Marpai, Inc. (NASDAQ:MRAI) Q1 2024 Earnings Call Transcript

Marpai, Inc. (NASDAQ:MRAI) Q1 2024 Earnings Call Transcript May 10, 2024

Marpai, Inc. isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good morning, and welcome to the Marpai first quarter 2024 earnings conference call. [Operator instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Steve Johnson, Chief Financial Officer. Please go ahead.

Steve Johnson: Thank you, and good morning, and welcome to the Marpai first quarter 2024 earnings release webcast. With me this morning is Damien Lamendola, CEO and Director of Marpai, and John Powers, President of Marpai. Today, we'll dive into the booming TPA market, our strategic moves, and the financial results that are propelling Marpai forward. Please see the required safe harbor and forward-looking statement disclosure on your screen. Next, I'll turn it over to Damien to talk through our agenda for today.

Damien Lamendola: Let's jump right in. First, I'll break down the TPA market trends fueling our future growth. John will then detail our recent game-changing actions. Steve will walk us through our financial performance, and I'll wrap up, outlining our unwavering strategic focus. Healthcare premiums are skyrocketing, driving employers to cost-saving self-funded claims, which third-party administrators like Marpai, manage. That's a win-win for businesses and us. But unlike most third-party administrators, we offer access to two leading national provider networks given our members exceptional choice and better care. As seen in the bottom chart, these increases are driving more and more employers to self-funded health benefit plans.

While estimates vary, typically an employer can save 10% by just switching to a self-funded benefit plan. And while maybe third-party administrators struggle with network coverage, Marpai is one of the few independent third-party administrators that has access to two leading national provider networks with Aetna and Cigna. So, our members have a terrific choice of in-network care.

Steve Johnson: Thanks, Damien. Also, the TPA market is a very attractive space for both financial and strategic buyers, with the growing importance of TPAs as the conduit for significant cost savings and recurring cashflows. There has been strong activity in the M&A market and valuations continue to rise. One key differentiator of Marpai is the sheer number of choices that a potential client can choose for their benefit plan and dial up the savings with additional value-added services such as wellness programs and cost containment services. We're not just claim processors. We’re strategic partners offering value-added services like wellness programs that deliver real savings for clients. This translates to a win-win for everyone and an exceptional return on investment for Marpai. We believe that the company is positioned for success. Now, I'll turn it over to John Powers, President of Marpai, to highlight the company's completed actions.

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