Unlock stock picks and a broker-level newsfeed that powers Wall Street.

Forian Inc (FORA) Q1 2024 Earnings Call Transcript Highlights: Navigating Challenges and ...

In This Article:

  • Total Revenue: $4.9 million, flat year-over-year growth.

  • Net Loss from Continuing Operations: $1.2 million, improved from $2.3 million year-over-year.

  • Adjusted EBITDA: Positive $0.1 million, an improvement from negative $0.2 million year-over-year.

  • Operating Costs and Expenses: Decreased by $0.6 million, primarily due to organizational streamlining.

  • Cost of Revenues: Increased by $0.5 million or 36% due to higher information licensing and infrastructure costs.

  • Cash and Marketable Securities: $47.4 million at the end of the period.

  • Convertible Notes and Accrued Interest: $24 million, with no maturities prior to September 2025.

  • 2023 Revenue Growth: Increased by $4.1 million or 25% over the previous year.

  • 2023 Adjusted EBITDA: $2.4 million, compared to an EBITDA loss of $6.7 million in the prior year.

  • 2024 Revenue Forecast: Expected to increase between 5% and 15% over the prior year.

  • 2024 Adjusted EBITDA Margin Forecast: Expected to be between 8% and 12%.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Forian Inc (NASDAQ:FORA) has a substantial and ever-growing inventory of healthcare information, covering over 98% of all providers in the US and over 300 million longitudinal patient lives.

  • The company is gaining brand recognition as a leader in the healthcare information sector, evidenced by successful cross-selling to existing customers and an increase in RFPs and inbound inquiries.

  • Forian Inc (NASDAQ:FORA) launched a new healthcare provider network mapping product called Chartis in beta testing mode, which includes provider affiliations' scoring and ranking.

  • The company reported a positive adjusted EBITDA of $0.1 million, an improvement from a loss of $0.2 million year over year.

  • Forian Inc (NASDAQ:FORA) continues to invest in its Data Factory, integrating and mastering newly acquired datasets, which enhances its product offerings and competitive position.

Negative Points

  • Forian Inc (NASDAQ:FORA) reported flat year-over-year revenue growth for the first quarter at $4.9 million.

  • The company experienced customer attrition which impacted financial results, although this was anticipated.

  • Net loss from continuing operations for the quarter was $1.2 million, indicating ongoing challenges in achieving profitability.

  • Cost of revenues increased by approximately $0.5 million or 36% from the prior year due to increased information licensing and infrastructure costs.

  • Despite efforts to overcome customer attrition, significant challenges remain in returning to growth, with the most significant impact felt in the first quarter of 2024.