資者？或是像什麼是正確的思考方式？或者我猜，我們是否應該期待 3 個月內找到解決方案，然後就會出現長期債務？或者就像現在如何正確考慮現金與債務？

Well, as far as resolution goes, that's certainly our goal is to provide that resolution. If we can do that before the next earnings call, that's certainly what we hope to accomplish. The way we're -- I would definitely look at longer maturities. And we've talked -- we didn't talk about it in these prepared remarks, but in the past, we've talked about maybe 2 tiers of debt activity, 1 related to more of a working capital line of credit, which allows us to kind of flex with some of the growth that we've talked about and then maybe some terming out the rest.

好吧，就決議而言，我們的目標當然是提供該決議。如果我們能在下一次財報電話會議之前做到這一點，這肯定是我們希望實現的目標。按照我們的方式——我肯定會考慮期限更長的債券。我們已經討論過——我們在這些準備好的發言中沒有討論過它，但在過去，我們討論過可能有兩層債務活動，第一層與更多的營運資金信貸額度相關，這允許我們對我們已經討論過的一些增長進行了靈活調整，然後也許對其餘的進行了一些調整。

But thinking of it in those 2 pieces is something that we've consistently talked about previously and we're consistently still thinking about today.

但是，我們之前一直在談論這兩部分，而今天我們仍然在思考這一點。

Okay. I appreciate that.

好的。我很欣賞這一點。

This concludes our question-and-answer session. I would like to turn the conference back over to Matt Booth for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給馬特·布斯（Matt Booth）發表閉幕詞。

Thanks, everyone, for joining and closing. We're very proud of the significant progress that we've made to position the company for profitable growth, and we look forward to providing you with further updates on our progress on future calls.

謝謝大家的加入與結束。我們為公司在獲利成長方面取得的重大進展感到非常自豪，我們期待在未來的電話會議上向您提供有關我們進展的進一步更新。

As a reminder, we'll be attending the Sidoti Virtual Micro-Cap Investor Conference on August 14 and August 15, and we're also scheduled to host a fireside chat at 10 a.m. Eastern on August 15, and -- which you can have access to live or as a replay via our Investor Relations website. If you're planning on attending and like to have a one-on-one meeting with us, please contact your Sidoti representative. If you're not planning on attending, and you'd like to meet with management, please reach out to us at investorrelations@geturgently.com and we're happy to schedule a follow-up call.

提醒一下，我們將參加 8 月 14 日和 8 月 15 日舉行的 Sidoti 虛擬微型股投資者會議，我們還計劃於 8 月 15 日東部時間上午 10 點舉辦爐邊談話，並且 - 您可以參加通過我們的投資者關係網站觀看直播或重播。如果您計劃參加並希望與我們進行一對一會議，請聯絡您的 Sidoti 代表。如果您不打算參加，但想與管理層會面，請透過 Investorrelations@geturgently.com 與我們聯繫，我們很樂意安排後續電話會議。

Thanks again for your interest in Urgently, and thanks for joining the call today.

再次感謝您對 Urgently 的關注，並感謝您今天加入電話會議。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。