MARPAI REPORTS SECOND QUARTER 2024 FINANCIAL RESULTS
Marpai, Inc. (OTCQX: MRAI), a technology platform company operating as a national Third-Party Administrator (TPA), reported its Q2 2024 financial results. Net revenues decreased by 28% year-over-year to $7.2 million. Operating expenses increased by 32% to $14.3 million, including a $7.6 million charge for goodwill and intangibles impairment. The company's operating loss widened by 69% to $12.3 million, while net loss increased by 72% to $13.0 million. Basic and diluted earnings per share were ($1.23), down $0.13 compared to Q2 2023. Despite these challenges, CEO Damien Lamendola stated that the company is progressing towards profitability and has established a strong sales pipeline for Q1 2025. The company plans to host a conference call on August 8, 2024, to discuss the results further.
Marpai, Inc. (OTCQX: MRAI), una società tecnologica che opera come Amministratore Terzo Nazionale (TPA), ha riportato i risultati finanziari del secondo trimestre 2024. I ricavi netti sono diminuiti del 28% rispetto all'anno precedente, raggiungendo i 7,2 milioni di dollari. Le spese operative sono aumentate del 32%, portandosi a 14,3 milioni di dollari, inclusa una svalutazione di 7,6 milioni di dollari per avviamento e beni immateriali. La perdita operativa è aumentata del 69%, raggiungendo i 12,3 milioni di dollari, mentre la perdita netta è aumentata del 72%, raggiungendo i 13,0 milioni di dollari. L'utile per azione base e diluito è stato di ($1,23), in calo di $0,13 rispetto al secondo trimestre del 2023. Nonostante queste difficoltà, il CEO Damien Lamendola ha dichiarato che l'azienda sta progredendo verso la redditività e ha creato un forte portafoglio vendite per il primo trimestre del 2025. L'azienda prevede di organizzare una call di conferenza l'8 agosto 2024 per discutere ulteriormente i risultati.
Marpai, Inc. (OTCQX: MRAI), una empresa de plataforma tecnológica que opera como Administrador Tercero Nacional (TPA), informó sus resultados financieros del segundo trimestre de 2024. Los ingresos netos disminuyeron un 28% en comparación con el año anterior, alcanzando los 7.2 millones de dólares. Los gastos operativos aumentaron un 32%, ascendiendo a 14.3 millones de dólares, incluida una carga de 7.6 millones de dólares por deterioro de activos intangibles y de buena voluntad. La pérdida operativa se amplió un 69%, llegando a 12.3 millones de dólares, mientras que la pérdida neta aumentó un 72%, alcanzando los 13.0 millones de dólares. Las ganancias por acción básicas y diluidas fueron de ($1.23), disminuyendo $0.13 en comparación con el segundo trimestre de 2023. A pesar de estos desafíos, el CEO Damien Lamendola declaró que la empresa avanza hacia la rentabilidad y ha establecido un sólido pipeline de ventas para el primer trimestre de 2025. La empresa planea llevar a cabo una llamada de conferencia el 8 de agosto de 2024 para discutir más a fondo los resultados.
Marpai, Inc. (OTCQX: MRAI)는 국가 제3자 관리자인 TPA로 운영되는 기술 플랫폼 회사로, 2024년 2분기 재무 결과를 보고했습니다. 순수익은 전년 대비 28% 감소하여 720만 달러에 달했습니다. 운영 비용은 32% 증가하여 1430만 달러에 달했으며, 이에는 760만 달러의 상각 및 무형 자산 손실이 포함됩니다. 운영 손실은 69% 확대되어 1230만 달러에 이르렀고, 순손실은 72% 증가하여 1300만 달러에 달했습니다. 기본 및 희석 주당 순손실은 ($1.23)으로, 2023년 2분기와 비교해 $0.13 감소했습니다. 이러한 어려움에도 불구하고 CEO 다미엔 라멘돌라(Damien Lamendola)는 회사가 수익성으로 나아가고 있으며 2025년 1분기 동안 강력한 매출 파이프라인을 구축했다고 밝혔습니다. 회사는 2024년 8월 8일에 결과에 대해 논의하기 위해 컨퍼런스 콜을 개최할 계획입니다.
Marpai, Inc. (OTCQX: MRAI), une société de plateforme technologique agissant en tant qu'Administrateur Tiers National (TPA), a annoncé ses résultats financiers pour le deuxième trimestre 2024. Les revenus nets ont diminué de 28 % par rapport à l'année précédente, s'élevant à 7,2 millions de dollars. Les charges d'exploitation ont augmenté de 32 %, atteignant 14,3 millions de dollars, y compris une charge de 7,6 millions de dollars pour amortissement de goodwill et d'actifs incorporels. La perte d'exploitation s'est creusée de 69 % pour atteindre 12,3 millions de dollars, tandis que la perte nette a augmenté de 72 % pour s'élever à 13,0 millions de dollars. Le bénéfice par action de base et dilué était de ($1,23), en baisse de $0,13 par rapport au deuxième trimestre 2023. Malgré ces défis, le PDG Damien Lamendola a déclaré que l'entreprise progresse vers la rentabilité et a établi un solide pipeline de ventes pour le premier trimestre 2025. L'entreprise prévoit d'organiser un appel conférence le 8 août 2024 pour discuter plus en détail des résultats.
Marpai, Inc. (OTCQX: MRAI), ein Technologieplattformunternehmen, das als nationaler Drittanbieter-Verwalter (TPA) tätig ist, hat seine finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Die Nettoerlöse sanken im Jahresvergleich um 28% auf 7,2 Millionen US-Dollar. Die Betriebsausgaben stiegen um 32% auf 14,3 Millionen US-Dollar, einschließlich eines Abzugs von 7,6 Millionen US-Dollar für den Wertverlust von Goodwill und immateriellen Vermögenswerten. Der operative Verlust weitete sich um 69% auf 12,3 Millionen US-Dollar aus, während der Nettoverlust um 72% auf 13,0 Millionen US-Dollar anstieg. Der Grund- und verwässerte Gewinn je Aktie betrug ($1,23), was einem Rückgang von $0,13 im Vergleich zum zweiten Quartal 2023 entspricht. Trotz dieser Herausforderungen erklärte CEO Damien Lamendola, dass das Unternehmen auf dem Weg zur Rentabilität voranschreitet und eine starke Vertriebspipeline für das erste Quartal 2025 etabliert hat. Das Unternehmen plant, am 8. August 2024 einen Conference Call abzuhalten, um die Ergebnisse ausführlicher zu besprechen.
- Company reports progress towards profitability goal
- Strong sales pipeline established for Q1 2025
- Improved customer service metrics and claim processing KPIs year-over-year
- Recognition of Marpai Saves initiatives' impact on reducing healthcare benefit costs
- Net revenues decreased by 28% year-over-year to $7.2 million
- Operating expenses increased by 32% to $14.3 million
- Operating loss widened by 69% to $12.3 million
- Net loss increased by 72% to $13.0 million
- Basic and diluted earnings per share decreased by $0.13 to ($1.23)
- $7.6 million charge for impairment of goodwill and intangibles
Company continues to drive towards profitability
Q2 2024 Financial Highlights:
- Net revenues were approximately
$7.2 million $2.9 million 28% lower year over year, compared to the three months ended June 30, 2023. - Operating expenses were
$14.3 million $7.6 million $3.4 million 32% higher year over year compared to the three months ended June 30, 2023. - Operating loss was
$12.3 million $5.0 million 69% higher year over year compared to the three months ended June 30, 2023. - Net loss was
$13.0 million $5.5 million 72% higher year over year compared to the three months ended June 30, 2023. - Basic and diluted earnings per share were (
$1.23 $0.13
"The Company continues to show progress towards our goal of profitability," said Damien Lamendola, Chief Executive Officer of Marpai. "Additionally, our new sales team has been hitting the pavement and have set up a strong sales pipeline for Q1 2025 which we expect we will highlight after the third quarter."
John Powers, Marpai President commented, "The Marpai operations team has executed on our performance actions. Our customer service metrics and claim processing key process indicators (KPIs) have seen tremendous improvement year over year. Moreover, our clients and potential clients have recognized the impact of our Marpai Saves initiatives which drive down the overall cost of healthcare benefits."
Webcast and Conference Call Information
Marpai expects to host a conference call and webcast on Thursday, August 8, 2024, at 8:30 a.m. ET to review the Company's operational and financial highlights for its second quarter ended June 30, 2024.
Investors interested in listening to the conference call may do so by dialing (800)-836-8184 for domestic callers or +1-646-357-8785 for international callers, or via webcast: https://app.webinar.net/lrwPxYJnvpY
About Marpai, Inc.
Marpai, Inc. (OTCQX: MRAI) is a technology platform company which operates subsidiaries that provide TPA and value-oriented health plan services to employers that directly pay for employee health benefits. Primarily competing in the
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements, as that term is defined in the Private Litigation Reform Act of 1995, that involve significant risks and uncertainties. Forward-looking statements can be identified through the use of words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," "guidance," "may," "can," "could", "will", "potential", "should," "goal" and variations of these words or similar expressions. For example, the Company is using forward looking statements when it discusses the Q1 2025 sales pipeline and the expected timing of its highlighting of its pipeline. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Marpai's current expectations and speak only as of the date of this release. Actual results may differ materially from Marpai's current expectations depending upon a number of factors. These factors include, among others, adverse changes in general economic and market conditions, competitive factors including but not limited to pricing pressures and new product introductions, uncertainty of customer acceptance of new product offerings and market changes, risks associated with managing the growth of the business. Except as required by law, Marpai does not undertake any responsibility to revise or update any forward-looking statements whether as a result of new information, future events or otherwise.
More detailed information about Marpai and the risk factors that may affect the realization of forward-looking statements is set forth in Marpai's filings with the Securities and Exchange Commission. Investors and security holders are urged to read these documents free of charge on the SEC's web site at http://www.sec.gov.
MARPAI, INC. AND SUBSIDIARES | ||||
CONDENSED CONSOLIDATED BALANCE SHEET | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
June 30, 2024 | December 31, 2023 | |||
ASSETS: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 1,293 | $ 1,147 | ||
Restricted cash | 12,762 | 12,345 | ||
Accounts receivable, net of allowance for credit losses of | 805 | 1,124 | ||
Unbilled receivable | 568 | 768 | ||
Due from buyer for sale of business unit | 800 | 800 | ||
Prepaid expenses and other current assets | 967 | 901 | ||
Total current assets | 17,195 | 17,085 | ||
Property and equipment, net | 546 | 611 | ||
Capitalized software, net | 933 | 2,127 | ||
Operating lease right-of-use assets | 2,253 | 2,373 | ||
Goodwill | — | 3,018 | ||
Intangible assets, net | — | 5,177 | ||
Security deposits | 1,267 | 1,267 | ||
Other long-term asset | 22 | 22 | ||
Total assets | $ 22,216 | $ 31,680 | ||
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ 3,172 | $ 4,649 | ||
Accrued expenses | 2,643 | 2,816 | ||
Accrued fiduciary obligations | 9,948 | 11,573 | ||
Deferred revenue | 1,295 | 661 | ||
Current portion of operating lease liabilities | 541 | 512 | ||
Current portion of convertible debenture, net | 1,089 | — | ||
Other short-term liabilities | — | 632 | ||
Total current liabilities | 18,688 | 20,843 | ||
Other long-term liabilities | 20,144 | 19,401 | ||
Convertible debenture, net of current portion | 4,451 | — | ||
Operating lease liabilities, net of current portion | 3,405 | 3,684 | ||
Deferred tax liabilities | 1,190 | 1,190 | ||
Total liabilities | 47,878 | 45,118 | ||
COMMITMENTS AND CONTINGENCIES | ||||
STOCKHOLDERS' (DEFICIT) EQUITY | ||||
Common stock, | 1 | 1 | ||
Additional paid-in capital | 68,455 | 63,307 | ||
Accumulated deficit | (94,118) | (76,746) | ||
Total stockholders' (deficit) equity | (25,662) | (13,438) | ||
Total liabilities and stockholders' (deficit) equity | $ 22,216 | $ 31,680 | ||
MARPAI, INC. AND SUBSIDIARES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
June 30, 2024 | June 30, 2023 | |||
Revenue | $ 7,189 | $ 10,047 | ||
Costs and expenses | ||||
Cost of revenue (exclusive of depreciation and amortization | 5,174 | 6,430 | ||
General and administrative | 3,721 | 5,725 | ||
Sales and marketing | 436 | 1,473 | ||
Information technology | 1,210 | 1,319 | ||
Research and development | 8 | 523 | ||
Depreciation and amortization | 914 | 1,003 | ||
Impairment of goodwill and intangible assets | 7,588 | — | ||
Loss on disposal of assets | — | 344 | ||
Facilities | 411 | 500 | ||
Total costs and expenses | 19,462 | 17,317 | ||
Operating loss | (12,273) | (7,270) | ||
Other income (expenses) | ||||
Other income | 120 | 50 | ||
Interest expense, net | (872) | (333) | ||
Foreign exchange (loss) gain | (1) | (3) | ||
Loss before provision for income taxes | (13,026) | (7,556) | ||
Income tax expense | — | — | ||
Net loss | $ (13,026) | $ (7,556) | ||
Net loss per share, basic & fully diluted | $ (1.23) | $ (1.10) | ||
Weighted average common shares outstanding, basic and | 10,626,516 | 6,844,778 | ||
MARPAI, INC. AND SUBSIDIARES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
Six Months Ended | ||||
June 30, 2024 | June 30, 2023 | |||
Revenue | $ 14,574 | $ 19,719 | ||
Costs and expenses | ||||
Cost of revenue (exclusive of depreciation and amortization | 10,045 | 12,838 | ||
General and administrative | 7,142 | 10,951 | ||
Sales and marketing | 1,038 | 3,652 | ||
Information technology | 2,334 | 3,506 | ||
Research and development | 15 | 1,024 | ||
Depreciation and amortization | 1,865 | 2,047 | ||
Impairment of goodwill and intangible assets | 7,588 | — | ||
Loss on disposal of assets | — | 344 | ||
Facilities | 885 | 1,150 | ||
Total costs and expenses | 30,912 | 35,512 | ||
Operating loss | (16,338) | (15,793) | ||
Other income (expenses) | ||||
Other income | 240 | 101 | ||
Interest expense, net | (1,270) | (718) | ||
Foreign exchange (loss) gain | (4) | (19) | ||
Loss before provision for income taxes | (17,372) | (16,429) | ||
Income tax expense | — | — | ||
Net loss | $ (17,372) | $ (16,429) | ||
Net loss per share, basic & fully diluted | $ (1.73) | $ (2.70) | ||
Weighted average common shares outstanding, basic and | 10,016,146 | 6,080,200 | ||
MARPAI, INC. AND SUBSIDIARES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(in thousands, except share and per share data) | ||||
(Unaudited) | ||||
Three Months Ended | ||||
June 30, 2024 | June 30, 2023 | |||
Cash flows from operating activities: | ||||
Net loss | $ (17,372) | $ (16,429) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 1,865 | 2,046 | ||
Loss on disposal of assets | — | 344 | ||
Loss on sale of receivables | 306 | — | ||
Share-based compensation | 2,421 | 990 | ||
Shares issued to vendors in exchange for services | — | 79 | ||
Amortization of right-of-use asset | 120 | 1,049 | ||
Gain on termination of lease | — | 33 | ||
Impairment of goodwill and intangible assets | 7,588 | — | ||
Non-cash interest | 646 | 776 | ||
Amortization of debt discount | 62 | — | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable and unbilled receivable | 519 | 74 | ||
Prepaid expense and other assets | (66) | 425 | ||
Security deposit | — | (14) | ||
Accounts payable | (1,477) | 729 | ||
Accrued expenses | (173) | (235) | ||
Accrued fiduciary obligations | (1,625) | 1,713 | ||
Operating lease liabilities | (250) | (1,343) | ||
Due To related party | — | (4) | ||
Other liabilities | 731 | 1,028 | ||
Net cash used in operating activities | (6,705) | (8,739) | ||
Cash flows from investing activities: | ||||
Disposal of property and equipment | — | 18 | ||
Net cash provided by (used in) investing activities | — | 18 | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of common stock in a public offering, net | — | 6,432 | ||
Proceeds from stock options exercises | 1,509 | — | ||
Proceeds from issuance of convertible debentures | 5,978 | — | ||
Payments of convertible debenture issuance costs | (499) | — | ||
Payments to buyer of receivables | (1,816) | — | ||
Proceeds from issuance of common stock in a public offering, net | (631) | — | ||
Proceeds from issuance of common stock in a private offering, net | 2,727 | — | ||
Net cash provided by financing activities | 7,268 | 6,432 | ||
Net decrease in cash, cash equivalents and restricted cash | 563 | (2,289) | ||
Cash, cash equivalents and restricted cash at beginning of period | 13,492 | 23,117 | ||
Cash, cash equivalents and restricted cash at end of period | $ 14,055 | $ 20,828 | ||
Reconciliation of cash, cash equivalents, and restricted cash reported in | ||||
Cash and cash equivalents | $ 1,293 | $ 8,726 | ||
Restricted cash | 12,762 | 12,102 | ||
Total cash, cash equivalents and restricted cash shown in the condensed | $ 14,055 | $ 20,828 | ||
Supplemental disclosure of cash flow information | ||||
Cash paid for interest | $ 1,259 | $ — | ||
Supplemental disclosure of non-cash activity | ||||
Measurement period adjustment to Goodwill | $ — | $ 198 | ||
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SOURCE Marpai
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