PR Newswire – November 13, 2023·10 min read
- Continued year over year growth related to our acquisition of Maestro Health
- Further identification and implementation of synergies and opportunities continue as a result of the acquisition
- Veteran industry executive leadership announced along with the addition of a seasoned health care leader to strengthen the Board of Directors
- Focus on acceleration of operating efficiencies and customer growth
NEW YORK, Nov. 13, 2023 /PRNewswire/ — Marpai, Inc. (“Marpai” or the “Company”) (Nasdaq: MRAI), an independent national Third-Party Administrator (TPA) company transforming the $22 billion TPA market supporting self-funded employer health plans, today reported financial results for the third quarter ended September 30, 2023.
The Company’s consolidated results of operations include the results of operations of Marpai and its wholly owned subsidiaries, Marpai Health, Inc. and Marpai Administrators, LLC (formerly Continental Benefits, LLC) for all periods presented, and the results of Maestro Health, LLC (“Maestro Health”) since its acquisition on November 1, 2022.
Third Quarter 2023 Highlights:
- Total revenue for the three months ended September 30, 2023 was $8.7 million, representing an increase of $3.8 million, or nearly 77%, over the same period in 2022. The primary reason for this increase was due to the revenue from the acquisition of Maestro Health.
- The addition of Maestro Health, and organic sales closed by Marpai Administrators, drove a nearly 126% increase in the number of our customers’ employees. As of the end of the third quarter of 2023, the total was approximately 37,000 compared to the same period last year of approximately 16,000.
- The Company had an operating loss of approximately $7.0 million for the three months ended September 30, 2023, compared to an operating loss of approximately $5.8 million during the same period in 2022, as the Company continued to focus on closing the gap to profitability.
- Net loss was nearly $7.3 million for the three months ended September 30, 2023, compared to net loss of approximately $5.8 million for the three months ended September 30, 2022.
- Net loss per share for the three months ended September 30, 2023 was ($0.98) compared to ($1.14) per share from the same period last year.
“I believe that our third quarter results reflect continued momentum towards sustainable profitability,” said Marpai’s new CEO Damien Lamendola. “The pace of improvement achieved and the continued cash burn rate with the volatility of the capital markets drove us to make some rapid changes which we look forward to discussing in our upcoming investors presentation.”
Other Highlights:
Withdrawal of Registration Statement on Form S-1
The Company has withdrawn its Form S-1 Registration Statement due to adverse market conditions. The Company is currently evaluating its financing opportunities.
Suspending Financial Guidance
The Company is suspending further financial guidance for full-year 2023 operating results and will not be providing specific financial guidance moving forward.
Webcast and Conference Call Information
Marpai will host an Investor call and webcast on Wednesday, November 29, 2023 at 8:00 a.m. EST to introduce the new Executive Team members and to provide an overview of the Company’s strategic vision and initiatives in place. Please refer to our Investor Relations website at: https://ir.marpaihealth.com for updates and details.
About Marpai, Inc.
Marpai, Inc. (Nasdaq: MRAI) is a leading, national TPA (Third Party Administrator) 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 belief that the third quarter results reflect continued momentum towards sustainable profitability. 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.
SOURCE: MARPAI, INC. REPORTS THIRD QUARTER 2023 RESULTS (yahoo.com)
