By M. Marin
NASDAQ:SYRA
READ THE FULL SYRA RESEARCH REPORT
Revenue up 101% year-over-year…
Syra Health Corp. (NASDAQ:SYRA) is a healthcare technology company developing end-to-end solutions in multiple healthcare areas. The company released 2Q24 results last week, with revenue of $2.0 million more than doubling (up 101%) from $1.0 million in 2Q23. Revenue at the company’s Population Health unit more than tripled to $451k, compared to $120k in 2Q23. This unit comprised about 23% of total revenues in 2Q24, versus only 12% in 2Q23. The growth at the Population Health unit was driven by factors including the demand for data analytics and evaluation of state health department initiatives.
Margin expansion as revenue mix shifts towards higher margin business lines …
The company continued to shift its services mix toward higher margin services such as population health, digital health and other higher margin lines, a trend registered in 2023, as illustrated below. Gross margins in 2Q24 increased to 17.8% compared to 13.1% in 2Q23. Revenue at higher-margin business units such as Population Health and Digital Health recorded strong growth. As a result, the company’s Population Health unit contributed about 23% of total revenues in 2Q24, versus only 12% in 2Q23. SYRA’s emerging Digital Health unit contributed about 5% of total revenues in 2Q24, while there was no segment revenue in 2Q23.
Company encouraged by traction it is seeing for Syrenity…
SYRA is encouraged by the traction it is seeing for Syrenity, a key product the company has introduced recently to support its growth strategy. By the end of 2Q24, SYRA had deployed Syrenity for two employers. Syrenity is an AI-enabled mental health app. It is evidence-based and provides easy to access tools to enable users to identify, record and prevent the progression of potentially harmful factors influencing their behavioral and mental health. Syrenity integrates telehealth to facilitate the user’s access to therapy when needed. The various modules to help users manage their behavioral and mental health include education, coaching, telehealth, cognitive restructuring, wellness activities, tracker, historical data collection, which includes an AI-enabled diary and trend analysis to allow users to make informed decisions about taking preventative measures or seeking treatment.
Recent federal based sub-contractor awards…
SYRA is optimistic about its prospects for federal contracts, as the company continues to win new business, recently earning its second federal subcontractor award. Having introduced its federal government solutions unit in December 2023, the company believes these subcontracts underscores the value of its growing portfolio of products, tools and services. The company has been selected as a sub-contractor for prime contractor LUKE on a 10-year Defense Health Agency (DHA) contract (an Indefinite-Delivery, Indefinite-Quantity (IDIQ) contract for the Medical Q-Coded Support and Services – Next Generation Program (MQS2-NG) contract). The contract is valued at $43 billion over the 10-year contract term and is to provide medical staffing services at DHA facilities nationwide.
SYRA had earlier announced a partnership for a federal contract that overall is valued at $75 billion. Specifically, SYRA has been selected as a subcontractor for this contract, which was awarded to Georgia-based Caduceus Healthcare by the federal Department of Health and Human Services (HHS), Administration for Families and Children (ACR), Office of Refugee Resettlement (ORR) Medical Staffing and Support. Syra Health will provide multiple services to Caduceus Healthcare as a sub-contractor to support this award. Overall, the contract is for Caduceus Healthcare to provide temporary shelter, care facilities, direct care services, medical care, case management, education, and transportation in support of HHS’s Influx Care Facilities.
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