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Forian(FORA) - 2025 Q1 - Earnings Call Transcript
FORAForian(FORA)2025-05-14 21:30

Financial Data and Key Metrics Changes - Total first quarter revenue was 7,100,000,representinga457,100,000, representing a 45% year-over-year growth [7][17] - Net loss for the quarter was 1,100,000, with adjusted EBITDA at a negative 51,000,comparedtoalossof51,000, compared to a loss of 1,200,000 and 104,000year−over−yearrespectively[7][38]−Operatinglossdecreasedtoapproximately104,000 year-over-year respectively [7][38] - Operating loss decreased to approximately 1,400,000 from 1,800,000inthesamequarterlastyear[48]BusinessLineDataandKeyMetricsChanges−Revenuegrowthwasdrivenbykeynewpharmaceuticalprojectsandhealthservicesrenewals,aswellasthefullfirstquartercontributionfromKyberDataSciences[7][38]−TheKyberacquisitioncontributedapproximately1,800,000 in the same quarter last year [48] Business Line Data and Key Metrics Changes - Revenue growth was driven by key new pharmaceutical projects and health services renewals, as well as the full first quarter contribution from Kyber Data Sciences [7][38] - The Kyber acquisition contributed approximately 1,700,000 or 35% to the revenue growth, with the remaining increase resulting from organic growth in the Life Sciences data business [17][47] Market Data and Key Metrics Changes - The company has approximately 34,000,000ofcommittedcontractedbacklog,whichincludesunearnedrevenueandunbilledamountsthatwillberecognizedasrevenueinfutureperiods[44]−Theexpectedfullyear2025revenueisprojectedtobebetween34,000,000 of committed contracted backlog, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods [44] - The expected full year 2025 revenue is projected to be between 28,000,000 and 30,000,000,reflectingagrowthof3930,000,000, reflecting a growth of 39% to 49% year-over-year [44][50] Company Strategy and Development Direction - The company aims to enhance its offerings by integrating Kyber with its data factory and capitalizing on advanced analytics and predictive capabilities in the life sciences market [10][43] - The company continues to seek accretive and strategic mergers and acquisitions to enhance its financial profile and expand access to pharmaceutical clients [12][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2025, highlighting the momentum and opportunities in the market despite a turbulent macroeconomic environment [5][14] - The company is comfortable with its process of integrating new vendors and expects this to be a recurring theme in 2025 and into 2026 [11][42] Other Important Information - The company ended the period with 35,700,000 in cash and marketable securities and 6,800,000inconvertiblenotesmaturinginSeptember2025[49]−AdjustedEBITDAisexpectedtorangefromnegative6,800,000 in convertible notes maturing in September 2025 [49] - Adjusted EBITDA is expected to range from negative 1,000,000 to positive $1,000,000, primarily dependent on the speed at which Kyber achieves profitability [44][50] Q&A Session Summary Question: Can you characterize Kyber's revenue stream? - Kyber's revenue is typically based on one-year contracts, and the company is working to implement auto-renewals [22][52] Question: What will determine Kyber's move to profitability? - The expectation is that as Kyber grows its top line, it will flow down to EBITDA, with most expectations driven by revenue growth [25][53] Question: How do you feel about the M&A environment? - The market is bifurcated, with stronger private companies demanding premiums, while VC-backed companies are struggling with valuations, leading to more opportunities for acquisitions like Kyber [27][55] Question: Have you seen any hesitation in new deals due to executive orders affecting the pharma market? - There has been hesitation among companies waiting for FDA approvals, but overall, the company has been insulated from larger executive actions [29][57]