Forian Inc. Q3 FY2023 earnings call

Max Wygod noted strong third-quarter performance with revenue growth and improved net income and adjusted EBITDA. The balance sheet was strengthened with a solid cash position, and the company repurchased $1 million of convertible notes and 1.6 million shares of common stock. There were strategic new wins across client types, especially in large pharmaceutical manufacturers. Forian added new data assets, including a closed network database and laboratory results data. Mike Vesey discussed consolidated revenues up 24% driven by new customers and existing relationships, net income from continuing operations increased, adjusted EBITDA from continuing operations was positive $800,000 compared to negative $1.2 million in the same quarter last year, and the balance sheet had $49 million in cash and marketable securities with convertible notes and accrued interest.

Consolidated revenue for the third quarter of 2023 was $5.3 million, representing a 24% year-over-year growth. Net income was $4.3 million and consolidated adjusted EBITDA was $755,000. Healthcare information revenues in 2022 were $16.4 million, and Forian expects 2023 revenues to be within the range of $20.5 million to $22.5 million, reflecting an increase of over 25% from the prior year's healthcare information revenues.

Forian expects 2023 revenues to be within the range of $20.5 million to $22.5 million. The company anticipates reporting a positive EBITDA contribution for the year as it continues to leverage its infrastructure. Additionally, there is potential for incremental proceeds from the sale of an equity interest in a customer.

Actual results may differ materially from forward-looking statements due to various factors including those outlined in the Risk Factors section of the company's annual report. Estimating financial performance accurately is challenging due to assumptions and changing circumstances.

Q: In June, you guys estimated you had about $17 million of remaining performance obligations over the next 12 months. Have you given any update or is there any color around how that looked at the end of the quarter?

A: Yeah, firm subrogation stayed about the same as they were in the previous quarter.

Q: Have you guys experienced any new attrition due to some customers being acquired?

A: This is Max. There hasn't been any notification of new clients, but the notice we were notified last quarter takes place several months later. So we see that impact starting in Q1 of '24, but there's no new terminations due to that.