Siyata Mobile(US:SYTA)2024-08-16 14:02Financial Data and Key Metrics Changes - For Q2 2024, revenue was $1.9 million, a decrease of $800,000 compared to $2.7 million in Q2 2023, primarily due to working capital constraints [5] - Gross margin percentage for Q2 2024 was 10.4%, down from 29.7% in Q2 2023, with gross margin dollars decreasing from $800,000 to $200,000 [7] - Adjusted EBITDA for Q2 2024 was negative $3.8 million compared to negative $2 million in Q2 2023, reflecting a $1.8 million negative variance [8] - Working capital as of June 30, 2024, was negative $8.3 million, a decrease of $7 million from $1.3 million as of December 31, 2023 [8] Business Line Data and Key Metrics Changes - The company reported strong demand from wireless carriers and distributors, with an order backlog of over $7 million, indicating strong visibility into Q3 and Q4 [5] - Sales have expanded beyond emergency services to include sectors such as school safety, healthcare, utilities, hospitality, and enterprise use cases [6] Market Data and Key Metrics Changes - The company is currently in a stock position with major North American carriers including AT&T, Verizon, UScellular, and Bell Mobility, while continuing to sell in a non-stock position at T-Mobile [6] - The integration of the SD7 handset with the Zello push-to-talk application has led to meaningful sales and new sales opportunities [10] Company Strategy and Development Direction - The company aims for high double-digit revenue growth in 2024 and is optimistic about strong sales growth compared to 2023 [5][11] - Discussions are ongoing with business partners regarding new product launches expected to positively impact revenue in 2025 and beyond [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's path for strong organic growth and the belief that revenue in Q3 2024 will be significantly higher than in Q2 2024 [5] - The company is excited about the rapid adoption of its PTT product portfolio and anticipates continued growth as the displacement of land mobile radio by push-to-talk over cellular progresses [11] Other Important Information - SG&A expenses increased to $4 million in Q2 2024 from $2.7 million in Q2 2023, primarily due to marketing expenses related to investor awareness [7] - The company has expanded its sales team with the hiring of Bob Escalle as VP of Public Safety, who has already contributed to sharpening product strategy [10] Q&A Session Summary - The Q&A session concluded without any recorded questions or answers, indicating no further inquiries were made during the call [12]