Press Release: Syra Health Announces Full-Year Revenue of $8.0 Million, Up 45% YoY

Dow Jones
03-11

Syra Health Announces Full-Year Revenue of $8.0 Million, Up 45% YoY

PR Newswire

CARMEL, Ind., March 11, 2025

2024 Population Health Revenue Acceleration to 132% YoY

Q4 2024 Net Losses Cut Nearly in Half Compared to Q4 2023, Highlighting Major Efficiency Gains

Continued Momentum with New Customer Wins and Contract Extensions Driving Sustainable Growth

A conference call will be held today, Tuesday, March 11 at 9:00 am ET

CARMEL, Ind., March 11, 2025 /PRNewswire/ -- Syra Health Corp. (NASDAQ: SYRA) ("Syra Health" or the "Company"), a healthcare technology company dedicated to powering better health through innovative technology products and services, announced today its financial results for fourth quarter and full year ended December 31, 2024.

2024 Financial Highlights

   -- 2024 revenue of $8.0 million, up 45% compared to $5.5 million in 2023. 
 
          -- Revenues, excluding Healthcare Workforce, grew 66% YoY and 
             expanded to 26% of total revenues, compared to 23% of total 
             revenue in 2023. 
 
          -- Population Health reached $1.7 million in revenues in 2024, more 
             than doubling from $715,000 in 2023, driven by continued demand 
             for epidemiology and data analytics services. 
 
          -- Legacy Healthcare Workforce generated revenues of $5.9 million in 
             2024, an increase of 38% from 2023. 
 
   -- Q4 2024 Population Health revenue increased 285% YoY. 
 
   -- Q4 2024 Operating Expense decreased 39% YoY, improving the profitability 
      trajectory. 
 
   -- Q4 2024 Net Loss reduction to ($504,000) from ($995,000) in Q4 2023, 
      nearly halving YoY. 
 
   -- Cash of $2.4 million and no long-term debt as of December 31, 2024. 

2025 Financial Outlook

   -- For the full year of 2025, the Company expects low double-digit 
      percentage revenue growth, with the main catalyst being the higher margin 
      Population Health and Behavioral and Mental Health business units. 
 
   -- Based on efficiency gains exiting 2024, the Company expects to continue 
      its trend towards profitability. 
 
   -- Guidance does not include any potential revenues from two federal 
      contracts announced in early 2024. 

Recent Operational Highlights

   -- Announced positive preliminary results from clinical research study 
      of Syrenity.  Data collected from this six-week study showed trends 
      toward lowering depression symptoms among Syrenity users when compared to 
      those without access to the app, among other indicators of improvement. 
 
   -- Secured a one-year Healthcare Workforce contract valued at up to $1 
      million by the Washington D.C. Office of the State Superintendent of 
      Education. The agreement provides for several contract extension options. 
 
   -- Awarded a two-year contract with the State of Minnesota as part of its 
      Master Contract Program. The agreement includes an option to extend the 
      term by up to an additional three years with the Direct Care and 
      Treatment Division of the Minnesota Department of Human Services. The 
      program aims to enhance healthcare performance, patient satisfaction, and 
      employee engagement within the state's specialized behavioral healthcare 
      system. 
 
   -- Granted a three-month Population Health contract with the Jefferson 
      County Department of Health in Alabama to focus on identifying and 
      addressing health disparities within the district. 
 
   -- Secured multiple contract extensions from existing customers: 
 
          -- A five-month Healthcare Workforce contract extension valued at up 
             to $1.5 million from the Indiana Family and Social Services 
             Administration's NeuroDiagnostic Institute. 
 
          -- A Population Health contract extension valued at $450,000 from the 
             state of Tennessee's Shelby County Health Department. This 
             includes an additional one-year renewal option for a total 
             contract value of up to $1.3 million over three years. 

Management Commentary

Dr. Deepika Vuppalanchi, Chair and CEO of Syra Health, said, "Since our IPO and listing on the Nasdaq nearly eighteen months ago, we have accelerated the delivery of innovative healthcare solutions for our customers throughout the country. In 2024, total revenue reached $8.0 million, a year-over-year expansion of 45% with growth derived from multiple revenue streams and importantly, non-Healthcare workforce revenues expanded to 26% of total revenue, up from 23% in 2023. Our strategy of targeting more profitable revenue streams continues to generate traction, as does our cost reduction strategy, as evidenced by the 39% YoY decline in operating expenses in the fourth quarter. We continue to secure new contracts and extensions with our governmental agency partners as we seek to unlock incremental contract value growth.

As we enter 2025, we are building on the strong momentum of the fourth quarter of 2024. With successful cost and operational efficiencies in place, we are well-positioned to capture new opportunities and deliver innovative, technology and service-driven value for our customers. The adoption of our mental health product, Syrenity, continues to grow, attracting a broad base of B2B and D2C customers, and we are eager to introduce new product enhancements, including telehealth. Looking ahead, our focus remains on expanding our sales pipeline, driving higher margin revenues, advancing innovative technology, and optimizing operations. With these strategic priorities, our profitability trajectory is gaining momentum and poised to accelerate in 2025."

2024 Financial Results

For the fiscal year of 2024 ending December 31, revenue was $8.0 million, an increase of 45% compared to $5.5 million in 2023. Strong growth in the Population Health, Behavioral and Mental Health and Health Education business units was driven by new contracts as well as existing contract extensions. Digital Health revenue continues to evolve following milestone-based implementation revenue that was recognized in 2023, which has since shifted to more sustainable maintenance-based revenue.

Gross profit margin in 2024 was 20.7% compared to 25.6% in 2023. The variation in gross margins was due to a reevaluation of lower-margin Healthcare Workforce contracts, offset by a favorable mix shift to Population Health, which carries higher margins.

Total operating expenses in 2024 increased by 26% to $5.4 million, a deceleration from the 36% increase in 2023. Operating expenses were primarily impacted by upfront investments in the launch of Syrenity, which are expected to provide benefits of scale going forward. Following the adoption of significant cost optimization measures earlier in 2024, Syra will maintain a diligent approach for investing in long-term growth and value creation.

Adjusted EBITDA for 2024 was ($3.7 million) compared to ($2.8 million) in 2023. Adjusted EBITDA was impacted by investments in the clinical research study for Syrenity and the development and launch of an expanding suite of new product features.

Net loss for 2024 was ($3.8 million) compared with ($2.9 million) in 2023. Net losses for 2024 were primarily related to expenses associated with Syrenity, which are not expected to reoccur in 2025. Earnings per share for 2024 was ($0.50) and compares to ($0.60) in 2023.

Cash on hand as of December 31, 2024 was $2.4 million.

Q4 2024 Financial Results

Revenue for the quarter ended December 31, 2024 was $2.0 million, an increase of 14% compared to $1.8 million in the fourth quarter of 2023. Strong growth was driven by Population Health, which expanded 285% year over year, and Healthcare Workforce, which increased 17% year over year.

Gross profit margin was 22.7% in the fourth quarter of 2024 compared to 33% in the prior year period. The variation in gross margins was related to certain lower-margin Healthcare Workforce contracts that the company has begun to phase out.

Total operating expenses for the fourth quarter of 2024 were $957,000 compared to $1.6 million in the fourth quarter of 2023, a decline of 39% compared to the year ago period. The reduction was driven by operational efficiency gains and disciplined cost management.

Adjusted EBITDA for the fourth quarter of 2024 was ($492,000), a significant improvement compared to ($974,000) in the prior year.

Net loss for the fourth quarter of 2024 was ($504,000) compared to ($995,000) in the fourth quarter of 2023. This improvement of nearly 2x versus the year ago period was driven by successful operational restructuring efforts. Earnings per share for the fourth quarter of 2024 was ($0.05), compared to ($0.16) in the year ago period.

Conference Call

Management will hold a conference call to discuss the full year financial results at 9:00 am ET on March 11, 2025.

Interested parties can listen via a live webcast, from the link available in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/q4-and-full-year-2024-earnings-call

A replay will be available after the call, in the Investor Relations section of the Company's website at https://ir.syrahealth.com/presentations/q4-and-full-year-2024-earnings-call

 
                             SYRA HEALTH CORP. 
                               BALANCE SHEETS 
                                 (UNAUDITED) 
 
                                                  December 31,  December 31, 
                                                      2024          2023 
                                                  ------------  ------------ 
 
                     ASSETS 
 
Current Assets 
  Cash and cash equivalents                        $ 2,395,405   $ 3,280,075 
  Accounts receivable, net                             680,827     1,060,634 
  Accounts receivable related party                          -        50,614 
  Other Current assets                                 276,563       389,787 
                                                  ------------  ------------ 
   Total current assets                              3,352,795     4,781,110 
 
Property and equipment, net                             27,347        78,974 
Right-of-use asset                                     299,190        63,199 
                                                  ------------  ------------ 
 
Total assets                                       $ 3,679,332   $ 4,923,283 
                                                  ============  ============ 
 
      LIABILITIES AND STOCKHOLDER'S EQUITY 
 
Current liabilities 
  Accounts payable                                   $ 101,690     $ 462,991 
  Accrued expenses                                     230,383       198,978 
  Deferred revenue                                      16,611             - 
  Current portion of operating lease liability, 
   related party                                       111,978        63,199 
  Notes payable                                        152,887       184,904 
                                                  ------------  ------------ 
   Total current liabilities                           613,549       910,072 
 
  Non-current portion of operating lease 
   liability, related party                            187,212             - 
                                                  ------------  ------------ 
 
Total liabilities                                      800,761       910,072 
                                                  ------------  ------------ 
 
Commitments and contingencies 
 
Stockholder's equity 
  Preferred stock, $0.001 par value, 10,000,000 
    shares authorized, no shares designated, 
  issued and   outstanding                                   -             - 
  Class A common stock $0.001 par value, 
     100,000,000 shares authorized 8,979,204 and 
     5,588,298 share issued and outstanding at 
     December 31, 2024 and December 31, 2023 
   respectively                                          8,979         5,588 
  Convertible class B Common stock, $0.001 par 
     value, 5,000,000 shares authorized, 833,334 
   shares   issued and outstanding                         833           833 
  Additional paid-in capital                        11,692,952     9,071,745 
  Accumulated deficit                              (8,824,193)   (5,064,955) 
                                                  ------------  ------------ 
   Total stockholder's equity                        2,878,571     4,013,211 
                                                  ------------  ------------ 
 
Total liabilities and stockholders' equity         $ 3,679,332   $ 4,923,283 
                                                  ============  ============ 
 
 
                           SYRA HEALTH CORP. 
                        STATEMENTS OF OPERATIONS 
                               (UNAUDITED) 
 
                      For the Year Ended December 31 
                                                2024           2023 
                                            -------------  ------------- 
Net revenues                                  $ 7,982,082    $ 5,515,144 
Cost of services                                6,329,119      4,103,244 
                                            -------------  ------------- 
  Gross profit                                  1,652,963      1,411,900 
                                            -------------  ------------- 
 
Operating expenses 
  Salaries and benefits                         2,718,743      2,292,295 
  Professional services                           606,051        586,463 
  Research and development expenses               585,146        240,048 
  Selling, general and administrative 
   expenses                                     1,445,170      1,131,922 
  Depreciation                                     62,738         48,771 
                                            -------------  ------------- 
   Total operating expenses                     5,417,848      4,299,499 
                                            -------------  ------------- 
 
Operating loss                                (3,764,885)    (2,887,599) 
                                            -------------  ------------- 
 
Other income (expense) 
  Interest income                                  21,247          2,942 
  Interest expense                               (15,600)       (53,686) 
                                            -------------  ------------- 
   Total other income (expense)                     5,647       (50,744) 
                                            -------------  ------------- 
 
Net loss                                    $ (3,759,238)  $ (2,938,343) 
                                            =============  ============= 
 
Weighted average common shares outstanding 
 -- basic and diluted                           7,551,576      4,877,861 
                                            =============  ============= 
Net loss per common share -- basic and 
 diluted                                         $ (0.50)       $ (0.60) 
                                            =============  ============= 
 
 
                         SYRA HEALTH CORP. 
                      STATEMENTS OF CASH FLOWS 
                             (UNAUDITED) 
 
                             For the Year Ended December 31, 
                                       2024                2023 
                             ------------------------  ------------- 
CASH FLOWS FROM OPERATING 
ACTIVITIES 
Net loss                                $ (3,759,238)  $ (2,938,343) 
Adjustments to reconcile net loss to net cash used in operating 
 activities: 
  Depreciation                                 62,738         48,771 
  Common stock issued for 
   services                                    71,378              - 
  Non-cash lease expense                       89,500 
  Stock-based compensation                     59,803         32,831 
  Changes in operating 
  assets and liabilities: 
   Accounts receivable                        379,807       (59,547) 
   Accounts receivable, 
    related party                              50,614       (50,614) 
   Other current assets                       491,883        203,110 
   Right-of-use asset                                        121,089 
   Accounts payable                         (361,301)         30,603 
   Accounts payable, 
    related parties                                 -        (3,200) 
   Deferred revenue                            16,611              - 
   Accrued expenses                            55,672       (22,679) 
   Operating lease 
    liability                                (89,500)      (121,089) 
                             ------------------------  ------------- 
Net cash used in operating 
 activities                               (2,932,033)    (2,759,068) 
                             ------------------------  ------------- 
 
CASH FLOWS FROM INVESTING 
ACTIVITIES 
  Purchase of property and 
   equipment                                 (11,111)       (15,251) 
                             ------------------------  ------------- 
Net cash used in investing 
 activities                                  (11,111)       (15,251) 
                             ------------------------  ------------- 
 
CASH FLOWS FROM FINANCING 
ACTIVITIES 
  Proceeds from sale of 
   common stock and 
   exercise of warrants                     2,469,150      5,332,283 
  Proceeds received from 
   line of credit                                   -        300,000 
  Repayments on line of 
   credit                                           -    (1,050,551) 
  Proceeds received from 
   advances, related party                          -      1,295,010 
  Repayments on advances, 
   related party                                         (1,095,000) 
  Repayments on notes 
   payable                                  (410,676)      (185,692) 
  Proceeds received from 
   convertible notes 
   payable                                          -      1,455,000 
                             ------------------------  ------------- 
Net cash provided by 
 financing activities                       2,058,474      6,051,050 
                             ------------------------  ------------- 
 
NET CHANGE IN CASH AND CASH 
 EQUIVALENTS                                (884,670)      3,276,731 
  CASH AND CASH EQUIVALENTS 
   AT BEGINNING OF PERIOD                   3,280,075          3,344 
                             ------------------------  ------------- 
  CASH AND CASH EQUIVALENTS 
   AT END OF PERIOD                         2,395,405      3,280,075 
                             ========================  ============= 
 
SUPPLEMENTAL INFORMATION: 
  Interest paid                              $ 15,600       $ 36,226 
                             ------------------------  ------------- 
  Income taxes paid                               $ -            $ - 
                             ========================  ============= 
 
NON-CASH INVESTING AND 
FINANCING ACTIVITIES 
  Initial recognition of 
   right-of-use as set and 
   lease liability                           $325,491              - 
                             ------------------------  ------------- 
  Cancellation of Class A 
   common stock                                   $ -           $ 42 
                             ========================  ============= 
  Non-cash application of 
   invoices to ST Logics 
   loan                                           $ -      $ 200,010 
                             ------------------------  ------------- 
  Class a common stock 
   issued for debt and 
   interest conversion                            $ -     $1,472,460 
                             ------------------------  ------------- 
  Options issued for 
  accrued director fees                       $24,267            $ - 
                             ========================  ============= 
  Prepaid asset financed 
   with note payable                         $378,659       $370,596 
                             ------------------------  ------------- 
 

Non-GAAP Financial Measures

In addition to financial results reported in accordance with accounting principles generally accepted in the United States of America ("GAAP"), we have provided the following non-GAAP financial measure in this release and the accompanying tables: adjusted EBITDA. We use this non-GAAP financial measures internally to facilitate period-to-period comparisons and analysis of our operating performance and liquidity, and believe it is useful to investors as a supplement to GAAP measures in analyzing, trending, and benchmarking the performance and value of our business. However, this measure is not intended to be a substitute for those reported in accordance with GAAP. These measures may be different from non-GAAP financial measures used by other companies, even when similar terms are used to identify such measures. For reconciliations of historical non-GAAP financial measures to the most comparable financial measures under GAAP, see the table below.

 
                             SYRA HEALTH CORP. 
               RECONCILIATION OF ADJUSTED EBITDA TO NET LOSS 
                                (UNAUDITED) 
 
                              Year Ended                Quarter Ended 
                      --------------------------  -------------------------- 
                      December 31,  December 31,  December 31,  December 31, 
                          2023          2024          2023          2024 
                      ------------  ------------  ------------  ------------ 
Net Income            ($2,938,343)  ($3,759,238)    ($995,275)    ($504,397) 
Interest expense            53,686        15,600         9,237         5,528 
Depreciation expense        48,771        62,738        12,358         7,278 
Taxes                            -             -             -             - 
                      ------------  ------------  ------------  ------------ 
Adjusted EBITDA       ($2,835,886)  ($3,680,900)    ($973,680)    ($491,591) 
                      ------------  ------------  ------------  ------------ 
 
 

About Syra Health

Syra Health is a healthcare technology company that powers better health in critical areas such as mental health, population health, and the healthcare workforce. The company's leading-edge technology products and innovative services focus on prevention, access, and affordability. With a commitment to improving health, Syra Health is advancing healthcare solutions nationwide and around the world. For more information, please visit www.syrahealth.com.

Forward-Looking Statements

Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include but are not limited to, statements relating to the expected use of proceeds, the Company's operations and business strategy, and the Company's expected financial results. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on management's current expectations and are subject to substantial risks, uncertainty, and changes in circumstances. Investors should read the risk factors set forth in our Form 10-K for the year ended December 31, 2024, and other periodic reports filed with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and, except as required by federal securities laws, the Company specifically disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts

For Media Inquiries:

Christine Drury

Director of Corporate Communications

Syra Health

463-345-5180

christined@syrahealth.com

For Investor Inquiries:

Corbin Woodhull

Managing Director, Global Advisory

Hayden IR

602-476-1821

corbin@haydenir.com

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(END) Dow Jones Newswires

March 11, 2025 07:43 ET (11:43 GMT)

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