In This Article:
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Forian Inc (NASDAQ:FORA) reported a strong first quarter with a 45% year-over-year revenue growth, reaching $7.1 million.
-
The acquisition of Khyber Data Sciences contributed significantly to revenue growth, adding approximately $1.7 million.
-
Forian Inc (NASDAQ:FORA) has a committed contracted backlog of approximately $34 million, indicating strong future revenue potential.
-
The company expects full-year 2025 revenue to grow by 39% to 49%, reaching between $28 million and $30 million.
-
Forian Inc (NASDAQ:FORA) is strategically positioned to capitalize on larger trends in healthcare information and advanced analytics, enhancing its offerings with the integration of Khyber's analytics platform.
Negative Points
-
Forian Inc (NASDAQ:FORA) reported a net loss of $1.1 million for the first quarter, despite the revenue growth.
-
Adjusted EBITDA was negative at $51,000, indicating challenges in achieving profitability.
-
The integration of Khyber Data Sciences has led to increased expenses, impacting the company's earnings.
-
There is significant risk that actual results could differ materially from the company's revenue outlook due to various factors.
-
The company faces challenges in securing long-term data supply contracts, which are crucial for its growth and competitive positioning.
Q & A Highlights
Q: Can you characterize Khyber's revenue stream? Is it recurring or are there some one-time components? A: Khyber's revenue typically comes from one-year contracts. We are working on implementing auto-renewals, but currently, it operates as a SaaS platform on a one-year term. - Max Wygaard, CEO
Q: Regarding Khyber's move to profitability, will it depend on top-line growth or cost-cutting? A: We expect profitability to be driven by top-line growth. We've already reduced G&A expenses and consolidated operations. The focus is on revenue growth, supported by secured data contracts. - Max Wygaard, CEO
Q: Can you discuss the M&A environment and potential opportunities similar to Khyber? A: The market is bifurcated; strong private companies demand premiums, while VC-backed companies face valuation challenges. We see opportunities for accretive transactions, especially with companies having strong balance sheets. We're actively seeking acquisitions that align with our data factory and assets. - Max Wygaard, CEO
Q: Have you seen any impact from executive orders or pricing pressures in the pharma market on your pipeline? A: We haven't seen deal impacts, but there is some hesitation due to FDA approval delays. However, our data-driven marketing solutions remain competitive, and we've been insulated from larger executive actions or FDA changes. - Max Wygaard, CEO