Steve Johnson; Chief Financial Officer; Marpai Inc

Damien Lamendola; Chief Executive Officer and Director; Marpai Inc

Good morning and welcome to the Q3 2024 Marpai Inc Earnings Call.

(Operation instructions).

I would now like to turn the conference over to Mr. Steve Johnson, Chief Financial Officer. Please go ahead.

Steve Johnson

Good morning and welcome to the Q3 2024 Marpai Inc Earnings release webcast.

With me this morning is Damien Lamendola, CEO and Director of Marpai and John Powers, President of Marpai. Slide 2 for your [eye] check is our required safe harbor and forward-looking statement disclosures. And I'll turn it over to Damien to start.

Damien Lamendola

Thank you, Steve.

I took (inaudible) at Marpai a year ago. I'm extremely proud of our progress, but we have much more to do. My commitment to the company remains unwavering. I'm now the largest shareholder and recently made another direct investment into the company. In addition to investing capital into the company, I'm committed to creating long term value for shareholders as your CEO. I'm pleased to report that our turnaround efforts are yielding very positive results. As CEO, I'm out in our sector, developing strategic partnerships that leverage our platform for growth and profitability. We have a robust sales pipeline for 2025 which John Powers will now address in more details. Finally, with the recent election results, the company anticipates a very positive overall impact on the [TPA] industry with the reduced threat of a single payer system and the focus on health-conscious behaviors. Now, I turn it over to John.

John Powers

Thanks, Damien.

I wanted to share some of our recent operational successes. Our team has made significant strides in improving efficiency and customer service. Key process indicators such as average claim processing time, average call answer time have decreased by 75% and 80% respectively. These improvements have enabled us to eliminate our third-party customer service team and bring these operations in house, leveraging our existing workforce.

We continue to identify opportunities for further efficiency gains. A major project, currently underway, is expected to reduce [TP] expenses by over 25% in Q1 2025. Slide 5 of our strategic initiatives, the third-party benefits administrators or TPA industry has seen substantial growth in recent years, fueled by increasingly complex health care regulations, rising health care costs and the need for competitive benefit packages. Marpai offers a valuable solution by handling the administrative burdens of employee benefits, allowing businesses to concentrate on their core operations.

As the industry continues to evolve, Marpai is leveraging advanced technologies to streamline processes, improve efficiency, and elevate overall employee benefit experience. As a result of these factors, Marpai is gaining significant market traction and has a robust sales pipeline extending beyond Q1 2025.

We've been fortunate to secure clients who will experience growth throughout the year, and our typical three-year contracts provide a stable revenue stream over this time frame. A few examples of the clients that we are winning business include a [4,000-live-employes] restaurant group that was attracted to our proven Marpai saved program, a [6,000-employes-live] multilocation hospital group that will provide growth throughout the year as we transition to various locations, as well as a few housings-related clients for a total of 3,400 employee lives also scheduled to transition over the course of 2025. We continue to achieve success in executing our sales strategy by focusing on clients that are looking to save money on their employee health benefit plans.