Siyata Reports Record Third Quarter Revenue Amid Strong US Demand
Detroit, Michigan
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November 22, 2024 08:20 AM Eastern Standard Time
By Meg Flippin, Benzinga
The land mobile radio market is getting an overhaul thanks to push-to-talk over cellular (PTToC) technology. After all, PTToC gives first responders, miners, dock workers, security professionals and a whole host of other professionals access to instant communications, wider nationwide coverage and greater cost efficiencies. Not to mention these advanced PTToC systems can easily integrate with legacy technology and are future-proofed for when 5G completely dominates.
Those benefits haven’t been lost on Siyata Mobile Inc. (NASDAQ: SYTA), a Vancouver, British Columbia, global vendor of PTToC devices and cellular signal booster systems. The company reports it had a strong third quarter with record revenue growth thanks to outsized demand for its rugged devices. What’s more, the company said it is still on track to achieve profitability in the coming quarters.
“We continue to see the rapid adoption of our disruptive solutions and, as the displacement of land mobile radio by push-to-talk-over-cellular continues to progress, this should drive meaningful growth,” said CEO Marc Seelenfreund during the company’s earnings call for the quarter. “We stand by our previously stated goal of strong revenue growth with the goal of profitability in the coming quarters.”
Shift Underway
It’s no wonder Siyata saw triple-digit revenue growth in the third quarter. The market seems to be undergoing a shift away from Land Mobile Radio (LMR) systems and toward PTToC technology. The industry is forecast to grow at a CAGR of 11% from now until 2030, reaching $68.94 billion.
Siyata Mobile’s portfolio of in-vehicle and rugged devices enable first responders and enterprise workers to instantly communicate over a nationwide cellular network of choice. Meanwhile, its portfolio of enterprise grade and consumer cellular booster systems enables first responders and enterprise workers to amplify cellular signals in remote areas, inside buildings where signals are weak due to their structures, and within vehicles.
Those devices – the SD7 in particular – drove growth for Siyata in the third quarter. The SD7 is a rugged handset that operates with a SIM card on public cellular networks, giving users nationwide coverage. Siyata Mobile says its radios deliver crystal-clear audio quality and since the SD7 is rugged and water resistant, it can work in most environments.
For the three months ending in Sept. 30, 2024, Siyata Mobile reported record revenue of $5.9 million, up 218% year-over-year. The company attributed the revenue growth to “booming demand” for its SD7 handsets and accessories. Demand was particularly strong in the U.S. market, which represented 81% of revenue during the quarter.
“This performance underscores the significant momentum we are building, especially in the U.S. market, where sales have increased by 55% year-to-date,” says Seelenfreund. “More broadly, demand for our SD7 handsets is increasing across a diversity of vertical markets and use cases. Adoption of our disruptive, ruggedized handsets is accelerating to replace more traditional land mobile radio (LMR).”
Dealmaking On Display
The third quarter was a busy three-month period for Siyata, in which it inked two deals. First, there was a $2.5 million order which it received for its PTT handsets and Real Time View devices from an existing customer, an international emergency medical services organization. Siyata plans to deliver the order in the first quarter of 2025. Seelenfreund said the expansion of its deal with this first responder organization is a testament to the positive impact its devices are having on customers and the relationships Siyata is cultivating.
“Our devices are being proven as rugged, reliable and effective for enhancing communications when deployed by lifesaving EMS customers, thereby leading to follow-on orders,” said Seelenfreund.
Then there is Siyata’s deal with T-Mobile US (NASDAQ: TMUS). Siyata’s SD7 Ultra series 5G mission-critical push-to-talk (MCPTT) cellular radio handsets will be available on T-Mobile's 5G network, currently the nation's largest. Siyata’s SD7 devices will be available through T-Mobile's Direct Connect platform. Users will also have access to applications Siyata says are designed to improve response times and ensure that emergency services can effectively address critical situations.
“We believe that we have a very exciting 5G product portfolio planned to launch in 2025 which will position us as the leading PTT handset provider on a global level,” says Seelenfreund. “We announced recently that T-Mobile is the first wireless carrier that will be launching part of the portfolio and will be releasing details of the innovative devices over the coming months. We are optimistic that more wireless carriers will follow suit.”
Siyata is having a moment driven by demand for its rugged devices. With the third quarter in the bag and new deals about to go live, Siyata may be worth keeping an eye on.
Featured photo by Fred Moon on Unsplash
Siyata Mobile Inc. is a B2B global vendor of next-generation Push-To-Talk over Cellular devices, cellular booster systems, and video monitoring solutions. Its portfolio of in-vehicle and rugged devices enables first responders and enterprise workers to instantly communicate, over a nationwide cellular network of choice, to increase situational awareness and save lives.Its portfolio of enterprise-grade and consumer cellular booster systems enables first responders and enterprise workers to amplify cellular signals in remote areas, inside structural buildings where signals are weak, and within vehicles for the maximum cellular signal strength possible.For its video monitoring system, Siyata integrates software that we license with off-the-shelf hardware providing our customers with an integrated advanced camera system for management and visual monitoring of their fleet vehicles.
This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions or variations of such words are intended to identify forward-looking statements. Because such statements deal with future events and are based on Siyata's current expectations, they are subject to various risks and uncertainties, and actual results, performance, or achievements of Siyata could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading "Risk Factors" in Siyata's filings with the Securities and Exchange Commission ("SEC") and in subsequent filings with the SEC. Except as otherwise required by law, Siyata undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. References and links to websites and social media have been provided as a convenience, and the information contained on such websites or social media is not incorporated by reference into this press release.
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