MARPAI REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS
PR Newswire
TAMPA, Fla., March 26, 2025
MARPAI EXHIBITS STRONG, ONGOING FINANCIAL IMPROVEMENT
TAMPA, Fla., March 26, 2025 /PRNewswire/ -- Marpai, Inc. ("Marpai" or the "Company") (OTCQX: MRAI), a technology platform company, which operates as a national Third-Party Administrator (TPA) through its subsidiaries and is transforming the $22 billion TPA market by offering affordable, intelligent, healthcare solutions to self-funded employer health plans, today announced the financial results for the fourth quarter and fiscal year 2024. The Company expects to hold a webcast to discuss the results on March 27, 2025.
Q4 2024 Financial Highlights:
-- Net revenues were $6.6 million in Q4 2024, a decrease of $0.4 million, or
6.0% lower than Q3 2024.
-- Operating expenses were $5.3 million in Q4 2024, an increase of $0.3
million, or 5.1% higher than Q3 2024.
-- Operating loss was $2.7 million in Q4 2024, an improvement of $0.4
million, or 12.2% lower than Q3 2024.
-- Net loss was $1.2 million in Q4 2024, an improvement of $2.4 million, or
67.5% lower year over year.
-- Basic and diluted earnings per share in Q4 2024 were ($0.08) an
improvement of $0.22 per share compared to Q3 2024.
Full Year 2024 Highlights:
-- Net revenues for the fiscal year end December 31, 2024 were $28.2 million,
down $9.0 million, or 24.2% lower year over year.
-- Operating expenses for the fiscal year end December 31, 2024 were $31.2
million, an improvement of $9.7 million, or 23.7% lower year over year.
-- Operating loss for the fiscal year end December 31, 2024 was $22.1
million, an improvement of $5.9 million, or 21.1% lower from the prior
year.
-- Net loss was $22.1 million, an improvement of $6.7 million, or 23.2%
lower year over year.
-- Basic and diluted earnings per share were ($1.92) an improvement of $2.22
per share year over year.
2024 Adjusted EBITDA:
Our Adjusted EBITDA is a supplemental performance measure of our operations for financial and operational decision-making and is used as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization, excluding non-recurring transactions, and stock-based compensation.
Adjusted EBITDA for the year ended December 31, 2024 amounted to a loss of $9.1 million as compared to a loss of $20.2 million for the year ended December 31, 2023. The improved adjusted EBITDA loss was due to the actions taken throughout 2023 and 2024 to better utilize our resources and reduce our expenses.
A reconciliation of GAAP to non-GAAP measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP" Financial Measures.
"In a short span, Marpai's team engineered an exceptional turnaround, dramatically reducing losses," stated Damien Lamendola, CEO. "Now, we're propelling the Company towards growth and profitability. We are continuing to streamline costs while deploying innovative services, including our recently announced Empara Member Engagement Portal. Looking ahead, we plan to introduce high-impact PBM-based products in the second half of 2025. We believe these actions will fuel revenue growth and position Marpai for profitability in 2025."
Webcast and Conference Call Information
Marpai expects to host a conference call and webcast on Thursday, March 27, 2025, at 8:30 a.m. ET to present the Company's operational and financial highlights for its fourth quarter and year ended December 31, 2024.
You may stream the call via the internet by following this link: https://app.webinar.net/p67nEeDyXjK The webcast replay will be available at the same URL within 2 hours of the end of the call. The replay of the call will be available within 2 hours of the end of the call until April 3, 2025 by calling 1-646-517-4150 or 1-888-660-6345 and entering the replay code, 17670 #.
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 $22 billion TPA sector serving self-funded employer health plans representing over $1 trillion in annual claims. Through its Marpai Saves initiative, the Company works to deliver the healthiest member population for the health plan budget. Operating nationwide, Marpai offers access to leading provider networks including Aetna and Cigna and all TPA services. For more information, visit www.marpaihealth.com , the content of which is not incorporated by reference into this press release. Investors are invited to visit https://ir.marpaihealth.com.
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 current efforts to propel the Company towards growth and profitability, its plan to introduce high-impact PBM-based products in the second half of 2025, its belief that these actions will fuel revenue growth and position the Company for profitability by the close of 2025, its financial results and its commitment to operational and financial improvements. 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.
Non-GAAP Financial Measures
We have provided in this release financial information that has not been prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating our ongoing operational performance. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with peer companies, many of which present similar non-GAAP financial measures to investors.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures provided in the financial statement tables below.
Adjusted EBITDA is a supplemental performance measure of our operations for financial and operational decision-making and is used as a supplemental means of evaluating period-to-period comparisons on a consistent basis. Adjusted EBITDA is calculated as earnings before interest, taxes, depreciation, and amortization, excluding non-recurring transactions, and stock-based compensation. We believe these measures provide useful information to management and investors for analysis of our operating results.
MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(in thousands, except share and per share data)
December 31, 2024 December 31, 2023
-------------------------- -------------------------------
ASSETS:
Current assets:
Cash and cash
equivalents $ 764 $ 1,147
Restricted cash 8,468 12,345
Accounts receivable,
net of allowance for
credit losses of $1
and $25 837 1,124
Unbilled receivable 569 768
Due from buyer for sale
of business unit 500 800
Prepaid expenses and
other current assets 759 901
-------------------------- -------------------------------
Total current assets 11,897 17,085
Property and equipment,
net -- 611
Capitalized software,
net 441 2,127
Operating lease
right-of-use assets 296 2,373
Goodwill -- 3,018
Intangible assets, net -- 5,177
Security deposits 229 1,267
Other long-term asset 15 22
-------------------------- -------------------------------
Total assets $ 12,878 $ 31,680
========================== ===============================
LIABILITIES AND
STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 3,109 $ 4,649
Accrued expenses 2,585 2,816
Accrued fiduciary
obligations 6,308 11,573
Deferred revenue 625 661
Current portion of
operating lease
liabilities 244 512
Current portion of
convertible
debentures, net 3,106 --
Other short-term
liabilities 3,005 632
-------------------------- -------------------------------
Total current
liabilities 18,982 20,843
Other long-term
liabilities 14,891 19,401
Convertible
debentures, net of
current portion 5,921 --
Operating lease
liabilities, net of
current portion 793 3,684
Deferred tax
liabilities -- 1,190
-------------------------- -------------------------------
Total liabilities 40,587 45,118
COMMITMENTS AND
CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $0.0001
par value, 227,791,050
shares authorized;
14,237,176 issued and
outstanding at
December 31, 2024 and
7,960,938 issued and
outstanding at
December 31, 2023 1 1
Additional paid-in
capital 71,124 63,307
Accumulated deficit (98,834) (76,746)
-------------------------- -------------------------------
Total stockholders'
deficit (27,709) (13,438)
-------------------------- -------------------------------
Total liabilities and
stockholders' deficit $ 12,878 $ 31,680
========================== ===============================
MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Year ended Three Months Ended
------------------------------------------------------------ ------------------------------
December 31, December 31, December 31,
December 31, 2024 2023 2024 2023
-------------------------- -------------------------------- -------------- --------------
Revenue $ 28,173 $ 37,155 $ 6,591 $ 8,707
Costs and
expenses
Cost of revenue
(exclusive of
depreciation
and
amortization
shown
separately
below) 19,066 24,239 3,988 5,709
General and
administrative 12,832 19,177 2,878 3,239
Sales and
marketing 1,766 6,597 383 1,103
Information
technology 4,697 5,834 1,089 1,059
Research and
development 29 1,311 7 21
Depreciation and
amortization 2,256 3,897 178 923
Impairment of
goodwill and
intangible
assets 7,588 3,018 -- 3,018
Facilities 1,305 2,472 108 554
Loss on disposal
of assets 648 335 648 (15)
Loss (gain) on
sale of
business unit 73 (1,748) -- (1,749)
-------------------------- -------------------------------- -------------- --------------
Total costs and
expenses 50,260 65,132 9,279 13,862
-------------------------- -------------------------------- -------------- --------------
Operating loss (22,087) (27,977) (2,688) (5,155)
Other income
(expenses)
Other income 396 488 36 258
Interest
expense, net (2,709) (1,527) (819) (425)
Loss on debt
extinguishment (1,877) -- (1,877) --
Gain on
forgiveness of
other
liability 3,000 -- 3,000 --
Foreign exchange
loss (1) (26) 2 6
-------------------------- -------------------------------- -------------- --------------
Loss before
provision for
income taxes (23,278) (29,042) (2,346) (5,316)
Income tax
expense (1,190) (290) (1,190) (290)
-------------------------- -------------------------------- -------------- --------------
Net loss $ (22,088) $ (28,752) $ (1,156) $ (5,026)
========================== ================================ ============== ==============
Net loss per
share, basic &
fully diluted $ (1.92) $ (4.14) $ (0.08) $ (0.65)
========================== ================================ ============== ==============
Weighted average
common shares
outstanding,
basic and
diluted 11,511,203 6,951,669 13,934,066 7,738,879
========================== ================================ ============== ==============
MARPAI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share and per share data)
Year ended
--------------------------------------------------------------
December 31, 2024 December 31, 2023
--------------------------- ---------------------------------
Cash flows from
operating
activities:
Net loss $ (22,088) $ (28,752)
Adjustments to
reconcile net
loss to net
cash used in
operating
activities:
Depreciation and
amortization 2,256 3,897
Loss on disposal
of assets 648 335
Loss on sale of
receivables 306 --
Share-based
compensation 3,157 2,099
Warrant expense -- 242
Shares issued to
vendors in
exchange for
services -- 79
Amortization of
right-of-use
asset 211 1,502
Impairment of
goodwill and
intangible
assets 7,588 3,018
Loss/(gain) on
sale of
business unit 73 (1,749)
Gain on
forgiveness of
other
liability (3,000) --
Loss on
termination of
lease 71 --
Non-cash
interest
expense 1,395 1,527
Amortization of
debt discount
and debt
issuance costs 201 --
Loss on debt
extinguishment 1,877 --
Deferred taxes (1,190) (290)
Changes in
operating
assets and
liabilities:
Accounts
receivable and
unbilled
receivable 486 (105)
Prepaid expense
and other
assets 142 732
Security deposit 138 27
Accounts payable (1,540) 3,191
Accrued expenses (231) (2,497)
Accrued
fiduciary
obligations (5,265) 2,548
Operating lease
liabilities (464) (1,887)
Due To related
party -- (3)
Other
liabilities 64 337
Other asset 7 --
Net cash used in
operating
activities (15,158) (15,749)
--------------------------- ---------------------------------
Cash flows from
investing
activities:
Proceeds from
sale of
business unit 227 1,000
Proceeds from
disposal of
property and
equipment -- 27
Net cash
provided by
investing
activities 227 1,027
--------------------------- ---------------------------------
Cash flows from
financing
activities:
Proceeds from
issuance of
common stock in
a public
offering, net -- 6,432
Payments to
seller for
acquisition (631) (1,663)
Proceeds from
issuance of
warrants -- 32
Proceeds from
issuance of
common stock in
a private
offering, net 4,660 295
Proceeds from
issuance of
convertible
debentures 8,000 --
Proceeds from
sale of future
cash receipts
on accounts
receivable 1,509 --
Payments to
buyer of
receivables (1,816) --
Payments on
convertible
debentures (420) --
Payments of
convertible
debenture
issuance costs (631) --
--------------------------- ---------------------------------
Net cash
provided by
financing
activities 10,671 5,096
--------------------------- ---------------------------------
Net decrease in
cash, cash
equivalents and
restricted
cash (4,260) (9,626)
Cash, cash
equivalents and
restricted cash
at beginning of
period 13,492 23,118
--------------------------- ---------------------------------
Cash, cash
equivalents and
restricted cash
at end of
period $ 9,232 $ 13,492
=========================== =================================
Reconciliation
of cash, cash
equivalents,
and restricted
cash reported
in the
condensed
consolidated
balance sheet
Cash and cash
equivalents $ 764 $ 1,147
Restricted cash 8,468 12,345
--------------------------- ---------------------------------
Total cash, cash
equivalents and
restricted cash
shown in the
condensed
consolidated
statement of
cash flows $ 9,232 $ 13,492
=========================== =================================
Supplemental
disclosure of
cash flow
information
Cash paid for
interest $ 1,742 $ --
=========================== =================================
Supplemental
disclosure of
non-cash
activity
investing and
financing
activities
Measurement
period
adjustment to
Goodwill $ -- $ 198
=========================== =================================
MARPAI, INC. AND SUBSIDIARIES
Reconciliation of Net Loss to EBITDA, and Adjusted EBITDA
(in thousands, except share and per share data)
Year ended
---------------------------------------------------------
December 31, 2024 December 31, 2023
------------------------- ------------------------------
Net Loss $ (22,088) $ (28,752)
Other income,
net (396) (488)
Interest expense 2,709 1,527
Loss on debt
extinguishment 1,877 --
Gain on
forgiveness of
other
liability (3,000) --
Foreign exchange
loss 1 26
Provision for
taxes (1,190) (290)
Depreciation and
amortization 2,256 3,897
------------------------- ------------------------------
EBITDA $ (19,831) $ (24,080)
Impairment of
goodwill and
intangible
assets 7,588 3,018
Loss on disposal
of asset 648 335
Loss (gain) on
sale of
business unit 73 (1,748)
Stock-based
compensation 2,465 2,294
Adjusted EBITDA $ (9,057) $ (20,181)
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SOURCE Marpai
/CONTACT: Investor Relations contact: Steve Johnson, steve.johnson@marpaihealth.com
(END) Dow Jones Newswires
March 26, 2025 16:15 ET (20:15 GMT)