JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
VIENNA, Va. - Urgent.ly, Inc. (NASDAQ:ULY), a digital roadside and mobility assistance technology provider in the U.S., announced today the strategic divestiture of its subsidiary The Floow, a connected insurance technology firm. This move is aimed at focusing on Urgent.ly's core business of powering roadside assistance programs for automotive, insurance, and transportation sectors.
The divestiture involves the return of 51% ownership to The Floow's management, while Urgent.ly retains a 49% stake and a perpetual royalty-free license for The Floow's technology. This agreement allows for potential future integration with Urgent.ly's platform. The Floow is recognized for its telematics platform that offers insights to improve safety and loyalty for insurers and traffic planners.
Matt Booth, CEO of Urgent.ly, expressed confidence in the decision, stating it sharpens the company's focus on its primary roadside and mobility assistance services. He also emphasized the transaction's role in positioning both Urgent.ly and The Floow for continued success.
Aldo Monteforte, CEO of The Floow, welcomed the return to majority ownership as a significant milestone, highlighting the company's strength and advanced product suite aimed at aiding insurers in predicting and preventing adverse events. Monteforte anticipates a transformative decade ahead, driven by AI and connected products, and values the sustained partnership with Urgent.ly.
The transaction is not expected to impact The Floow's daily services to its customers and represents a strategic realignment for Urgent.ly to concentrate on its digitally native software platform. This platform uses location-based services, real-time data, AI, and machine-to-machine communication to deliver roadside assistance solutions globally.
This press release contains forward-looking statements that involve risks and uncertainties, including potential future integration of The Floow's technology with Urgent.ly's platform. For further details on factors that could affect these statements, refer to Urgent.ly's filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Urgent.ly Inc.
In other recent news, Urgent.ly, a specialized roadside assistance provider, has reported significant developments. The company has renewed and expanded its contracts with key customers, which aids in offsetting concerns from the loss of a major client earlier this year. Additionally, Urgent.ly has extended its partnership with a leading global automotive OEM to include services in Canada, a move that strengthens its commitment to long-term revenue growth.
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, suggesting potential for upside in their model.
In the company's internal affairs, shareholders recently elected Class I directors and ratified the company's independent auditors for the upcoming fiscal year. Gina Domanig and Ryan Pollock were elected as Class I directors, while CohnReznick LLP was approved as the independent registered public accounting firm for Urgent.ly Inc. for the fiscal year ending December 31, 2024. These recent developments indicate a proactive approach to the company's growth and future operations.
InvestingPro Insights
As Urgent.ly, Inc. (NASDAQ:ULY) streamlines its operations with the strategic divestiture of The Floow, the company's financial health and market performance provide valuable insights for investors. With a market capitalization of $11.18 million, Urgent.ly's position in the market is relatively small, which can often lead to higher volatility in its stock price. Indeed, the recent metrics reflect significant movements, with the price having declined by over 50% in the last three months.
An analysis of Urgent.ly's financial data reveals a challenging environment for the company. With a negative adjusted P/E ratio of -0.9 for the last twelve months as of Q2 2024, it is clear that the company is not currently generating positive earnings relative to its share price. Moreover, the revenue decline of -16.15% during the same period further emphasizes the headwinds faced by the company.
InvestingPro Tips highlight several areas of concern for Urgent.ly. The company is operating with a significant debt burden and is quickly burning through cash, which are critical factors for investors to consider. Additionally, analysts anticipate a sales decline in the current year, which could impact the company's ability to turn around its financial performance. For investors seeking a more comprehensive analysis, there are 12 additional InvestingPro Tips available at https://www.investing.com/pro/ULY, which delve deeper into the company's financial health and market prospects.
In light of these challenges, Urgent.ly's strategic focus on its core business of roadside assistance technology may be a crucial step in stabilizing the company's operations. As the market responds to these corporate maneuvers, investors will be closely monitoring Urgent.ly's financial metrics and market performance for signs of recovery or further decline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.