• Total Revenue: $4.9 million, flat year-over-year growth.

• Net Loss from Continuing Operations: $1.2 million, improved from $2.3 million year-over-year.

• Adjusted EBITDA: Positive $0.1 million, an improvement from negative $0.2 million year-over-year.

• Operating Costs and Expenses: Decreased by $0.6 million, primarily due to organizational streamlining.

• Cost of Revenues: Increased by $0.5 million or 36% due to higher information licensing and infrastructure costs.

• Cash and Marketable Securities: $47.4 million at the end of the period.

• Convertible Notes and Accrued Interest: $24 million, with no maturities prior to September 2025.

• 2023 Revenue Growth: Increased by $4.1 million or 25% over the previous year.

• 2023 Adjusted EBITDA: $2.4 million, compared to an EBITDA loss of $6.7 million in the prior year.

• 2024 Revenue Forecast: Expected to increase between 5% and 15% over the prior year.

• 2024 Adjusted EBITDA Margin Forecast: Expected to be between 8% and 12%.

• Warning! GuruFocus has detected 1 Warning Sign with NDRA.

Release Date: May 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Forian Inc (NASDAQ:FORA) has a substantial and ever-growing inventory of healthcare information, covering over 98% of all providers in the US and over 300 million longitudinal patient lives.

• The company is gaining brand recognition as a leader in the healthcare information sector, evidenced by successful cross-selling to existing customers and an increase in RFPs and inbound inquiries.

• Forian Inc (NASDAQ:FORA) launched a new healthcare provider network mapping product called Chartis in beta testing mode, which includes provider affiliations' scoring and ranking.

• The company reported a positive adjusted EBITDA of $0.1 million, an improvement from a loss of $0.2 million year over year.

• Forian Inc (NASDAQ:FORA) continues to invest in its Data Factory, integrating and mastering newly acquired datasets, which enhances its product offerings and competitive position.

Negative Points

• Forian Inc (NASDAQ:FORA) reported flat year-over-year revenue growth for the first quarter at $4.9 million.

• The company experienced customer attrition which impacted financial results, although this was anticipated.

• Net loss from continuing operations for the quarter was $1.2 million, indicating ongoing challenges in achieving profitability.

• Cost of revenues increased by approximately $0.5 million or 36% from the prior year due to increased information licensing and infrastructure costs.

• Despite efforts to overcome customer attrition, significant challenges remain in returning to growth, with the most significant impact felt in the first quarter of 2024.

Q & A Highlights

Q: When do you expect to see the new -- [the RAB] impact on the new products? A: Max Wygod, Executive Chairman and CEO of Forian Inc, responded that the impact from the new product, Chartis, is expected to be seen later in the year, starting later in Q2 and more heavily in Q3. For the incremental data products that were brought in, the impact is expected to be more immediate.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.