Full Year Impact of Maestro Acquisition and Q4
Corrective Actions Driving Improvement
TAMPA,
Fla., March 6, 2024 /PRNewswire/
-- Marpai, Inc. ("Marpai" or the "Company") (Nasdaq:
MRAI), an independent national Third-Party Administration
(TPA) company transforming the $22
billion TPA market supporting self-funded employer health
plans with affordable, intelligent, healthcare, today announced
unaudited preliminary financial results for the fourth quarter and
fiscal year 2023. In addition, the Company expects to report its
full fourth quarter and fiscal year 2023 results following the
close of market on March 26, 2024.
The unaudited results in this press release are preliminary and
subject to the completion of accounting and annual audit procedures
and are therefore subject to adjustment. The Company expects to
hold a webcast to discuss the results on March 27, 2024.
Financial Highlights:
- Net Revenues
- For the fourth quarter of 2023, net revenues were approximately
$8.7 million, an improvement of
nearly $1.1 million or approximately
14% higher from the fourth quarter of 2022.
- Full year 2023 net revenues were approximately $37.2 million, an improvement of nearly
$12.8 million, or approximately 53%
better than prior year.
- Operating Expenses
- For the fourth quarter of 2023, operating expenses were
approximately $6.9 million, an
improvement of approximately $4.9
million or 41% lower from the fourth quarter of 2022.
- Full year 2023 operating expense was approximately $39.6 million, approximately 107% of net revenues
down from 140% of net revenues in the prior year.
- Operating Loss
- For the fourth quarter of 2023, operating loss was
approximately $3.9 million or
approximately $5.0 million better
than the fourth quarter of 2022.
- Full Year 2023 operating loss was approximately $26.7 million, down slightly from the prior
year.
- Goodwill Impairment
- The Company expects to take a $3.0
million non-cash goodwill impairment charge in the fourth
quarter of 2023.
"The Company made significant progress with the execution of our
previously announced short-term actions in the fourth quarter of
2024, while beginning to leverage the synergies of the Maestro
acquisition," said Damien Lamendola,
Chief Executive Officer of Marpai. "We remain committed to
operational and financial improvements as the Company delivers on
our vision of saving money for our clients and improving the
quality of healthcare for our members."
The foregoing forward-looking statements reflect our
expectations as of today's date. Given the number of risk factors,
uncertainties and assumptions discussed below, actual results may
differ materially. We do not intend to update our financial outlook
until the filing of our annual report on Form 10-K.
Webcast and Conference Call Information
Marpai expects to host a conference call and webcast on
Wednesday, March 27, 2024, at
8:30 a.m. ET to answer questions
about the Company's operational and financial highlights for its
fourth quarter and year ended December 31,
2023.
Investors interested in listening to the conference call may do
so by dialing (800)-836-8184 for domestic callers or
+1-646-357-8785 for international callers, or via webcast:
https://app.webinar.net/8OgAYdJmbd9
About Marpai, Inc.
Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA company
bringing 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. Marpai 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.
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 its preliminary unaudited
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.
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SOURCE Marpai
