Syra Health Announces Full-Year Revenue of $8.0 Million, Up 45% YoY
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, 8,979 5,588
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
Convertible class B Common stock, $0.001 par 833 833
value, 5,000,000 shares authorized, 833,334 shares
issued and outstanding
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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SOURCE Syra Health
