Syra Health Corp. Class A Common Stock Price & Performance (SYRA)

Thank you, Brett, and welcome everyone. Thank you for joining our fourth quarter and full year twenty twenty four earnings call today. We value your continued interest in CyraHealth and are excited to share updates on our recent performance and future goals. I will begin by highlighting our strong financial performance, followed by an update on the growth initiatives and strategic priorities into 2025. Following that, I'll the momentum behind our path to profitability. Then I'll hand over to our Chief Financial Officer, Priya Brassad, who will take you through a more detailed breakdown of our financial results. 2024 was a transformational year for Cider Health. Marked by the successful execution of the strategic growth initiatives significant revenue expansion and key investments in technology and innovation. We delivered total value of $8,000,000 reflecting an impressive 45% growth compared to 2023. This was driven by strong performance in our population health Behavior and Mental Health and Health Education business units, with non healthcare workforce revenues growing 66% year over year and accounting for 26% of total revenues, compared to 23% in 2023. A strategic shift towards more diversified high margin revenue streams is supported by sustained market demand for our data analytics, epidemiology services, growing adoption of Serenity and increased demand for training.

Alongside this, our legacy healthcare workforce this unit continues to perform well with revenues for the full year 2024 increasing 38% to just under $6,000,000 dollars Gross profit margin was 20.7% for 2024 compared to 25.6% the previous year.

The variation was primarily due to timing of differences between implementations and revenue recognition for certain milestone driven projects. In addition to impacts from specific low margin health care workers' contract that are being phased out.

Going forward, we expect the growing share of higher margin revenues in the consolidated mix will have an impulsive impact on our gross margins. From a quarterly perspective, gross margin of 22.7% for the fourth quarter of twenty twenty four compares to 29.7% in the prior third quarter and 33% in the year ago period. The strength of our diversified model and op operational efficiencies we are realizing reinforce our optimism for improving margins going forward. Additionally, our strategic focus on high margin offerings has enabled us to further solidify our financial positioning. We are continuing to generate strong momentum with new contracts and extensions which are long term and highly recurring in nature. As of Q4 twenty twenty four, our RFP submissions equate to a potential $80,000,000 in multiyear contract value, provided CYRRL receives 100% of the awards. In support of our long term growth strategy, we remain focused on securing contract wins and to revenue. As you may recall, in the second quarter, we announced a restructuring initiative aimed at reducing operating expenses. Going forward, we will continue to diligently manage the allocation of capital to enable investment and growth initiatives that drive profitability. Our operational efficiencies grew a material 39% reduction in our operating expenses in the fourth quarter of twenty twenty four compared to the fourth quarter of twenty twenty three.

As a result, net loss for the fourth quarter of twenty twenty four nearly half to $54,000 an improvement of hundred and $91,000 compared to the net loss of $995,000 in the fourth quarter of twenty twenty three. We expect these improving trends continue into 2025. In our pursuit of innovation excellence, we are focused on expanding our innovation pipeline to enhance the variety of products and services we provide. This includes the launch of a serenity mental health app as both a B2B and direct to consumer product.

Currently available in The United States, and India, we plan to expand the availability of the product in lower to middle income countries where mental health is a significant concern. At its core, Serenity is designed to offer effective solutions mental and behavioral health challenges. [indiscernible] Notably, telehealth will be implemented into Serenity which will seamlessly expand access and improve health outcomes in the behavior and mental health space. This science based app leverages expertise of psychologists, clinicians, suicide prevention specialists data scientists and AI technologies to deliver customized prevention and intervention protocols. We are already receiving positive indications for serenity. In partnership with Indiana University, we announced positive preliminary results from a six week Serenity clinical research study.

Data collected from this study shows trends towards lowering depression symptoms among XENITY users when compared to those without access to the app. Trends in overall well-being were also observed among those using the app along with improvements in other measures. Furthermore, we have continued with the development of side of guardrails for AI agents, ensuring safe ethical and compliant AI interactions in healthcare. We also offer CyRobot an innovative AI backed chatbot designed to standards making it an effective solution for various healthcare organizations and providers. Building on this foundation, our focus on sustainable growth and the sound financial position guides our continued opportunistic investment in these innovative offerings. Strategic pillars remain centered around ensuring we continue to surpass our clients' evolving needs and capitalize on emerging market opportunities. Now moving on to update on our business units. In our Population Health business unit, we were awarded a two year contract with state of Minnesota as part of its master's contract program. The agreement includes an option to extend the term by up to an additional three years with a 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 behavior healthcare system.

We were also 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.

In Shelby County, Tennessee, we were awarded a one year contract team of epidemiologists and biostaticians to continue uncovering disease trends and factors influencing disease. While also addressing its economic impact.

With an initial contract extension valued at $450,000 and a one year renewal option in 2026, we increased the combined contract value opportunity to up to $1,300,000 over three years. Within our Health Education business unit, we remain committed to delivering comprehensive large scale health education and training programs that facilitate health care workforce development. Health education and training is continuing to gain traction and we expect more material revenue contributions in 2025 from the signing of new training contracts. Notably, we recently secured a training contract with the Midwest based university to design virtual behavioral health training modules and finalized a contract with the Indiana Family and Social Services admin Administration, Division of Visibility and Rehabilitative Services to train our home and community based healthcare providers. Together, these contracts represent a combined ceiling value of $4,900,000 over the next four years. Our Health Education business unit is dedicated to improving health education education for healthcare professionals patients and providers. Finally, our healthcare workforce business unit continues to generate stable revenue having recently won a new contract with the Washington DC government valued at up to $1,000,000 Additionally, we secured a $1,500,000 contract extension with the Indiana Family and Social Services Neodiagnostic Institute a valued partner since 2020.

Throughout 2024, we entered into negotiations with our health care workforce partners with the objective of retaining high value contracts while phasing out those with less appealing unit economics. We are also in the initial stages of expanding our business into the private sector through the targeting of companies with our staffing solutions. Although private sector wins have not been secured, this aligns with our strategy to expand our addressable market and facilitate care for the broadest possible population. Together, these business units underscore Caira Health's commitment to enhancing healthcare delivery and improving health outcomes through innovative products and services. With that, let me turn the call over to our CFO, Priya Prasad, who will walk through the financial details. Priya?

Thank you, Deepika. And let me add my warm welcome to everyone joining us on this call. The financial results for the fourth quarter and full year of 2024 are provided in detail within our press release which we issued earlier this morning and in our 10 ks. Total revenues for 2024 were $8,000,000 compared to $5,500,000 in 2023, representing a year over year growth of 45%. Growth was driven by our population health, healthcare workforce, Within our Population Health business unit, revenues were $1,700,000 for 2024. More than double compared to 715,000 in 2023, reflecting an annual growth of 132%, which was driven by continued demand for public health services from government health agencies. For the fourth quarter of twenty twenty four, population health revenue reached 418,000 a 285% increase compared to the year ago period. Our expert team of epidemiologists, health economists and data analysts coupled with the robust offering within the population health [indiscernible] continue to be instrumental in driving new contracts and contracts. Extensions. Our Healthcare Workforce Business Unit also experienced strong growth in 2024 with revenues of $5,900,000 compared to $4,300,000 in 2023. An increase of 38%. For the fourth quarter of twenty twenty four, healthcare workforce revenue reached $1,500,000 a year over year expansion of 17%.

The increase in Healthcare Workforce revenue was driven by both new contracts as well as contract renewals and extensions with existing customers. Of particular note, is a new contract with the Washington D. C. Office of the state superintendent of education. This contract includes several renewal options which could further expand its lifetime value. Our Health Education business delivered significant growth in 2024, with revenue of 40,000 compared to 12,000 in 2023. Based on the growing momentum in health training and the signing of new contracts, we expect this unit to deliver continued revenue expansion going forward. Our behavioral and mental health business unit posted revenues of 17,000 in 2024 compared to thirteen thousand twenty twenty three. We anticipate further growth in this business driven by increased demand from larger business to business employers as well as launch of broader features within Serenity, in addition to its international expansion. Within our digital health business unit, Zaida bought generates revenue from both maintenance fees and implementation fees. This business continues to evolve and the sources of revenue are gradually shifting from predominantly milestone based implementation based revenue in 2024. With this trend expected to continue into 2025. Gross profits in 2024 was $1,700,000 an increase of 17% compared to $1,400,000 in 2023.

While gross margins of 20.7% compared to 25.6% in 2023. Gross margin variation is largely due to a shift in revenue mix that included timing differences between implementations and revenue recognition for certain milestone driven projects and a larger portion of lower margin healthcare work and are being phased out. In addition, the increased penetration of higher margin non healthcare workforce revenues is expected to continue on a strong growth trajectory and drive improving gross margins in 2025. As a housekeeping item, beginning in 2025, expenses associated with recruitment outsourcing as part of the Healthcare Workforce business unit will be classified as SG and A rather than as cost of goods sold with no impact on our bottom line. Total operating expenses for 2024 were $5,400,000 an increase of 26% compared to $4,300,000 in 2023. Decelerating considerably from the 36% year over year growth in 2023. 2024 operating expenses were primarily related to up which is expected to provide benefits of scale going forward. In addition, we have successfully implemented workforce optimization initiatives that are poised to deliver. [indiscernible] Services increased a minimal 3% in 2024 to 06/6000 and declined by 28% on a year over year basis in the fourth quarter of twenty twenty four.

R and D expenses were $585,000 in 2024, an increase from 240,000 in 2023 driven by the development of new innovative technologies offerings within Serenity. As well as resource allocations for the clinical research study with Indiana University. We are making a large push to attract business to business customers to actualize a positive ROI on R and D spending. In addition to our focus on managing operating costs, we are taking a meticulous and opportunistic approach towards future investments in the continued development of our technology based solutions. Depreciation expenses for 2024 were 63,000 compared to $49,000 in the year ago period, reflecting capital investments to expand office space and acquire additional office equipment. Net loss for 2024 was $3,700,000 compared to $2,900,000 in 2023. For the fourth quarter of twenty twenty four, the net loss was $504,000 dollars a significant improvement from 995,000 in the year ago period. Nearly 50% reduction of net losses in the fourth quarter is a reflection of a successful implementation of cost controls that were previously discussed.

Net loss per share was a negative 0.5 in 2024, an improvement compared to a negative 0.6 in 2023. For the fourth quarter of twenty twenty four, net loss per share was a negative 0.05 compared to a negative 0.16 in the year ago period. [indiscernible] Adjusted EBITDA for 2024 was a negative 3,700,000.0 compared to a negative $2,800,000 in 2023. Importantly, for the fourth quarter of twenty twenty four, adjusted EBITDA improved sustainability to a negative 492,000 from a negative 974,000 in a year ago period. These improvements were largely attributed to prudent operating expense control as well as targeting of more profitable revenue streams. Cash on hand on 12/31/2024 was $2,400,000 Turning to our outlook for the full year of 2025. We are encouraged by the strong trends we experienced exiting 2024.

Accordingly, we are introducing full year 2025 guidance of low double digit percentage revenue growth.

Based on the significant narrowing of net losses, there is strong momentum in our profitability trajectory and we expect these trends to persist in 2025. Wrapping up the financials, we remind investors and interested parties that reconciliation of our GAAP results to our non GAAP results are provided in the table included in today's press release.

With that, let me turn the call back over to Deepika. Thank you, Priyal. In closing, as we enter 2025, we are building on the strong momentum of the fourth quarter of twenty twenty four with a heightened focus on generating diversified revenue growth in tandem with profitability. We operate in an under addressed segment of the healthcare industry and are uniquely positioned to capture