Syra Health announces Q4 and full-year 2023 financial results

Syra Health Corp. announced its financial results for the fourth quarter and fiscal year ended December 31, 2023.

2024 financial outlook

• The Company expects full-year 2024 revenue of $9 to $11 million, representing a growth of 64%-100% versus 2023.
• Guidance does not include any potential revenues from Caduceus Healthcare with regards to the recently announced Federal Influx Care Facilities contract.

Management commentary
Dr Deepika Vuppalanchi, CEO of Syra Health, said “We are continuing to make progress on our growth objectives. The demand for our services remains strong and we believe we are properly positioned to take advantage. Our financial guidance reflects the growth of our business. We are continuing to diversify our revenues in terms of geography and business units. Our burgeoning business units of Population Health, Behavioral and Mental Health, Digital Health, and Health Education are seeing solid growth. These higher margin business units are becoming a larger portion of our revenue base. We are currently operating in 17 states, and we anticipate securing new business from both the private sector and ongoing federal project bids.”

Sandeep Allam, Executive Chairman and President of Syra Health, said, “We are excited about our growth prospects in 2024 and beyond. We are at the early stages of accelerating growth, which has been made possible by the investments we have made in recent years in technology and our people. Our Digital Health business unit is poised for growth, driven by our innovative SyraBot and our CarePlus solutions, which we launched in 2023. In 2023 we also launched Syrenity, our evidence-based and AI-backed product focused on the prevention of behavioral and mental health concerns. Anchoring these nascent businesses units is our legacy Healthcare Workforce business unit, which continues to generate solid revenues.”

2023 financial results
Revenue in 2023, was $5.5 million, compared to the $5.6 million reported in 2022. Strong growth in the Digital Health, Population Health, Behavioral and Mental Health, and Health Education business units were driven by new contracts as well as the launch of SyraBot. Healthcare Workforce revenue declined due to the subsiding of the Covid-19 pandemic.

Gross profit margin in 2023 was 25.6%, compared to 18.9% in 2022. The increase in gross margins was due to the mix shift from Healthcare Workforce to Population Health and Digital Health that carry better margins.

Total operating expenses in 2023 increased 36% to $4.3 million compared to $3.1 million in 2022. Salaries and benefits expenses increased 50% due to increased operations and added office personnel to support the Company’s IPO process and Company growth. Professional fees declined 43% due to a decrease in stock-based compensation related to outsourced professionals engaged in 2022. Selling, general and administrative expenses increased 97% due to increased operations. Depreciation expense was $48,771 compared to $14,849 in 2022, reflecting expanded office space. R&D expenses were $240,048, reflecting the development of technology-based solutions.

Net Loss for 2023 was $(2.94 million) compared to $(2.12 million) in 2022.

Adjusted EBITDA for 2023 was $(2.8 million) compared to $(2.1 million) in 2022.

Cash on hand on December 31, 2023 was $3.3 million.
MB Bureau