Shares of the Siyata Mobile Inc. (SYTA) stock declined in the premarket following the release of second-quarter 2021 financial results. SYTA stock price saw a downtrend of 24.20% to drop at $2.63 a share at the time of this writing. The stock was also red in the previous trade and went down by 3.34% at closing. Let’s discuss more about this stock.
Second Quarter 2021 Financial Results:
- SYTA stock reported $356,979 revenue in the second quarter of 2021. This represents a significant decline of 83% as compared to $2,130,981 in the second quarter of 2020. The decrease is primarily attributable to a one-time merchandise return of $1,130,128 in an amount from a customer in Q,2021.
- For six months ended June 30, 2021, SYTA stock generated $4,388,954 revenue as compared to $4,414,031 same tenure of the previous year. The decrease of $25,077 is attributable to a one-time merchandise return from a customer in Q,2021. Without this return, there would have a 25% increase in year-over-year sales.
- Adjusted EBITDA for the SYTA stock reached $4,607,747 as compared to $541,721 in the same prior-year period. This represents a negative variance of $4,066,026.
- Siyata stock suffered a net loss of $10,862,538 in the second quarter of 2021. This represents a significant increase of $10,235,534 as compared to a net loss of $627,004 in the same period of the previous year.
- Siyata stock had $5,819,387 in cash and restricted cash, working capital of $5,355,098 by the end of the second quarter of 2021.
Performance overview of SYTA stock in Q2,2021:
The performance of SYTA stock was not satisfactory in the second quarter of 2021. The revenues for the reported quarter represented significant negative variance and net loss sharply increased. The coronavirus pandemic is the primary reason for the bad performance and slowed growth plans through the second quarter of 2021. However, since things are moving to normalcy, the management is optimistic that the SYTA stock will show strong organic growth in the upcoming quarters.
Previous Development of SYTA stock:
On October 13, 2021, Siyata stock received approval for its flagship UV350 device, from Telstra, Australia’s leading cellular carrier. The UV350 is the first 4G/LTE all-in-one vehicle fleet communication device intended for the delivery of cellular voice calls, Push-to-Talk over Cellular (PoC), and data applications. The device is designed in such a way that it optimizes mobile communication while driving.
The bearish sentiment towards SYTA stock points to the fact that investors did not like the second quarter 2021 financial results. In a nutshell, investors must be cautious before adding this stock to their portfolio.