Siyata Mobile Inc. (SYTA) on Q2 2024 Results - Earnings Call Transcript
Operator: Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q2 2024 Conference Call. At this time, all lines are in a listen-only mode. This call is being recorded on Friday, August 16, 2024. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead. Glenn Kennedy: Thank you for joining the Siyata Mobile second quarter 2024 conference call. Today, I'm joined by our CEO, Marc Seelenfreund. During this call, management will make expressed and implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding future product offerings, the belief that we are on the path for strong organic growth, the goal to deliver strong year-over-year revenue growth and reach profitability in the coming quarters, the belief that we will continue to see strong sales in all of our product lines and across our various markets, and the timing and sale of our rugged handsets to North American and international carriers. Such forward-looking statements are based on the company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are not statements of historical fact and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The company's actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. The company cannot guarantee future results, levels of activity, performance or achievements. The forward-looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the Risk Factors section and elsewhere in the company's annual report on Form 20-F for the year ended December 31, 2023, filed with the Securities and Exchange Commission. Now, I'd like to turn the call over to Marc. Marc Seelenfreund: Thank you, Glenn. Good morning and thank you for joining the call. For the second quarter of 2024 ended June 30, revenue was $1.9 million, which is an $800,000 decrease compared to $2.7 million in Q2 2023. This decrease was primarily due to working capital constraints, which we believe was a short-term challenge that we addressed with our recent capital raises. Demand from our wireless carriers and distributors remain strong, and we currently have an order backlog of over $7 million, giving us strong visibility into third and fourth quarters. We expect revenue in Q3 2024 will be significantly higher than Q2 2024 revenue. And our goal for 2024 revenue is to have high double-digit growth. As we scale our business aggressively, our order backlog may likely be inconsistent and perhaps lumpy at times due to the purchasing behavior of our customers. Therefore, we do not intend to disclose our backlog quarter-to-quarter. Having said that, we are extremely excited with our sales for the remaining half of 2024 as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels. With our North American wireless carrier partners, we are currently in a SD7 stock position with AT&T, Verizon, UScellular, and Bell Mobility in Canada, and we also continue to sell in a non-stock position at T-Mobile. Just as important, our sales reached beyond emergency services to include school safety, healthcare, utilities, hospitality, and enterprise use cases, among others. Therefore, we remain optimistic that 2024 will be a strong sales growth year for Siyata compared to 2023. For the remaining Q2 2024 financial metrics, gross margin percentage for Q2 2024 was 10.4% versus 29.7% in Q2 2023. Gross margin dollars decreased from $800,000 to $200,000, a $600,000 negative variance. The decrease in gross margin was primarily due to one-time heavily discounted transaction with an international reseller, which we believe will help our revenue in the second-half of 2024. SG&A expenses are $4 million in Q2 2024 versus $2.7 million in Q2 2023, an increase of $1.3 million. This increase in SG&A was primarily due to marketing expenses related to investor awareness. Adjusted EBITDA for Q2 2024 was negative $3.8 million compared to negative $2 million in Q2 2023, a $1.8 million negative variance in EBITDA. Working capital as of June 30, 2024 was negative $8.3 million versus $1.3 million as of December 31, 2023, a $7 million decrease in working capital. Removing both the non-cash warrant and preferred share liabilities classified as current liabilities, the working capital at June 30, 2024, would have been $2.5 million and at December 31, 2024, would have been $1.5 million. For the six months ended June 30, 2024, total revenue was $4.2 million compared to $4.5 million in the same period of 2023, which is a negative variance of $300,000. Gross margin dollars were $1.1 million in 2024 compared to $1.3 million in the same period of 2023, which is a negative variance of $200,000. The decreased gross margin was again, primarily due to a one-time heavily discounted transaction that was sold internationally to a reseller, which we believe will help our revenue in the second-half of 2024. Finally, the gross margin percentage was 25% in 2024, compared to 28.8% in the same period of 2023, a decrease of 3.8%. Turning to significant business highlights, we are pleased to report that in addition to our strong backlog and our improved stock positions with four North American carriers, we now have our SD7 handset integrated with another leading global push-to-talk application called Zello, and we expect more applications to be announced in the future. This integration has already led to meaningful sales with multiple new sales opportunities in the works. Also of note, we are in discussions with our business partners about new product launches, which we expect to announce in the coming months and will have a significant positive impact in our revenue in 2025 and beyond. We recently expanded our sales team with the hiring of Bob Escalle as our VP of Public Safety. Bob previously served as the Director of Product Development at Samsung's mission-critical Push-to-Talk team. In the brief time that Bob has been at Siyata, he has already helped us to sharpen our product strategy and develop new sales opportunities. We are excited to have a person of his caliber on our team. We are just beginning to see the rapid adoption of our disruptive solutions, and as the displacement of land mobile radio by push-to-talk over cellular continues to progress, this should drive meaningful growth for our innovative products. We stand by our previously stated goal of strong revenue growth with a goal of profitability in the coming quarters. We will file our second quarter 2024 financial results with the SEC on Form 6-K and urge our listeners to access them from the SEC's website. Search for Siyata Mobile. That concludes our remarks. If you have any questions, please email them to SYTA@Haydenir.com. Thank you. Operator: This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation. End of Q&A:
Siyata Mobile's Upcoming Earnings and Strategic Partnerships
- Siyata Mobile (NASDAQ:SYTA) is set to release its quarterly earnings with an anticipated EPS loss of $3.47 and projected revenue of $2.8 million.
- The company has entered into strategic partnerships, including one with T-Mobile, and secured a deal with a Fortune 100 telecom company, aiming to enhance its market presence.
- Despite financial challenges indicated by a negative P/E ratio of -0.04 and a debt-to-equity ratio of 1.12, Siyata's innovative strategies and growth plans, such as a $160 million merger with Core Gaming, highlight its potential for future stability and growth.
Siyata Mobile, trading as NASDAQ:SYTA, is a prominent player in the telecommunications industry, specializing in Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems. The company is set to release its quarterly earnings on Tuesday, May 13, 2025, at 4:00 PM Eastern Daylight Time. Analysts predict an earnings per share loss of $3.47, with projected revenue of approximately $2.8 million.
Siyata has recently made significant strides, including a strategic partnership with T-Mobile through the T-Priority program. This collaboration is expected to boost its market presence. Additionally, Siyata has secured a deal with a Fortune 100 telecom company, further strengthening its industry position. These developments are crucial as the company navigates its financial challenges.
Despite a negative price-to-earnings (P/E) ratio of -0.04, Siyata's recent achievements, such as becoming the smallest manufacturer to secure stocking agreements with major U.S. carriers, highlight its innovative approach. The company's price-to-sales ratio of 0.36 suggests that the market values it at about 36 cents for every dollar of sales, reflecting investor caution.
Siyata's ambitious growth plans include a $160 million merger with Core Gaming, showcasing its commitment to expansion. However, the enterprise value to sales ratio of 0.73 and a negative enterprise value to operating cash flow ratio of -0.56 indicate financial hurdles. The earnings yield is notably negative at -22.91%, underscoring a lack of profitability.
The company's debt-to-equity ratio of 1.12 suggests it has more debt than equity, which could pose risks. Additionally, a current ratio of 0.53 indicates potential liquidity challenges in covering short-term liabilities. Despite these financial metrics, Siyata's strategic moves and partnerships may pave the way for future growth and stability.
Siyata Mobile's Upcoming Earnings and Strategic Partnerships
- Siyata Mobile (NASDAQ:SYTA) is set to release its quarterly earnings with an anticipated EPS loss of $3.47 and projected revenue of $2.8 million.
- The company has entered into strategic partnerships, including one with T-Mobile, and secured a deal with a Fortune 100 telecom company, aiming to enhance its market presence.
- Despite financial challenges indicated by a negative P/E ratio of -0.04 and a debt-to-equity ratio of 1.12, Siyata's innovative strategies and growth plans, such as a $160 million merger with Core Gaming, highlight its potential for future stability and growth.
Siyata Mobile, trading as NASDAQ:SYTA, is a prominent player in the telecommunications industry, specializing in Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems. The company is set to release its quarterly earnings on Tuesday, May 13, 2025, at 4:00 PM Eastern Daylight Time. Analysts predict an earnings per share loss of $3.47, with projected revenue of approximately $2.8 million.
Siyata has recently made significant strides, including a strategic partnership with T-Mobile through the T-Priority program. This collaboration is expected to boost its market presence. Additionally, Siyata has secured a deal with a Fortune 100 telecom company, further strengthening its industry position. These developments are crucial as the company navigates its financial challenges.
Despite a negative price-to-earnings (P/E) ratio of -0.04, Siyata's recent achievements, such as becoming the smallest manufacturer to secure stocking agreements with major U.S. carriers, highlight its innovative approach. The company's price-to-sales ratio of 0.36 suggests that the market values it at about 36 cents for every dollar of sales, reflecting investor caution.
Siyata's ambitious growth plans include a $160 million merger with Core Gaming, showcasing its commitment to expansion. However, the enterprise value to sales ratio of 0.73 and a negative enterprise value to operating cash flow ratio of -0.56 indicate financial hurdles. The earnings yield is notably negative at -22.91%, underscoring a lack of profitability.
The company's debt-to-equity ratio of 1.12 suggests it has more debt than equity, which could pose risks. Additionally, a current ratio of 0.53 indicates potential liquidity challenges in covering short-term liabilities. Despite these financial metrics, Siyata's strategic moves and partnerships may pave the way for future growth and stability.
Siyata Mobile Inc. (NASDAQ:SYTA) Faces Financial Challenges but Looks Towards Growth with Core Gaming Merger
- Earnings per share (EPS) of -$18.55, significantly lower than the estimated -$6.99, indicating larger-than-expected losses.
- Actual revenue of approximately $1.52 million, falling short of the estimated $5.76 million, highlighting market expectation challenges.
- Despite financial difficulties, the definitive merger agreement with Core Gaming, Inc. presents new growth opportunities.
Siyata Mobile Inc. (NASDAQ:SYTA) is a global developer and vendor of Push-to-Talk over Cellular (PoC) handsets and accessories. The company recently reported its financial results for the fourth quarter and full year ending December 31, 2024. On March 31, 2025, SYTA announced an earnings per share (EPS) of -$18.55, which was significantly lower than the estimated EPS of -$6.99. This indicates a larger-than-expected loss per share, reflecting the company's current financial challenges.
The company's actual revenue was approximately $1.52 million, falling short of the estimated $5.76 million. This shortfall in revenue highlights the difficulties SYTA faces in meeting market expectations. Despite these challenges, the company is moving forward with a significant development—a definitive merger agreement with Core Gaming, Inc. This merger is expected to bring new growth opportunities, as highlighted by the upcoming presentation by Aitan Zacharin, CEO of Core Gaming, at the AI & Technology Virtual Investor Conference on April 3, 2025.
SYTA's financial metrics further illustrate its current challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -2.99, indicating it is not profitable at the moment. The price-to-sales ratio stands at 0.18, suggesting that the stock is valued at 18 cents for every dollar of sales. This low valuation reflects investor concerns about the company's ability to generate revenue.
The enterprise value to sales ratio is 0.49, implying that the company's total valuation is about 49 cents for every dollar of sales. Additionally, the enterprise value to operating cash flow ratio is negative at -0.37, indicating difficulties in generating positive cash flow from operations. The earnings yield is also negative at -33.48%, further highlighting the company's current unprofitability.
Despite these financial challenges, SYTA maintains a debt-to-equity ratio of 0.40, indicating a moderate level of debt relative to equity. The current ratio is 1.03, suggesting that the company has slightly more current assets than current liabilities, which indicates a marginally stable liquidity position. As the company moves closer to finalizing the merger with Core Gaming, CEO Marc Seelenfreund remains optimistic about the future prospects.
Siyata Mobile Inc. (NASDAQ:SYTA) Faces Financial Challenges but Looks Towards Growth with Core Gaming Merger
- Earnings per share (EPS) of -$18.55, significantly lower than the estimated -$6.99, indicating larger-than-expected losses.
- Actual revenue of approximately $1.52 million, falling short of the estimated $5.76 million, highlighting market expectation challenges.
- Despite financial difficulties, the definitive merger agreement with Core Gaming, Inc. presents new growth opportunities.
Siyata Mobile Inc. (NASDAQ:SYTA) is a global developer and vendor of Push-to-Talk over Cellular (PoC) handsets and accessories. The company recently reported its financial results for the fourth quarter and full year ending December 31, 2024. On March 31, 2025, SYTA announced an earnings per share (EPS) of -$18.55, which was significantly lower than the estimated EPS of -$6.99. This indicates a larger-than-expected loss per share, reflecting the company's current financial challenges.
The company's actual revenue was approximately $1.52 million, falling short of the estimated $5.76 million. This shortfall in revenue highlights the difficulties SYTA faces in meeting market expectations. Despite these challenges, the company is moving forward with a significant development—a definitive merger agreement with Core Gaming, Inc. This merger is expected to bring new growth opportunities, as highlighted by the upcoming presentation by Aitan Zacharin, CEO of Core Gaming, at the AI & Technology Virtual Investor Conference on April 3, 2025.
SYTA's financial metrics further illustrate its current challenges. The company has a negative price-to-earnings (P/E) ratio of approximately -2.99, indicating it is not profitable at the moment. The price-to-sales ratio stands at 0.18, suggesting that the stock is valued at 18 cents for every dollar of sales. This low valuation reflects investor concerns about the company's ability to generate revenue.
The enterprise value to sales ratio is 0.49, implying that the company's total valuation is about 49 cents for every dollar of sales. Additionally, the enterprise value to operating cash flow ratio is negative at -0.37, indicating difficulties in generating positive cash flow from operations. The earnings yield is also negative at -33.48%, further highlighting the company's current unprofitability.
Despite these financial challenges, SYTA maintains a debt-to-equity ratio of 0.40, indicating a moderate level of debt relative to equity. The current ratio is 1.03, suggesting that the company has slightly more current assets than current liabilities, which indicates a marginally stable liquidity position. As the company moves closer to finalizing the merger with Core Gaming, CEO Marc Seelenfreund remains optimistic about the future prospects.
Siyata Mobile Inc. (NASDAQ:SYTA) Quarterly Earnings Preview
Siyata Mobile Inc. (NASDAQ:SYTA) is on the brink of releasing its quarterly earnings on March 31, 2025. The company, a renowned manufacturer of mobile communication devices, is anticipated to unveil an earnings per share (EPS) of -$6.99, alongside projected revenue of $5.76 million.
Following the announcement of a merger with Core Gaming, Inc., there's a buzz around its potential financial trajectory. The firm has opted out of hosting a traditional conference call for its financial disclosures. Instead, stakeholders are directed towards the AI & Technology Virtual Investor Conference scheduled for April 3, 2025.
Here, Aitan Zacharin, CEO of Core Gaming, will shed light on the merged entity's growth strategies, as reported by PR Newswire. A deep dive into Siyata's financials uncovers some hurdles. The negative P/E ratio of -2.76 paints a picture of unprofitability, while a price-to-sales ratio of 0.16 implies the stock is trading at 16 cents for every dollar of sales.
The enterprise value to sales ratio standing at 0.48 suggests the company's market valuation is less than half of its sales figures. Moreover, the enterprise value to operating cash flow ratio at -0.36 signals challenges in cash flow generation. The stark negative earnings yield of -36.18% further highlights the company's struggle with profitability.
On a brighter note, a debt-to-equity ratio of 0.40 indicates a relatively moderate debt level in comparison to equity. The current ratio of 1.03 portrays a company with a slightly higher volume of current assets than liabilities, hinting at short-term financial resilience. Despite the financial adversities, the merger with Core Gaming could pave the way for new growth avenues and potentially enhance Siyata's financial standing.
Siyata Mobile Inc. (NASDAQ:SYTA) Quarterly Earnings Preview
Siyata Mobile Inc. (NASDAQ:SYTA) is on the brink of releasing its quarterly earnings on March 31, 2025. The company, a renowned manufacturer of mobile communication devices, is anticipated to unveil an earnings per share (EPS) of -$6.99, alongside projected revenue of $5.76 million.
Following the announcement of a merger with Core Gaming, Inc., there's a buzz around its potential financial trajectory. The firm has opted out of hosting a traditional conference call for its financial disclosures. Instead, stakeholders are directed towards the AI & Technology Virtual Investor Conference scheduled for April 3, 2025.
Here, Aitan Zacharin, CEO of Core Gaming, will shed light on the merged entity's growth strategies, as reported by PR Newswire. A deep dive into Siyata's financials uncovers some hurdles. The negative P/E ratio of -2.76 paints a picture of unprofitability, while a price-to-sales ratio of 0.16 implies the stock is trading at 16 cents for every dollar of sales.
The enterprise value to sales ratio standing at 0.48 suggests the company's market valuation is less than half of its sales figures. Moreover, the enterprise value to operating cash flow ratio at -0.36 signals challenges in cash flow generation. The stark negative earnings yield of -36.18% further highlights the company's struggle with profitability.
On a brighter note, a debt-to-equity ratio of 0.40 indicates a relatively moderate debt level in comparison to equity. The current ratio of 1.03 portrays a company with a slightly higher volume of current assets than liabilities, hinting at short-term financial resilience. Despite the financial adversities, the merger with Core Gaming could pave the way for new growth avenues and potentially enhance Siyata's financial standing.
