Earnings call transcript Q4 2022

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Operator

Greetings, and welcome to Forian Inc. Fourth Quarter and Full Year 2022 Financial Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal comments and webcast.

Participating today from Forian are Max Wygod, Executive Chairman and Chief Executive Officer; and Michael Vesey, Chief Financial Officer.

of like forward-looking you of statements Securities Reform I'd today management's the begin, Litigation contain may within Act we to that remind remarks Private Before XXXX. the meaning SEC from report Actual results due a filed on section in Form of variety of indicated discussed the those factors those Risk forward-looking XX-K to including those on important the may XXXX. statements by the March materially XX, differ Factors company's with annual

results full difficult year discuss today. internal will that today. is an change. could based from involves its as may the that accurately and estimate management assumptions a revenue particular, of XXXX may be There of Estimating circumstances for prove incorrect In on is, outlook plans future actual significant as and performance differ outlook to financial materially provided and performance estimates therefore, is that it risk

to such will, or or similar regarding future of these and future, expressions performance propose prospects. words views date forecast, but no forward-looking made Words may, or the believe, on the call by anticipate, These required estimate, versions are update limited under and of expressions statements such takes statements seek, to, statements should, variations identify intended represent include, intend, today not company law. forward-looking as this projected, words as company's obligation are except as the expect, Any plan, of growth, them to statements and anticipated

including a company's found A operating release report in financial the with be should March numbers for the as call, prepared website. the to believes accordance in considered change, important any available will performance performance as GAAP XX-K presenters subject may and company's Today's anticipated metric may the on unaudited of Risk refer which which are its are comparable in Factors XXXX. risks and measures the with supplement of of non-GAAP be annual regarding to webcast, discussed Form be Those to on to of on can on to also press company the and assess GAAP. not as both XX, the investors such measures a reconciliation SEC and substitute certain result adjusted today's company's EBITDA, financial our statements section filed be

Today's florian.com/investors. webcast and call transcript copies being copy is webcast well will A release filings the as press and and today's recording full available recorded. at SEC of be as the of

Executive Interim am Executive I begin. now company's to you Officer, may the introduce Chief Chairman and Wygod. Sir, pleased Max

Max Wygod

XXXX you to welcome. joining and of thank fiscal performance. today afternoon, I review us and for year all and Good Forian's fourth financial quarter business

a information some pleased offer perspective we industry strong am to share on results, and Forian's cannabis will improvements metrics. forward look business quarter fiscal in today's and as then call, company fourth quarter focused as full all assets, software following another year divestiture healthcare I discuss had the recent we will financial I key our review performance. that our with On our Mike of

and clinical solutions XXXX, analytics cannabis government to our and In and customers. innovative operational, the performance financial provided predictive software Forian of optimize healthcare,

to pleased results top- quarter delivered have are We bottom-lines. and strong on both the fourth

represents $X.X quarter year-over-year which was Our XX% total revenue fourth growth. million,

adjusted and XX% loss $X.X XX% EBITDA quarter year-over-year, net and million, a improvements into was million which Our the our was for translates loss $X.X respectively.

end XXXX, $XX by offerings. exceeded our of guidance the revenue high our million, our growth $XX year of For of healthcare representing driven year-over-year XX% range the information full million

was our XX% $XX million year loss year-over-year, $X.X which Our and for adjusted net million, EBITDA improvements was and translates into the loss X% respectively.

facing conditions, throughout despite we want first worked quarter acknowledge fourth the XXXX. the notable more Before on I in to diving detail, accomplishments challenging macroeconomic into

operating software completed and dedicate announced the of million operations us our February subsidiary, BioTrack, our for in streamline our in cash more XX, previously we to enabled which year, this proceeds, to divestiture February has as on resources First, cannabis core strategic $XX business. of healthcare

take of we expense market in great and pride in Additionally, macroeconomic We resilience our in adapt team's these commitment our to changing is our and conditions. testament executed ability to reductions conditions anticipation endeavors success challenging in to excellence. a

want spend divestiture. minutes couple I to of the a going through

landscape our rate and the for the and As cannabis increasing the more we The lack constraints, unique rapid calls, growth expansion tools. slowed U.S. (ph) faces hurdles [budget-limiting] growth previous reducing the in technologies. market legal on the innovative new that taxation exacerbated states challenge from of discussed by challenges, purchase capital at from further software cannabis have customers regulatory of the the

in across continues part states, journey a maintain are disease use acted to a the and wider be studied evaluated our us valuable balance of When for cannabinoids purely enabled part emergent and rights Forian to for patient array our the healthcare, data therapeutics. strengthening time strategic the at sheet, that while of believe should focus as divestiture patient same business cannabinoids opportunity journey the clinically into we that decisively. as of

a for with employees under highly Forian a XX significant as change company in is us, much-improved financial focused This a today profile. is

profile for team the scale. to possible thank BioTrack made have the transition. members retained smooth of are We a Forian who have and it and growing a that I lines much margin all faster at business greater want

contribution. Dan and Barton with the role Chief Forian, simultaneous Interim thank Officer stepped February Executive President his and for transaction, of we down the XX. as CEO and I of assumed effective Dan Furthermore, President

focus of and sole which date. Forian's to a is on our driver growth healthcare business, information success now has been our key

our $X.X information our XXXX. launched revenue a new of in we XXXX, from number million total Throughout Excluding business increased clients, information partnered million our $XX.X clients existing expanded with offerings. healthcare and BioTrack to with divested business, additional

remains to driving from Our clients exceptional sale support, talented team initial deep Forian. committed to growth delivering with value expertise partnering domain the with ongoing our and for

are analytics management and a our believe competitive in differentiated We market. services advantage data the information products,

with flexible competition. delivery and apart employees factory assets, high industry capabilities comprehensive data quality, experienced us Our provide that offerings timely insightful unique and technology applied data accurate, from coupled against set the

our commercial we refer to are solutions blue-chip Chronos. clinical built which on Our products and database, innovative relating to as integrated information

healthcare and conduct Our registries. data, evidence and experience real-world comprehensive data us studies science enable patient to data develop in management

our research commercial, marketing critical offerings Our and that product clinical, mission subscription-based and and and development clients, market track operational for sales inform initiatives, providing are operations. access optimize service solutions outcomes, drive and

life to and well As a continue payer healthcare across sciences' positioned landscape. result, business provider the we our expanding are

quarter. life We and the with seasonality our our experienced typical fourth within being typically results strongest sciences quarter

but uncertainty. challenges and cautious expenditures, market profitability macroeconomic We capital expect acknowledge, with being more current to do continue, growth the at customers

over unearned has positioned obligations by which yet non-current committed $XX.X that will remaining recognized into is evidenced as coming contracted well million are XXXX revenue will as unbilled as We of recognized be revenue as remaining includes majority that next and defined our be obligations been XX revenue the contracted not performance recognized company's periods. months. performance which in amounts future of the The backlog,

offerings. we focused multibillion fragmented, technology product emerging a summary, a information healthcare scalable highly a serving information growth small, ever-growing company and In competitive are with nimble market team,

proceeds from with We opportunities, have balance innovation drive differentiate sheet our of advantage ourselves external improved the further to BioTrack sale take and competitors. our

returns EBITDA soon in achieving net achieving our positive We on possible, revenue we and long-term adjusted priorities. driven are as spending to prioritize dedicated loss investment, as our improving ensure by growth. primarily our will maximum To

to to the it turn now over will financials I through Mike detail. run in

Michael Vesey

Max. Thanks,

Today, I for XX, quarter December provide overview the Forian's an results will of ended financial XXXX.

XXXX. March Technologies previously XX, of MOR combination disclosed in our Helix completed filings, and Analytics Forian As SEC on the business

As the XXXX. results a result, operations financial XX, Helix included are in of our beginning March

fourth presents GAAP and financial today basis. issued on results The press XXXX quarter release Forian's XXXX a

As business. to the in management uses which of the have we EBITDA, prior adjusted also quarters, a performance as measure track reported

press presentation adjusted and net detailed reconciliation materials the loss. release noted, these As a EBITDA to include of

the revenues Our consolidated million $X.X prior $X.X up million were the year. quarter for to of compared

multi-year a was As many healthcare providing for information revenue in by year-over-year our a over million period, $X.X recurring contracts quarter cases, to information our our deliverables same growth increased million. last over $X to products, which customers In predictable continuing or prior XX% year the provide quarters, stream. information driven

since new sales resulting As public base. customer a increases seen we each healthcare and in to a have of began new existing products both as company revenue quarter we in our result, from customers sequential our porting

$X.X last million Net in foreign adjustments same primarily the from related primarily G&A million decreased loss net decrease $X.X in the revenue from by same quarter a decrease impacts resulting fourth items The market compared improvement growth above, million, as million. loss changes and expenses in operating year. operations quarter lower resulted interest, and $X.X reduction quarter loss such when the was operations discussed a in mark million the offset $X.X of to in for last warrants. for other income by from to year driven to loss currency from of expenses, from $X.X The partially

earnings in depreciation amortization. operating release, expenses $XXX,XXX note quarter the compensation you As of will for total $X.X of and included million and expense stock-based our fourth

quarter the EBITDA, quarter excludes negative other year. this $XXX,XXX million year previous the depreciation, quarter, in of Adjusted last for million amortization the fourth $X.X which $X.X costs to and and stock-based non-recurring was the certain compared compensation, in negative negative same

streamlining with relative investments going of to us expense the to growth BioTrack a our made infrastructure continue level business divestiture of in lower We revenue the the allow our to with expect forward. leverage we incremental of to

explanation an our the net our net warrants, adjusted to items to of impacts amortization, in foreign of earnings EBITDA, non-recurring adjusted is reconciliation certain a compensation, market to earlier, to mark loss today's reconciling primary noted transaction adjustments depreciation transactions. and release. non-recurring currency outstanding along and with related expenses, other related loss included EBITDA adjustments reconciling The As stock-based

income million of going balance convertible for in of marketable payable year sheet. to noted prior $XX securities and any these amounts tax and in September the thereafter forward provide It further monthly should $XX.X be $XX.X basis. BioTrack with XXXX and cash to exclude million no sale a our February unconditional will proceeds with from XXXX. million in payments closing These our business to in Turning ended to million, liquidity that on $XX $XX proceeds consisting prior of notes grow impacts. million maturities We

Regarding exceeding our outlook with $X XXXX, revenues, our financial by guidance million for finished of $XX million. issued XXXX previously we

a expect February on first business discontinued with as focused With will healthcare of in will quarter business divestiture be operation be our our solely in XXXX, XXXX our effective we BioTrack the treated XXXX and BioTrack results. information

revenues in Our were million $XX.X XXXX. healthcare information

XX% $XX.X to $XX.X revenues reflecting healthcare increase range We expect in to be million to year revenues. the an of XXXX of prior XX% over the million, information

We loss continue as half improvements to achieving positive in leverage we of the expect adjusted in and EBITDA EBITDA our a adjusted second contribution infrastructure, our continued net XXXX.

the to turn And operator will over call who with the that, questions. will the I for open line

Operator

are there web. if Instructions] turn Max will call you. Thank I see questions [Operator from back any the the to to

Max Wygod

Yes. Thank questions you. Seems to in. coming two be

The BioTrack key post do differences see first what is, you the divestiture?

Well, there points. are a few

we solely healthcare are focused now First, in information.

And less say those Secondly, the far. our to longer software to employees. healthcare is would certain immediate size business. customers we science prior with than overall no and lastly, our partner opportunity I see so is our and vendors reduced differences by cannabis life limited are key XX

question adjusted second The do is, have reaching EBITDA you your into visibility positivity? what

And revenue our -- we in XXXX. we amount are a half Based positive business. the second achieving As model projected we of EBITDA revenue. a adjusted current said, off large with into our projected subscription-based coming of of XXXX we have are contracted a estimates, have we

we our can is long-term As believe We growth emerging company, an organically. to goal do that build value.

long-term to position our in our Again, are opportunities company. we or further of drive that those new our investments share future we value, and P&L. prudently if and advantage business respective remains on evaluate effects priority will opportunities take differentiate any the of However, on the

Those are see in. questions the only two coming I

Operator

for Please Thank Markets. next Street the line of comes proceed. Lake phones Eric from our you. it One Martinuzzi please. moment Q&A our for from with And the question Capital

Eric Martinuzzi

$XX price Yeah, congratulations I the it there got substantial, as the BioTrack cash. and well as a effort transaction -- getting know of million with QX for looks done. good was was the you that on like

I you that wanted here. dealing period ask the stub we're to about with

number a as adjusted XXXX kind a XXXX treated treated there discontinued you you be the -- for BioTrack have as will got just to be operation. just really side? Do going on ex BioTrack, -- health it's said revenue You a the information or of EBITDA

Michael Vesey

a answer EBITDA information there's don't places XXXX two Yeah. Hey, we have need. to short The adjusted guide Mike. you get can I I But It's Eric. think number. you the is,

added for We revenue. the press from the on is the which one in the First healthcare supplemental revenue the separates the quarter schedule BioTrack and business a fourth for release, year. revenue

next for run to on the that behave rate pick will $X you think in healthcare the up million pretty revenues you projections I So, do in of your could QX close then year. much how think and

terms about best we $XX.X kind to in expenses we have do a the business. there operating million thing is of discussed operating business as of was QX. the steady past, In state BioTrack expenses, And of for had the

you just take the expenses, of and the formas $X.X nine-month pro quarter's million. if our that So, worth take numbers essentially from was run one rate

So, in XXXX. million QX we run $XX.X rate have expenses of

out back is attributable million, to remaining that about You million leaves the BioTrack, $X.X the which for business. $X.X

We also gave compensation is you million. about which stock-based that number, in the $X.X

attributable about that business. you to If add $X.X expenses the back, rest the get run of you'll million rate

because we that between to okay, $X that's through run And So, I a beside $X will with is going for what revenues, run a thing expenses period. QX and it million once that, the has about business million $X.X QX cleanup, work leaves transitionary all you it call best think be the with forward. get million rate rate

The I divestiture addition to direct reason right the we structure business some itself. is BioTrack as pro think other to would of in you pro our don't -- structurally and the you made cost formas the the value changes that, give know,

by there, out pro going So, indicator not sure I'm number putting better forma that just a would give I think through the than math. you just

Eric Martinuzzi

analysis. the Okay. nine-month I appreciate

given demand, putting here As customer outlook well XX% yet headwinds I the in about of as you've numbers -- overall and of to prospects the base customers your there's installed for the the as XX% you an just terrific look -- macro growth. you're at and up kind the talk

of of walk different CRO. areas device, kind that the biopharm, demand Just med address you market through from each you the me those? serve, Can of

Max Wygod

Sure. This is Eric. Max again,

easiest affected look what's size the way of to it, condition of kind I the by companies. at the is macroeconomic think really

of larger life medtech smaller. and companies affected we generally or types companies serve that pharma by They've industries. the happening eventual science So, have been what's been where more other channel partners are that than

CRO haven't market to the -- serving of that healthcare are around We really seen tech kind in getting by companies other or outside either it's are a the of the particularly, that how similar but technical companies industry slowdown healthcare. of impacted trends companies technical bigger kind

Eric Martinuzzi

with Okay. And have you data. then, purchaser, I BioTrack agreement think in to do BioTrack Is your to access the the continue correct? that

Max Wygod

correct. That's

our of to journey. initial data, cannabinoid-based on using kind of access across have outcomes We to continue the to patient on it thesis evaluate the

Eric Martinuzzi

Okay. in to committed talked in it the you of a compare Can for numbers year $XX.X contracted attention you about, is I was ago this one million. -- -- committed financials pay And that of to then contractually was your I that said for QX kind the the me? what that you backlog that backlog think

Michael Vesey

$XX was million a year Yes, about ago. Eric. It

Eric Martinuzzi

that of months And versus million, that's Okay. than buckets? portion then, XX months $XX.X the XX you over that, can put less the the two in

Michael Vesey

I can. sure, Yes,

about million, $XX.X the million months. of in XX -- the next $XX.X the be we'll So, recognizing

Eric Martinuzzi

right. All Okay.

good on and focused business. on Okay. quarter, the luck the That covers Congrats more questions. my new

Michael Vesey

you. Thank

Max Wygod

Eric. you, Thank

Operator

Ladies the today. Q&A now Thank don't participating, gentlemen, for you our Instructions] I and may see Thank in session questions we with you. and program for disconnect. conclude you queue. that, further any [Operator and

Forian (FORA) 27 Mar 232022 Q4 Earnings call transcript