Quick Takeaways:

  • Roadside assistance software provider Urgently reported Tuesday that its operating loss narrowed to $2.1 million in the second quarter ended June 30, compared with $8.3 million in the same period last year.
  • Although the company's revenue fell 8% year over year to $31.7 million, gross profit jumped 8% year over year to $7.9 million. CEO and CFO Matthew Booth attributed the second-quarter results primarily to the use of artificial intelligence and machine learning during Tuesday's earnings call. He said the company's "digitally native platform, leveraging AI and machine learning, builds predictive models based on spatiotemporal and network data to enhance performance for partners, giving us significant operational scale and market credibility."
  • "We believe we are the technology market leader and the innovation leader," Booth said in the call transcript. "Similar to other industries, we believe AI leaders will further separate themselves in this industry."

Deep Dive:

Booth described Vienna, Virginia-based Urgently as a "technology-first company," noting that "in a rapidly evolving market, merely keeping pace with technology is just the price of admission."

Booth said Tuesday that the company will continue to leverage its AI models in the second half of 2025 to chart new growth paths, with a core focus on expanding its B2B event processing business through renewals and new customer opportunities. To that end, the roadside assistance software provider has begun "inviting potential partners to use our proprietary AI products to run optimization simulations on their existing programs using real data inputs."

In addition to narrowing its operating loss, Urgently also reported gross margin improved from 22% to 25%, which Andrea Makkai, the company's corporate controller and chief accounting officer, said was "primarily attributable to the mix of service dispatches and our continued technology optimization, which allows us to better manage service provider costs." Operating expenses also fell 36% year over year to $10.1 million.

Urgently's push for customer renewals and stronger sales comes as the software provider continues to grapple with financial challenges and executive turnover. Booth and Makkai assumed the roles of CFO and chief accounting officer on August 5, respectively, after CFO Michael Port departed after just two months on the job, 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 efficiency, improving our capital structure, while delivering excellent customer service," Jenny Mitchell, vice president of financial strategy and investor relations, said Tuesday regarding Port's departure, noting that Port had "left" the company on August 5. "We are confident in the capabilities of our finance team and will continue to evaluate staffing needs," Mitchell added.

The CFO change comes as Urgently takes steps to address two material weaknesses identified in May, which according to company filings relate to "insufficient segregation of duties" in accounting and finance functions and "design and maintenance of effective controls" related to IT systems.

The company also faces potential liquidity challenges, with the filing showing principal debt balance of $55.3 million in the second quarter and cash and cash equivalents of $4.8 million, compared with $14.1 million as of December 31, 2024.

During the quarter, the company capitalized approximately $1.2 million in software spending, "primarily to enhance the platform, adding features and functionality to benefit all customer partners," Makkai said, and expects to capitalize approximately $1.5 million in the third quarter.