JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Friday - Needham analysts have adjusted the price target for Urgent.ly (NASDAQ: ULY) to $1.00, down from the previous $1.50, while reaffirming a Buy rating on the company’s shares. The revision follows Urgent.ly’s fourth-quarter earnings release, which revealed a concerning -22.6% revenue decline and significant cash burn rate, according to InvestingPro data. The company’s shares have declined over 90% in the past year. Needham’s analysts believe that Urgent.ly remains a long-term leader in the evolution of roadside assistance through its advanced technology, particularly its geospatial data engine.
Urgent.ly has expressed confidence in its ability to renew contracts and attract new customers. However, the company’s growth trajectory appears to be leveling off, prompting Needham to revise their fiscal year 2025 growth projections downward based on lower-than-expected revenue guidance for the first quarter. Despite this, Urgent.ly has reiterated its goal to reach non-GAAP operating breakeven by mid-2025.
Skeptics may view Urgent.ly’s path to revenue growth as uncertain, labeling it a "show-me story" due to the lack of clear visibility into its future revenue trajectory. With a concerning return on assets of -50.2% and negative EBITDA of -$22.75 million, the company faces significant challenges. Needham’s newly established price target of $1.00 is based on a 5x multiple of their estimated adjusted EBITDA for the fiscal year 2027. This adjustment reflects a more conservative outlook on the company’s financial performance in the near term. For detailed valuation analysis and comprehensive metrics, explore the full research report available on InvestingPro.
In other recent news, Urgent.ly Inc. reported its Q4 2024 financial results, which showed a significant shortfall in both earnings per share (EPS) and revenue, missing analyst forecasts. The company posted an EPS of -0.65, compared to the expected -0.36, and revenue of $32 million, which was significantly below the projected $55.2 million. Despite these challenges, Urgent.ly improved its gross margin to 22% and reduced its non-GAAP operating loss by 18% year-over-year. Additionally, the company announced a reverse stock split at a 1-for-12 ratio to comply with Nasdaq’s minimum bid price requirement, effective March 17, 2025. This move was approved by stockholders and will reduce the total authorized shares of common stock from 1 billion to 500 million. In terms of future guidance, Urgent.ly expects revenue between $30 million and $33 million for Q1 2025 and aims for non-GAAP operating breakeven by mid-2025. Furthermore, the company has secured a new credit agreement with MidCap Financial for up to $20 million, which will aid in transforming its capital structure.
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