Siyata Mobile Inc.'s (NASDAQ:SYTA) Shift From Loss To Profit

We feel now is a pretty good time to analyse Siyata Mobile Inc.'s (NASDAQ:SYTA) business as it appears the company may be on the cusp of a considerable accomplishment. Siyata Mobile Inc. develops and provides cellular-based communications platform. With the latest financial year loss of US$15m and a trailing-twelve-month loss of US$14m, the US$6.0m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Siyata Mobile's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for Siyata Mobile

Siyata Mobile is bordering on breakeven, according to the 3 American Communications analysts. They expect the company to post a final loss in 2024, before turning a profit of US$4.9m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 65% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

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Given this is a high-level overview, we won’t go into details of Siyata Mobile's upcoming projects, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 6.0% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Siyata Mobile to cover in one brief article, but the key fundamentals for the company can all be found in one place – Siyata Mobile's company page on Simply Wall St. We've also put together a list of important aspects you should look at:

1. Historical Track Record: What has Siyata Mobile's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Siyata Mobile's board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.