Forian Inc. Q1 FY2024 earnings call

Management Statement and Operational Highlights:

• Forian's Data Factory aggregates, integrates, normalizes and cleanses medical and pharmacy claims and data with other disparate data sets, covering over 98% of all providers in the U.S. and over 300 million longitudinal patient lives.
• Continued to integrate, cleanse, master and link newly acquired data sets, including lab and additional closed and open claims data, into information products.
• Launched in beta testing mode the health care provider network mapping product called Chartis for select clients.
• Invested in sales and marketing organization to reach a broader audience within life sciences and beyond.
• Actively looking for corporate development opportunities, including potential partnerships, acquisitions, and opportunistic repurchase of shares or convertible notes.

Segment Performance: Total first quarter revenue was $4.9 million, flat year-over-year. Loss from continuing operations for the quarter was $1.2 million, a decrease of $1 million from the same quarter last year. Adjusted EBITDA from continuing operations was positive $0.1 million compared to negative $0.2 million in the same quarter last year. Cost of revenues increased approximately $0.5 million or 36% from the prior year, entirely due to increased information licensing and infrastructure costs related to the Data Factory. Ended the period with $47.4 million of cash and marketable securities and $24 million in convertible notes and accrued interest with no maturities prior to September 2025.

Guidance:

• Expect 2024 revenues to increase between 5% and 15% over the prior year after overcoming churn-related headwinds in the earlier part of the year.
• Adjusted EBITDA is expected to be in the range of 8% to 12% of revenue as we continue to invest in information products and assets while achieving profitable growth.

Risks: Actual results may differ materially from forward-looking statements due to assumptions and internal estimates that may prove incorrect, plans and circumstances that may change, and risks discussed in the Risk Factors section of the company's annual report on Form 10-K filed with the SEC on March 29, 2024.

Q: When do you expect to see the rev impact on the new products?

A: We expect to see the impact from the new products, which is called Chartis, a little bit later in the year, starting later in Q2 and more heavily in Q3. And then on the incremental data products that we've brought in, we expect to see that impact more immediately.