Forian Inc.

Greetings and welcome to FOREIGN, Inc.' 's first quarter 2025 financial results conference call and webcast. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal comments and webcast. Participating today from FOREIGN are Max Weigod, Executive Chairman and Chief Executive Officer, and Michael Vesey, Chief Financial Officer. Before we begin, I'd like to remind you that management's remarks today may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by those forward-looking statements due to a variety of important factors, including those discussed in the risk factor section of the company's annual report on Form 10-K filed with the SEC on April 11, 2025. In particular, management will discuss an estimate of its full-year 2025 revenue outlook as of today. Estimating financial performance accurately for future performance is difficult, as it involves assumptions and internal estimates that may prove to be incorrect and is based on plans and circumstances that may change. There is therefore a significant risk that actual results could differ materially from the outlook provided today. Any forward-looking statements made on the call today represent the company's views as of this date, and the company undertakes no obligation to update them except as required by law. Words such as estimate, projected, expect, anticipate, Forecast, plan, intend, believe, seek, may, will, should, future, proposed, and variations of these words or similar expressions or versions of such words or expressions are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding future growth, anticipated performance, and prospects. Today's presenters will also refer to certain non-GAAP financial measures on our call, such as adjusted EBITDA, which the company believes may be important to investors to assess its operating performance and should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of the comparable GAAP metric can be found in today's press release and webcast. both of which are available on the company's website. Those numbers are unaudited, and any statements regarding the company's anticipated performance may be subject to change, including as a result of risks discussed in the risk factor section of the company's annual report on Form 10-K filed with the SEC on April 11, 2025. Today's call and webcast is being recorded. A copy of the recording, webcast, as well as the full transcript and copies of today's press release and SEC filings will be available at forient.com forward slash investors. I am now pleased to introduce the company's Executive Chairman and Chief Executive Officer, Max Weigart. Sir, you may begin.

Good afternoon.

And thank you for joining us today to review 4M's 2025 first quarter financial and business performance. In addition to reviewing our financial results, we will share our outlook for 2025. To begin with, I am pleased to see the top line revenue growth momentum continue into the new year. We started this momentum a couple of quarters prior while managing through a turbulent year with data supply disruptions, in a tough macroeconomic environment, particularly for the healthcare sector. And we continue to build upon it as the foreign brand is becoming more known for delivering high-quality products. We continue to support solving some of healthcare's most difficult challenges through healthcare information and advanced analytics. As we are an enterprise that relies on secure and stable sources of large-scale clinical data, It has been imperative for us to add new and incremental sources to stay competitive and to grow the business long-term. Our strong balance sheet and technical capabilities have put us into the position to cost-effectively tackle these challenges while building out a growing business. On today's call, I will provide a summary of our first quarter results and discuss how 4N is in a position to capitalize on some larger trends. Then I will hand the call over to Mike to go through our financial performance. I am pleased to start by sharing that we had a strong fiscal quarter to start off the new year. Our total first quarter revenue was 7.1 million, which represents a 45% year-over-year growth. Our net loss for the quarter was 1.1 million, and our adjusted EBITDA was a negative 51,000, which compares to a loss of 1.2 million and $104,000 year-over-year respectively. The revenue growth was highlighted by key new pharma projects and health services renewals, as well as incorporating the full first quarter of Kyber Data Sciences financials. The changes in expenses and earnings are driven by new investments associated with new data contracts, integrations, as well as the impact of the expense profile of the Kyber acquisition. I would like to take a moment to speak about the Kyber acquisition. We acquired Kyber in Q4 of last year. Kyber is a healthcare-focused data analytics platform tailored towards the financial services industry that provides unique and rich real-world healthcare insights to help investors understand the US market dynamics as they unfold. By leveraging a curated and proprietary dataset Kyber offers visibility through an analytics platform powered by medical and pharmacy claims into patient journeys, provider behavior, manufacturer revenue, and payer trends. Kyber's analytics provide deep insight into trends such as revenue growth or degradation, patient adherence or abandonment to therapies, market access signals, and launch uptakes, helping clients make data-driven investment decisions. Kybert delivers these insights through various flexible product offerings tailored to different levels of data engagement. Its products range from providing platform access for advanced data science teams to SAS offerings showing key utilization metrics across pharmacy and medical channels. With a team of healthcare data experts, Kybert continuously engages with clients, providing back-tested KPIs, artificial intelligence, and predictive analytics that help investors make informed decisions with a high degree of accuracy. We believe that we can enhance its offerings by integrating it with the foreign data factory while eventually capitalizing on its advanced analytics and predictive capabilities in the life science markets. In the first quarter, We again took advantage of the opportunity to acquire new data supply contracts to both offset previous data disruptions and grow our coverage. We work closely with our clients to offer the best analytics-ready solutions powered by the most advanced schemas in the market. We believe the eventual goal is to have many long-term integrations with the various sources of clinical data and unique insights. The disruptions in 2024 caused us to accelerate this process. We are comfortable with our process and the integrations of the new vendors will likely be a recurring theme in 2025 and into 2026. We are seeing the initial benefits of the new investments in our growth. While the majority of our clients' contracts are multi-year licenses, our Kronos Data Factory powers different types of informational offerings including project-based solutions such as health economics and outcomes research. We believe Forian is strategically positioned by our analytical expertise and data factory assets to greatly assist the need of our life science companies to generate evidence of the value of a new drug or other intervention and expect to drive growth in this area. Additionally, We continue to serve clients across the healthcare and life science continuum and with the Kyber acquisition now also include the financial services. We continue to see adoption with pharmaceutical manufacturers while the majority of revenue is generated from healthcare services clients. We will continue to actively seek a creative and strategic M&A that can either enhance our financial profile, improve capital market standing, expand access to pharma clients or accelerate the commercialization of innovative products. We are optimistic about 2025. We have approximately $34 million of committed contracted backlog, which includes unearned revenue and unbilled amounts that will be recognized as revenue in future periods. We expect full-year 2025 revenue of $28 to $30 million, representing 39 to 49 percent growth year over year. This is a significant growth improvement from the previous year. Our adjusted EBITDA margin range is expected to be negative 1 million to positive 1 million, and the variation is primarily dependent on the increased investment in new data sources and the speed with which Kyber achieves profitability. And finally, I want to thank our employees who work diligently not only to build the best-in-class intelligence solutions, but also their willingness to take on additional workloads in an uncertain market. We are excited about the opportunities, the momentum, and expect great things throughout 2025. I'll now turn it over to Mike to run through the financials in detail.