Forian(US:FORA)2021-05-17 14:15Financial Data and Key Metrics Changes - Forian reported consolidated revenue of $1.6 million for Q1 2021, an increase of over $1.5 million compared to the prior year, driven by the inclusion of Helix results and year-over-year growth in the company's products [20][21] - On a pro forma basis, revenue was $3.8 million, growing 22% year-over-year, primarily driven by the information and software segment, which grew 26% [21] - Loss from operations widened by $4.4 million year-over-year to $5.1 million, primarily due to investments in product development and customer service [21][22] Business Line Data and Key Metrics Changes - The information and software revenue segment includes BioTrack and Cannalytics software solutions, contributing significantly to revenue growth [20] - The services segment includes government traceability and real-world evidence solutions, which are critical as legalization continues [20][21] Market Data and Key Metrics Changes - The legal cannabis market is expected to grow at an estimated 20% compounded annual growth rate, indicating a rapidly expanding market for Forian's services [8] - The company noted that customer interest in its information product offerings is growing, providing confidence in revenue opportunities [23] Company Strategy and Development Direction - Forian aims to be a trusted source of technology and analytics for the cannabis market while also serving traditional healthcare companies [4][5] - Key priorities for 2021 include developing innovative products, delivering exceptional service, ensuring operational improvements, and attracting top talent [17] - The company is focused on enhancing its product offerings, particularly BioTrack and Cannalytics, to drive business performance improvements [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to pre-COVID sales trajectories as the impact of the pandemic declines, with a positive outlook on customer buying patterns [27] - The company is not providing forward-looking guidance but is optimistic about its growing pipeline and larger contracts in the healthcare segment [23][30] Other Important Information - Forian completed the business combination of Helix and MOR Analytics on March 2, 2021, which is expected to enhance its market position [19] - The company raised $12 million of incremental capital just after the quarter concluded, strengthening its balance sheet [23] Q&A Session Summary Question: How does the company estimate growth prospects for the next year and into the future? - Management indicated that while they are not providing forward-looking guidance, they are seeing a growing pipeline and larger contracts in the healthcare segment, which supports their growth outlook [30] Question: How is COVID affecting Forian? - Management noted that as COVID-19's impact declines, they expect sales and operations to revert to pre-COVID trajectories, with a return to normal customer buying patterns [27]