Syra Health Corp (NASDAQ:SYRA) reported a 45% year-over-year revenue growth in 2024, reaching $8 million, driven by strong performance across multiple business units.
The company successfully diversified its revenue streams, with non-healthcare workforce revenues growing 66% year-over-year and accounting for 26% of total revenues.
Syra Health Corp (NASDAQ:SYRA) achieved a significant reduction in net loss for the fourth quarter of 2024, nearly halving it to $504,000 compared to the same period in 2023.
The Serenity app, a subscription-based mental health solution, showed promising preliminary clinical research results, indicating potential for growth in the mental and behavioral health markets.
The company secured multiple new contracts and extensions, including a 2-year contract with the state of Minnesota and a $1 million contract with the Washington DC government, enhancing its long-term revenue potential.
Negative Points
Gross profit margin declined to 20.7% in 2024 from 25.6% in 2023, primarily due to timing differences in revenue recognition and low-margin contracts.
Operating expenses increased by 26% in 2024, driven by upfront investments in the Serenity app and costs associated with being a public company.
The company reported a net loss of $3.7 million for 2024, an increase from $2.9 million in 2023, despite improvements in the fourth quarter.
Syra Health Corp (NASDAQ:SYRA) faces challenges in maintaining NASDAQ listing compliance due to stockholder equity and minimum bid price requirements.
The company has not yet secured private sector wins, which is a strategic priority for expanding its addressable market.
Q & A Highlights
Q: What was the rationale for filing a mixed shelf for up to $75 million when the company projected a cash runway of 2 years as part of this 3rd quarter earnings call? A: Priya Prasad, Chief Financial Officer, explained that the shelf registration allows the company to streamline administrative tasks associated with capital raises. It provides flexibility to pursue acquisitions, joint ventures, and other strategic initiatives. Although there are no current plans to raise additional capital, having access to capital allows the company to enhance revenue and profitability through strategic opportunities.
Q: Given the current share price, how will the company protect itself from the risk of delisting due to non-compliance? A: Priya Prasad stated that the company is in compliance with NASDAQ listing standards, maintaining a stockholder equity of $2.9 million as of December 31, 2024, which exceeds the minimum requirement of $2.5 million.
Q: How does Syra Health plan to address the minimum bid price requirement as part of NASDAQ listing rules? A: Priya Prasad mentioned that the company is exploring various options to regain compliance and does not intend to partake in any reverse stock splits. Instead, they will focus on strengthening fundamentals and the path to profitability to correct market perception.
Q: Can you provide an update on the sales of the Serenity app? A: Deepika Vuppalanchi, Chief Executive Officer, stated that Serenity is being marketed to employee assistance programs, large employers, universities, and health systems. The addressable market is expanding to direct-to-consumer channels, which will enhance recurring subscription-based revenue growth. Preliminary clinical research showed improvement in symptoms for users with access to the app.
Q: Is there any update on the federal government contracts announced in early 2024? A: Deepika Vuppalanchi confirmed that the company is actively bidding on task orders under one of the two federal contracts announced. Updates will be provided as these materialize.
