VIENNA, Va. - Urgent.ly, Inc. (NASDAQ: ULY), a provider of digital roadside and mobility assistance technology, announced today the renewal of its three-year contract with a key customer partner, a global automotive fleet management company. The renewal extends their collaboration to nine years, with Urgent.ly continuing to power the partner's roadside assistance program.
The company has successfully retained all its roadside assistance contracts up for renewal since the beginning of the second quarter of 2024. This achievement underscores Urgent.ly's commitment to delivering value through its services and advanced technology, with a focus on safety. "We are privileged to have the opportunity to continue this successful partnership, which we believe reflects the strength of our technology and the outstanding level of service we deliver," said Matt Booth, CEO of Urgent.ly.
Under the renewed agreement, the fleet management company will utilize Urgent.ly's technology stack, which includes service capabilities for a range of vehicle classes and AI-driven pricing technology aimed at reducing vehicle downtime. The contract is seen as a testament to Urgent.ly's position as a preferred roadside and mobility assistance partner, leveraging its connected assistance platform to enhance efficiency and customer experience.
Urgent.ly's platform integrates location-based services, real-time data, and machine-to-machine communication to offer roadside assistance solutions for brands in the automotive, insurance, and transportation sectors. The company's goal is to ensure safe, uninterrupted mobility by providing proactive assistance and employing technology to avert potential issues.
This press release includes forward-looking statements regarding the contract renewal and its implications for Urgent.ly's future performance. However, these statements are subject to risks and uncertainties that could cause actual results to differ from those projected. The information is based on a press release statement and reflects the company's plans and expectations as of the date of the announcement.
In other recent news, Urgent.ly, a digital roadside and mobility assistance provider, announced the strategic divestiture of its subsidiary, The Floow, a move designed to streamline focus on its core business. The divestiture involves Urgent.ly retaining a 49% stake in The Floow and a perpetual royalty-free license for The Floow's technology. In addition to the divestiture, Urgent.ly has renewed and expanded contracts with key customers and extended its partnership with a global automotive OEM to include services in Canada.
Needham, an analyst firm, reaffirmed its Buy rating on Urgent.ly but adjusted its price target from $5.00 to $2.00, following the company's second-quarter results. The firm's revised FY26E adjusted EBITDA served as a basis for the new price target.
In internal affairs, shareholders elected Gina Domanig and Ryan Pollock as Class I directors and ratified CohnReznick LLP as the company's independent auditors for the upcoming fiscal year. These are some of the recent developments surrounding Urgent.ly.
InvestingPro Insights
While Urgent.ly's contract renewal with a key customer partner is a positive development, recent financial data from InvestingPro paints a challenging picture for the company. Urgent.ly's market capitalization stands at a modest $9.02 million, reflecting investor caution about the company's prospects.
InvestingPro Tips highlight that Urgent.ly is "quickly burning through cash" and "operates with a significant debt burden." These factors may explain why the stock has "fared poorly over the last month," with a 25.45% decline in the past 30 days. The company's financial health appears precarious, as "short-term obligations exceed liquid assets," which could pose challenges in meeting its operational needs and contractual commitments.
On the revenue front, Urgent.ly reported $165.73 million in the last twelve months as of Q2 2024. However, the company is experiencing a concerning trend with revenue growth at -16.15% over the same period. This aligns with another InvestingPro Tip indicating that "analysts anticipate sales decline in the current year."
Despite these challenges, it's worth noting that Urgent.ly has been "profitable over the last twelve months," according to InvestingPro Tips. This profitability, combined with the recent contract renewal, may provide some reassurance to investors about the company's ability to navigate its current financial difficulties.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Urgent.ly, providing a deeper understanding of the company's financial position and market performance.
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