Forian Inc. Announces Fourth Quarter and Full Year 2021 Financial Results

Newtown, PA- Forian Inc. (NASDAQ: FORA), a provider of technology, analytics and data science driven solutions for the healthcare and cannabis industries, announced results for the quarter and year ended December 31, 2021.

“We have achieved many milestones in the last year,” said Max Wygod, Forian Executive Chairman. “We have grown revenue tremendously, won key accounts, built out the Forian team and completed the acquisition of Helix Technologies, not to mention successfully listing on Nasdaq.”

Forian Chief Executive Officer Dan Barton said, “We had our highest revenue quarter as a result of strong focus on sales execution and continued investment in innovative products. We are expecting continued revenue growth as we expand our customer base and product portfolio. I want to thank all of our hard-working employees that drove these outstanding results.”

Fourth Quarter 2021 Financial Results

• Forian delivered the following results for the fourth quarter of 2021:

• Revenue for the quarter was $5.7 million, an increase of $5.5 million versus the prior year. On a pro forma basis, revenue grew 80% year-over-year and 16% sequentially over the third quarter of 2021.
• Net Loss for the quarter was $8.0 million, or $0.25 per share, compared to $2.4 million, or $0.14 per share, in the prior year and $6.9 million, or $0.22 per share, in the third quarter of 2021.
• Adjusted EBITDA¹for the quarter was negative $4.5 million compared to negative $1.7 million for the prior year and negative $4.1 million for the third quarter of 2021.
• Cash and Marketable Securities at the end of the quarter was $31.1 million.

Full Year 2021 Financial Results

• Forian delivered the following results for the full year of 2021:

• Revenue for the full year was $16.9 million, an increase of $16.3 million versus the prior year. On a pro forma basis, revenue grew 53% year-over-year.
• Net Loss for the full year was $26.6 million, or $0.90 per share, compared to $5.0 million, or $0.38 per share, in the prior year.
• Adjusted EBITDA¹for the full year was negative $15.1 million, compared to negative $4.1 million for the prior year.

¹This release uses non-GAAP financial measures that are adjusted for the impact of various U.S. GAAP items. See the section titled “Non-GAAP Financial Measures” and the tables entitled “Reconciliation of U.S. GAAP to Non-GAAP Financial Measures” below for details.

Fourth Quarter Operational Highlights

• Healthcare revenue surpassed cannabis revenue in the fourth quarter
• Launched new SaaS analytical offering, Cannalytics(R), to dispensary clients
• Expanded our data assets to cover 4.9 million annual U.S. cannabis consumers
• Invested in additional product, engineering, data science and sales talent

Full Year 2021 Operational Highlights 

• Merged with Helix Technologies, Inc. and completed the listing of Forian on the Nasdaq in conjunction with the merger
• Achieved meaningful growth in information services backlog
• Added data assets representing over $3.4B in cannabis gross merchandise value
• Acquired a market leading position in cannabis point of sale market
• Awarded new states and services to secure leading position in cannabis track and trace regulatory market

Full Year 2022 Outlook 

The Company is sharing the following outlook for the year ending December 31, 2022:

• Revenue growth of 51% to 60% resulting in total revenue in the range of $25.5 to $27 million
• Improvement in Adjusted EBITDA loss beginning in the second half of 2022 reaching positive Adjusted EBITDA contribution in the second half of 2023

The outlook provided above constitutes forward-looking information within the meaning of applicable securities laws and is based on a number of assumptions and subject to a number of risks. See“Cautionary Statements Regarding Forward-Looking Statements” below.

Cautionary Statements Regarding Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” “will,” “would,” “target,” similar expressions and variations or negatives of these words. In particular, this release includes an estimate of our full year 2022 revenue outlook as of March 24, 2022. Estimating financial performance accurately for future periods 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 we have provided in this presentation, and we have no obligation to update such outlook. Forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the control of Forian, and are not guarantees of future results, such as statements about the anticipated benefits of the business combination transaction involving Forian, Medical Outcomes Research Analytics, LLC and Helix Technologies, Inc., future financial and operating results, company strategy and intended product offerings and market positioning. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risks and uncertainties associated with: the impact of the COVID-19 pandemic on Forian’s business, operations, strategy and goals; Forian’s ability to execute on its strategy; the timing of the introduction of new product offerings; and the additional risks and uncertainties set forth more fully under the caption “Risk Factors” in Forian’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 31, 2021, and elsewhere in Forian’s filings and reports with the SEC. Forward-looking statements contained in this announcement are made as of the date hereof, and Forian undertakes no duty to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

(This information is primarily sourced from Forian Inc.  Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).