Forian (FORA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $4.7 million, down 12% year-over-year, primarily due to customer attrition and contract expirations.

• Net loss from continuing operations was $0.2 million, or $0.01 per share, compared to net income of $5.5 million in Q3 2023, which included gains from discontinued operations.

• Adjusted EBITDA for Q3 2024 was $0.2 million, down 83% from $1.1 million in Q3 2023, reflecting lower revenue and higher costs.

• Completed the acquisition of Kyber Data Science post-Q3, expanding analytics, data science capabilities, and market reach.

• Improved sales momentum in healthcare services and life sciences, with expanded relationships and renewals expected to impact future quarters.

Financial highlights

• Q3 2024 revenue: $4.7 million, down from $5.3 million in Q3 2023; nine-month revenue: $14.3 million, down from $15.1 million year-over-year.

• Net loss per diluted share was $(0.01) for Q3 2024, compared to $0.16 per share in Q3 2023.

• Operating loss from continuing operations for Q3 2024 was $0.8 million, similar to Q3 2023.

• Gross margin for Q3 2024 was 70%, down from 75% in Q3 2023.

• Q3 2024 included a $0.5 million non-recurring benefit from contract termination.

Outlook and guidance

• 2024 revenue expected at the top end of the $19–$20 million range, with adjusted EBITDA between -$0.5 million and +$0.5 million.

• Kyber Data Science results to be included from November 1, 2024.

• Management expects to fund operations and acquisitions through cash flow, available cash, marketable securities, debt, and/or equity issuances.

• Anticipates breaking out of the $4.6–$5.4 million quarterly revenue range in 2025 due to improved sales momentum and acquisition impact.

• Evaluating the impact of terminated and modified data vendor agreements on future operations and customer commitments.