By Faith Ashmore, Benzinga
Siyata Mobile Inc. (NASDAQ: SYTA), a global vendor of Push-to-Talk over Cellular (PoC) devices and cellular signal booster systems, is making waves in the industry with its recent developments. The company recently announced its financial results for Q2 2023.
The company reported revenues of $2.7 million, marking a remarkable 180% increase compared to the same period last year. This substantial growth can largely be attributed to the sales of the SD7, Siyata Mobile's flagship product, which accounted for $1.9 million in revenue during Q2 2023. This surge in revenue demonstrates the increasing demand and popularity of the SD7 handset among customers.
Moreover, the company's gross profit for the quarter was $804,000, equivalent to 29.7% of revenues, a substantial improvement compared to the previous year's $109,000, which accounted for 11.2% of revenues. This increase can be attributed to the strategic shift towards selling more SD7 handsets, which boasted higher gross margins, as opposed to lower-margin legacy devices.
WIth these numbers reported, the company says Siyata's market cap is undervalued at approximately $7 million. This is in spite of the fact that Siyata has a demonstrated, differentiated product that is in high demand by both its first responder and enterprise customers, as well as by the largest wireless carriers in North America who sell Siyata's products. Not to mention, the company has growing revenue, cash on hand, and an experienced sales team.
Siyata Mobile's net loss for Q2 2023 was significantly reduced to $2.3 million, compared to a net loss of $4.3 million during the same period in the prior year. This reduction in net loss demonstrates the company's progress in managing costs and improving profitability.
Additionally, Siyata Mobile reported an impressive improvement in adjusted EBITDA, which stood at negative $2.0 million, compared to negative $3.4 million in the same period last year, showcasing an improvement of $1.4 million. This positive trend highlights the company's commitment to enhancing financial performance and maximizing operational efficiency.
The company's liquidity and capital resources also remain strong, with a cash balance of $2.0 million and working capital of $3.7 million as of June 30, 2023. These figures represent an increase compared to the prior year, reaffirming Siyata Mobile's solid financial position.
To support its growth and expansion plans, Siyata Mobile successfully completed a public offering in June 2022, issuing 50.0 million common shares and raising gross proceeds of $2.25 million. Furthermore, subsequent to June 30, 2023, the company conducted a registered direct offering, issuing an additional 51.45 million common shares and generating gross proceeds of $2.3 million. These fundraising activities have further bolstered Siyata Mobile's financial resources.
Growth continued to accelerate in the second quarter with a 180% year-over-year increase in revenue on strengthening sales of our mission-critical PoC (MCPTT) SD7 solution, said Marc Seelenfreund, Founder and CEO of Siyata. Adoption of our critical communications devices is expanding. We have received purchase orders for the SD7 handset and its accessories of more than $5 million since the start of 2023, and our resellers also anticipate an increase in demand. Just as important, the increase in orders reaches beyond emergency services to include education, healthcare, industrial, and enterprise use cases among others. Given our performance in the first half of the year and our expanding sales pipeline, we are increasingly optimistic that 2023 will be a strong growth sales year for Siyata.
Siyata Mobile's impressive performance in the second quarter of 2023, with a significant 180% increase in revenue, highlights the company's growing market presence and strong sales traction. With a focus on high-margin products and improved financial indicators, Siyata Mobile seems well-positioned for continued success in the mobile communications industry.
Click here to learn more about Siyata Mobile.
Siyata Mobile Inc. is a B2B global vendor of next-generation Push-To-Talk over Cellular devices, cellular booster systems, and video monitoring solutions. Its portfolio of in-vehicle and rugged devices enables first responders and enterprise workers to instantly communicate, over a nationwide cellular network of choice, to increase situational awareness and save lives.Its portfolio of enterprise-grade and consumer cellular booster systems enables first responders and enterprise workers to amplify cellular signals in remote areas, inside structural buildings where signals are weak, and within vehicles for the maximum cellular signal strength possible.For its video monitoring system, Siyata integrates software that we license with off-the-shelf hardware providing our customers with an integrated advanced camera system for management and visual monitoring of their fleet vehicles.
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Siyata Mobile Inc.
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