Q2 2024 Marpai Inc Earnings Call
Unknown Executive: Good morning and welcome to the Marpai second quarter 2024 earnings conference call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note, this event is being recorded.
Damien Lamendola: I'm highly encouraged by the improvements. Our sales team has done a great job of repositioning Marpai to new and existing customers. I remind you that our total addressable market is $22 billion in growth. I will now turn the call back to Steve to discuss our financial results.
Good morning and welcome to the MarPIC Second Quarter 2024 Earnings Conference Call. All participants will be in the listen-only mode.
Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I would now like to turn the conference over to Steve Johnson, Chief Financial Officer. Please go ahead.
Steve Johnson: I would now like to turn the conference over to Steve Johnson, Chief Financial Officer. Please go ahead.
Steve Johnson: We filed our 10-Q yesterday after the market closed, along with the earnings release, and I would invite you to review the details in those documents. I will briefly cover some highlights of the following achievements here today.
Steve Johnson: While revenue declined by 28% year-over-year, we cut cash operating expense by 38%, saving approximately $4 million. Consequently, our cash operating loss was reduced from approximately $7.3 million to approximately $4.7 million for the second quarter. As Damien alluded to, we right-sized our balance sheet by selling non-core assets, adjusting assets to their current fair value, as well as extending the maturity of our net debt. These changes will provide resources for growth and make future investment yields a higher return on capital.
Steve Johnson: Good morning and welcome to the Marpai second quarter 2024 earnings release webcast. With me this morning is Damien Lamendola, CEO and director of Marpai. If you turn your attention to the slide, is that we have our required safe harbor and forward-looking statement disclosure.
damian lamandola: good morning and welcome to the mar page second quarter two thousand and twenty four earnings release webcast with me this morning is damian lamandola ceo and director of marpei
Steve Johnson: As a result of our turnaround plan, our cash used in operations improved by approximately $2.3 million in the second quarter of 2024 versus the second quarter of 2023, leading to a net cash increase of approximately 0.6 million in the second quarter of 2024, which is a decrease of cash in the second quarter of 2023 of approximately 2.3 million again. In the second quarter of 2024, we had a net cash increase of $600,000, up from the previous year's decrease in cash of $2.3 million. I would now like to turn it back over to Damien.
Speaker Change: If you turn your attention to the slide is that we have our required safe harbor and forward-looking statement disclosure.
Damien Lamendola: Hello, since the became CEO, team has worked tirelessly on what pays turnaround. As many of you know, I've invested not only my time, but millions of dollars into our company. I have never been more committed to our company and our stakeholders. This commitment stems from what we see in the TPA marketplace, our new leadership and our employees' commitment to turn Marpa into a positive cash flow company. Our focus has been on profitably growing the company and achieving positive cash flow, which is beginning to manifest in our financial results. Including significantly cutting costs, right size in our balance sheet and improving our cash from operations.
Damien Lamendola: Thank you. Marpai is all about saving enterprises of all sizes significant money in managing employees' health care costs. As I mentioned earlier, it is a $22 billion industry and growing. Our company is undergoing substantial changes that point to growth in positive cash. My commitment to all stakeholders has never been stronger. One area I'm not happy with is our stock price. I believe we are horribly undervalued.
Hello. Since I became CEO , our team has worked tirelessly on Marpai's turnaround.
Damien Lamendola: As the turnaround unfolds and we continue to improve our financial metrics, and we continue to grow our market presence, I believe the financial markets will take notice. Thank you for your time today. I remain committed and excited to be leading your company. Thank you for your continued confidence and support.
Operator: Damien. This completes Marpai's second quarter 2024 earnings call. If you have questions or require further information, please see the information on the screen or go to our investor relations website. This webcast will be available for replay. Thank you again for joining us this morning. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Klee, Unknown Executive, Damien Lamendola, Steve Johnson, Marpai, Marpai, Marpai, Marpai.
Speaker Change: As many of you know, I've invested not only my time, but millions of dollars into our company. I have never been more committed to our company and our stakeholders. This commitment stems from what we see in the TPA marketplace.
damian lamandola: Our new leadership and our employees commitment to turn Marpai into a positive cash flow company.
Our focus has been on profitably growing the company and achieving positive cash flow, which is beginning to manifest in our financial results, including significantly cutting costs, right-sizing our balance sheet, and improving our cash from operations.
Damien Lamendola: I'm highly encouraged by improvements. Our sales team has done a great job of repositioning Marpa to new existing customers. I remind you that our total addressable market is $22 billion in growing.
I'm highly encouraged by our improvements. Our sales team has done a great job of repositioning Marpai to new and existing customers. I remind you that our total addressable market is $22 billion in growing.
Unknown Executive: I remind you of our total addressable market. I will now turn the call back to Steve to discuss our financial results.
Steve Johnson: I will now turn the call back to Steve to discuss our financial results. Thanks, Amy. We filed our 10-Q yesterday after the market closed, along with the earnings release. And I would invite you to review the details in those documents. I will briefly cover some highlights of the following achievements year-to-date. While the new decline by 28% year-over-year, we cut cash operating expense by 38%, saving approximately $4 million. Our cash operating loss was reduced from approximately $7.3 million to approximate $4.7 million for the second quarter. As Damon alluded to, we right-sized our balance sheet by selling non-core assets, adjusting assets to the current fair value, as well as extending the maturity of our net debt.
Unknown Executive: I will now turn the call back to Steve to discuss our financial results.
Steve Johnson: thanks seeihim we filed our ten -q yesterday after the market close along with the earnings release and i would invite you to review the details in those documents
Steve: I will briefly cover some highlights of the following achievements year-to-date. While revenue declined by 28% year-over-year, we cut cash operating expense by 38%, saving approximately $4 million.
Steve Johnson: While revenue declined by 28% year-over-year, we cut cash operating expenses by 38%, saving approximately $4 million. In the second quarter of 2024, we had a net cash increase of 600,000.
Speaker Change: our cash operating loss was reduced from approximately some point three million to approximate four point seven million for the second quarter
deaming: as deaming alluded to we rightite size our balance sheet by selling noncore assets adjusting assets to the current fair value as well asextending the maturity of our net debt
Steve Johnson: These changes will provide resources for growth and make future investment yields a higher return on capital. As a result of our turnaround plan, our cash used in operations improved by approximately $2.3 million in the second quarter of 2024 versus the second quarter of 2023. Leading to a net cash increase of approximately $0.6 million in the second quarter of 2024, which is a decrease of the cash in the second quarter of 2023 of approximately $2.3 million. Again, in the second quarter of 2024, we had a net cash increase of $600,000. up from the previous year's decrease in cash of 2.3 million.
Speaker Change: These changes will provide resources for growth and make future investment yields a higher return on capital.
Steve Johnson: As a result of our turnaround plan, our cash used in operations improved by approximately $2.3 million in the second quarter of 2024 versus the second quarter of 2023.
Steve Johnson: leading to a net cash increase of approximately 0.6 million in the second quarter of 2024.
Steve Johnson: which is a decrease of the cash in the second quarter of 2023 of approximately $2.3 million. Again, in the second quarter of 2024, we had a net cash increase of $600,000.
Steve Johnson: up from the previous years decrease in cash of two point three million
Damien Lamendola: I would now like to turn it back over to Damien. Thank you. Marpai is all about saving enterprises of all sizes significant money in managing employees' health care costs. As I mentioned earlier, it is a $22 billion industry in growing. Our company is undergoing substantial changes that point to growth in positive cash flow. My commitment to all stakeholders has never been stronger. One area I am not happy with is our stock price. I believe we are horribly undervalue. As the turnaround unfolds and we continue to improve our financial metrics and we continue to grow our market presence, I believe the financial markets will take notice.
Damien Lamendola: Marpai is all about saving enterprises of all sizes significant money in managing employees' health care costs. Our company is undergoing substantial changes that point to growth in positive cash. My commitment to all stakeholders has never been stronger. Thank you for your continued confidence and support.
D: i would now like to turn it back over to d
Damien Lamendola: Thank you. Marpai is all about saving enterprises of all sizes significant money in managing employees' health care costs. As I mentioned earlier, it is a 22 billion dollar industry and growing.
Damien Lamendola: our companyiess onundergoing substantial pchanges that point to growth in positive cash flow my commitment to all stakeholders has never been stronger
Damien Lamendola: One area I'm not happy with is our stock price. I believe we are horribly undervalued. As the turnaround unfolds and we continue to improve our financial metrics and we continue to grow our market presence, I believe the financial markets will take notice.
Damien Lamendola: Thank you for your time today. I remain committed and excited to be leading your company. Thank you for your continued confidence and support.
Damien Lamendola: Thank you for your time today. I remain committed and excited to be leading your company.
Unknown Executive: Thank you, Damien. This completes Marpai's second quarter 2024 earnings call. If you have questions or require further information, please see the information on the screen or go to our Investor Relations website. This webcast will be available for replay. Thank you again for joining us this morning.
Damien Lamendola: Thank you for your continued confidence and support.
Damian: thank you damian
Speaker Change: this completes mar pay's second quarter two thousand and twenty four earnings call if you have questions or required further information please see the information on the screen or gogood to our investor relations website
Damien Lamendola: This webcast will be available for replay. Thank you again for joining us this morning.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Unknown Executive: The conference has now concluded. Thank you for attending today's presentation.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
Unknown Executive: You may now disconnect.
unknown: Klee, Unknown Executive, Damien Lamendola, Steve Johnson, Marpai Klee, Unknown Executive
Unknown Executive: Good morning and welcome to the Marpai second quarter, 2024 earnings conference call. All participants will be in the list in only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note, this event is being recorded.
Steve Johnson: I would now like to turn the conference over to Steve Johnson, Chief Financial Officer. Please go ahead.
Unknown Executive: Good morning and welcome to the Marpai second quarter, 2024 earnings release webcast.
Damien Lamendola: With me this morning is Damien Lamendola, CEO and director of Marpai. If you turn your attention to the slide is that we have our required safe harbor and forward looking statement disclosure.
Damien Lamendola: Hello, since the became CEO, the team has worked tirelessly on what pays turnaround. As many of you know, I have invested not only in my time, but millions of dollars into our company. I have never been more committed to our company and our stakeholders. This commitment stems from what we see in the TPA marketplace, our new leadership, and our employees commitment to turning Marpai into a positive cash flow company. Our focus has been on profitably growing the company and achieving positive cash flow, which has been in the manifest in our financial results, including significantly cutting cost, right size in our balance sheet, and improving our cash from operations. I am highly encouraged by improvements. Our sales team has done a great job of refositioning Marpai to new existing customers. I remind you that our total addressable market is $22 billion in growing.
Steve Johnson: I will now turn the call back to Steve to discuss our financial results. Thanks, Amy. We filed our 10-2 yesterday after the market closed, along with the earnings release, and I would invite you to review the details in those documents. I will briefly cover some highlights of the following achievements year-to-date. While we have declined by 28% year-over-year, we cut cash operating expense by 38%, saving approximately $4 million. Our cash operating loss was reduced from approximately $7.3 million to approximately $4.7 million for the second quarter.
Steve Johnson: As Damon alluded to, we right-sized our balance sheet by selling non-core assets, adjusting assets to the current fair value, as well as extending the maturity of our net debt. These changes will provide resources for growth and make future investment yields a higher return on capital. As a result of our turnaround plan, our cash used in operations improved by approximately $2.3 million in the second quarter of 2024 versus the second quarter of 2023, leading to a net cash increase of approximately $0.6 million in the second quarter of 2024, which is a decrease of the cash in the second quarter of 2023 of approximately $2.3 million. Again, in the second quarter of 2024, we had a net cash increase of $600,000, up from the previous year's decrease in cash of 2.3 million.
Damien Lamendola: I would now like to turn it back over to Damien. Thank you. Marpai is all about saving enterprises of all sizes, significant money in managing employees' health care costs.
Damien Lamendola: As I mentioned earlier, it is a $22 billion industry in growing. Our company is undergoing substantial changes that point to growth in positive cash flow. My commitment to all stakeholders has never been stronger. One area I'm not happy with is our stock price. I believe we are horribly undervalued.
Damien Lamendola: As the turnaround unfolds, and we continue to prove our financial metrics, and we continue to grow our market presence, I believe the financial markets will take notice.
Damien Lamendola: Thank you for your time today. I remain committed and excited to be leading your company. Thank you for your continued confidence and support.
Steve Johnson: Thank you, Damien.
Unknown Executive: This completes Marpai's second quarter, 2024 earnings call. If you have questions or require further information, please see the information on the screen or go to our investor relations website. This webcast will be available for replay. Thank you again for joining us this morning.
Unknown Executive: The conference has now concluded. Thank you for attending today's presentation.
Unknown Executive: You may now disconnect.