SYTA - Earnings call 3 2023 | Siyata Mobile Inc.

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Operator

Good morning, ladies and gentlemen, and welcome to the Siyata Mobile Q3 2023 Conference Call.

[Operator Instructions]

This call is being recorded on Thursday, November 16, 2023. I would now like to turn the conference over to Glenn Kennedy, Vice President of International Sales. Please go ahead.

Glenn Kennedy

the Third joining Call. XXXX for you Siyata Quarter Mobile Conference Thank the I'm Marc questions available of CEO, by at and end Today, our be Seelenfreund, joined we will the presentation. for

make expressed this the Securities U.S. Reform Litigation management other During of and securities and Private XXXX call, Act federal forward-looking statements implied within will laws.

to statements regarding on the goal offerings, we of are strong future the North growth, international to include, for deliver belief the are organic American and handsets the limited not growth carriers. profitability but forward-looking timing revenue product These to, and statements strong path and sale those year-over-year in rugged and quarters that our the reach coming

its statements risks business, Because in fact economy future are statements considerations. to of not to other relate inherent the based uncertainties, and Such company's forward-looking current regarding are and forward-looking future, the are subject historical statements difficult changes on they the and to are predict. that expectations assumptions circumstances and

The any or company's caution relying of future performance may against levels contemplated those statements. therefore, you, statements. from on the results, materially forward-looking these company by cannot We forward-looking activity, The guarantee actual achievements. of differ results

the are subject the year including ended forward-looking statements contained Factors and on XX-F for other in Commission. report Securities Form with in Exchange this discussed the risks December and elsewhere The XXXX, uncertainties, in and to presentation those section Risk the company's filed annual XX,

over Marc. Now like I the would turn to to call

Marc Seelenfreund

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

U.S. compared moving status to occurred XXXX. partner and XXXX at mission-critical end in QX XXXX mainly ended sales SDX major This September handset the the carrier to with revenues due due of of $X.X decreased QX XX, For million a status non-stock to third million our were of stock from $X.X accessories. mainly to quarter

health care, is multiple critical more. including security, our education, communication devices markets in hospitality the expanding verticals, in public and in international and safety, of both Adoption U.S.

performance are throughout Siyata, first carry XXXX. quarters the into growth be of pipeline, and which X optimistic we the XXXX increasingly sales our will year sales for momentum strong Given that year will our expanding a

due the from QX device decrease the QX sales million million a to versus quarter Rugged quarter the of in device with of compared achieved. which XXXX Siyata, U.S. to total Revenue very was SDX in status in status as for ever QX revenue XXXX. in non-stock were achievement a sales carrier. stock the transition is $XXX,XXX U.S. in XX% suppliers of status few to major we handset significant from This for $X.X XX% $X.X approximately position stock decrease a XXXX, a

QX carrier the which this customers, now to QX was for XX.X% dollars. SDX sales. margin decrease we negative market in to gross Gross many XXXX stronger margin that will means $XXX,XXX, percentage expect dollars versus a handset XX.X% is XX% more a Gross in XXXX. and $XXX,XXX margin drive from variance, will which This subsidize decreased $XXX,XXX

QX XXXX, XXXX was just in which versus as million over September million increase $X.X million for million XXXX, million nearly was negative $X.X negative $XXX,XXX. XXXX was QX increase QX $X.X December of unchanged. capital. as XX, working Working capital XXXX, essentially XX, million $X.X of a million in SG&A $X.X in XXXX, expenses Adjusted a an $X.X were $X.X of to QX compared EBITDA versus in

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

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

significant over Turning business to highlights.

its report its to plan to has pleased expand and build and base on that are for delivered customer accessories the potential portfolio. We Siyata SDX handset

announced for FirstNet including and list Bell customers, in carrier of the with Mobility Netherlands. growing approved certified use We T-Mobile, carrier previously KPN North Cellular American the and a is in and including Canada, AT&T, that U.S. international SDX customers Verizon, in Australia and TASSTA

include RadioTrader U.K., Tango others. expanded of This announced Digital our also that foundation in in Consort and Entropia Direct India is Tango significant size. that increased the leading potential opportunities We resellers, Belgium, to including many previously United be we could strategic directly Goosetown in have the distribution Way Two States, and of distribution to in

our proof-of-concept to accessories, by carrier. continue stock have related which translate customer volume base believe trials at We SDX increase especially for into rugged a growth we and that achieved U.S. the our now of devices status we major will number

focused multibillion-dollar this efforts on revenue as Having our and aggressively sales growing and this training, these said trials in that, carrier industry. a require technical support, is process sales remain customer we force

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

respected exciting XG innovative have the traditional highly camera camera functionality body previously software. is Android-based of traditional Labs a The company that Plus tracking which powered a wide-angle developer as well SDX Labs' connectivity also features and SDX software. camera, real-time with will will We be product, Plus, capabilities. an software and as cam new announced body body Visual situational Visual coupled with

state customers States and company The internationally. private federal throughout security offices, public its City United sheriff customers safety, safety and software police and Its and departments, the country Town provides Marshalls, other customers. public include to other agencies wildlife

body trials months. with coming customer capabilities the starting in SDX shipping Plus will the be are camera and We expect

results system Real fleet vehicles QX, in and control. outstanding first in a leading June management installed together View called addition, with customer, an new Time product better major in This first and Real of we provided installed units cases. system real-time responder View, enterprise this is a ambulances to Siyata we In in In EMS our year, announced provide and Time at international the a camera order. innovative

out brief FirstNet. has that on very of to time has reputation portfolio a our beyond. add-on carrier by AT&T's and our product his previously hiring in career to and continue be had sales We finally, In been we and we ambulances and we additional AVP opportunities his have and who experience on customers on to the roll and to are new our to Doug excited Clark, our team partners person a our Doug vehicles was an us announced expanded previously sales with to develop XXXX team, helped this EMS product this expect team. that and caliber great positive And he based already

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

Glenn Kennedy

the On about a from XXXX, you, during announced earlier. X,XXX supports agencies it released gain now XX,XXX the quarter they Marc. September months of Thank safety FirstNet agencies, connections XXXX of approximately figures X.X XX, million public third to X had

quarter FirstNet XXX,XXX During connections. the third approximately added XXXX, of

closely with customers evidence are U.S. further FirstNet works Cellular is Push-to-Talk their growth and moving over Siyata that towards solutions. first responder

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

the product SDX we North wireless sales international category, are growing First, carriers. in focused handset American to our of Push-to-Talk supports PTT and mission-critical rugged handset that on

in within in to senior Nashville, including this August and in with from carriers of the U.S. Tennessee personnel customers direct radios. trade XXXX granted displayed trade aim the who trials, shows the regional the traditional wireless strong newly the or in been FirstNet. new shows wireless all capture shows multiple customer new U.S. engagement have the at as quantity at We using a customer LMR during from show feedback the and the The several been carriers stock have at two-way handset these major and quarter, status partnership APCO after carrier,

in we Today, all the with in and multiple active well Australia with American and the with markets. Marc as and major dealers North U.S. Netherlands and carriers, in as also TASSTA are distributors as international mentioned, KPN

Our with expand PTT North in and to and additional launch future. with international carriers companies American application the objective remains additional our

resorts, municipalities and to more. health We seen first schools, responders, significant SDX care have sales facilities,

two-way We replacing current more to districts throughout their following purchasing are coming keep and districts the SDX in by suit school U.S. schools the radios anticipate to Large help quarters. school students safe. legacy staff they serve use handsets and

announced in Israel. responders for a $XXX,XXX from order customer handsets our for purchase Communication large single we rugged first of Synch a in Recently, partnership with

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

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

that partner vehicles their a demand kit, can We transit are yellow vehicles and our including are for the school SDX installing in product our Several so with used vehicle while increasing is in customers handset. the their in unique U.S., which snowplows kits SDX to VKX handset be VKX some staff are vehicle vehicle vehicles. their buses, kit experiencing the easily into

Time to services, And product quarter Siyata of their third fleet also a from system View, for in product the first EMS, we video our emergency received new in-vehicle for Real vehicles. in monitoring management was integrated order, prior the called million category, $X.X providers XXXX, or an advanced which

look system saw the responder into third of that this we first install and category, mentioned we our product sales in booster Marc quarter during throughout in boosters cellular still forward to And cellular thirdly, demand America. reduced more North but to steady the XXXX. XXXX, for have for opportunities solution begun ambulances vehicles and we

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

Marc Seelenfreund

see from Siyata devices we Thanks, accessories. are to Overall, Glenn. to choose of transition and growing handsets a PTT LMR our customers excited number legacy to

a core business that place in international markets. in wide North that to We grow markets. are of happening both pleased believe geographical fundamentals industries our We this are multiple across and the America vertical across is now and variety in

and as ramp to to and by possible, then our breakeven soon focus sales as team. reach shared Board goal and is this Our entire remains up management profitability

listeners quarter on from Siyata results website, operator, you. With search urge the with the that, will open for file Form SEC's our access We XXXX formal That questions. them Thank financial remarks. a and concludes Mobile. X-K call SEC third our to our the to kindly

Operator

Instructions] [Operator

from question coming with is Vander for Group. Jack first Aarde today Your Maxim

Jack Vander Aarde

the line. a Marc, let quick question just me with on start question, a OpEx housekeeping

It expense and which like from up, this picked an -- go-forward down onetime good analyst this million. is puts is forward? $X.X going good normalized is of rate is blips a and OpEx makes Or a see. there growth sales looks total meaningfully 'XX or reduced SG&A any quarter? overall takes quarter support in level you this Are to which Is perspective? guys has expense sense quarterly pretty OpEx but meaningfully third to OpEx The G&A

Marc Seelenfreund

not the you're -- a you're that There are OpEx are expenses think that -- higher to than And forward. quarter definitely there see little going think that forward. bit G&A the going see and general I also to the actually going going it's be are to a onetime some And I what lower. going

So even this is standard. It's side. high the not on

Jack Vander Aarde

you. Got

appreciate then some Okay. so here And I -- to more experienced switch That's slight this from which exciting waiting that. due a you kind me seems transition stuff non-stock a to gears of I about, helpful we've wireless And okay, like this talk carrier. for. been the a that you order to want big a status large know. let U.S. opportunity, is mentioned to clearly, stock delays to that with

imply one signed -- of this preparing with thing Or you So as the in to orders expected had you and the their slipped potential of pause stock caught kind was before -- orders you quarter team more speed? that. you're the deal this delays? into now that up that going does on this just as to third and is and Does get imply train quarter? What's them fourth the receive this you a orders to had

Marc Seelenfreund

just So what you explain to means. to this

our AT&T So would its at devices if until now, $XXX. MSRP distributors or sell around at

month per it and it $XX PTT you be subsidizing down device and month. pay say, $X.XX. your the certain that's to And way and going that to the they to selling And are the $XX is Now package. then on a to let's bill, anywhere that the cellular between, includes per have price they're package

be that attractive going that paid minute that thinking Any were let's product heard was over, not years. MSRP it Obviously, to say, going them. much, and more get it X the product. -- a customers buying pushed have it's to much of to a stock it customers full they're So customers they're out subsidized until pay able to that for

way every the not have a It's we're And very product a have for that it customer So this dream you can trivial. with of the small stock. size. basically that our that company would every works clear unique large a carriers prefer it's vendor is to doing understand something that's to it very now. the It's of

that United States. makes easier quarters would in so much customers of are Cellular our far, more to same they product, by other the it smartphones, that going smallest over that, because now say it a and the sales it are And carrier buy mainly I coming going company for and that also stock help level Push-to-Talk than but with companies of the devices to I think just sort together at that playing drive in and we're sell the the subsidized. that's a product are, forward we has dramatically major yes, expensive

double maybe of cost that way hours, customer month will So big run Siyata. are which $XX a that's a also sense, $XX And let's products Samsung help it's that only in in a a product, forward. price right? but to pay for pay sales going we that, now the $X.XX, home month product, expect say, our So going both a and for

Jack Vander Aarde

this way confidence revenue anything more any do orders to gross... and term Okay. visibility, more from or I could size visibility specific and the have planning? point Is you sales tangible you visibility there inventory of gives into near the the you the you there of any mean, just -- this that is that that into is timing arrangement

Marc Seelenfreund

coming that not confidence an the carriers, you with give better conversations were give teams, to from that the our that can't believe partnerships starting quarters sales having, are we're past. be and with in do up going but number, the to the we've I various exact to. to from that is only customers So an discussions quarter. I every various the than we're that have they had dramatically I until we've that I you the ramp the from built, that that can't with that going sell of product I that's higher, we it from we now, track exact kind quarters see number that a have what going. That's stock a have the sales we guidance we even higher to get yet. are of plan we're be been what fact where And is reason because that's until there going they the and give that. really than we think we're now they've because just the don't record to understand can't

Jack Vander Aarde

you is fourth this whole? the above outside in including quarter, looking do everything then together, you're And it, terms Okay. a of expectations just as quarter the you stock you on deal relative what through -- and the third fourth sales just Are that quarter anything last of to Is there year? grow touch had? How expecting the we're from think you halfway could just all fourth now. at year-over-year as from about put this quarter

Marc Seelenfreund

had grow forward, quarter, third going the going over grow we're in that think and want quarter not better the more, I could to tell number have year-over-year. an expect from we right because quarters to this much we've but not I we you we fourth wish And I now. it's than So it's I because to expect can't, don't but past. to exact

the quarters not that it's the on over year. even past. And than to we've second going past what built that a the we first again, we've half X for see have years. in quarter in all we based what coming and from But into much in the stronger we're seen part quarter, year, of see we It's the much we've better and going partnerships what this had what think of sales next the up

the the that lot dealers the with, trials past the we've in various that much customers, working the this you together, the you've over years, of carriers better signed the be all with from including the carriers, you that, can than confidence what take with all us that's X a gives what it past. So the put coming all quarter seen partnerships, various all quarters, and MSAs we've done that all we're the that

Jack Vander Aarde

to just Great more hear prepared looking detailed a of mentioned then Okay. for remarks, one And the I just for update. me. more you maybe it on maybe hear. did but

with it SDX sales? selling meaningfully What's fourth potential latest is and you yet? something that that's opportunity Plus the to begun and the Or contribute to Have sales device to XXXX? going quarter

Marc Seelenfreund

now Plus. doing SDX We're trials with the

believe it not but QX, will next I we it will think contribute do that not that that know year. -- in it I will contribute

We think nothing us the out on that be revenue to network and is and good have on It's will that's XXXX a camera to only software into carrier be like is Push-to-Talk it. very that both to that for approved it's for multiple body have else going beyond. opportunities do There you generator a going going that that product product. We allow there.

to So going contribute going do this that XXXX. contribute for a year, will it's we to not in believe be It's it great we think but product us.

Jack Vander Aarde

And me, of the can SDX any Real opportunities? devices? sales as there sort are you and with Is X Time cam, Real Plus Great. of cap just with of body in of those imagine separate Time distinct the View remind recurring rate Okay. that you well terms Marc, a then View revenue

Marc Seelenfreund

us fact in only for Black bottom a get one just we to we in they news, recurring don't great job it's going revenue on the up Box. Black And The is going into we're XXXX. going Time give that name more also fact devices, started selling to together recurring of but of to even line, also the to -- give from products we revenue View, such a be to us Siyata that it's able expect selling we in But more Same QX, I the picking mean, be to videos Siyata to device still an I to Box think in and going both what situation. that's because might change as Real from that what going sell revenue critical with We that it with have our think exact body that us the the it great is did number it itself cam. was going We our that and proved into get recurring called forward. product. that unbelievably thing in great. Again, it the just the do customers. in-vehicle

with software third-party work we So companies.

have them recurring and that's with agreements that through hardware. generate how part get We revenue recurring that we of able revenue, we're our to

both to of we going basis. So a that we those can much piece, revenue recurring to on revenue question, also products, try yes, as monthly a recurring of your have to that get have we're and so they as out

Jack Vander Aarde

then confidence perspective more just helpful Okay. of some actually, would expect when sales? Great. March, of you for couple get question, well, guidance any time Do just can analysts And -- in the of and kind we next a as in in just and investors when months, sort imagine quarter think higher I signal one be your revenue ranges general for gives the of report for you fourth end visibility. of a sense maybe to because it -- high us

to have think quarter even provide any or guidance around? informal expectations by enough rolls the visibility time you Do next you

Marc Seelenfreund

Yes.

we're this sort sort come sort product of we a have quarter that that stock XXX% on. think going be to going revenue. going the might a us should a of for meaningful I'm it's big our be think end there. to revenue. And going of that again, or quarter means to of and guidance. that a first probably but we've to everything been by to first we guidance that have to the that better really we're be of of to because -- just of to That's on to fruition. not be think to it's we're interesting our And able XX% not kind pace first to quarter, the understanding quarter, some say situation going the be part what by that working very XX%, I'm be I definitely by of of is And going And it's then, that going be going part say to not end it's because the I still going I it's a give of going

more traction market sales more for how But it the the customers be get to to takes what visibility and long that as I we'll be. it pick want understand Not long better, get think in first guidance. after and able make I the to. already the now, it's But as decisions, right then think that giving takes we think give hopefully, to of the I It's quarter still comfortable we'll have more more going going products and quarter, cycle, really for end at how pace, quarter, I produce up to orders feel out and And we forward that to can't. we to us we'll visibility. better

Operator

Your next Zacks question Small-Cap from with is coming Winter Brian Research.

Unknown Analyst

Tom for Kerr today. in Sitting

to back for maybe of the little right Just greatest give where the will that a the circle And from me the Real product? if verticals you could Time that interest most opportunities you and seeing into now you're to think bit be View. insight wanted

Marc Seelenfreund

Okay.

EMS. seeing with this a vehicles. we're is with EMS, for So and success focused We're ambulances, right a great product very other on now, EMS-type of lot

phone, a vehicle and from that the very we're know control their on command a from on. goes certain system allows control, their control managers level correctly, to a put or that, to have whether more is very able type a information that's to just driver much that more what's certainly is or center control in driver not fleets, gives a of driver centers focused going is a fleet, vehicle they certain able geo allows it in into out the so to the center of control for remotely, it's driving know seeing the desirable commercial it they're fleet with is their fence, of over actually lot This them than even see So if really if for but high fleet when what that's certain also something very the more have to fleets. fleet manager areas. And want But the security be vertical for to managers, that interesting. driver that of the very

cost just we're The really of works well. that's device So We're really, doing. very what effective. sort

You can it on Android phones really put there. control it out any on so iOS, or you phone that's from can

So well customer we we'll been it's just to customers. strong that -- over Based we very doing or very able that this a and working tool have, initial past ramp multiple it's X the found it's up. we're therefore, X on that months. think trials And additional we be with now

a around them security moves very, large very of One company that is money.

imagine are what seeing. where can customer how seeing see -- are XXX what their be type able want trucks understand is. to and car, drivers degrees They you So they're around -- exactly and that of to drivers those the what are what the

United it's way, of lot the applications that. And good with, in all is not different in just United this for markets, we're for interesting in because States, of this and a for of to very showing markets. it's international and all the the is States we deal the that something So there's that types dealers certainly good Europe other markets for and by different international both

product. new it's sense, we're for have, the relationships that in So able the existing just to them company a leverage that because good offering we

it's in-vehicle with of offering our SDX, part with of obviously together portfolio. sort our UVXXX, we're this DKX, together our Now so

very sense, that a fit what it's good So we're for in doing.

Unknown Analyst

be team your this there dedicated Or a a suite just it will Good. for Will product? of of part sales services? be

Marc Seelenfreund

how Just sales a after We're going sell products. of customers. My part already team, our know of they in-vehicle suite services. in-vehicle to

let team to sales able sell be able products. this we're to existing basically, additional to it's So our

Unknown Analyst

looking bit late Okay. you financing a the if Great. you the going October, financing post your where on could burn, at needs And today into current little comment sit XXXX. in

Marc Seelenfreund

Right.

sales ramp to a way to not capital we to we and that and if we don't say that we'll quarters, to do point. grow not profitability. that we're looking months. think raise expectations, have raise our it there, from support looking able be way but to the to strong ongoing not we million to raise to there to might profits capital to $X company forward. that. will million raise another think breakeven we're because be able with expect have more the to us And whatnot. we're seem And close. the do of raise we're realistic. have We don't I in the races. that's to lot company coming enough just up to we to we off some We're strong at to that more growth. But of will raise out hope another, we few once to the be dollars our I'm have very things going think we going them. to million capital want going very capital We're And get not the we raise is want But ramp and And very we're sales, every We we going to once okay? have So that that they up there, say, to to If to support we'll capital those sales, get quarters, think have this quarters looking work that hopefully to in couple way, $X

Unknown Analyst

number to the a my that X.X%, total in just shares is housekeeping update Great. currently model, the ballpark? And outstanding

Marc Seelenfreund

No.

it's X.X%. the closer get but you exact to I think X.X%, around but to I presentation number, our have on think it's look to

Operator

this turn closing our at remarks. time call. to for would for are Marc And allotted the now I We like to call back

Marc Seelenfreund

call. it. We appreciate attending much for very Thank you this

send If Thank we questions, you us us to good and we any e-mail. and out you as to look updated day. reach a keeping very have you forward much, additional And welcome to have you're an progress.

Operator

concludes call. This today's conference

at this Thank participation. your phone lines you You time. may your disconnect for

Siyata Mobile (SYTA) 16 Nov 232023 Q3 Earnings call transcript