VANCOUVER, BC - Siyata Mobile Inc. (NASDAQ: SYTA), a global developer of Push-to-Talk over Cellular (PoC) devices, has announced a significant revenue increase for the third quarter ended September 30, 2024. The company reported revenue of $5.9 million, marking an exponential year-over-year growth of over 200%, attributed mainly to a stronger U.S. market presence where sales soared by 55%.
The company's CEO, Marc Seelenfreund, highlighted the growing demand for their SD7 handsets across various industries as a key driver for the revenue surge. Siyata's ruggedized handsets are becoming a preferred alternative to traditional land mobile radio systems, signaling an accelerating adoption trend.
Despite the revenue upswing, Siyata recorded a net loss of $0.6 million, which is an improvement compared to the $1.9 million net loss reported in the same period last year. The company's gross margin also increased to 29.0% of revenue, up from 26.6% in the prior year. However, adjusted EBITDA showed a larger loss of ($3.3) million compared to ($1.6) million in the previous year.
Siyata's liquidity position as of September 30, 2024, showed a cash balance of $0.2 million, a decrease from $0.9 million at the end of 2023. The company remains optimistic about its future, with plans to launch a 5G product portfolio in 2025 and the announcement of T-Mobile as the first carrier to introduce part of this new lineup.
The financial results and future prospects will be further discussed in a conference call hosted by the company on Friday, November 15, 2024, at 8:30 a.m. Eastern Time.
Siyata Mobile specializes in PoC handsets and accessories, catering to first responders, enterprise workers, and various organizations requiring robust communication solutions. The company's shares are traded on the Nasdaq under the symbol "SYTA".
This article is based on a press release statement from Siyata Mobile Inc. and includes forward-looking statements subject to risks and uncertainties.
In other recent news, Siyata Mobile Inc. has been making significant strides. The company secured a deal with Trans-West Security Systems for the deployment of its SD7 handsets and VK7 vehicle kits. Additionally, Siyata's SD7 handset battery and power supply have gained certification from the Bureau of Indian Standards, enabling sales in India through reseller Consort Digital.
On the personnel front, Siyata welcomed Mr. Campbell Becher to its board of directors, following the resignation of Stephen Ospalak. Becher's two decades of investment banking experience are expected to drive the company's growth.
In financial developments, Siyata reported a decrease in Q2 2024 revenue from $2.7 million to $1.9 million, attributed to working capital constraints. However, the company anticipates Q3 2024 revenue to be significantly higher than Q2 2024 and aims for high double-digit growth for the full year of 2024.
Siyata has also secured a new partnership with a leading global mining company based in North America, involving an initial order of several hundred SD7 handsets for a Canadian mining site. Furthermore, the company continues to supply UV350 Vehicle Kits to Intellicom, a long-time client in Kazakhstan. These recent developments highlight Siyata Mobile's ongoing efforts to expand its market presence.
InvestingPro Insights
Siyata Mobile's recent financial results reveal a complex picture of growth and challenges. While the company reported a significant revenue increase, InvestingPro data shows that revenue for the last twelve months as of Q2 2024 was $7.97 million, with a year-over-year decline of 13.31%. This contrast highlights the volatility in the company's performance.
An InvestingPro Tip indicates that Siyata is "quickly burning through cash," which aligns with the reported decrease in cash balance from $0.9 million at the end of 2023 to $0.2 million as of September 30, 2024. This rapid cash burn rate could pose challenges for the company's ambitious plans, including the launch of its 5G product portfolio in 2025.
Another relevant InvestingPro Tip suggests that the stock "generally trades with high price volatility." This is evident in the company's recent stock performance, with a strong return of 44.05% over the last month, contrasting sharply with a 97.85% decline over the past six months. Such volatility underscores the importance of careful consideration for potential investors.
For those seeking a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide valuable insights into Siyata Mobile's financial health and market position.
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