SYRA - Earnings call transcript Q3 2024 | Syra Health Corp. Class A Common Stock

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, everyone, and thank you for joining us for Syra Health's Third Quarter 2024 Financial Results Conference Call. My name is Robert Blum, and I will be your moderator for today's event.

Joining us on today's call is Dr. Deepika Vuppalanchi, CEO of Syra Health; and Priya Prasad, Syra's Chief Financial Officer.

At the conclusion of today's prepared remarks, management will answer some questions that were sent to us by investors and other questions we think are relevant to investors as well. recorded information be release. provided being through for is webcast the in event and available will replay Today's the press also information. to harbor call like the I'd safe customary your disclosure attention forward-looking regarding to statements The conference contain Syra potential goals, will call Health. future beliefs, and results regarding statements, expectations certain strategies, operating the forward-looking today including of

performance. differ no no statements limited on risks, projections as uncertainties and be to, management obligation revise these are guarantees any to may the the forward-looking the and any not Although not assumptions set result factors time believes may statements with replay. telephonic estimates, but are Time-sensitive in of update at accurate forth or or including, as future materially today. longer these the company's of Actual reasonable a These undertakes other statements. Tire information of based of of filings results factors SEC. webcast

Dr. event I With go would said, to Deepika Health. of ahead. that Chief turn please like the Executive Syra Officer over Deepika to Vuppalanchi,

Deepika Vuppalanchi

financial you have more we over making who I breakdown our performance that, share hand I through Quarter take quarter After cost-cutting Financial on to will Welcome, significant our financial Health Thank Third implemented. I an strategic joining our and journey a detailed our by in truly update Priya on are Call Chief excited third continued today. you successfully towards strides call will We a are begin to for Prasad, by Robert. of everyone. appreciate recent the the we Syra initiatives goals. Thank the your profitability. you, will and strong Earnings future results. interest on the updates highlighting performance, followed Officer, will outline Then

significant across In positive financial board. experienced have terms the shifts metrics, we of

its and primarily by year. on by Healthcare Workforce outstanding XX% business, robust strength alongside performance for the the growing underscores a last driven period The was health sectors. has Syra This contributions diversified This Population seen unit, Health both Health analytics, revenues business third quarter perform demand established same period notable from which on data our growth equity for in strong the to to opportunities epidemiology high-margin with an compared ability services, and model capitalize which business to expectations. above of and continues our emerging a legacy sustained

profit milestone-driven experienced implementation of primarily in gross year, timing compared third compared an of revenue strong XX% the due revenue previous XX% margin was of projects. quarter cycle Total XXXX XX.X% trajectory. the increase the growth to the in showcasing to certain for and versus The recognition a previous quarter, to

profit basis XXXX, margin of notably, points efficiency reflecting rising to and second operational profitability. our improved Additionally, our compared quarter by to commitment gross X,XXX

allowed new federal further offerings our our deliver ability initiatives. focus support and and on operations we Additionally, drive our enter our growth not strategy health foundation. These gains operational solidifying has to long-term mental high-margin as value, also scale efficiencies, markets, the strategic financial to us global only including reflect but

exponential Syrenity potential these our and the for app signaling also behavioral demand are We in health growth markets. strong expanding space, for seeing mental rapidly in

remain With focus we future. our near the on our solutions are revenue the and laser growth, in confident forward innovative optimization profitability combination on path of in achieving and cost focused

revenue commercial, profitability. and growth our revenue our innovation margins in we In commercial excellence by boosting confident clients. enhancing committed our profit have and of emphasis on are strategies. Beginning remain achieving trajectory expanding operational our and portfolio excellence, by with to in high We emphasizing focused our XXXX, on

products stability provide clients, create and our ultimately shareholder value. costs. we clients our new and bottom to predictability values line delivering for drive can to high brand also contribute these but and high-margin maximizing value greater our of serving only not Larger and scale shareholders. services, innovation contract through revenue, large economies develop strategy and marketing underscores opportunities our reputation. This cross-selling profitability significantly dedication in to improves to our reduced and By our sales enhance reinforcing They commitment

want Shifting our focus emphasize the revenue to our not measures to have that cost-cutting production. operational excellence, I impacted recent

in As you may restructuring quarter, aimed a recall, operating the we second reducing expenses. announced at

strategic our past we few the workforce revenue-generating without lower compromising capabilities. months, to optimize our Over made costs have adjustments and efficiency to

XXXX our reduction operational stabilizing expense we our financial highlights have efficiency net XXXX. to loss growth XX% of In us from the to net allocate significantly and more fact, and improved which ultimately towards was efforts a enhancement ratio. our to our second allows This quarter the committed of third for loss dedication in initiatives. These metrics, further quarter resources the remarkable management, cost have

our health designed behavior In expanding solutions to we and effective products services excellence, the offer is Syrenity, innovation on focused includes are to for of innovation Mental challenges. our pipeline pursuit product, Health we of variety which our enhance This provide.

We are safe rates guard for ensuring in care. bots responsible interactions and agents, Health AI also Syra chat health developing AI AI and

committed large-scale are development. health programs Additionally, education to that a comprehensive we workforce deliver facilitate healthcare

to opportunities. our the with the in offerings and only capitalize This the foundation, began into care a professionals innovative by and technology care our to a of in customers. staffing financial comprehensive continue cutting urgent mental our behavior other Bending health launch industry company care we dedication licensed position us Syra care edge clients' ensuring meet capability. health health health as and health are invest that area, meeting of these our market health app changing ensures mental and need evolved but at further evolving and on allows this have part the a of not Syrenity, XXXX needs our enhanced products. on health on emerging effectively we us Building workforce we also has positions in expertise recognizing of this needs

designed AI-backed focusing Beyond ensures contract to business mental followed the enhance for an Safer emergency pre-generated behavioral effective with innovative user care our Bipartisan mental it unit health, on solution for families. compliance a In initiative at Act, Communities making providers. our care regulatory services offers standards, design health we chatbot, streamline by services. an digital were engagement involves various Population preparedness health This health Syra health and of centers in health assessment interaction. Its recommendations tailored under Wyoming business Health plans awarded comprehensive children and strengthen X unit, a conducting enhancing to their bot,

services Our next development years. providers. X education includes improvement Health the care secured business million competencies over ensure a both unit patients with professionals social and in and dedicated to train initiative health the consistent contract Recently, to protium Education health support professionals. improving This and to settings for Indiana administration community-based family quality we $X is among plans

unit care outcomes business steady in Florida solutions generate strategic delivery winning Finally, and continues improving our commitment to and Delaware, revenue, to cancers. Together, and these enhancing health Health's contracts Syra workforce recently through underscore health business care partnerships. units innovative

I generating to like proceeds would we that million. gross of take September, completed a capital highlight to raise in $X.X successfully a moment

walk to support executed raise financial the opportunity a details. our the our Although bolster capital that, will let turn Prasad, this over We and was was me flexibility With for financial to not growth through CFO, Priya strategically. initiatives. who our further mandatory company, this pursue requirement it

Priya Prasad

will call. issued And provided XX-Q. Growth now which for growth. was quarter unit, driven growth million care XX% than earlier to our unit by were this the quarter public third and mental representing last $X.X the our in of year, in driven morning services and $X.X in our continued revenues XX% last third through population in compared XXXX unit. $XXX,XXX third go business same million Total third results in more each quarter and behavioral our let detail. my demand health were you, The in the release, the government for financial Health of add Within business we versus health, by press health are to I revenues Population on workforce agencies. warm health Thank Deepika. XXX,XXX within for detail this me quarter the health by period joining welcome everyone of year, business

of workforce $X quarter driven contract Our business new The in $X.X health million, also the third health XX%. growth revenue to customers compared and a in million increase workforce renewals. growth was care strong care of with experienced revenues by unit

bot. mental health were period last to business availability We growth Serenity of in year. anticipate in a same digital the sales Within the further XX,XXX driven compared of as XX,XXX of the posted this third and product. X,XXX unit, direct-to-consumer unit behavioral Our revenues our revenues Syra broader business unit quarter, business by due to health during

of bulk of XXXX $XXX,XXX to quarter the revenue third of in XXXX, Gross quarter in third the of XX% third XXXX, profit profit to the attributed XX% quarter XXXX was an a the quarter our XXXX margins redundancies. increase of of XX.X% in compared of recognition to compared was XXXX, third profit efficiencies in of in digital Gross the XX%. initiatives margin compared in operational XXXX. first third and margins quarter XXX,XXX the reducing from approach by primarily The product. quarter in implementation increase of was XX.X% enhanced lean health by the gross of point Gross was milestone-based quarter in second basis cost-saving the driven quarter-over-quarter the X,XXX to third and achieved adopting

expenses remained XXX% which recent streamlined Depreciation running office the and second $X.X XXXX, to of additional when flat company. expect XX,XXX to we administrative in the XXX,XXX third third expenses optimized and benefits third third in totaled reflecting continue. Professional quarter quarter of and were to XX% Selling, down expense space cause fees the workforce the reductions. equipment. XXXX, expenses XXXX. was quarter due increased office expanded operating for and considerably of operations XXXX a public versus due of to XXXX initiatives, compared Total to from million of in XX,XXX, quarter compared our of quarter but Salaries general cost operating $X.X advance of million, increased

a compared Net XXXX, quarter loss a were reflecting but per a share of million. was of decreased a third loss since the second the expenses a $X.X third loss $X.XX XXXX quarter the development R&D down of continued XXX,XXX the in $X.X solutions. quarter of third release. significant where negative negative of was negative negative was XXX,XXX XXX,XXX of the in capital X-year from compared projections for hand of million. technology-based EBITDA on XX,XXX, Again, in quarter a XXXX, provided negative negative to Net XXXX, to our quarter the Cash a XXX,XXX third XXXX. the in quarter XXXX XX, the today's indicate September in in are tables X.XX quarter runway. a XXXX was included approximate the third an XXXX. full the The for reconciliations second negative on of to Adjusted XX% press

me back Deepika. turn let to that, over the call With

Deepika Vuppalanchi

our coming quarters. advancements, the continued in strategic Thank Building growth impressive we and you, success on Priya. for poised are

in critical units factors Our strong increasing position business performance in high-margin solidified our with demand. has

app, Syrenity, expanding national behavior are mental Health health Mental the grow. and interventions evidence-based With our we tapping with successful markets for innovative of the launch solutions, continues and global into for need to

committed through deepen our health and Looking the ahead, multiple key training and growth a our our are as states. in of and workflows offerings to we expansion the service contracts revenue new we markets. focus remain The execution presence sectors in driving of partnerships increase care

keen leveraging also in federal our trusted are of on position meet expertise our initiatives. to partner public explore and government markets in to a We and and federal as This strengthen needs our health large-scale expand will presence further portfolio agencies growing welfare. focused us the

focused have resulted leveraging to X-year and strengthened operational growth, remain improved support a strategy, to poised on resources and AI the optimize efficiency margins operating allowing gross while reduction cost-saving sustainable company maintaining us ongoing runway. for a loss narrowed growth. reporting solid is expenses, the initiatives capital technology long-term in operational enhancing With a high-quality net delivery. our service Importantly, We in

and thank we are value have. you in profitability I'm scale and clients, efforts, optimistic you your take may stakeholders by impact our health potential care continuing I achieve these to to attention. for With to our Robert? happy XXXX to innovation, the questions about to any deliver communities.

Operator

you the management Thank team. to

We have some questions for you.

in you First, what behind conducted capital raise third the quarter? the objective the was

Deepika Vuppalanchi

enhance our pursued We recent requirement support executed growth strategically and raise opportunity mandatory capital to financial was initiatives. The a flexibility and our for Robert. the Yes, it this company. was not

Operator

Great. Okay.

can updates any question, Next you on Syrenity? provide

Deepika Vuppalanchi

Most prevention of is definitely. many based a than validated Syrenity mental It's and available of is one intervention. is the app, on where scientifically on which Health comprehensive one apps our dual Mental focus less X% has and it that signs. unique a

about Syrenity encouraging, the Sophisticated been for various direct potential very customers, and app needed. excited tailored are mental also also conditions have immediate feedback interventions. prevention from health suicide link The support holds. and we algorithms scores risk is early where it's provide been the a this includes receiving suggests we our for product

Operator

question your in Great. our technology to your products? tell AI about integrating Okay. is And final me approach

Deepika Vuppalanchi

in in guardrails leading responses also only AI compliant integrating ensures transparent. with the systems ethical an By and are are care explainable safe, creating is powerful technology, health guardrails that and framework we AI Definitely. that and but change not AI proprietary are our efficient Yes. Syra AI-generated regulations. nonjudgmental

a Unlike trust as health hospital chatbot AI a is medical that and an Syra that remains Whether ethical and traditional AI, needs technology within must the journal to black and AIS operates designed within regulatory task decisions. users to transparent and guardrails guardrails to advice, it's understand AI on allowing providers explainable boundaries. avoid be giving defined or ensures box, guidelines. which that our be care

Operator

in participating all you look we looks today's of like out forward quarter. next to We with speaking call. It time. Okay. again My for of thanks to everyone are

Syra Health Corp. Class A Common Stock (SYRA) 29 Oct 242024 Q3 Earnings call transcript