Forian Inc. Q2 FY2023 earnings call

• Second quarter results showed 36% organic year-over-year revenue growth and reached adjusted EBITDA breakeven ahead of schedule. • Leveraged Chronos data lake for solutions in clinical trial development, commercial analytics, real-world evidence, etc. • Customers utilized Chronos for market sizing, trial protocol design, provider targeting, etc. • Began leveraging generative AI in healthcare, enabling customers to train AI solutions on Chronos. • Received approximately $5.9 million cash proceeds from the acquisition of a customer in which they held an equity interest, with potential additional earn-out payments up to $3.6 million. • Streamlined operations after divestitures led to lower G&A and R&D expenses, contributing to improved financial results.

Forian Inc. reported second quarter 2023 revenue of $4.9 million, representing a 36% year-over-year growth. The net loss for the quarter was $1.1 million, and adjusted EBITDA from continuing operations was positive $0.1 million. Healthcare information revenues were $16.4 million in 2022, and the company expects 2023 revenues to be in the range of $20.5 million to $22.5 million, reflecting a 25% to 37% increase over the prior year's healthcare information revenues.

• Expect 2023 healthcare information revenues to be between $20.5 million and $22.5 million, representing a 25%-37% increase from 2022. • Anticipate continued improvements in net loss and adjusted EBITDA, with a positive EBITDA contribution expected in the second half of 2023.

• Actual results may materially differ from forward-looking statements due to various factors, including those discussed in the Risk Factors section of the Company's annual report on Form 10-K.

Q: Last quarter you characterized your client spending and attitudes as conservative. Is there any change in their posture through the end of July?

A: No. I think it’s the same as the first quarter from that perspective.

Q: Please discuss the environment for winning new logos versus expanding with existing accounts.

A: Once a client is landed, it takes time to show value. Larger clients have incremental opportunities to add new SOWs. New clients are seeing better brand recognition as we focus on being a healthcare information company, with growth expected from new clients and upsells.

Q: Are you currently adding new employees? And if so, in what areas?

A: We are pretty well set with our current employee base, but are always looking for solid engineers and sales individuals; will grow more in marketing as we mature.

Q: You guys have a sizable cash balance. Is there anything that you guys would like to have on the M&A front? Any type of technology or… A: Looking across the continuum, potential to acquire other life businesses with recurring data licenses and looking at incremental technologies leveraging healthcare real-world data.