Siyata Mobile Reports Significant 30% Year-Over-Year Revenue Growth for the First Quarter of 2024
Siyata Mobile (NASDAQ: SYTA) reported a noteworthy 30% year-over-year growth in revenue for Q1 2024, reaching $2.4 million compared to $1.8 million in Q1 2023. The company's gross margin improved significantly to 36.6%, up from 27.5% in the previous year. Despite these gains, the net loss was $2.8 million, a reduction from the $4.9 million net loss in Q1 2023. Adjusted EBITDA also showed improvement, standing at ($1.5) million compared to ($2.0) million the previous year. Siyata is expanding its sales channels for its Push-to-Talk over Cellular (PoC) devices, including the SD7 handset, which is now in stock at three of the four leading U.S. cellular carriers. The company appointed Gary Herman as the Chairman of the Board, following Peter Goldstein's resignation.
- 30% year-over-year revenue growth to $2.4 million.
- Gross margin increased to 36.6% from 27.5%.
- Net loss reduced from $4.9 million to $2.8 million.
- Adjusted EBITDA improved from ($2.0) million to ($1.5) million.
- SD7 handset now stocked by three of the four leading U.S. cellular carriers.
- Push-to-Talk market expected to grow to over $10 billion by 2032.
- Successful public offering post-Q1 raised approximately $4 million.
- Net loss of $2.8 million.
- Cash balance decreased to $0.6 million from $0.9 million at year-end 2023.
- Adjusted EBITDA remains negative at ($1.5) million.
Insights
Siyata Mobile's first quarter financial results present several noteworthy aspects for investors. The 30% year-over-year revenue growth from
Despite the positive revenue and margin trends, the adjusted EBITDA remains negative at ($1.5) million. This suggests that operational profitability is still not achieved. Investors should consider the company's ability to continue improving these metrics and eventually achieve positive EBITDA and net income.
The liquidity position seems precarious with a cash balance of $0.6 million as of March 31, 2024. However, the completion of a subsequent public offering raising
The company's expansion in the Push-to-Talk over Cellular (PoC) market, which is projected to grow significantly, offers a long-term growth opportunity. However, investors should watch the company's ability to capture and sustain market share in this competitive space.
Siyata's focus on its Push-to-Talk (PTT) over Cellular devices, particularly the SD7 handset, is strategically sound given the significant market potential. With the PTT over Cellular market projected to grow from
The technological advantage and unique positioning of their PTT devices in the market could provide a competitive edge. However, ongoing innovation and adaptation to market needs will be essential to maintain this advantage. For long-term success, investors should look for continuous product enhancements and a broadened product portfolio that caters to diverse customer needs.
Gross margin expands to
VANCOUVER, BC / ACCESSWIRE / May 16, 2024 / Siyata Mobile Inc. (NASDAQ:SYTA)(NASDAQ:SYTAW) (" Siyata " or the " Company "), a global vendor of Push-to-Talk over Cellular (PoC) devices announced its financial results for the three months ended March 31, 2024.
Marc Seelenfreund, CEO of Siyata, said, "With revenue growth of
[1] https://www.imarcgroup.com/push-to-talk-over-cellular-market
Key financial highlights for the three months ended March 31, 2024:
- Revenues were
$2.4 million compared to$1.8 million for the three months ended March 31, 2023. - Gross profit of
$863,000 , or36.6% of revenue, compared to$0.5 million , or27.5% of revenue in the same period last year - Net loss was
$2.8 million as compared to a net loss of$4.9 million in the same period in the prior year. - Adjusted EBITDA was (
$1.5) million versus ($2.0) million in the prior year. - Appointed Mr. Gary Herman as Chairman of the Board of Directors, following the resignation of Mr. Peter Goldstein as Director and Chairman.
Liquidity and Capital Resources
As of March 31, 2024, the Company had a cash balance of
Subsequent to quarter end, the Company closed a public offering of common shares and/or pre-funded warrants to purchase common shares for gross proceeds of approximately
Appointment of Gary Herman as the Chairman of the Board of Directors
Mr. Gary Herman, the incoming Chairman of the Board commented, "I am honored to serve as Chairman and thank Peter for his service. I am a big believer in our products, technology and the ability to become a market leader in the multi billion dollar Push to Talk Over Cellular industry. I look forward to working closely with Marc, management and the board to make this happen."
About Siyata Mobile Inc.
Siyata Mobile Inc. is a B2B global vendor of next generation Push-To-Talk over Cellular devices and related accessories. Its portfolio of in-vehicle and rugged devices enable first responders and enterprise workers to instantly communicate over a nationwide cellular network of choice to increase situational awareness and save lives.
Siyata's common shares trade on the Nasdaq under the symbol "SYTA" and its previously issued warrants trade on the Nasdaq under the symbol "SYTAW."
Visit siyatamobile.com and unidencellular.com to learn more.
Investor Relations (Canada):
Kin Communications
1-866-684-6730
SYTA@kincommunications.com
Investor Relations (United States):
Brett Maas
Hayden IR
SYTA@Haydenir.com
646-536-7331
Siyata Mobile Corporate:
Glenn Kennedy, VP of International Sales
Siyata Mobile Inc.
glenn@siyata.net
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Siyata's current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Siyata's filings with the Securities and Exchange Commission ("SEC"), and in any subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites and social media have been provided as a convenience, and the information contained on such websites or social media is not incorporated by reference into this press release.
-- Tables Follow --
Siyata Mobile Inc.
Condensed Consolidated Statements of Financial Position
(Expressed in US dollars)
| 31-Mar-24 | 31-Dec-23 | |||||||
Assets | ||||||||
Current | ||||||||
Cash | 585,559 | 898,771 | ||||||
Trade And Other Receivables | 1,501,183 | 1,181,257 | ||||||
Prepaid Expenses | 169,366 | 29,673 | ||||||
Inventory | 2,644,722 | 3,544,519 | ||||||
Advance To Suppliers | 813,332 | 1,048,227 | ||||||
| 5,714,162 | 6,702,447 | |||||||
Long Term Receivable | 144,942 | 147,100 | ||||||
Right Of Use Assets | 551,758 | 630,793 | ||||||
Equipment | 165,541 | 175,335 | ||||||
Intangible Assets | 7,731,652 | 7,856,730 | ||||||
Total Assets | 14,308,055 | 15,512,405 | ||||||
Liabilities And Shareholders' Equity | ||||||||
Current | ||||||||
Bank Loan | 476,777 | 89,298 | ||||||
Sale of future receipts | 2,182,918 | 1,467,899 | ||||||
Accounts Payable And Accrued Liabilities | 3,916,100 | 3,449,103 | ||||||
Deferred Revenue | 2,025 | 2,025 | ||||||
Short Term Lease Liability | 228,381 | 254,668 | ||||||
Warrant Liability | 133,849 | 156,433 | ||||||
| 6,940,050 | 5,419,426 | |||||||
Long Term Lease Liability | 340,561 | 385,639 | ||||||
| 340,561 | 385,639 | |||||||
Total Liabilities | 7,280,611 | 5,805,065 | ||||||
Shareholders' Equity | ||||||||
Share Capital | 85,714,727 | 85,714,727 | ||||||
Reserves | 14,761,324 | 14,644,200 | ||||||
Accumulated Other Comprehensive Loss | 98,870 | 98,870 | ||||||
Deficit | (93,547,477 | ) | (90,750,457 | ) | ||||
| 7,027,444 | 9,707,340 | |||||||
Total Liabilities And Shareholders' Equity | 14,308,055 | 15,512,405 | ||||||
Siyata Mobile Inc.
Condensed Consolidated Statements of Loss and Comprehensive Loss
(Expressed in US dollars)
For the three months ended March 31, 2024 and 2023
| March 31, 2024 | March 31, 2023 | |||||||
Revenue | $ | 2,357,879 | $ | 1,802,637 | ||||
Cost Of Sales | (1,494,462 | ) | (1,306,120 | ) | ||||
Gross Profit | 863,417 | 496,517 | ||||||
| 36.6 | % | 27.5 | % | |||||
Expenses | ||||||||
Amortization And Depreciation | 404,658 | 401,640 | ||||||
Development Expenses | 35,000 | 53,985 | ||||||
Selling And Marketing | 1,298,018 | 1,003,365 | ||||||
General And Administrative | 1,038,552 | 1,392,430 | ||||||
Bad Debts (Recovered) | 18,858 | - | ||||||
Share-Based Payments | 117,124 | 310,828 | ||||||
Total Operating Expenses | 2,912,210 | 3,162,248 | ||||||
Net Operating Loss | (2,048,793 | ) | (2,665,731 | ) | ||||
Other Expenses | ||||||||
Finance Expense | 779,756 | 34,098 | ||||||
Foreign Exchange | (8,945 | ) | 163 | |||||
Change In Fair Value Of Warrant Liability | (22,584 | ) | 2,178,007 | |||||
Total Other Expenses | 748,227 | 2,212,268 | ||||||
Net Loss For The Period | $ | (2,797,020 | ) | $ | (4,877,999 | ) | ||
Comprehensive Loss For The Period | $ | (2,797,020 | ) | $ | (4,877,999 | ) | ||
Weighted average shares | 570,462 | 84,432 | ||||||
Basic and diluted loss per share | $ | (4.90 | ) | $ | (57.77 | ) | ||
Reconciliation to Adjusted EBITDA
(Expressed in US dollars)
For the three months ended March 31, 2024 and 2023
| March 31, 2024 | March 31, 2023 | |||||||
Net operating loss | $ | (2,048,793 | ) | $ | (2,665,731 | ) | ||
Amortization & Depreciation | 404,658 | 401,640 | ||||||
Share based compensation | 117,124 | 310,828 | ||||||
Adjusted EBITDA | $ | (1,527,011 | ) | $ | (1,953,263 | ) | ||
SOURCE: Siyata Mobile, Inc.
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FAQ
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