Dive Brief:

• Roadside assistance software provider Urgently narrowed its operating loss to $2.1 million for its second quarter ended June 30, compared to $8.3 million for the prior year period, according to earnings results released Tuesday.
• While the company saw an 8% decrease in revenue to $31.7 million, it also reported an 8% year-over-year jump in gross profit to $7.9 million. CEO and Principal Financial Officer Matthew Booth credited the company’s Q2 results in large part to its use of artificial intelligence and machine learning, he said Tuesday during the company’s earnings call. The company’s “digitally native platform, leveraging AI and machine learning has given us substantial operating scale and credibility in the market by creating predictive models to enhance performance for partners using temporal-spatial and network data,” he said.
• “We believe we are a technology market leader. We believe we are an innovation leader,” Booth said according to a transcript. “Similar to other industries, we believe AI leaders will pull further ahead in this industry.”

Dive Insight:

Booth described the Vienna, Virginia-based Urgently as a “technology-first company,” noting that “in an advancing market, simply keeping up with technology is table stakes.”

The company will continue to utilize its AI models as it charts a renewed path to growth in the second half of 2025, which includes a core focus on expanding its business-to-business incident offering through renewals and new customer opportunities, Booth said Tuesday. As such, the roadside software provider has started “inviting prospective partners to utilize our proprietary AI products to run optimization simulations of their current programs using real data inputs,” he said.

As well as narrowing its operating loss, Urgently also reported an increase in gross margin from 22% to 25%, “primarily related to the mix of service dispatches and our continued technology optimizations, allowing us to better manage our service provider costs,” Andrea Makkai, its corporate controller and principal accounting officer, said. Operating expenses also decreased 36% YoY to $10.1 million.

Urgently’s bid to foster customer renewals and bolster sales comes as the software provider continues to weather financial challenges, as well as executive leadership shifts. Booth and Makkai assumed their roles as principal financial and principal accounting officer, respectively, on Aug. 5 after CFO Michael Port departed after just two months in the seat, CFO Dive previously reported.  

“We believe Urgently has a strong leadership team and a capable finance organization, and we will continue to focus on accelerating profitable growth, achieving operational efficiencies and improving our capital structure while delivering exceptional customer service,” Jenny Mitchell, VP, finance strategy and investor relations said Tuesday regarding Port’s departure, noting that Port had “separated” from the company as of Aug. 5. “We are confident in the ability of our finance team and will continue to evaluate employment needs on an ongoing basis,” Mitchell said.

The CFO shift comes as Urgently takes steps to address two material weaknesses identified in May, related to “a lack of segregation” in its accounting and finance functions as well as the “design and maintenance of effective control” related to its IT systems, according to company filings.

The company is also facing potential challenges related to liquidity, reporting a principal debt balance of $55.3 million as well as cash and cash equivalents of $4.8 million for its Q2, compared to cash and cash equivalents of $14.1 million as of Dec. 31, 2024, according to its earnings report.

During the quarter, the business capitalized approximately $1.2 million in software, “mostly to make enhancements to our platform by adding features and functionality, which benefit all of our customer partners,” Makkai said, noting Urgently expects approximately $1.5 million to be capitalized in its third quarter.