Rapid Micro Biosystems (RPID) Q2 2025 Earnings Call August 12, 2025 08:30 AM ET Speaker0Good day, and thank you for standing by. Welcome to the Rapid Microbiosis Systems Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone.You will then hear an automated message advising your hand is r ...

Core Insights - Marpai, Inc. is experiencing a turnaround with a focus on reducing operating expenses and improving profitability, aiming for positive cash flow by the end of 2025 [2][8] Financial Performance - For Q1 2025, net revenues were approximately $5.4 million, a decrease of $2.0 million or 27% year-over-year compared to Q1 2024 [8] - Operating expenses were $7.7 million, down $3.8 million or 33% year-over-year [8] - The operating loss was $2.3 million, which is $1.8 million or 45% lower year-over-year [8] - The net loss was $3.1 million, a reduction of $1.3 million or 29% year-over-year [8] - Basic and diluted earnings per share improved to ($0.21), an increase of $0.25 per share year-over-year [8] Cash Position - At the end of Q1 2025, the company had $0.7 million in unrestricted cash, a decrease of $0.1 million from the previous year [8] - Total cash, cash equivalents, and restricted cash at the end of the period amounted to $11.5 million, down from $13.6 million year-over-year [12] Strategic Initiatives - The company is launching a Healthcare Management tool in collaboration with Empara, LLC and making advancements with MarpaiRx [2] - The onboarding of a new Chief Operating Officer, Dallas Scrip, is part of the company's strategic initiatives [2] Market Position - Marpai operates in the $22 billion Third-Party Administration (TPA) sector, serving self-funded employer health plans that represent over $1 trillion in annual claims [4]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $100.3 million, a 17% increase compared to Q4 2023, driven primarily by dispensary revenue [21] - Full year 2024 revenue reached $393 million, representing a 21.3% increase from 2023 [25] - Gross profit for Q4 2024 was $14.6 million, a 2% increase year-over-year, while full year gross profit was $54 million, a 9.4% decrease from 2023 [22][25] - Net loss for Q4 2024 was $13 million, an improvement of $5.6 million compared to Q4 2023, while the full year net loss was $64.6 million, a decrease of $18.4 million from 2023 [23][27] - Adjusted EBITDA for Q4 2024 was negative $7.8 million, compared to negative $6.3 million in Q4 2023, and for the full year, it was negative $35.7 million [23][27] Business Line Data and Key Metrics Changes - Value-based patient services saw significant growth with six new contracts totaling over 270,000 lives launched in Q3 and Q4 2024 [9] - Pharmacy and medically integrated dispensaries generated $48 million in Q4 and $180 million for the full year, reflecting a 73% annualized growth [10] - SG&A expenses decreased by 12% in Q4 2024 compared to Q4 2023, demonstrating operational efficiency [12] Market Data and Key Metrics Changes - The company expanded its operations outside California, signing two new contracts in Florida during Q4 2024, totaling over 200,000 lives [9] - The company is positioned to handle substantial growth in new markets without increasing overhead costs [31] Company Strategy and Development Direction - The company aims to achieve profitability and positive cash flow by the end of 2025, focusing on operational management and strategic market expansion [8][39] - A key strategy includes optimizing the cost structure and enhancing financial flexibility through debt restructuring and capital raises [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in crossing the line to profitability by the end of 2025, despite 2024 not meeting expectations [8] - The company anticipates a gradual reduction in losses throughout 2025, with expectations of positive EBITDA in Q4 [35] Other Important Information - Cash and cash equivalents increased to $49.7 million by the end of Q4 2024, aided by working capital management [28] - The company successfully amended its facility agreement, including a $20 million principal paydown of outstanding debt [16] Q&A Session Summary Question: What are the significant moving factors for 2025 guidance? - Growth in capitation contracts and organic growth in fee-for-service and dispensary are essential for achieving targets [45] Question: Will patient service be a meaningful growth driver in 2025? - Yes, the capitation segment will be the primary driver of overall profitability [48] Question: What is the capacity of new clinics in Florida compared to California? - California clinics are operating at about 75% capacity, while Florida clinics are at approximately 40% capacity [54] Question: Any thoughts on the recent reimbursement landscape? - General macro trends in the oncology industry are favorable, with potential benefits from changes related to drug pricing [59]