Forian (FORA) 13 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to Forian Inc.

Third Quarter 2024 Financial Results Conference Call and Webcast. [Operator Instructions]. Participating today from Forian 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,

internal outlook future management Estimating and financial prove today. change. a may will of could that that performance based In outlook incorrect on involves of plans is difficult estimates an particular, that it the its full accurately results to for as estimated discuss year is as XXXX and revenue There performance provided be and actual today. differ from circumstances significant may materially therefore, is, risk assumptions

made variations views will, projected, the forecast, forward-looking statements. or expressions are identify the them the prospects. growth, on believe, date future, and except to represent today Words may, anticipated regarding should, seek, words as estimates, expect, law. undertakes intended statements statements by this are performance such statements no to company's company call of propose as include, to, of as anticipate, these Any obligation such update not intend, of versions but These forward-looking similar plan, future or expressions or words limited and required and

today's metric for the its adjusted are assess both will of also A can to the substitute available which webcast, EBITDA, website. company on a found as prepared GAAP. in performance of reconciliation on release measures to supplement believes be and and such accordance investors comparable considered financial in measures presenters Today's be call, refer press which not to GAAP financial and certain our to with company's be the may important a should non-GAAP operating

the report unaudited the of a is and SEC on call XXXX. the March company's copies the and copy are A annual regarding available filings Factors of the webcast SEC and recording in of well any change, press and section as be XX, risks will as webcast result forian.com/investors. performance filed with on at including release today's may transcript the Today's subject Risk company's be statement as of being to Form Those recorded. XX-K full discussed anticipated numbers

am Wygod. company's Chairman to pleased I now Executive begin. Chief introduce and Officer, you the Executive may Sir, Max

performance of afternoon, you Third for quarter the Forian's call, XXXX year. and highlights third from updated and into today's Quarter for positioning provide In of all and current the thank this remainder Earnings our and joining Good I'll outlook review fiscal Call. key Forian's insight

Following this overview, Mike our Vesey trajectory. financial factors results the financial our will discuss and shaping

third flat in with was the Revenue sequentially relatively the quarter. second quarter

services we increased care experienced sales sciences. life wins health and in However, both

we momentum the quarter, While realized the not these will been fully as sales revenue in out has close year. benefit the third from we this from impact

customer discussed Since macro the of trend $X.X steadily we between last call. we full factors million quarter's attrition has have and market certain first to end X the This referenced quarter of XXXX, previous million. accounts been ranged due Forian's has previously impact quarterly of P&L $X.X and revenue in

momentum, current out going break are we given However, XXXX. into looking of this range to

of we the compares million, $X.X revenue quarter, I $X.X year-over-year. million -- third in to which generated

$X.X $X.X compares EBITDA quarter EBITDA the which Our net net of million, and a $X.X adjusted loss million to million from was respectively. and year-over-year, million, our of adjusted was $X.X income

brand customers of and our which a valuable Kyber end QX, we equity financial service life challenges. well market portfolio device expand science expertise pharmaceutical interested for competitive access product and analytical our and that Data suited addressable and are the and predictive We positioning strengthen and to performance our in data to to believe Subsequent our market analytic include Science, science science acquired capabilities. base Kyber's customer will data applications sophisticated

offerings spend and care become drug's has founded for a life It that an customers' will improve earlier source advantaged built in of was minutes of of decisions in analytic health a insights and Kyber well quarter. for I the investors. investors background. more Kyber's XXXX earlier on trust couple since by confident has make cycle to as every portfolio data as in investors

science Kyber care teams and machine capitalize complicated excellence, has Street data. knowledge and health data care learning combined informed one of context science power. with This products high predictive into health help Wall with a very of team the care data health differentiated decisions investors most experienced drive on has to data truly set advanced

company, as and still early world significant frequent funds evidenced believe by of data. IR building providing adopter Biotech as by of the unique within of Kyber a and an of mentions the intelligence departments. Bloomberg including equity some insights is We customers its that Forian position already competitive from care derived health Kyber very example hedge and assembled has the brand in While market an operating early impressive roster largest

the to analytics data with disruptions, and to believe create value that services As cutting-edge continues information we customers. industry differentiated struggle will

continue as already our alternative some and/or procured we mentioned, data cost-effective expanded solutions. previously to invest diverse and have intend strengthen to long-term However, relationships and

diverse social as As a multiple and sources and data. EMR, Through Forian's and medical health well cleanses of the as proprietary Kyber data Factory we financial incorporate platform determinants claims Data as array pharmacy laboratory sophisticated aggregates, of that data now also integrates, a panels. normalizes such acquisition, reminder, is a and from

opportunities increase actively We continue strategic to to shareholders. our value to evaluate

as and come capital opportunistic or outstanding product may include notes. convertible also client efforts expand to various shares potential may base and development partnerships forms initiatives repurchase to the of transactions allocation corporate and as strategic our Our and well in portfolio enhance

impact through of work headwinds caused by losses data to previous financial continues the Forian the summarize, To disruptions. customer and

our competitive remain sales by a tuck-in our market. product improved in experiencing are excellent expand technology We highlighted and momentum agile completed strong addressable and balance strategic sheet. We team, acquisition confident position, to our and

Mike? to over call financials. turn now for the of Mike the a review will I

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

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

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

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

reduced has difficulty securing environment. As in been the revenue of attrition by of have we discussed at some in our and as to early-stage from previous in a XXXX, experienced the quarter, current date the few well funding experienced that impacted -- revenue customers as customer end our

million loss lower our third operations contracts. settlement noted XXXX and revenues expenses million one $X.X and and of quarter Operating the legacy quarter include XXXX, should for It related litigation a offset that by third was from benefit expenses $X.X to from lower XXXX continuing inbound to lower of the costs be Helix marketing were sales approximately termination related the both as the nonrecurring acquisition. information our of of

$X.X Factory. XXXX primarily and infrastructure in increased our agreements operating would licensing Excluding the have costs XXXX product benefit, offerings. been of to licensing We higher of continuing fourth the from related information our loss impact sources and of due this Data revenues to quarter and into and operations million entered to information additional cost diversify

periods. information The prior growth our a to to We platform termination our enable meaningful innovation offerings. comparison contract product continue adjusted benefit the added related more invest our and in with has quarter plan back in EBITDA provide for nonrecurring been the to to to to

a decreased $X.X other Net the of year income to $X.X investment gain prior due million sale on million from the recorded year. in million million $X.X to prior from $X.X

As of net million the change operations a of $X.X year, a result, prior was to $X.X million a loss from gain in continuing $X.X compared million.

benefit. -- other million cost related of after which litigation depreciation, continuing the a primarily stock-based lower excludes and from to EBITDA, in The higher from revenue in EBITDA $X.X previously million amortization, contract compensation, same nonrecurring decrease termination Adjusted quarter $X.X revenue certain discussed adjusting year. items, to the resulted and the compared last operations, adjusted for costs was

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

our and of convertible marketable XXXX. and period during maturing million November on and interest accrued of in balance interest accrued an principal the redeemed We Turning price of $XX.X ended million and $X.X XXXX, an notes redemption million. notes the resulting million, September anticipated of securities gain to convertible cash in million for with $XX.X I sheet. -- aggregate company $XX.X $XX.X of

our business going-forward believe mentioned, opportunities maintain on an exchange for October capitalize of on acquired as incremental its As on we liabilities operating these XX, events, they we basis. previously to course we the Kyber adequate capital After operate considering that business to assuming Sciences, normal Data a growth continue and XXXX, arise.

of We outlook. million to XXXX to provided $X.X a previously revenues range expectation the to financial million in million an be positive range $X.X for $XX our EBITDA and adjusted negative Reviewing million. our of $XX in

effective will of operating X, We Data results in November results Sciences our include XXXX. the Kyber

range. at of previously EBITDA acquisition XXXX top Kyber, the adjusted revenues With our provided maintaining range end revenue the we expect within the be to of while our

turn questions. the operator Thank to the for over now call I'll you.

line Instructions]. Capital. question we Baldry And [Operator of from Richard the have a ROTH with

sort but an or of for drill about comment maybe of upward of is the opening that? see some think you acquisition, Do you sideways cycle gel. I sales on breakout been a sort your talk the your to is you bit the Can seeing have Can pieces XXXX? but little to activity? bit, in in greater revenues a you you assume are starting

comfortable get we around that commentary? do how So

is quarter. not This some Forian Max. around third in Rich. Kyber, That Kyber sales Sure, saw improved momentum. the because was commentary was We excluding

that that annual than both the So and an expanded initial at in contract relationships did or were see on we contract. total report we don't renewals sales while get quarter, larger we the amounts

go most year contracts know, of you as our in And term. a over

of the we higher saw later. So saw in we the a seeing, and additions, when year. which impact those know into And the come will that what wins is revenue what previous versus quarter were we rate this that's fourth quarters we

position? there to just federal get the those How to way of rate of general something leadership higher a a And freeing when the different macro And sort do in feel? wins? maybe feel perspective a sort changes of talking why broader like there discern you with environment then clients, a Is up? is

Right.

we market happened the has little a are well have disruptions that bit passed. gone earlier in as better QX the think noted, I that

to open, taking little for we So more for the that I see think end QX, typically look of seasonality the are where of a QX little contracts and a at clients place. us, bit but was also it information appetite are stronger bit

perspective. broadest the from just maybe And

You're haven't lot of it. a seen a sitting on use that lot cash, acquisitions of

time dip right to early If a aggressively you're important in negative, a like you do and breakeven, growth think your count or Being seeing you marketing? more adjusted driving if because some it not with more little signs would improving you more do invest were and demand sales be head it the bring up? could really into but and did positive it seem pushing pick marketing action think as a you the as your of Or doesn't pipeline, in it's idea EBITDA that maybe it it's on that's of sales an necessary? lot

little mixed. a It's bit

picking think the strong completed with we're we individuals. actually up I just some with really acquisition Kyber,

looking And in invest want of really and think bring line. the focused that we did. on and on, bottom strong that we we be more we're So sales and the we some to individuals, constantly acquisition go get while still people we could for

So of build our to kind the rather efficiency team and go within more. sell have we and sales capacity would we current

the But a of ] numbers I just game looking [ our cash. don't constantly number best media. for we pure across salespeople the more of of it's think are equal use

acquisitions noted, accretive of clients. be we the pharma kind applications, synergistic the of I debt markets think, bring differentiated kind or we with product or in to And that then new some of our target of a really redeem As at offering the kind are quarter. did can end of

So see more that's the team. in sales just we versus really growth numbers how

question next Kraus. queue our is from Instructions]. Eric in [Operator for One moment

I'd available? that Is to Well, of acquisition. what terms the like know were the

just Yes. operations acquired forward, going how wasn't Eric, price. We pure this it funding is Kyber and purchase the Max. acquisition we're was the forth, a set

then to So bank. the operate in a revenue is versus more And the [Technical into have to Kyber Difficulty] around will Difficulty] [Technical going large QX able us under color differently revenue. we be

small a it's So acquisition.

gentlemen, now and Thank ladies Q&A Thank you. our you today. with and And who session that, for we all disconnect. and participated you conclude program may