Forian (FORA) 14 May 242024 Q1 Earnings call transcript

Greetings, and welcome to Forian Inc.

First Quarter 2024 Financial Results Conference Call and Webcast. [Operator Instructions] A question-and-answer session will follow the formal comments and webcast. Participating today from Forian and are Max Wygod, Executive Chairman and Chief Executive Officer; and Michael Vesey, Chief Financial Officer.

Before we begin, I would like to remind you that management's remarks today 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 those 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 outlook management today. will of In of an particular, its full as estimate discuss year XXXX revenue be it incorrect accurately for is change. may future involves as assumptions performance difficult that may and financial plans Estimating prove on is to and based that and estimates internal performance circumstances There obligation by differ of today as is, therefore, update to a represent forward-looking significant provided law. call risk as views no that company's this actual them, except date, materially results the statements could the the and from made the required on today. Any undertake outlook companies or anticipate, expressions as should, will, words propose seek, such projected, Words versions identify estimates, or plan, of are or intend, believe, of may, forecast, words forward-looking statements. and expressions these similar intended variations to future, expect, such important should which financial to may assess believes be performance These limited in performance accordance and prepared investors measures the statements not EBITDA, non-GAAP operating such regarding a adjusted measures also be will on statements company not to financial refer as to are its prospects. Today's presenters anticipated our supplement and as for growth, considered call, to and substitute future but with include, certain GAAP. in be are A press reconciliation available website. of company's found and today's the webcast, the can metric of on GAAP release both which comparable Risk with XX, recorded. SEC including risks XX-K being anticipated to unaudited, report the regarding company's may performance and is be discussed Factors as XXXX. Today's the any filed company's of result change, webcast Form statements annual a are March numbers section on of on call and in the Those subject the the press available of of filings full recording at forian.com/investors. and and as the release well be webcast today's transcript copy as SEC A copies will Executive Officer, and Max the introduce Executive Wygod. pleased now am company's I Chief Chairman to Sir, begin. you may

call and first all Forian. for joining you for earnings of thank afternoon, for us our Good conference quarter XXXX

we quarter, in on previously first growing insights throughout are sciences information critical headwinds and and the through capitalize for customers needs beyond. to life well care of XXXX navigated and expected the the health and During discussed positioned

handing to discuss like first the I on to Mike Before over of call financial results our the results, to some plan our Vesey share and would strategic highlights quarter.

reminder, The substantial laboratory as other aggregates, a with such care integrates medical and and a providers pharmacy sets disparate determinants and U.S. over factory Forian's patient data inventory result normalizes and million is cleanses of over the covering ever-growing EMR, in and longitudinal and claims of data data. health health XXX social lives. As of all data XX% information

customers both clinical service health products and across of cases, a commercial and use improving broad Our driving outcomes range success.

mission-critical and been have delivering experts We managing products. information health care in

typically increase We We Forian's the additional unrivaled our inquiries coupled track inbound as support legacy RFPs Forian's competitive evidenced the leader incumbent customers the of in inbound existing health The are and expertise customer record historically to have and comprehensive products awareness with quality providers. believe and is would information high-value gone position. and accelerating only delivering care our to of now cross-selling products that and as to get starting offerings. sector the a successful the by in into brand changes inquiries information RFPs recognition brand

into XXXX. flat million, growth. we year-over-year total quarter, the quarter expected some coming that customer was first impact the financial revenue which Our attrition we represents In first $X.X saw of

acquired newly to year-over-year, million to now continued earnings information March we reiterate which $X.X previously losses and XX, continuing products. and our of and lab operations quarter loss that into data, was which million net respectively. adjusted our and $X.X from data integrated positive for additional $X.X million, the million sets and EBITDA the call. In integrate, are a $X.X We including Our was guidance the first we on quarter, cleanse our XXXX open link provided closed master claims compares

whom provider users Chartis. clients, select informed called scoring complex additional We world to of quarter to historic we data typically to perform with our they as monetized. takes sources. provider offering, network mentioned, processing organizations data feeds given enabling connection efficient of relationships product a work are and and decisions connected. hierarchies can testing data before and the research by to and working, approximately newest clients believe includes are which the are where of affiliations it and ranking enable Data provided we acquire sources marketing. complete the understand they It we organizational and our make providers the launched prospective exploratory continuously targeted affiliations. of factory actionable can previously health that be enable As The through the drive to a Parent-child to can our mapping the product differentiate data mode end insights. At Customers Chronos care provider in beta Lake, and valuable adding to our quarter, further offerings

to Forian, the variable multifaceted products and client use growth our new a The As of systems Forian's deliver in into we CRMs. and intelligence always, and information development integration with with strategy. cases are flexible launch format central

deepening driven customers. our life the client new Forian's value share Data science acquisition wallet with existing leading are Factory, We by with

being noted by information utility see our the As life the and key access as clients. Expanding is incremental science to realized beginning products increasingly are existing value products beyond strategy. another we our to to we aspect selling of earlier, customers information clients are

we beyond. reach audience to We have broader sciences recently invested and organization and in our a life within that sales marketing ensure

yet and notes. In period challenging expected outstanding to value base. through and and/or or evaluate may our actively look of increase partnerships enhance quarter this potential convertible and and development our opportunities for corporate shareholders. include or also to we product acquisitions development strategic may to We headwinds. come of various past opportunistic These continue portfolio expand to was the pursue efforts in navigation Lastly, forms shares client conclusion, repurchase a focused

We positive new strategic are we obstacles to to wins successfully tackled have and a these upsells. on in anticipate growth, return recent momentum and swift performance based pleased trends reflecting

we move vision your opportunities Mike this our for our As about Mike? that of I a financials. support are now you embark turn for and we next lie remain phase the will as excited call on review to journey. committed continued ahead. we the to of Thank over the forward,

presents the Thanks, noted XXXX, otherwise. discussion GAAP our Max. the a provide for financial will on results My continuing Today, an The Forian's results XXXX. to I today for press basis. release ended XX, of March overview comparative unless March will reference results today XX, operations financial ended quarter quarter Forian's issued

also As uses have track of in quarters, to which adjusted we management the performance prior EBITDA, measure recorded as business. our a

materials detailed include income reconciliation As press of or to net the these EBITDA release adjusted noted, presentation loss. a and

year. consolidated quarter Our of revenues million the to $X.X last relatively same were unchanged compared

quarter, the impact expected attrition overcome as from comparative sales to with customer in offsetting of quarter new significant coming As of results had discussed period. during some had XXXX on attrition impact last most our the growth the we the first the

resulting subsequent $X The continuing the $X.X resulting disposition and quarter $X.X decreased of from expect previously expenses year net We from the same organization quarters return from investment costs of streamlining loss from decrease in the primarily decreased million proceeds million. was operating the million to discussed. Loss to from BioTrack. driven interest with to last the the our and quarter operations for Max in of by of initiatives growth income higher

resulted our This that decreased from increase or million as note the costs we will information line in and of year. information XX% a Factory Cost within You Data increased prior as to increased continue infrastructure licensing item entirely invest our related our operating to revenues approximately costs platform. $X.X from

invest taking the growth products product positive as leverage little year, basis. we operating other in we in we amortization, quarters, nonrecurring innovation of $X.X sell litigation was resulting operations offerings. Adjusted with expenses. these As and continuing from related function, step to cost advantage semi-variable operating the to enable compared incremental prior to from and same We a costs compensation, plan discussed items million in in our discussed million related platform previously excludes $X.X continue last certain quarter which cost to information depreciation, on as the going-forward our incurred to stock-based EBITDA decreased negative a

to to and incremental make us relative offerings, to lower continue to to expect intend those also to expand a our level growth we investments in term. continue enhance our capital-efficient our leverage to the with revenue long allow information infrastructure investments product we While model expense over of business

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

an redeemed face balance prior notes $X with our March securities and notes and with at to value to marketable cash million the and in interest discount $XX.X period ended to convertible million maturities of no million in XXXX. a XXXX. $XX September of We accrued We Turning our sheet. additional

date, achieved incremental opportunities the With are sheet capitalize flexibility improvements to to as well positioned on we with balance flow to arise. Reviewing manage our they prudently our financial growth outlook. feel in operating our cash we

adjusted to of loss or an as in prior $X.X and EBITDA compared for revenue EBITDA million percentage million XXXX the XX% increased the a year, EBITDA Adjusted revenues over XX.X% XXXX. $X.X Our year. for was prior increased million of to $X.X

year. to XXXX year headwinds the the earlier between churn-related over overcoming XX% X% revenues faced in We increase the expect of after the and prior part

the as we in of adjusted operator over expect with of to I invest will continue information percentage to questions. and in the revenue We who be the EBITDA that, products open achieving the as assets range XX% to turn our to will profitable for growth. And X% while call line a

it expect see new X do impact and e-mail the [Operator rev products? is, Instructions] you on have We when question the do to

Thanks, Carmen.

year, We to in a from more later little immediately. brought that which And in more incremental expect Chartis expect we new then that starting QX. the on and bit called to later impact heavily the is in data in impact the products, products the we've see see QX

may conference ladies Instructions] will With conclude gentlemen. for and I this, thank the and disconnect. [Operator for you participating, you, Well, Thank today. and you all now Q&A