Financial Data and Key Metrics Changes - Revenue in Q3 2024 was 5.3 million year-over-year, indicating a decrease of approximately 11.3% [7][10] - Net loss for the quarter was 4.3 million in the same quarter last year, reflecting a significant decline [7][11] - Adjusted EBITDA was 1.2 million year-over-year, primarily due to lower revenue and higher costs [11] Business Line Data and Key Metrics Changes - The company experienced increased sales wins in healthcare services and life sciences, although the revenue impact from these sales has not yet been fully realized [6] - Quarterly revenue has remained between 5.4 million since Q1 2024, attributed to macroeconomic factors and customer attrition [6][10] Market Data and Key Metrics Changes - The company noted improved sales momentum and a higher rate of contract renewals and expansions, suggesting a more favorable market environment [14][15] - The acquisition of Kyber Data Science is expected to expand the addressable market to include financial service customers, enhancing the company's market position [8] Company Strategy and Development Direction - Forian aims to strengthen its data relationships and continue investing in its information platform to drive innovation and growth [9][11] - The acquisition of Kyber is seen as a strategic move to enhance data science capabilities and provide unique insights derived from healthcare data [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in breaking out of the current revenue range in 2025, driven by improved sales momentum and the impact of the Kyber acquisition [6][10] - The company anticipates that the revenue for 2024 will be at the top end of the previously provided range of 20 million, while maintaining adjusted EBITDA within the previously provided range [12] Other Important Information - The company ended the period with 0.5 million related to the termination of an inbound information contract was noted, which impacted the financial results for the quarter [11] Q&A Session Summary Question: Can you elaborate on the revenue trends and expected breakout in 2025? - Management indicated that the commentary on revenue was excluding Kyber, and noted improved sales momentum with expanded relationships and larger contract renewals expected to impact future revenue [14][15] Question: What factors are contributing to the higher rate of wins? - Management attributed the improved market conditions and seasonal trends, noting that the appetite for information contracts has increased [15][16] Question: With significant cash reserves, will the company invest more aggressively in sales and marketing? - Management stated that while they are looking for strong sales individuals, they believe the recent acquisition will help enhance their sales capabilities without necessarily increasing headcount [18] Question: What were the terms of the Kyber acquisition? - Management clarified that the acquisition involved assuming normal operating liabilities and that more details on revenue will be available in Q1 [19]
Forian(FORA) - 2024 Q3 - Earnings Call Transcript