Earnings call transcript Q2 2023

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Operator

Good morning, ladies and gentlemen and welcome to the Siyata Mobile Second Quarter 2023 Conference Call. [Operator Instructions] This call is being recorded on Thursday, August 15, 2023. 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 2023 conference call. our questions Seelenfreund the at by be we presentation. joined for available the I’m CEO, and Marc will Today, end of

growth, statements for are other offerings, we’re U.S. goal During and strong securities future laws. revenue the Litigation in will of product management various all statements year-over-year in federal of strong to, the quarters, and markets Act within rugged include, the continue us growth on our those forward-looking forward-looking is regarding but and will Reform and North to and this that Securities limited deliver handsets the the the our sales pandemic strong of XXXX make international worst of organic the timing the our belief These American path Private not call, to coming to and implied reach expressed see and we that product profitability belief lines carriers. sale the behind across that and statements

uncertainties, on difficult fact those December XX-F the actual to Risk changes Exchange risks filed forward-looking Factors subject you, the any presentation XX, for Such statements Because assumptions inherent statements. conditions. Securities this regarding company’s that caution historical the not forward-looking discussed of the are guarantee in these by contained and annual and forward-looking company the forward-looking contemplated other of section on performance including and may ended and subject results, relying The circumstances activity, differ of the to are current to are elsewhere against those in expectations achievements. Commission. therefore, with and levels The XXXX, year to future in company’s future or business, The other on and Form cannot from report in based uncertainties, statements economy predict. and statements future, statements they its relate risks the are company’s forward-looking results the materially statements. are We

Now to the over turn to call Marc. like I’d

Marc Seelenfreund

call. Thank morning you, Good Glenn. and the you for joining thank

growth. financials, with for to raises Before to the to X June its stronger proceeds in grow that effected a meet Then requirements. XXXX XX, we generated in second X, August on common million to share it its gross company want reverse Siyata two leave working Siyata shares $X.XX capital These capital bid July XX previously which and a of minimum reviewing split business the quarter XXX announced a first on and NASDAQ for the total that support I stock you of to announced for transactions price in position beyond.

mission-critical report accessories. XXXX our accelerate expanding. in increase in handset Now of XX, growth XXXX, are with the on revenue quarter critical QX devices Adoption to strengthening second pleased we sales a to our of XXX% that June to of year-over-year ended compared and communication continued SDX is

the safety, among important, in as increase emergency and reaches sales others. beyond to increase use cases healthcare, Just industrial enterprise services school

sales our pipeline, that half growth will be year and are we performance the of year strong in Siyata. increasingly the optimistic sales a our Given XXXX for first expanding

Total approximately was U.S. quarter the revenue million XXx from device XXXX under of QX for higher XX% $X.X Rugged compared the QX in million SDX compared the of QX revenue directly than of XXX% approximately are in million $X XX% quarter a $X.X in XXXX, increase just in Revenue in was XXXX, in revenue. the increase versus $XXX,XXX, to handset. total QX $X.X to to million sales attributed an XXXX. QX in sales XXXX,

XXXX, $X.X QX to decrease positive XXXX, in QX are Gross a $XXX,XXX in $X.X QX X%. a $X.X margin QX dollars $XXX,XXX variance XXX% SG&A million XXXX margin which negative Gross $X to dollars. increase $XXX,XXX in margin versus compared percentage gross in EBITDA versus $X XX.X% or a from million for XX% $XXX,XXX, was than is was million XX.X% XXXX variance, expenses XXXX. of million positive QX greater million for in negative increased Adjusted XXXX a in QX increase. EBITDA,

$X.X as working $X.X capital of Working million million $X.X XXXX, December XX, June XX, XXXX of increase million was versus a in as capital.

this XXXX a dollars which is margin XXX% were XXXX, to period far the $X.X compared XXXX, XXX% revenue XXXX, variance the months of variance million, a a a in increase. year, So $XXX,XXX, million $X.X in of $XXX,XXX compared positive the $X.X X increase. of Gross in XX, for ended which period million $X.X million of is same positive was same total June to

gross a XX% margin same XXXX, XX% XXXX to in compared the percentage the improvement. in period was for Finally, XX%

Turning over highlights. to significant business

Verizon, pleased has build the on that Handset are that We to in the American delivered AT&T, North customer the Mobile, KPN, to report which international Canada, approved its growing carrier of previously Mobility Netherlands. and We its including of the expand T potential is based Australia; and wireless has and including FirstNet for largest Cellular certified base is Siyata customers, and use carrier and carrier SDX portfolio. which announced customers, and plan list SDX accessories the for in Bell U.S. Telstra, in

to announced directly Handset opportunities app that SDX markets. provider of the distribution ensure significant our will Tango its is These be expanded previously many solution. and that grow Intropia to sales Tornado and companies of further size. that of us also their accessories Handsets also X-way PTT latest that the help Mobile potential foundation We to work PTT announced States including with app in This we respective SDX and could in include distribution Direct resellers, will United is related we Belgium. in leading And have strategic increased

primary first and shipping contractors, begun amusement security products to and have utilities, We companies, schools, a increasing hotel government, hospitals, name including number beyond parks few. our verticals an responders, of focus of resorts defense

which X concept the trials number growth primary year-over-year our by base million for volume our of XXXX, increasing the and process. QX to but crucial in driver to that $XXX,XXX I accessories, related translated am QX compared is ending of rugged our that, to the months as Having X in expected, said tip that, multibillion-dollar months remains we nearly we XXXX. growing, are just Xx increase into report Interest to is pleased the of we in hitting continue customer devices the demand industry. the increasing in was believe SDX $X.X a the growth and this ending iceberg a

end expect this We to as customers our appreciate product of unique will categories. volumes new larger grow offering even follow

of announced camera wide-angle an The exciting traditional previously that well with real-time a XG SDX+, innovative Android-based and features cam coupled is which Visual the camera body Labs’ software. and United to situational company powered and throughout internationally. as Labs Visual software capabilities. software the also will camera company public respected We provides be customers as will private States highly body software. connectivity safety, product, security other a new SDX+ tracking traditional body The functionality and the with developer have

companies town county include and customers. As wildlife and police city offices, other federal agencies public sheriff departments, state marshals, safety

coming We SDX+ expect the begin capabilities the will with shipping months. body camera in

a counter career has has finally, Vice sales was caliber opportunities. In Clark, excited reputation team brief hiring that FirstNet. he team. develop partners, been to Doug Doug already board we at have of on recently Assistant positive helped Siyata, President by And on and expanded person are the his with sales Based customers AT&T’s the who time to previously and we with our on us his new and experience our our

benefiting to are trends like who business our would and that update our to will I an back of the Now line market pass product on dynamics, industry the Glenn, discuss categories. some and

Glenn Kennedy

line better have to net carriers some recently other while with rising North in additions, forecast carriers postpaid and Thank interest cutting raising earnings delivered with wireless other forecasts you, to and mixed carriers on Marc. than and costs shifted sales rising to corporate beating American address results cost profit carriers or rates.

connections it announced XX,XXX FirstNet more the released XXXX they about more than XXXX, a supports second agencies, X to the million months of from during July figures of in X,XXX of than safety gain agencies earlier. public quarter X Importantly,

is FirstNet and United added evidence moving their growth over works customers the that of During connections. Siyata XXX,XXX towards FirstNet the second in solutions closely XXXX, quarter further cellular States. with push-to-talk are

our opportunities of we at see Looking categories. our each to strong sales continue funnel, product three in

handset category, week the SDX we at Show North We after PTT have handset in the including quarter, this World last XXXX displayed May, in June that several increased to Safety School Helsinki our during in our wireless and mission-critical of the Show the National shipments supports APCO product Critical at rugged Tennessee. shows the push-to-talk just and Indianapolis handset in trade Nashville, American in in Communications Conference carriers. First, and international NASRO

wireless the X-way shows these radios. aim or trade sales, customer carriers increasing direct strong feedback new engagement have been from the the all using capture quantity The been personnel new wireless customer customers senior LMR within traditional the of and the who have carriers to as trials, at

We’re interest kit also handset. our SDX vehicle seeing PTT customer that works strong with VKX in our

dealers T-Mobile, and the in well Bell with Netherlands with with we’re as FirstNet, active Today, KPN in Cellular, mobility distributors in in U.S. and North Telstra U.S. the and Australia AT&T, America, as international Verizon, multiple markets.

international staff significant they throughout SDX SDX help school radios application facilities, to with North Large serve following We’ve municipalities by districts American additional companies their our Handsets keep and quarters. healthcare more in carriers resorts, seen the Our objective are purchasing responders, coming safe. U.S. We additional current and and sales and first anticipate schools replacing the legacy X-way expand the districts launch PTT and more. school suit with use in students to remains future. schools, to to

SDX $X.X Recently, single customer. our for million we Handset a large announced order purchase from of a

As all will and body of into of SDX+ sold in capabilities in of confident thousands adding sales throughout look and translate to Handsets forward the SDX XXXX, coming XXXX that months. balance the with we’re the a market this camera result we multiple SDX of activity,

to devices our continue with in-vehicle Secondly, our America internationally. category, we North and UVXXX customers device in in-vehicle in through sell

the from period, first During this customer. waste America the of and largest the companies sold orders be will many we North this to in management one of believe reporting UVXXX

staff product the for in-vehicle the is their thirdly, product North steady that SDX SDX vehicle so school which our in Real America. kits but their while product or can boosters our in including video reduced U.S., experiencing transit are And for somewhat and some monitoring in buses, customers Time system We vehicles are the demand We in be received integrated demand their our a cellular still vehicles. for cellular throughout booster fleet EMS we saw an was our advanced product service View, Also in million the increasing order, for kit with first vehicles, VKX to Handset $X.X category. into management new providers Several unique used Handset. in emergency their vehicles. are called kit, category, vehicle for our vehicle easily yellow installing VKX which snowplows partner

And now back hand Marc will line closing to for the I remarks.

Marc Seelenfreund

with on category. our push-to-talk I various Glenn. company unique you, especially Overall, this we by are categories turbulent their take product to by we Thank with very growth PTT employees we our the I on despite pleased build to They’ve based today. who and thank today, our expect, environment. investors what the acceptance our would solutions opportunity thank from like like acknowledge company would truly to handset also product strong have worked our in customers are our and the disruptive to tirelessly rugged stood seeing we coming growing commitment. our growth for

mobile the stand portfolio cellular see our product disruptive over are beginning our new of should land by to goals radio of profitability. and growth customer adoption and We rapid solutions and ultimately, carrier of the for meaningful just as push-to-talk of new our previously our with the continues upgrade and progress. goal continuous wins, strong to stated This drive We launches products. growth to innovative existing displacement

our financial them SEC access our We on the search for website, from will urge X-K listeners and Siyata Mobile. SEC’s quarter file with second results XXXX Form to the

questions. That call kindly formal concludes Thank operator, the our With you. open remarks. that, to

Operator

Instructions] [Operator Maxim from coming Your first Group. from Jack Vander Aarde question is

line is live. Your

Jack Vander Aarde

guys. update, Great. the appreciate Okay. I

restated financials. Just me start let I There so are understand. question, clarity, some the for with just Marc,

one I in that warrant impacted a It’s main value change million fair item. the was related just to change in it about think to first quarter. only $X.X the it restatements? the is – that Is the

Marc Seelenfreund

review stated only a our that should issue. the issue had That’s do in it but QX. Grant Thornton warrants It’s be we with at looked QX auditor in warrants. it the to that of handling actually that valuation warrants And viewed a way differently. main change. those we auditor accountant was the the of It’s therefore, way those Yes. the specific or non-cash work those thought Correct. We we that just our and

Jack Vander Aarde

forward you That’s North which our Good. a then I I a exactly? Does your like Okay. factoring if loan notice just line bank sales? it move of do was wasn’t development. looks credit obtained This is aware recently does to about helpful. this – of I new What agreement outstanding for $XXX,XXX, you have before. that a of America here, related to this just And your help boost do receivables.

Marc Seelenfreund

because Yes. Yes, in this great – factor our and allows a to it it’s to development is factor us customers. have

And we All that loan, of factor factoring giving and that, non-dilutive good factor allows high-level that, it’s hope cash in customers and that doing. agreement customers are we number just growing. an with that it’s most rated we invoices them. our our of allows company into a our assisting it factor facility will a to We number receivables It’s and specific is that’s very It’s entered loan. us a bank customers, a grow. because we’re that us necessarily thing what only a from way. customers and are against think to not only flow to It’s

it’s just, on LC our you And are Jack, now looking I company. So, financing with thing that for additional looking ways purchasing. for of doing dilution. at we do the note, tell are to good very can we that financing a that

So, growing products. LC our for that factoring, that, be between working the our company and the on we company us capital allow our grow think of very, to will helpful to sales very financing for

Jack Vander Aarde

me the line. at top let just Understood. look Got Okay. And then it.

You did quarter. of $X.X in sales second the million

a significant that, So, to growth great sequentially big congrats so that’s obviously, growth as on year-over-year, well, see.

Now, I year looking look million to here, the in third last quarter. try if before forward I see the $X.X

revenue So, at quarter? going expect – line sequential third do this look helpful. any in as growth and now, of growth – would lumpy? sight the year-over-year the halfway Is growth year year-over-year are quarter you on we to we be in through be Just it third

Marc Seelenfreund

we half to way are QX going coming on or the have what that already now. same we year, sure. company. that going in think partnerships have It’s going what’s what’s We the and can’t for signed. But sales that’s coming have have very in, just of to going because different it’s that up very I QX. you of really great the in growth quarters, to hope to tell it’s to to in we to is it’s in is the we a the be for a I carriers level have continue want going and us, are us that orders it’s do relatively don’t to the basis the And from to the definitely growth in you be just our based us we going first a give are double-digit sales company And but direction to quarters for new – getting that think seeing, seen we going coming on that projections hard goal be forward. year this ramping in say this to new really substantial

Jack Vander Aarde

I Got And with? And How comments, to that comments what signing was Okay. in turning of those think subscribers AT&T, are subscribers, new providing and you over new up his these FirstNet, signing for I it. prepared – larger up adding piece there how on? are they devices a remarks get – believe. was I start you FirstNet with who subscribers do it guess XXX,XXX with it’s about do are – Glenn

Marc Seelenfreund

main think Samsung for Apple is and of the with right are that’s they good lighting called because have and probably which company three now. our with the right Those something SIM vendors us are Technologies. Sonim is like very now cards, we They main customers. So, companies working working a one FirstNet up that more that we are that’s that unique. But

it’s a else a the feels has smartphone radio, that like Everybody is a but devices. selling are We only device and that looks higher-end cellular-based device. vendor

that we the most and also. are quarter going available device cost-effective in mission-critical QX, and FirstNet, coming we in that FirstNet this see sales forward today, from the and both We traction we that at in push-to-talk had coming see

a us. have responders. bigger for So, just as said, thing than is that’s And I good clearly our as much first FirstNet market grows,

FirstNet it includes includes military airlines. includes government, it schools, includes it contractors,

have large-scale responders brings FirstNet believe just business, very It a very, not it’s of utilities it’s sign that just the and we very So, utilities reference sort we and can a various more And more the customers. customers. business market. the the first on get going up we momentum time verticals working sign And exciting we that have we we a we traction, that after, up is with. are more utility. the we more There schools we building, it’s because can because schools it’s get, that we lot includes company. of get, for reference more we see The that are

Jack Vander Aarde

Great.

kind – big are know Okay. Do expectations have effect are spreading just additives. these an great of in a terms all obviously, you And needle movers, But – new SIM are you I this of into arrangement awareness, behind volume of there you when any near am order card, domino or sure future? might is the and large then visibility brand see I any the just sales working a in any hires. sense the is you with

Marc Seelenfreund

we very quarters two or are of right. employ we few sold to need corporations a not quarter. spread scale one large would units, got would are that in opportunities with those even are but three tens a district school XX,XXX large working over get If just that are people, probably going that districts, quarters, corporations, of school there that thousands that opportunities for large So, large single

order But a multiple for are get hundred are order. lot school the quarters we out order throughout orders we units X,XXX every get it are orders, units getting an like We for that that few there putting and because or district, will $XX,XXX units, have an that, three thousand So, on. to X,XXX are get are few necessarily example. opportunities single said two can or we it’s as going dollar and working a XX,XXX not that, thousand out of a $XX,XXX in order. $XXX,XXX Having units, one quarters we over to PRs roll they we not orders, just

put the we we them the add of continue with also because of Some out, are they happy smaller up. just filling very bucket And them we some don’t. PRs on these drops

are we So, seeing we but have to do trials large-scale have ongoing opportunities, smaller larger than large-scale both or take of thousands longer, that. Obviously, sales those opportunities of hundreds opportunities. dollars even and of with we multiple

Jack Vander Aarde

appreciate the the the continues. to questions I see Well, I growth. it Thanks. Great. Okay. great answers and hope to

Marc Seelenfreund

right Thanks. more the If around could thing, market $X we now, I just add Look Jack. of cap. are cap company at a the million market one

going we And think million real have point a that our major the carriers in that’s inflection So cellular market. is are again, shareholders. we United the we all $X that for company are major market for States. customers why and the that cap. of feel already signed after And a up, the that We at we

Jack Vander Aarde

Understood. Marc. Thanks

Marc Seelenfreund

Thank you.

Operator

Thank you.

Investment from Research. from coming is Tom question next Zacks Your Kerr

Your line is live.

Tom Kerr

ones. traction that XXXX type couple yet, Good gained distribution color of that Can story? you further provide Is more on the or European is of channels? markets quick a and guys. morning those A

Marc Seelenfreund

That’s definitely a Glenn question.

Glenn Kennedy

relative things with multiple because – in we in North growing would having happening are there. Yes. Europe, quite in over of in simply as carriers say trailing see is North we Thanks America. cellular here good the America, not adoption push-to-talk Europe distributors, question. what’s I to conversations But multiple for are quickly the Tom. as Hey

than do we a that later the albeit are market. so expect what we follow, will little And just experiencing in America North that, bit

Tom Kerr

from enforcement SDX+, but of benefit guys is Okay. still or the narrow the Great. all would all appeal healthcare, And education verticals the a specific does towards to about, the or question – verticals it you SDX+, on law that more right? of talk

Marc Seelenfreund

education specifically the to schools. vertical file security within for some within we are So, starting education in

doing is that I going we are over for district, that a units one with people are a now school lot And another with there from this. which also law of into give leisure, example, SDX, SDX+. school security, but us few has have that a the Not they now, be verticals will verticals wildlife, hospitals, probably is going started enforcement, of security an there to taken SDX+s lot that are which different the we of So, trials with you there we large-scale are that taking are X,XXX going necessarily right is after district. that to hundred related various we area

sure. So, for it related is

Tom Kerr

– XXX.X one issued share changed X.XX that last – million Great. current of And share count as has or is question, financial the the much count Okay. the the just – it today? split, was is from statement

Marc Seelenfreund

Yes.

Tom Kerr

you. all Great. Okay. have this for That’s Thanks. Thank Alright. I morning.

Marc Seelenfreund

much. you Thank very

Operator

completes Thank Q&A you. session. today’s our event. That Everyone, this concludes

disconnect participation. may you this and have your at day. a for Thank You wonderful time

Siyata Mobile (SYTA) 15 Aug 232023 Q2 Earnings call transcript