Q3 2024 Siyata Mobile Inc Earnings Call
Speaker Change: [music].
Good morning, ladies and gentlemen, and welcome to the Sargassum Mobile third quarter 2024 conference call.
All lines are in a listen only mode. On this call is being recorded on Friday November 15th 2024.
I would now like to turn it turn the conference over to Mr. Glenn Kennedy Vice President of International sales. Sir. Please go ahead.
Thank you for joining us say, Adam Mobile's third quarter 2020 for our conference call today, I'm joined by our CEO Mark ceiling right.
During this call management will make expressed and implied forward looking statements within the private Securities Litigation Reform Act of 1995, and other U S Federal Securities laws.
These forward looking statements include but are not limited to those statements regarding future product offerings. The belief that we are on the path for strong organic growth the.
The goal to deliver strong year over year revenue growth and reached profitability in the coming quarters to.
The belief that we will continue to see strong sales in all of our product lines and across your various markets and the timing of sale of our rugged handsets to north American and international carriers.
Such forward looking statements are based on the company's current expectations and assumptions regarding its business the economy and other future considerations.
Because forward looking statements relate to the future. They are not statements of historical fact and are subject to inherent uncertainties risks and changes in circumstances that are difficult to predict the companys actual results may differ materially from those contemplated by the forward looking statements.
We caution you therefore against relying on any of these forward looking statements. The company cannot guarantee future results levels of activity performance or achievements. The forward looking statements contained in this presentation are subject to other risks and uncertainties, including those discussed in the risk factors section.
And elsewhere in the Companys annual report on form 20-F for the year ended December 31, 2023 filed with the Securities and Exchange Commission.
Speaker Change: Now I'd like to turn the call over to Mark.
Mark: Thank you Glenn good morning, and thank you for joining the call.
Mark: We are pleased to announce that in the third quarter of 2024 ended September 30th revenue was $5 $9 million, which is a 218% or $4 million increase compared to $1 8 million in Q3, 2023, and 210 or $4 million increase compared to one nine.
Mark: Millions of dollars in Q2 2024.
Mark: You're from the U S market was $4 $8 million or 81% of total revenue compared to $1 3 million or 69% of total revenue for Q3 2023.
Mark: This was the strongest revenue quarter ever in the history of our company. This increase was primarily due to the increased demand for our SD <unk> handsets and accessories and having the inventory to fulfill this demand.
Mark: We are also extremely excited with our sales outlook going forward as we are now seeing tangible rapid adoption of our unique PTT product portfolio across our various sales channels.
Mark: We believe that we have a very exciting <unk> product portfolio planned to launch in 2025, which will position us as the leading PTT handset provider on a global level we.
Mark: We announced recently that T. Mobile is the first wireless carrier that will be launching part of this portfolio and we will be releasing details of the innovative devices over the coming months.
Mark: Optimistic that more wireless carriers will follow suit.
Mark: For the remaining Q3 2024 financial metrics gross margin percentage for Q3, 2024 was 29% versus 26, 6% in Q3 2023.
Mark: Gross margin dollars increased from $500000 to $1 $7 million or $1 2 million positive variance SG&A expenses are $4 $7 million in Q3, 2024 versus $2 7 million in Q3 2023, an increase of $2 million. This increase in SG&A was primarily due to <unk>.
Mark: Marketing expenses related to investor awareness.
Mark: Adjusted EBITDA for Q3, 2024 was negative $3 $3 million compared to negative $1 6 million in Q3, 2023, a 1.8 million negative variance in EBITDA, mostly related to the increased marketing expenses related to investor awareness.
Mark: Working capital as of September 30 of 2024 was $200000 versus $1 $3 million as of December 31, 2023, a $1.1 million decrease in working capital.
Mark: We're moving both the noncash warrants and preferred share liabilities classified as current liabilities. The working capital at September 32024 would have been $1 $3 million and at December 31, 2023 would have been $1 $4 million.
Mark: For the nine months ended September 32024, total revenue was $10 1 million.
Mark: Compared to $6 $3 million in the same period of 2023, which is a positive variance of $3 $8 million gross margin dollars were $2 $8 million in 2024 compared to $1 $8 million in the same period of 2023, which is a positive variance of $1 billion.
Mark: Finally, the gross margin percentage was 27, 3% in 2024 compared to 28, 2% in the same period of 2023, a decrease of <unk>, 9%.
Mark: We continue to see the rapid adoption of our disruptive solutions and as the displacement of land mobile radio, but push to talk over cellular continues to progress this should drive meaningful growth for our innovative products. We standby. Our previously stated goals of strong revenue growth with a goal of profitability in the coming quarters, we will file our third quarter 2024 financial results.
Mark: With the SEC on a form 6K, and urge our listeners to access them from the Sec's website search for site out of mobile.
Mark: That concludes our remarks, if you have any questions. Please E mail them to S Y T E at Hayden IR Dot com.
Mark: Thank you ladies and gentlemen, this does conclude today's call and you may disconnect. Your lines at this time and we thank you for your participation.