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Marpai, Inc. (MRAI)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net revenues were $6.591M, down 5.9% QoQ from $7.008M, with operating loss improving to $(2.688)M and EPS improving to ($0.08) from ($0.30) in Q3 .
  • Full-year non-GAAP progress was notable: FY 2024 Adjusted EBITDA loss improved to $(9.057)M from $(20.181)M in FY 2023, reflecting cost actions and operational streamlining .
  • Management guided to the Empara member portal rollout completion by end of Q2 2025 and a MarpaiRx PBM launch in H2 2025, positioning for profitability in 2025; cash augmented by a $5M JGB funding tranche to support growth and runway .
  • Estimate coverage is limited; S&P Global consensus was unavailable for EPS and not provided for revenue, so no formal beat/miss determination. Values retrieved from S&P Global.*

What Went Well and What Went Wrong

What Went Well

  • “In a short span, Marpai’s team engineered an exceptional turnaround, dramatically reducing losses” – CEO, highlighting the path toward growth and profitability and the Empara portal plus PBM products as revenue and margin catalysts .
  • Operational KPIs improved: average speed to answer <10 seconds and clean-claim processing turnaround at 7 business days; Empara collaboration consolidates multiple portals into a unified AI-enabled platform, targeted for completion by end of Q2 2025 .
  • Q4 loss metrics improved: net loss narrowed to $(1.156)M and EPS to ($0.08), with operating loss reduced QoQ to $(2.688)M; FY 2024 Adjusted EBITDA improved materially YoY .

What Went Wrong

  • Revenue pressure persisted: Q4 revenue declined QoQ to $6.591M and YoY from $8.707M in Q4 2023; FY 2024 revenue fell 24.2% YoY to $28.173M .
  • Mixed OpEx narrative: press release cites Q4 operating expenses up 5.1% vs Q3, while the call commentary referenced a 5% OpEx reduction; this discrepancy warrants follow-up on definitions (GAAP vs adjusted components) .
  • Balance sheet strain and accumulated deficit: year-end cash of $0.764M, stockholders’ deficit $(27.709)M, total liabilities $40.587M; dependence on financing (e.g., JGB tranche) to bridge to targeted cash flow positivity .

Financial Results

Income Statement Summary vs Prior Quarters

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$7.189 $7.008 $6.591
Operating Loss ($USD Millions)$(12.273) $(3.060) $(2.688)
Net Loss ($USD Millions)$(13.026) $(3.560) $(1.156)
EPS (Basic & Diluted, $USD)($1.23) ($0.30) ($0.08)

Margin Metrics

MetricQ2 2024Q3 2024Q4 2024
EBITDA ($USD Millions)$(4.356)*$(2.974)*$(1.987)*
EBIT ($USD Millions)$(4.685)*$(2.987)*$(2.040)*
EBITDA Margin %(60.59%)*(42.44%)*(30.15%)*
EBIT Margin %(65.17%)*(42.62%)*(30.95%)*
Net Income Margin %(181.19%)*(50.80%)*(17.54%)*

Values retrieved from S&P Global.*

Estimates vs Actuals (Coverage Limited)

Metric (Q4 2024)Consensus (S&P Global)ActualSurprise
Revenue ($USD Millions)N/A*$6.591 N/A*
Primary EPS ($USD)N/A*($0.08) N/A*

Values retrieved from S&P Global.*

Segment Breakdown

  • No reportable segments disclosed in Q4 2024 materials; financials presented on a consolidated basis .

Operational KPIs (select)

KPIQ2 2024Q3 2024Q4 2024
Customer service: Avg speed to answer——<10 seconds
Claims: Avg clean-claim turnaround——7 business days
KPI improvements vs prior periodFocus on turnaround and cost cuts; net cash increase of ~$0.6M in Q2 (YoY swing) Call and claims KPIs reduced by 80% and 75% respectively (directional improvements) Empara rollout underway; AI-enabled member app; operational streamlining continues

Guidance Changes

Metric/TopicPeriodPrevious GuidanceCurrent GuidanceChange
Profitability / Cash FlowFY 2025Expected break-even in early 2025 Positioning for profitability in 2025; plans to be cash flow positive in 2025 Timing clarified/pushed from “early 2025” to full-year 2025 trajectory
Empara Member Engagement PortalQ2 2025—Full platform live by end of Q2 2025 (June) New/affirmed operational milestone
MarpaiRx (PBM program)H2 2025—Launch in second half of 2025; expected high-margin revenue contribution New growth initiative
Operating Expenses trajectoryQ4 2024—PR: OpEx +5.1% QoQ; call: OpEx down ~5% QoQ – management to reconcile definitions Clarification needed (GAAP vs adjusted)

Earnings Call Themes & Trends

TopicQ2 2024 (Aug 2024)Q3 2024 (Nov 2024)Q4 2024 (Mar 2025)Trend
PBM / MarpaiRxCommitment to turnaround; no PBM specifics Building pipeline; partnerships; groundwork for 2025 growth Formalized plan to launch MarpaiRx H2’25; CEO leading; viewed as high-margin Strengthening
Empara / Technology—In-house service model; KPI improvements Empara rollout to unify portals; completion by end Q2’25; AI features Advancing deployment
Cost Controls / EfficiencyRightsized balance sheet; improved cash from ops YoY Large KPI improvements and cost actions; operating loss reduced Continued streamlining; conflicting OpEx commentary; Adjusted EBITDA improved FY Improving; verify definitions
Sales Pipeline / PartnersSales groundwork; focus on profitable growth Specific wins in restaurant/hospital/housing; robust multi-quarter pipeline Recruiting sales execs; strategic partners; off-cycle wins; school districts Building
Cash / CapitalNet cash increase Q2; balance sheet actions Cash ~$0.8M at Q3 end YE cash ~$0.764M; $5M JGB tranche supports runway; plan to be cash flow positive in 2025 Managed with financing

Management Commentary

  • CEO: “Now, we’re propelling the Company towards growth and profitability… introducing high-impact PBM-based products in the second half of 2025… position Marpai for profitability in 2025” .
  • President: “We recently announced a collaboration with Empara… reducing the multiple portals and apps to just one… rollout… complete by the end of June” .
  • CFO: “Operating loss… reduced… net loss… down… adjusted EBITDA loss for the year ended December 31, 2024, was $9.1M vs $20.2M in 2023” .

Q&A Highlights

  • Churn and client mix: Focus on profitable clients; attrition within industry average; strong pipeline to offset early-2025 churn .
  • Cash runway and financing: YE cash ~ $0.8M; additional $5M from JGB supports 2025 growth; plans to reach cash flow positive during 2025 .
  • Strategic partnerships: HealthInTech and Empara collaborations to supercharge sales cycles; more alliances pending .
  • PBM product rationale: Design to comply with pending transparency legislation; target high-margin revenue and competitive advantage; expand outside current book .

Estimates Context

  • S&P Global consensus for Q4 2024 revenue and EPS was unavailable; only actuals are visible in S&P feeds, limiting beat/miss analysis. Values retrieved from S&P Global.*
  • Given Q4 actuals and management’s 2025 profitability targets, Street models (where available) may need to incorporate PBM margin uplift and Empara-enabled operating efficiencies once evidence of uptake emerges .

Key Takeaways for Investors

  • Loss narrowing and Adjusted EBITDA progress indicate the turnaround is taking hold; watch for sustained QoQ operating loss reductions and stabilization of revenue mix toward higher-margin clients .
  • Near-term catalysts: Empara platform go-live by end of Q2 2025 and incremental KPI gains improving service and efficiency .
  • Medium-term catalyst: MarpaiRx PBM launch in H2 2025 with high-margin potential; track early contracts and revenue contribution .
  • Validate OpEx trajectory: reconcile PR vs call claims (GAAP vs adjusted) and monitor expense discipline in upcoming quarters .
  • Liquidity watch: YE cash was low; financing support (JGB tranche) helps bridge to targeted cash-flow positivity; monitor cash burn and covenants .
  • Pipeline conversion: Off-cycle wins and targeted industries (hospital systems, school districts) can bolster H2’25; look for tangible lives added and contract terms .
  • Trading implication: Stock narrative hinges on executing tech-enabled service (Empara), capturing PBM margins (MarpaiRx), and delivering a tangible path to profitability in 2025—positive updates on these fronts likely to be primary catalysts .