Syra Health (SYRA) - 2024 Q1 - Quarterly Results

Financial and Operational Highlights This section summarizes Syra Health's strong Q1 2024 financial results, positive 2024 outlook, and recent operational achievements Q1 2024 Financial Highlights Syra Health reported strong revenue growth of 47% in Q1 2024, reaching $1.7 million, with significant growth in Population Health and a healthy cash balance Q1 2024 Financial Highlights Summary | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $1.7 million | $1.2 million | +47% | | Business Units (excl. Healthcare Workforce) Growth | - | - | +333% | | Population Health Unit Growth | - | - | +212% | | Cash Balance (as of March 31, 2024) | $3.2 million | - | - | | Long-term Debt | None | - | - | 2024 Financial Outlook The company projects full-year 2024 revenue between $9 million and $11 million, representing 64% to 100% growth, with most revenue expected in the second half - Full-year 2024 revenue is projected to be $9 to $11 million, a 64%-100% increase over 2023[3] - Due to customer implementation cycles, most contract revenues are expected to be realized in the second half of 2024[3] Recent Operational Highlights Syra Health expanded to 19 states, secured key contracts including a potential $1.35 million epidemiology contract, and was selected for a $75 billion federal contract - The company now has active contracts in 19 states across the nation[6] - Key contract wins include: - A $660,000 HEDIS outreach contract - A $480,000 contract with the Indiana Department of Health - A $450,000 epidemiology contract with Shelby County, TN, with a potential value of $1.35 million - A $250,000 behavioral health study contract with Washington D.C.[6] - Selected as a subcontractor for a federal Department of Health and Human Services contract valued at $75 billion; revenues will be realized upon receipt of task orders[11] - The research protocol for the "Syrenity" mental health platform was approved by the Pearl Institutional Review Board, enabling a study with approximately 300 participants[11] Management Commentary Management expresses confidence in achieving 2024 revenue targets, driven by strong Q1 growth and the performance of key business units Management Commentary Management is confident in achieving $9 million to $11 million 2024 revenue guidance, driven by strong Q1 growth and the performance of key business units like Population Health - Management is confident in the 2024 revenue guidance of $9 million to $11 million, based on contracts in hand and pending implementation[7] - The Population Health business unit grew over 200% in Q1, driven by strong demand for epidemiology services[7] - The Healthcare Workforce business unit has returned to growth in 2024, and the Syrenity mental health platform holds great promise for future revenue[7] Q1 2024 Financial Results This section details the company's Q1 2024 financial performance, including revenue growth, gross profit margin, operating expenses, and net loss Q1 2024 Financial Performance Q1 2024 revenue grew 47% to $1.7 million, driven by Population Health, though gross profit margin decreased and net loss widened to $(1.4) million due to increased operating expenses Q1 2024 Revenue by Segment | Revenue Segment | Q1 2024 Revenue | YoY Growth | | :--- | :--- | :--- | | Total Revenue | $1.7 million | 47% | | Population Health | - | 212% | | Healthcare Workforce | - | 28% | | Digital Health | $92,250 | N/A (was zero) | - Gross profit margin was 10.2% in Q1 2024, down from 12.4% in Q1 2023, due to a mix shift towards the Healthcare Workforce business[9] - Total operating expenses increased to $1.6 million, driven by a 61% rise in salaries and benefits and an 87% increase in SG&A expenses to support business growth[10] Q1 2024 Net Loss and Adjusted EBITDA | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Loss | $(1.4 million) | $(785,892) | | Adjusted EBITDA | $(1.4 million) | $(762,710) | Financial Statements This section presents the company's condensed balance sheets, statements of operations, and cash flows for the first quarter of 2024 Condensed Balance Sheets As of March 31, 2024, Syra Health reported total assets of $4.55 million, total liabilities of $1.10 million, and a cash balance of $3.24 million Condensed Balance Sheets | Balance Sheet Item | March 31, 2024 ($) | December 31, 2023 ($) | | :--- | :--- | :--- | | Cash | 3,237,957 | 3,280,075 | | Total Current Assets | 4,447,651 | 4,781,110 | | Total Assets | 4,551,525 | 4,923,283 | | Total Current Liabilities | 1,102,220 | 910,072 | | Total Liabilities | 1,102,220 | 910,072 | | Total Stockholders' Equity | 3,449,305 | 4,013,211 | Condensed Statements of Operations Q1 2024 net revenues reached $1.75 million, but increased operating expenses led to a widened net loss of $(1.45) million, or $(0.22) per share Condensed Statements of Operations | Income Statement Item | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net Revenues | 1,752,340 | 1,188,351 | | Gross Profit | 179,287 | 147,156 | | Total Operating Expenses | 1,623,241 | 921,631 | | Operating Loss | (1,443,954) | (774,475) | | Net Loss | (1,447,050) | (785,892) | | Net Loss Per Share | (0.22) | (0.18) | Condensed Statements of Cash Flows Q1 2024 saw $(800,745) net cash used in operating activities, offset by $764,246 from financing, resulting in a net cash decrease of $(42,118) and an ending cash balance of $3.24 million Condensed Statements of Cash Flows | Cash Flow Item | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (800,745) | (45,062) | | Net Cash Used in Investing Activities | (5,619) | (9,659) | | Net Cash Provided by Financing Activities | 764,246 | 647,788 | | Net Change in Cash | (42,118) | 593,067 | | Cash at End of Period | 3,237,957 | 596,411 | Other Information This section provides details on non-GAAP financial measures and information regarding the upcoming Q1 2024 conference call Non-GAAP Financial Measures The company presents Adjusted EBITDA as a non-GAAP measure, which for Q1 2024 was a loss of $(1.43) million, reconciled from GAAP net loss - The company uses Adjusted EBITDA, a non-GAAP measure, for internal period-to-period comparisons and believes it is useful for investors to analyze operating performance[14] Adjusted EBITDA Reconciliation | Reconciliation | Q1 2024 ($) | Q1 2023 ($) | | :--- | :--- | :--- | | Net Loss | (1,447,050) | (785,892) | | Interest | 4,077 | 11,419 | | Depreciation | 12,545 | 11,763 | | Taxes | 0 | 0 | | EBITDA | (1,430,428) | (762,710) | Conference Call Syra Health will host a conference call on May 9, 2024, at 9:00 am ET to discuss Q1 2024 financial results, with webcast access available - A conference call to discuss financial results is scheduled for 9:00 am ET on May 9, 2024[13] - A live webcast and replay will be available on the Investor Relations section of the Syra Health website[13]