Siyata Mobile Inc. (“Siyata”, “company”) reported Q3-2019 financial results, with top and bottom lines improving on both a QoQ and YoY basis.
Sharp Rebound in Q3-2019 Revenues: The company reported Q3-2019 revenues of $5.05 million – a QoQ improvement of 151.77% and a YoY improvement of 60.13%. We are maintaining our revenue forecast for 2019, and 2020, of $15.04 million and $31.45 million, respectively.
Improvement in Margins: The company reported a Q3-2019 gross margin of 31.46% – an improvement from a Q2-2019 and Q3-2018 gross margins of 26.54% and 25.99%, respectively. Although the improvement in gross margins was expected, we believe our 2019 gross margin forecast of 32.91% is too aggressive. We have revised our 2019 gross margins downwards to 30.10%, and have also lowered our 2020 gross margin forecast to 37.52% (from 39.61%).
EBITDA for Q3-2019 was -$0.57 million compared to -$1.10 million for Q3-2018. In addition, this compares to Q2-2019 EBITDA of -$1.79 million. The company reported a net loss of -$1.29 million (EPS: -$0.01) for Q3-2019, compared to a net loss of -$1.78 million (EPS: -$0.02) for Q3-2018, and a net loss of -$2.41 million (EPS: -$0.02) for Q2-2019. As such, the company reported Q3-2019 EBITDA and net losses that improved on a QoQ and YoY basis.
Due to revisions made to gross margins, we are revising our 2019 net loss estimate from -$6.29 million (EPS: -$0.05) to -$6.72 million (EPS: -$0.05) and revising our 2020 net income forecast from $0.74 million (EPS: $0.01) to $84,257 (EPS: $0.00).
The company announced that it had received its first purchase order to commence device trials in the field with an undisclosed global ridesharing company. As such, we believe that Siyata has potentially opened up a new major addressable market.
Visit Siyata Mobile Inc. page for more research, discussion boards and to like, and share.
