Syra Health Corp.

Good morning, ladies and gentlemen, and welcome to the Saira Health First Quarter 2025 Earnings Conference Call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, May 8, 2025. I would now like to turn the conference over to Cormie Woodhull. Please go ahead.

Good morning, everyone, and thank you for joining us for Syrah Health's first quarter of 2025 Financial Results Conference Call. My name is Corbin Woodhull of Hayden IR, and I direct investor relations for Syrah Health. Joining us on today's call is Dr. Deepika Bupalanchi, CEO of Syrah Health, and Priya Prasad, Syrah's Chief Financial Officer. At the conclusion of today's prepared remarks, management will answer questions that were sent to us by investors and other questions we think are relevant to investors as well. Today's event is being recorded and will be available for replay through the webcast information provided in the press release. I'd also like to call your attention the customary safe harbor disclosure regarding forward-looking information. The conference call today will contain certain forward-looking statements, including statements regarding the goals, strategies, beliefs, expectations, and future potential operating results of SIRA Health. Although management believes these statements are reasonable based on estimates, assumptions, and projections as of today, these statements are not guarantees of future performance. Time-sensitive information may no longer be accurate at the time of any telephonic or webcast replay. Actual results may differ materially as a result of risks, uncertainties, and other factors included, but not limited to factors set forth in the company's filings with the SEC. CIRA undertakes no obligations to update or revise any of these forward-looking statements. With that said, I would like to turn the event over to Dr. Deepika Vupalanchi, Chief Executive Officer of CIRA Health. Deepika, please go ahead.

Thank you, Corbin. And welcome, everyone. Thank you for joining the first quarter of 2025 earnings call today. We value your continued interest in SIDA Health 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 our growth initiatives and strategic priorities for 2025. Then I will hand the call over to our Chief Financial Officer, Priya Prasad, who will take you through a more detailed breakdown of our financial results. We entered 2025 with strong momentum following the solid trends experienced at the end of 2024. We are pleased with the successful execution of a strategy that is focused on capturing sustainable long-term growth opportunities. in tandem with the continuation of diligent investments in key technological innovation. We delivered total revenue of $1.9 million, reflecting 6% annual growth compared to the first quarter of 2024. This was primarily driven by strong performance in our population health business unit, which more than tripled from the year-ago period. and represented 65% of total revenue versus the 19% contribution in the first quarter of 2024. A strategic shift remains focused on targeting diversified high-margin revenue streams while we continue to phase out more RTIP healthcare workforce contracts. I would like to highlight the strong gross margin trajectory in the quarter, which expanded by 14.6 percentage points to 31.7%. The increase in gross margins was primarily driven by increased contribution from population health. Another benefit in the quarter was increased revenue from milestone-driven projects. However, we remain focused on the strategic shift in favor of more sustainable long-term recurring current contract revenue, which we believe will have a positive impact on our gross margins. Within Population Health, we signed a year-long contract with a major insurance provider to enhance its plans for certain beneficiaries through streamlining of reporting processes, regulatory compliance assurance, and the provision of enhanced data insights. We have already initiated our work according to the contract terms and experienced a steady increase in revenues that are estimated to reach 2.5 million by year-end, depending on evolving requirements. Turning to our growth initiatives, during the quarter, we refined our go-to-market strategy and further aligned the incentives of our sales team. These renewed efforts are focused on private sector B2B clients, and the aim is to drive adoption of serenity among colleges and universities, emergency responders, healthcare providers, and life science organizations. We are experiencing continued strengthening demand of our Serenity app. In its short lifespan, having only launched late last year, the Serenity app leverages clinically proven practices within the mental and behavior health space. In line with our strategy of providing accessible support to the millions of people suffering from mental health conditions, During the quarter, we rolled out specialized content within CERNITY aimed at supporting individuals living with post-traumatic stress disorder, or PTSD. The new resources include evidence-based coping strategies, guided exercises, and expert-led modules to help users improve overall mental health. CERNITY is still in its early innings, but we are pleased with its initial adoption and are poised to continue to expand upon its use cases. Looking forward at our growth strategy, we continue to evaluate short-term and long-term avenues to expand our presence in both the public and private sectors. We are generating strong momentum with new contracts and contract extensions characterized by long-term commitments and high reoccurrence of reinforcing the durability of our growth. We are currently partnered with Caduceus on a federal contract vehicle. However, the federal agency has not yet issued task orders that align with our services. In parallel, we continue to actively submit bids with Luke on the MSQ2 vehicle to provide medical staffing services for the defense health agency facilities across the country. If one of these task orders is awarded, we will notify the market via press release. Turning to recent corporate developments, Last month, our board of directors and executive management team announced the strategic decision to voluntarily delist our common stock from the NASDAQ capital market. The company thoughtfully decided that the delisting was warranted as a strategic pause announced for improved focus on strengthening the core fundamentals while reducing cost associated with the NASDAQ listing. This pause is a proactive measure. to ensure the company is positioned to maximize shareholder value and continue its trajectory as a leading healthcare service provider. Following the transition to the OTCQV market, we plan to continue to report our financial results and operate with transparency, just as we are today. Looking ahead through the continued focus on our expanding sales pipeline, targeting of higher margin revenues and operational efficiencies, we reiterate our commitment to commercial excellence and are confident in our ability to drive continued momentum throughout the business. Moving on to focus on operational excellence, our operational efficiency Efficiencies drove a meaningful 39% reduction in our operating expenses in the first quarter of 2025 compared to the first quarter of 2024. As a result, net loss for the first quarter of 2025 improved over two-thirds to $472,000, an evolution of $975,000 compared to the net loss of 1.4 million in the first quarter of 2024. We expect these improving trends to continue into 2025. Driving continuously through 2025, we are considering utilizing proven business service vendors for operational support services while emphasizing oversight and quality, aimed at reducing operational overheads. It's important to note We have successfully executed on revenue growth despite our recent cost-cutting measures. Now moving on to an update on our business units. In addition to the population health contract with the major insurance provider, this business unit also secured a contract with the National Healthcare Organization to continue providing healthcare effectiveness data and information set overreach and support services. This one-year contract extension is valued at $660,000 with combined with previous agreement equates to a total contract value of up to 1.32 million. The extension of this contract underscores the ongoing growth of our population health business, a key driver behind our expanding and diversified revenue base. The successful renew of our contracts aligns with a strategic focus on enhancing the revenue mix by prioritizing high margin business units. As part of the revenue comes from state, local and county government budgets, but starting in 2025, the federal government began pausing or cutting a number of spending programs that has funded agencies and institutions we work with. Because of that, we have started to see delays in new contracts and even some cancellation of earlier proposal requests. These changes and the potential for more cuts are likely to impact how much revenue we bring in and when we receive it, which could affect our overall performance and cash flow in the near term. In the quarter, our long-term contract with the Indiana Neurodiagnostic Institute expired, but as a positive offset, we received a year-long contract extension valued at $1.5 million from the same customer with its revenue being recognized in the coming months based on its needs. Going forward, we are continuing to negotiate with our healthcare workforce partners in order to ramp up high value contracts while intentionally allowing less desirable contracts to expire. Looking ahead, we maintain an optimistic view on our ability to increase our footprint in state and local government contracts. We are also in the initial stages of expanding our business into the private sector to the targeting of companies with the staffing solutions and other services. Although private sector wins have not been secure, this aligns with a strategy to expand our addressable market and facilitate care for the broadest possible population. Before handling the call over to Priya, I would like to reiterate our commitment towards leveraging the powerful combination of diversified revenue growth, thin lining of expense management, and a refined focus on innovative solutions. Our collective business units are geared to address the market's demand for enhanced healthcare delivery and improve health outcomes through our innovative technology, products, and services. With that, let me turn it over to our CFO, Priya Prasad, to take you through a more detailed breakdown of our financial results and revised guidance.