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Syra Health Delivers Third Quarter 2024 Financial Results

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Syra Health (NASDAQ: SYRA) reported Q3 2024 financial results with net revenue of $2.3 million, representing 42% growth year-over-year. The company's gross profit margin was 30%, and net loss narrowed to $417,535 ($0.06 per share), showing a 69% reduction compared to Q2 2024. Population Health revenues grew 36% while Healthcare Workforce services increased 54%. The company implemented significant cost-saving measures, reducing operating expenses by 37% quarter-over-quarter. With $2.7 million cash balance and no long-term debt, Syra Health aims to achieve profitability in 2025.

Syra Health (NASDAQ: SYRA) ha riportato i risultati finanziari del terzo trimestre 2024, con entrate nette di 2,3 milioni di dollari, che rappresentano una crescita del 42% rispetto all'anno precedente. Il margine di profitto lordo dell'azienda era del 30%, e la perdita netta si è ridotta a 417.535 dollari (0,06 dollari per azione), evidenziando una diminuzione del 69% rispetto al secondo trimestre 2024. I ricavi della Salute della Popolazione sono cresciuti del 36%, mentre i servizi per la forza lavoro sanitaria sono aumentati del 54%. L'azienda ha implementato misure significative di riduzione dei costi, riducendo le spese operative del 37% rispetto al trimestre precedente. Con un saldo di cassa di 2,7 milioni di dollari e senza debito a lungo termine, Syra Health punta a raggiungere la redditività nel 2025.

Syra Health (NASDAQ: SYRA) informó los resultados financieros del tercer trimestre de 2024, con ingresos netos de 2.3 millones de dólares, lo que representa un crecimiento del 42% en comparación con el año anterior. El margen de beneficio bruto de la compañía fue del 30%, y la pérdida neta se redujo a 417,535 dólares (0.06 dólares por acción), mostrando una reducción del 69% en comparación con el segundo trimestre de 2024. Los ingresos de Salud Poblacional crecieron un 36%, mientras que los servicios para la Fuerza Laboral Sanitaria aumentaron un 54%. La compañía implementó medidas significativas de ahorro de costos, reduciendo los gastos operativos en un 37% trimestre a trimestre. Con un saldo de efectivo de 2.7 millones de dólares y sin deuda a largo plazo, Syra Health tiene como objetivo alcanzar la rentabilidad en 2025.

Syra Health (NASDAQ: SYRA)는 2024년 3분기 재무 결과를 보고했으며, 순수익 230만 달러를 기록하여 전년 대비 42% 성장했습니다. 회사의 총 이익률은 30%이며, 순손실은 417,535달러(주당 0.06달러)로 줄어들어 2024년 2분기 대비 69% 감소하였습니다. 인구 건강 수익은 36% 성장했으며, 의료 인력 서비스는 54% 증가했습니다. 회사는 운영 비용을 분기별로 37% 절감하는 상당한 비용 절감 조치를 시행했습니다. 270만 달러의 현금 잔고와 장기 부채가 없는 Syra Health는 2025년 내에 수익성을 달성할 계획입니다.

Syra Health (NASDAQ: SYRA) a annoncé les résultats financiers du troisième trimestre 2024, avec des revenus nets de 2,3 millions de dollars, représentant une croissance de 42 % par rapport à l'année précédente. La marge bénéficiaire brute de l'entreprise était de 30 %, et la perte nette a été réduite à 417.535 dollars (0,06 dollar par action), montrant une réduction de 69 % par rapport au deuxième trimestre 2024. Les revenus de la Santé Communautaire ont augmenté de 36 %, tandis que les services pour la Force de Travail Sanitaire ont augmenté de 54 %. L'entreprise a mis en œuvre d'importantes mesures de réduction des coûts, réduisant les dépenses d'exploitation de 37 % d'un trimestre à l'autre. Avec un solde de 2,7 millions de dollars en liquidités et aucune dette à long terme, Syra Health vise à atteindre la rentabilité en 2025.

Syra Health (NASDAQ: SYRA) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit netto Einnahmen von 2,3 Millionen Dollar, was einem Wachstum von 42% im Vergleich zum Vorjahr entspricht. Die Bruttogewinnmarge des Unternehmens betrug 30% und der Nettoverlust verringerte sich auf 417.535 Dollar (0,06 Dollar pro Aktie), was eine 69%ige Reduzierung im Vergleich zum zweiten Quartal 2024 zeigt. Die Einnahmen im Bereich Population Health wuchsen um 36%, während die Dienstleistungen für das Gesundheitswesen um 54% zunahmen. Das Unternehmen führte bedeutende Maßnahmen zur Kostensenkung durch, wodurch die Betriebskosten im Quartalsvergleich um 37% gesenkt wurden. Mit einem Kassenbestand von 2,7 Millionen Dollar und ohne langfristige Schulden strebt Syra Health an, 2025 rentabel zu werden.

Positive
  • Revenue growth of 42% year-over-year to $2.3 million
  • 69% reduction in net loss compared to Q2 2024
  • 37% reduction in operating expenses quarter-over-quarter
  • Healthcare Workforce services revenue up 54% year-over-year
  • Population Health revenue increased 36% year-over-year
  • Gross margin improved from 17.8% in Q2 to 29.7% in Q3 2024
  • $2.7 million cash balance with no long-term debt
Negative
  • Net loss of $417,535 in Q3 2024
  • Gross profit margin declined from 35% in Q3 2023 to 30% in Q3 2024
  • Operating expenses increased 22.2% year-over-year

Insights

The Q3 results show promising operational improvements despite mixed financial metrics. Revenue growth of 42% year-over-year to $2.3 million demonstrates strong market traction, particularly in Population Health and Healthcare Workforce segments. The significant reduction in operating expenses by 37% quarter-over-quarter and narrowing net loss to $417,535 from $1.39 million indicates effective cost management.

Key positives include the 1190 basis point improvement in gross margins from Q2, robust cash position of $2.7 million with no long-term debt and strategic initiatives including the Syrenity mental health app launch. However, the year-over-year gross margin decline from 35% to 30% and continued net losses warrant attention. The path to 2025 profitability appears reasonable given the current trajectory of cost optimization and revenue growth.

The launch of Syrenity represents a strategic pivot into the high-growth mental health tech sector, diversifying revenue streams beyond traditional services. The company's focus on ethical AI and clinically-proven practices positions it well in a competitive market. The $5.8 million training contract implementation and expansion into multiple states demonstrate strong market penetration.

The milestone-based revenue model from digital health products like Syrabot, while causing short-term margin fluctuations, establishes recurring revenue potential. The combination of traditional healthcare services with tech-enabled solutions creates a compelling hybrid business model that could accelerate growth and improve margins as digital offerings scale.

Achieved Net Revenue of $2.3 million, ~42% Growth Over the Prior Year Quarter

Gross Margins Increased Following Shift in Operational Strategy

Net Loss Narrowed to $417,535 ($0.06 per share), a Significant Improvement from the $1.39 million ($0.21 per share) Net Loss in Q2 of 2024

Aiming to Attain Profitability in 2025 through Targeted Revenue Growth and Cost-Efficiency Measures

Conference call will be held today, Tuesday, October 29th at 9:00 AM ET

CARMEL, Ind., Oct. 29, 2024 /PRNewswire/ -- Syra Health Corp. (NASDAQ: SYRA), ("Syra Health" or the "Company") a healthcare technology company driving better health through impactful, innovative solutions, announced today its financial results for the third quarter ended September 30, 2024.

Financial Highlights – 2024 Fiscal Third Quarter

Year over Year – Q3 2024 vs. Q3 2023

  • Achieved Net Revenue of $2.3 million, ~42% growth compared to 3Q23.
  • Population Health continues to grow, driven by demand for our public health services with revenues up 36%, alongside strong contributions from legacy Healthcare Workforce services with revenues up 54% compared to 3Q23.
  • Gross profit margin was 30% in 3Q24, compared to 35% in 3Q23, reflecting a milestone-based revenue recognition from our first digital health product in 3Q23.
  • Cash balance of $2.7 million at end of 3Q24 with no long-term debt, providing an estimated capital runway of approximately two years.

Third Quarter 2024 vs. Second Quarter 2024

  • Total Revenue increased 14.4% compared to 2Q24.
  • Gross profit margin was 29.7% in 3Q24 compared to 17.8% in 2Q24, an increase of 1190 bps.
  • Net loss for 3Q24 showed a 69% reduction compared to 2Q24 demonstrating a consistent move toward profitability.
  • Net loss per share decreased to $(0.06) in 3Q24 from $(0.21) in 2Q24.
  • Total operating expenses in 3Q24 decreased 37% compared to 2Q24.

Recent Operational Highlights

  • Successfully implemented cost-saving initiatives for sustainable impact
    • Achieved a 37% overall reduction in operating expenses in 3Q24 compared to 2Q24.
    • SG&A expenses decreased by 37% in 3Q24 compared to 2Q24.
    • Realized a 30% decrease in salaries and benefits costs in 3Q24 compared to 2Q24.
  • Launched Syrenity, a mental health app built on clinically proven practices and ethical, compliant AI technology. Targeting a broad customer base—including large employers, academic institutions, health plans, and direct consumers—Syrenity taps into national and global markets. This product diversifies revenue streams and bolsters the Company's standing in the growing mental health tech sector, driving sustainable growth.

  • Several government projects across multiple states are advancing into active implementation within high-margin business units. Launched the implementation of a four-year, $5.8 million training contract for healthcare professionals throughout Indiana, with revenue expected to start in 4Q24.

  • Secured healthcare workforce contracts across several states, including Delaware, Florida, and Kansas adding revenues to our legacy service line.

  • Completed a capital raise, generating gross proceeds of $2.1 million to bolster our financial flexibility and further support growth initiatives, including the product roadmap and the development of Syra's ethical, explainable, and responsible AI solutions in healthcare.

Management Commentary

Dr. Deepika Vuppalanchi, CEO of Syra Health, said, "We are excited to report year-over-year growth of 42%. Our commitment to increasing revenue and improving profit margins is driven by our strong team and a track record of success stories. We are laser-focused on expanding our portfolio of high-revenue clients in high-margin business units by delivering compelling value propositions tailored to meet their specific needs. Looking ahead, we anticipate that our mental health product, Syrenity, will attract new customers in the robust national and global mental and behavioral health markets, further diversifying our revenue streams.

Additionally, our extensive cost-saving strategy has yielded significant reductions in expenses across the board with a 69% decrease in net loss quarter-over-quarter. With our strong revenue growth, a robust sales pipeline spanning both public and private sectors, effective cost optimization strategies, and a steadfast commitment to innovative solutions, we are confident in our growth trajectory. We are determined to achieve profitability in 2025 and capitalize on the exciting opportunities ahead."

Q3 2024 Financial Results

Revenue for the quarter ended September 30, 2024, was $2.3 million, compared to the $1.6 million reported in the third quarter of 2023. Strong growth was driven by Population Health which grew 36% year over year, and Healthcare Workforce, which increased 54% year over year.

Gross profit margin was 30% in the third quarter of 2024, compared to 35% the previous year, attributed to revenue recognition in the third quarter of 2023 from our first milestone-based digital health product, Syrabot. With maintenance and operations for this project continuing for an additional three years, we believe we are well-positioned for future growth as we expand our digital health offerings and optimize our revenue streams.

Total operating expenses for the third quarter of 2024 were $1.1 million compared to $0.9 million in the third quarter of 2023, an increase of 22.2%.

Net loss for the third quarter of 2024 was $(417,535) compared to $(354,376) in the third quarter of 2023.

Total Revenue in the third quarter of 2024 was $2.3 million representing a 14.4% increase compared to the second quarter of 2024.

Gross profit margin in the third quarter of 2024 was 29.7%, compared to 17.8% in the second quarter of 2024. The 1190-basis point increase in gross margins quarter-over-quarter was primarily driven by cost-saving initiatives and enhanced operational efficiency, achieved by adopting a lean approach and reducing redundancies.

Total operating expenses in the third quarter of 2024 decreased 37% to $1.1 million compared to $1.74 million in the second quarter of 2024 due to a strategic focus on streamlining our operations and optimizing our workforce with a determination to reduce our cost structure.

Net loss for the third quarter of 2024 was $(417,535), a decrease of 69% from the net loss of $(1.4 million) in the second quarter of 2023. This improvement was due to restructuring efforts that reduced redundancies and increased operational efficiencies, providing a solid foundation to support ongoing business operations.

Cash on hand on September 30, 2024, was $2.7 million.

Conference Call

Management will hold a conference call to discuss the fiscal year's financial results at 9:00 am ET on October 29, 2024.

Interested parties can listen via a live webcast, from the link available in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/q3-2024-earnings-call.

A replay will be available after the call, in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/q3-2024-earnings-call.

ABOUT SYRA HEALTH 

Syra Health leads the charge in addressing the toughest challenges in healthcare, from behavioral and mental health to population health, digital transformation, health education, and workforce development. Our technology-driven solutions focus on prevention, accessibility, and affordability, ensuring that every patient and provider gets the support they need. We proudly partner with payers, providers, life sciences organizations, academic institutions, and government entities to advance healthcare and improve outcomes. Learn more about our mission and services at www.syrahealth.com.

Forward-Looking Statements 

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include but are not limited to, statements relating to the expected use of proceeds, the Company's operations and business strategy, and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances. Investors should read the risk factors set forth in our Form 10-K for the year ended December 31, 2023, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

 

SYRA HEALTH CORP.
CONDENSED BALANCE SHEETS



September 30,



December 31,




2024



2023




(Unaudited)





ASSETS









Current assets:









Cash


$

2,697,459



$

3,280,075


Accounts receivable, net



884,445




1,060,634


Accounts receivable related party



-




50,614











Other current assets



482,990




389,787


Total current assets



4,064,894




4,781,110











Property and equipment, net



34,625




78,974


Right-of-use asset



325,491




63,199











Total assets


$

4,425,010



$

4,923,283











LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)


















Current liabilities:









Accounts payable


$

212,931



$

462,991


Accrued expenses



309,606




198,978


Deferred revenue



6,108




-


Current portion of operating lease liability, related party



108,939




63,199


Notes payable



240,221




184,904


Total current liabilities



877,805




910,072











Non-current portion of operating lease liability, related party



216,552




-











Total liabilities



1,094,357




910,072











Commitments and contingencies


















Stockholders' equity (deficit):









Preferred stock, $0.001 par value, 10,000,000 shares authorized, no
shares designated, issued and outstanding



-




-


Class A common stock, $0.001 par value, 100,000,000 shares
authorized, 8,973,774 and 5,588,298 shares issued and outstanding
at September 30, 2024 and December 31, 2023, respectively



8,974




5,588


Convertible class B common stock, $0.001 par value, 5,000,000
shares authorized, 833,334 shares issued and outstanding



833




833











Additional paid-in capital



11,640,642




9,071,745


Accumulated deficit



(8,319,796)




(5,064,955)


Total stockholders' equity (deficit)



3,330,653




4,013,211











Total liabilities and stockholders' equity (deficit)


$

4,425,010



$

4,923,283


 

SYRA HEALTH CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

















For the Three Months Ended



For the Nine Months Ended




2024



2023



2024



2023















Net revenues


$

2,253,336



$

1,581,344



$

5,975,357



$

3,748,943


Cost of services



1,585,038




1,026,803




4,777,765




2,919,087


Gross profit



668,298




554,541




1,197,592




829,856



















Operating expenses:

















Salaries and benefits



594,738




592,241




2,178,105




1,612,605


Professional services



153,803




58,875




489,839




424,379


Research and development expenses



34,821




-




590,263




-


Selling, general and administrative expenses



288,305




234,084




1,147,142




657,904


Depreciation



25,541




12,357




55,460




36,413


Total operating expenses



1,097,208




897,557




4,460,809




2,731,301



















Operating loss



(428,910)




(343,016)




(3,263,217)




(1,901,445)



















Other income (expense):

















Interest income



13,641




2,820




18,448




2,826


Interest expense



(2,266)




(14,180)




(10,072)




(44,449)


Total other income (expense)



11,375




(11,360)




8,376




(41,623)



















Net loss


$

(417,535)



$

(354,376)



$

(3,254,841)



$

(1,943,068)



















Weighted average common shares
 outstanding - basic and diluted



7,264,768




4,360,426




6,789,209




4,380,267


Net loss per common share - basic and
diluted


$

(0.06)



$

(0.08)



$

(0.48)



$

(0.44)


 

SYRA HEALTH CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)




2024



2023


CASH FLOWS FROM OPERATING ACTIVITIES









Net loss


$

(3,254,841)



$

(1,943,068)


Adjustments to reconcile net loss to net cash used in operating
activities:









Depreciation



55,460




36,413


Bad debt expense



-




9,922


Common stock issued for services



74,647




-


Non-cash lease expense



63,199




90,162


Stock-based compensation, stock options



28,486




3,669


Changes in operating assets and liabilities:









Accounts receivable



176,189




136,324


Accounts receivable, related party



50,614




-


Other current assets



285,456




58,979


Accounts payable



(250,060)




500,391


Accounts payable, related parties



-




18,221


Deferred revenue



6,108




141,644


Accrued expenses



110,628




35,479


Operating lease liability



(63,199)




(90,162)


Net cash used in operating activities



(2,717,313)




(1,002,026)











CASH FLOWS FROM INVESTING ACTIVITIES









Purchase of property and equipment



(11,111)




(15,251)


Net cash used in investing activities



(11,111)




(15,251)











CASH FLOWS FROM FINANCING ACTIVITIES









Proceeds from sale of common stock and exercise of warrants



2,469,150




-


Payment of deferred offering costs



-




(589,059)


Proceeds received from line of credit



-




300,000


Repayments on line of credit



-




(750,397)


Proceeds received from advances, related party



-




1,295,010


Repayments on advances, related party



-




(678,611)


Repayments on notes payable



(323,342)




-


Proceeds received from convertible notes payable



-




1,455,000


Net cash provided by financing activities



2,145,808




1,031,943











NET CHANGE IN CASH AND CASH EQUIVALENTS



(582,616)




14,666


CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD



3,280,075




3,344


CASH AND CASH EQUIVALENTS AT END OF PERIOD


$

2,697,459



$

18,010











SUPPLEMENTAL INFORMATION:









Interest paid


$

10,072



$

28,533


Income taxes paid


$

-



$

-











NON-CASH INVESTING AND FINANCING ACTIVITIES:









Initial recognition of right-of-use asset and lease liability


$

325,491



$

-


Prepaid asset financed with note payable


$

378,659



$

-


Contacts:

For Investor or Media Inquiries:
Priya Prasad
COO & CFO
Syra Health Corp.
463-345-8963 
priyap@syrahealth.com 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/syra-health-delivers-third-quarter-2024-financial-results-302289581.html

SOURCE Syra Health

FAQ

What was Syra Health's (SYRA) revenue growth in Q3 2024?

Syra Health reported revenue of $2.3 million in Q3 2024, representing a 42% growth compared to Q3 2023.

How much did Syra Health (SYRA) reduce its net loss in Q3 2024?

Syra Health reduced its net loss by 69% to $417,535 in Q3 2024 compared to Q2 2024's net loss of $1.39 million.

What is Syra Health's (SYRA) cash position as of September 30, 2024?

Syra Health had a cash balance of $2.7 million as of September 30, 2024, with no long-term debt.

When does Syra Health (SYRA) aim to achieve profitability?

Syra Health aims to achieve profitability in 2025 through targeted revenue growth and cost-efficiency measures.

Syra Health Corp.

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