Forian (FORA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $4.8 million, down 2% year-over-year, primarily due to customer attrition and industry challenges.

• Net loss from continuing operations widened to $2.6 million from $1.1 million in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $78,000, down 81% from the prior year quarter.

• Gross margin declined to 62% from 74% year-over-year due to higher data licensing costs.

• The company maintains strong liquidity with $48 million in cash and marketable securities as of June 30, 2024.

Financial highlights

• Q2 2024 revenue was $4.8 million, down $0.1 million year-over-year; six-month revenue was $9.7 million, down 1%.

• Net loss from continuing operations was $2.6 million for Q2 2024 and $3.8 million for the first half of 2024.

• Adjusted EBITDA was $78,000 for Q2 2024 and $183,000 for the first half, both down from the prior year.

• Operating loss from continuing operations was $3.0 million, compared to $1.5 million in Q2 2023.

• Litigation settlements and related expenses rose to $942,311 from $350,309 year-over-year.

Outlook and guidance

• Full-year 2024 revenue is expected between $19 million and $20 million.

• Adjusted EBITDA for 2024 is projected in the range of negative $0.5 million to positive $0.5 million.

• Management is evaluating the impact of a key vendor discontinuing certain data products after December 2024.