Forian Inc. Q1 FY2025 earnings call

• First quarter revenue was $7.1 million, a 45% year-over-year growth. Net loss was $1.1 million and adjusted EBITDA was negative $51,000. - Acquired Kyber in Q4 last year, which is a healthcare-focused data analytics platform for financial services, offering unique healthcare insights through various product offerings. - Secured new data supply contracts in the first quarter to offset disruptions and grow coverage. - Ended 2024 with revenues of $20.2 million and adjusted EBITDA of $0.5 million. - Have approximately $34 million of committed contracted backlog.

Total first quarter revenue was $7.1 million, representing a 45% year-over-year growth. Net loss for the quarter was $1.1 million, and adjusted EBITDA was a negative $51,000. Revenue growth was highlighted by key new pharma projects, health services renewals, and incorporating the full first quarter of Kyber Data Sciences financials. The revenue contribution from Kyber is from one-year SaaS platform contracts. The total revenue of $7.1 million is the absolute figure, with the 45% being the year-over-year growth rate.

• Expect full-year 2025 revenue of $28 million to $30 million, representing 39% to 49% growth year-over-year. - Adjusted EBITDA range is expected to be negative $1 million to positive $1 million, primarily dependent on increased investment in new data sources and the speed with which Kyber achieves profitability.

• Data supply disruptions. - Tough macroeconomic environment, particularly for the healthcare sector. - Kyber may not achieve profitability as expected. - Uncertainty in M&A valuation and integration.

Q: Can you talk a little bit or characterize maybe Kyber's revenue stream? Is that a recurring oriented? Are there some one-time parts of that?

A: Kyber's revenue is typically one-year contracts. It's set up as a SaaS platform on a one-year term.

Q: When you talk about sort of the pacing on the year, whether you're at the upper or lower end of EBITDA, you said that a part of it will depend on Kyber moving to profitability. Now, do you expect that that as they would grow the top line, do you think there's some cost cutting? Is it a little bit of both? What will determine sort of that move?

A: Expect as it grows in the top line to flow down to the EBITDA. Already taken out a lot of G&A expenses. Most of the expectations on EBITDA are really going to be driven by hitting different growth profiles.

Q: Can you talk a little bit about the M&A environment? Obviously, the step up in scale looks like it can be pretty important from the Kyber 1. Now, are there similar things out there? How do you feel about that backdrop?

A: Seeing a bifurcated market. Strong private companies still demanding a premium. Majority of VC-backed companies struggling to bring in same valuations as past. There are more opportunities like Kyber. Actively seeking other acquisitions that work well with the company.

Q: Have you seen any hesitation or any sort of negative feedback with regard to pipelines or hesitations in looking at new deals against an executive order backdrop that looks like it could end up pressuring the revenue streams or pricing in the pharma market?

A: Haven't seen it on deals. Seen hesitation in some companies waiting on FDA approvals. Larger executive actions or FDA happenings have been fairly insulated for us as companies are looking for data-driven marketing tactics and we can do that well at a winning price point.