Forian (FORA) 11 Nov 212021 Q3 Earnings call transcript

Greetings and welcome to Forian Inc.'s Third Quarter 2021 Financial Results Conference Call. At this time all participants are in a listen-only mode. A question-and-answer session will follow the formal comments. Participating on the call today from Forian are Max Wygod, Executive Chairman and Co-Founder; Daniel Barton, Chief Executive Officer; Michael Vesey, Chief Financial Officer; Edward Spaniel, Executive Vice President and General Counsel.

Before we begin I would like to remind you that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. section materially a indicated including filed variety in risk differ statements these those with may annual the to company's March due of factors the results SEC from Form XX, by those forward-looking discussed report on Actual on the XXXX. XX-K of important factors of to statements the company and made today update Any by day expect this forward-looking required represent the no obligation this call on company's them as views as undertake law. expect, project, will, intended estimates, such as forecast, and plans, of may, such Words expressions or to of seeks, believes, anticipate, statements. or should, variations are intend, forward-looking word or versions propose future, identify similar those words expressions prospects. include not These but regarding limited are future statements performance statements to and growth, anticipated refer non-GAAP for a investors to be and with our GAAP. will EBITDA considered certain to adjusted as a presenters performance measures not prepared such assess the financial company substitute maybe Today's which supplement should financial accordance its measures operating call also in believes on to important to and of can today's is be which release website. found on reconciliation the metric our press available comparable in A GAAP These including related performance risk a to unaudited subject may of company's change the impact healthcare to numbers related the the anticipated be and pandemic. any statements risks cannabis in to are and changes result and as regarding market COVID-XX of call Today's being recorded. is well full filings and transcript the as copies press recording A available be will SEC copy at release today's as and the florian.com/investors. of of I'm Chairman, Wygod. now Max pleased to the introduce Executive company's

and joined us. afternoon that all have Thanks good to

highlights financial select our to as excited XXXX from well quarter. operating share are the We performance, quarter as third

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and invested been family. we the through are balance him of have cannabis $XX Forian September, capital the informatics. notes. announced issuance We growth of both happy convertible to in its sheet to healthcare million of Forian part There as strengthen that substantial an additional raised has influx private software In a

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the investing burn are efficiently for operating near-term we as as responsibly are growth, While company we managing also focused possible. and rate on the

to adjacent our CEO, large industries, from we interest to will beginning and see now verticals, highlight across call markets, needs. our serve in [indiscernible] information variety the Dan as potential to industry build Barton. are hospitals, growth I over turn such We emerging to our offerings the the media a companies, of agnostic continue which out as architecture

I over details results. to the of the quarter cover I call like two turn would third areas today our who Mike Max. provide Thanks to will before Vesey,

I revenue briefly our product second I showed financial current update into will our development on going initiatives, quarter. then, And with our top highlight end our the an line First, performance, continued which momentum the the cover of into and XXXX. year will growth consistent provide

the total the with growth, today, of The growth from XX% First, of new Earlier reported of and we year-over-year which results. coming the growth QX The added revenue on clients products, and information the in derived was we our year-over-year basis. growth revenue revenue from past the on this is forma majority majority a software pro science grew life revenue total represented basis. XX% pro forma strong eight XX% during quarter. quarter where a of clients,

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expect incremental and data We margins strong with grow typical analytic to in products.

software position and one software X,XXX competitive government in client the continues locations utilizing a attractive solutions footprints over Our and our XX to the of has of commercial most provider as leading its with government industry, largest BioTrack clients. solutions and both cannabis maintain contracts. to state software

expand Having serving MSOs that accelerate As experience the services with compliance consolidation that clients all as we software Despite commercial all new expand. and in and cannabis cultivators, of our aspects continues short business than see strong mature software local/state a the It we our BioTrack of of in to of markets, and consolidates in largest operational us such has to across average one BioTrack turnover as to platform continue more regulations. with in position longstanding emerging disparate regulators term. these share competitive to an in New existing drive higher segment ability and state several integrated provide such a BioTrack an interoperable compared multi-state half XX a use in client the to than currently as U.S. markets Colorado BioTrack technologies. platform, and serves cannabis MSOs are retailers, we the Florida. compliance is as with and Mexico, for anticipate a their functions the manufacturers, a interoperable leader, market working has more that is success for in to competition the industry, states, its and success are commercial with key enables growth MSO wallet may acquire presence Illinois, increase seamless to and top Oregon. the as advantage expecting customers BioTrack the operators.

business Our government continues to solution thrive.

We portals our most portal patient with contracts, state work recently existing business New adopting software licensing solution. new maintained expanding relationships our our Catalytics winning of Delaware's have footprint and and Mexico with all government our our while licensing

expect and to states as have numerous very our seen as competitive We review these responded to be state capabilities. solicitations

have product and which data claims data assets other clinical to and in treatment emerging United with and We XXX the our prescription also ability the have the large-scale We in millions our diagnosis on compliance. under link cannabis-based discussions to safe real-time patient studies, possess To helping significant existing commentary made compliment surveillance enables products the data We'd by novel and progress patient's near strict believe We Real-world analytics turn product and the health covering to cannabis our on States. and of with software. industry, therapeutic medical and patient advanced end, like new based together quality assets We other evidence HIPAA to we Core integrates of strategy evaluate one in demographic Data our and de-identified adoption the therapeutics data, across safety, development real-world and insights several with usage, cannabinoids efficacy, researchers through do in with U.S. compliant data Data procedural outcome some million capturing linked emerging including that with the service an integrated and inform which all our we work manage patient and to track studies great of and of states use in utilization largest utilization innovative outcomes registries, capabilities, products. therapeutics. is Forian Forian Forian people patient provide settings evidence couple our real-world about these Factory. use data, insights Factory, had and trace on activities, point-of-sale starting with healthcare in people product over uncover in cannabis of will compounds.

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manufacturing, the We improving overall performance, as the product are dispensary, interface regulatory into as and both making our improvements for customers, cultivator, of system. user innovation the well investment material

produce base to customer for proprietary highly and data footprint real-time close actionable decision-making. and Our

expertise us Our product, our customers help customer, enable market. in analytics in will market themselves and highly competitive differentiate

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most ecosystem to our development in product to e-commerce, recent highlight inventory is facilitate of payment, service with revenue I of API and One optimization. marketing, other would providers the expensive just-in-time home partnerships investments an delivery, like generating

some Our for and to this potential near-term investment to market in customers and be bring able to their are our customers. partners serve to this better clients we happy and suggesting the have been time,

Additionally, we the in organization. have great people

results talent to immediate support from functions We are to expanded invest operating become best-in-class and in our and customer We've investment. that improve to enhanced seeing our performance. continue

to products of ensuring industry invest to partnering all to experience the and our continue with goal with also clients drive are forward. engineering We partners processes, we our in improve and other talent

detail third driven to turn to revenue us driving our to expect over outpace Vesey, positive quarter late growth, performance. especially the or flow expenditures, we in approach our CFO, provide products XXXX. to more from I'll and XXXX Mike our software Finally, early cash it information on

Dan. provide ended I Forian's the financial results an for overview business will Today, September Thanks and quarter metrics XXth, key of XXXX.

for third XXXX of basis business Analytics issued as As financial quarter Xnd, quarter on Technologies on XXXX basis, Forian's in and a today previously entire pro on both XXXX. periods. filings, the well SEC disclosed The MOR GAAP March our if release and Forian Helix results combination Helix as the included completed press a the in results as were presents forma

a uses prior The track measure release press reported in adjusted we which of EBITDA, also to detailed management reconciliation these the a of includes as quarters, As business. measures. performance have

were million the assets, and expenses in software quarter excludes information to other certain year. million of the as revenues compared acquisition. expenses by items non-cash stock-based stock amortization, software negative support reflecting and and improvements, in a compensation investment increased as operations investments year-over-year. and as resources, related support increased consolidated Helix pro the Pro million quarter of resulting for compensation, service, depreciation, which to depreciation Note as included On quarter, Our sales, company. from year-over-year $X.X third quarter $X loss The well to our customer the a our that the to million development offerings, EBITDA, for other segment, which the This in expenses mentioned million, development, million costs previously XX% reference data grew $X.X adjusted customer forma was public continued or revenue year-over-year. million growth delivering our and third up $XXX,XXX well teams. administrative of as basis, amortization expense, increased forma growth the $X.X and operating to $X.X XX% widened driven from in was product by prior operating $X.X operational $X.X due

As explanation reconciling along our in earnings is net noted included EBITDA, with the loss release. today's adjusted of of a to reconciliation earlier, items, an

due to to balance marketable with convertible Turning of the quarter no securities notes September, our prior maturities and cash ended XXXX. sheet. with million $XX.X We of the

year. We total will turn line $X.X to guidance up this call are operator million revenue $X.X who And line open to million for over quarter for fourth will our of the top I the questions. the with of the that, maintaining of

from Our question Thank first you. Heymann [Operator with RBC. Instructions] comes Gerard

proceed may with You question. your

quick in question on I with the the the and gentlemen. I regarding state. a the appreciate the insight revenues. work you, have the Thank and business the growth update

in what very importance as in You an and some our you increased new customers. insight and future Could relationship as business? you is much. competition strategic the also coming mentioned that these states the give Thank will additional of to the do, businesses

customers and you. safe use us. say This The help first I'm of We are Virginia, happy cannabis for state which and products, And portal business portal. the I would, track that Connecticut. with And we've and Delaware. capabilities, forward. the trace very recently trace expanded is important customers on answer we've ensure licensing our of for the then business the Dan. top business important patient drive to added patient Sure. added in and in to is capabilities. our won track states, very portal compliant industry We've We've the

and business. with with the to talking seeing expanding we're is our is real-world some top services the what primarily strategically evidence good relationship think we partnership So, add additional important states also ones mentioned, and on solutions. core We're several states of I just

to states real-time. registries, develop studies So, things do surveillance like we capabilities having can that patient track the events have patient we registries those to and so in adverse able the with we're

interoperable. experience a safety do which the The as the could the We benefit traceability commercial health is us our a the business, operators also constituent. the seen and it also products, that's our have system, states state BioTrack the share we of and states. track in have seamless and for can commercial historically, also with partners. as grow point-of-sales the have efficacy that partnership, relationships we our trace show outcomes important relationships well strategically our with state one maintain And provides When to and and where use we commercial higher of is studies point-of-sale and reasons state are

states the and the end both So, for at it's for win-win of day, a the Forian.

very That's good. you. Thank you. Thank

comes Stuart you. Thank Instructions] And question private our investor. from [Operator next [ph], Akerman

You your may with proceed question.

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Thank you.

for at today's I'm not Thank concludes showing conference participating. you And further you. Thank call. This this any questions time.

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