MARPAI REPORTS FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL RESULTS
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 | 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, 2024 | December 31, | December 31, | December 31, 2023 | |||||
Revenue | $ 28,173 | $ 37,155 | $ 6,591 | $ 8,707 | ||||
Costs and expenses | ||||||||
Cost of revenue (exclusive of depreciation and amortization | 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 | 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 | ||||
Cash and cash equivalents | $ 764 | $ 1,147 | ||
Restricted cash | 8,468 | 12,345 | ||
Total cash, cash equivalents and restricted cash shown in the condensed | $ 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