Marpai, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue of $28.2 million, down 24% from $37.2 million in 2023. The company attributed this decrease primarily to customer turnover, which has been a persistent issue, reflected in an attrition rate of approximately 25%. Despite the drop in revenue, Marpai managed to reduce its total costs and expenses by 23%, from $65.1 million in 2023 to $50.3 million in 2024. This reduction was largely due to strategic cost-cutting measures, including a decrease in general and administrative expenses, which fell by 33% to $12.8 million.
The company reported a net loss of $22.1 million for 2024, an improvement from the $28.8 million loss in the previous year. This reduction in net loss was attributed to operational efficiencies and the elimination of redundant facilities and projects. The loss per share also decreased from $4.14 in 2023 to $1.92 in 2024. Adjusted EBITDA improved significantly, showing a loss of $9.1 million compared to a loss of $20.2 million in the prior year, indicating better utilization of resources and reduced expenses.
In terms of strategic developments, Marpai has focused on aligning its two Third Party Administrator (TPA) companies, which has resulted in substantial savings. The company has also undergone organizational changes, including the impairment of goodwill and intangible assets amounting to $7.6 million, reflecting the challenges faced by its acquisitions, particularly Maestro Health. The company’s employee headcount stood at 117 as of December 31, 2024, with no labor agreements in place.
Looking ahead, Marpai's management has expressed concerns regarding its liquidity, with an accumulated deficit of approximately $98.8 million and negative working capital of $7.1 million. The company has indicated that it will need to raise additional capital to fund operations and continue investing in its product portfolio. Marpai's future plans include seeking financing through equity or debt securities, as well as potential asset sales. The company’s ability to continue as a going concern is under scrutiny, as highlighted by its independent auditor's report, which raised substantial doubt about its operational viability over the next twelve months.
About Marpai, Inc.
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