Syra Health (SYRA) - 2024 Q3 - Quarterly Results

Financial & Operational Highlights Syra Health reported $2.3 million revenue in Q3 2024, a 42% year-over-year growth, with net loss reduced by 69% quarter-over-quarter Q3 2024 vs. Q3 2023 Financial Highlights | Metric | Q3 2024 | Change vs. Q3 2023 | | :--- | :--- | :--- | | Net Revenue | $2.3 million | ~42% Growth | | Population Health Revenue | - | 36% Growth | | Healthcare Workforce Revenue | - | 54% Growth | | Gross Profit Margin | 30% | Down from 35% | | Cash Balance | $2.7 million | - | Q3 2024 vs. Q2 2024 Financial Highlights | Metric | Q3 2024 | Change vs. Q2 2024 | | :--- | :--- | :--- | | Total Revenue | - | 14.4% Increase | | Gross Profit Margin | 29.7% | +1190 bps (from 17.8%) | | Net Loss | $(417,535) | 69% Reduction | | Net Loss Per Share | $(0.06) | Improvement from $(0.21) | | Total Operating Expenses | - | 37% Decrease | - The company aims to achieve profitability in 2025 through targeted revenue growth and cost-efficiency measures[1] Recent Operational Highlights Syra Health implemented cost-saving initiatives, reducing operating expenses by 37% quarter-over-quarter, launched 'Syrenity,' and secured new healthcare workforce contracts, supported by a $2.1 million capital raise - Successfully implemented cost-saving initiatives, achieving a 37% overall reduction in operating expenses in Q3 2024 compared to Q2 2024, including a 37% decrease in SG&A and a 30% decrease in salaries and benefits[3] - Launched 'Syrenity,' a mental health app using AI, to diversify revenue streams by targeting employers, academic institutions, health plans, and consumers[4] - Advanced several government projects, including the implementation of a four-year, $5.8 million healthcare professional training contract in Indiana, with revenue expected to begin in Q4 2024[5] - Secured new healthcare workforce contracts in Delaware, Florida, and Kansas[5] - Completed a capital raise generating gross proceeds of $2.1 million to bolster financial flexibility and support growth, including AI solutions development[6] Management Commentary Management aims for 2025 profitability through expanding high-margin client relationships, diversifying revenue with 'Syrenity,' and leveraging strong growth and cost optimization - Management is laser-focused on expanding its portfolio of high-revenue clients in high-margin business units[7] - The new mental health product, Syrenity, is expected to attract new customers and further diversify revenue streams[7] - The company is determined to achieve profitability in 2025, citing strong revenue growth, a robust sales pipeline, and effective cost optimization strategies[8] Q3 2024 Financial Results (Detailed Analysis) Q3 2024 revenue grew 42% year-over-year to $2.3 million, with gross margin increasing 1190 basis points sequentially to 29.7%, and operating expenses decreasing 37% quarter-over-quarter Q3 2024 vs. Q3 2023 Performance | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Revenue | $2.3 million | $1.6 million | | Gross Profit Margin | 30% | 35% | | Total Operating Expenses | $1.1 million | $0.9 million | | Net Loss | $(417,535) | $(354,376) | Q3 2024 vs. Q2 2024 Performance | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $2.3 million | Up 14.4% | | Gross Profit Margin | 29.7% | 17.8% | | Total Operating Expenses | $1.1 million | $1.74 million | | Net Loss | $(417,535) | $(1.4 million) | - The quarter-over-quarter increase in gross margin was primarily driven by cost-saving initiatives, adopting a lean approach, and reducing redundancies[12] Financial Statements The condensed financial statements detail Syra Health's financial position, operations, and cash flows as of September 30, 2024, reflecting $4.4 million in total assets and a net loss Condensed Balance Sheets As of September 30, 2024, Syra Health reported total assets of $4.43 million, total liabilities of $1.09 million, and total stockholders' equity of $3.33 million Balance Sheet Summary (Unaudited) | Account | Sept 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash | $2,697,459 | $3,280,075 | | Total Current Assets | $4,064,894 | $4,781,110 | | Total Assets | $4,425,010 | $4,923,283 | | Liabilities & Equity | | | | Total Current Liabilities | $877,805 | $910,072 | | Total Liabilities | $1,094,357 | $910,072 | | Total Stockholders' Equity | $3,330,653 | $4,013,211 | Condensed Statements of Operations For Q3 2024, Syra Health reported $2.25 million in net revenue, a gross profit of $668,298, and a net loss of $(417,535) Statement of Operations - Three Months Ended Sept 30 (Unaudited) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net Revenues | $2,253,336 | $1,581,344 | | Gross Profit | $668,298 | $554,541 | | Total Operating Expenses | $1,097,208 | $897,557 | | Operating Loss | $(428,910) | $(343,016) | | Net Loss | $(417,535) | $(354,376) | | Net Loss Per Share | $(0.06) | $(0.08) | Statement of Operations - Nine Months Ended Sept 30 (Unaudited) | Account | 2024 | 2023 | | :--- | :--- | :--- | | Net Revenues | $5,975,357 | $3,748,943 | | Gross Profit | $1,197,592 | $829,856 | | Operating Loss | $(3,263,217) | $(1,901,445) | | Net Loss | $(3,254,841) | $(1,943,068) | | Net Loss Per Share | $(0.48) | $(0.44) | Condensed Statements of Cash Flows For the nine months ended September 30, 2024, net cash used in operating activities was $2.72 million, with $2.15 million provided by financing, leading to a $582,616 decrease in cash balance Cash Flow Summary - Nine Months Ended Sept 30 (Unaudited) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating | $(2,717,313) | $(1,002,026) | | Net Cash Used in Investing | $(11,111) | $(15,251) | | Net Cash Provided by Financing | $2,145,808 | $1,031,943 | | Net Change in Cash | $(582,616) | $14,666 | | Cash at End of Period | $2,697,459 | $18,010 |