Technology
Iridium Announces 2024 Results, Issues 2025 Outlook
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2 years agoon
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Returned a record $469 million to shareholders in 2024
MCLEAN, Va., Feb. 13, 2025 /PRNewswire/ — Iridium Communications Inc. (Nasdaq:IRDM) (“Iridium”) today reported financial results for the fourth quarter and full-year 2024 and issued its full-year 2025 guidance. Net income was $36.3 million, or $0.32 per diluted share, for the fourth quarter of 2024, as compared to net income of $38.0 million, or $0.30 per diluted share, for the fourth quarter of 2023. Operational EBITDA (“OEBITDA”)(1) for the fourth quarter was $117.1 million, as compared to $114.1 million for the prior-year period, representing a year-over-year increase of 3%.
Iridium reported fourth-quarter total revenue of $213.0 million, which consisted of $154.0 million of service revenue and $59.0 million of revenue related to equipment sales and engineering and support projects. Total revenue increased 9% from last year’s comparable period, in part due to a 4% increase in total service revenue. Service revenue, which represents primarily recurring revenue from Iridium’s growing subscriber base, was 72% of total revenue for the fourth quarter of 2024.
The Company ended the quarter with 2,460,000 total billable subscribers, which is up from 2,279,000 for the year-ago period and compares to 2,482,000 for the quarter ended September 30, 2024. Total billable subscribers grew 8% year-over-year, driven by growth in commercial IoT. The sequential decline in billable subscribers from the third quarter primarily reflected changes to retail subscriber plans by a large IoT customer, with no impact on Iridium revenue.
Full-Year 2024 Iridium Business Highlights
For the full year, Iridium reported net income of $112.8 million, or $0.94 per diluted share, as compared to net income of $15.4 million, or $0.12 per diluted share, for 2023. The change primarily resulted from a decrease in depreciation expense associated with the extension of the estimated useful lives of the Company’s satellites in the prior year and an increase in engineering and support revenue, offset in part by the change in income tax expense. The Company reported total revenue in 2024 of $830.7 million, which was up 5% from the year-ago period. Total revenue included $614.9 million of service revenue, $124.4 million of engineering and support services revenue and $91.4 million of equipment sales revenue. OEBITDA for 2024 was $470.6 million, a 2% increase from $463.1 million in the prior year. Capital expenditures were $69.9 million for the full-year 2024.
“Turning our eyes to 2025, Iridium will return to a more normalized OEBITDA growth profile,” said Matt Desch, CEO, Iridium. Desch added, “Our continued strong cash flow supported return of capital to shareholders approaching a half billion dollars in 2024, including dividends and share repurchases.”
Fourth-Quarter Iridium Business Highlights
Service – Commercial
Commercial service remained the largest part of Iridium’s business, representing 60% of the Company’s total revenue during the fourth quarter. The Company’s commercial customer base is diverse and includes markets such as maritime, aviation, oil and gas, mining, recreation, forestry, construction, transportation and emergency services. These customers rely on Iridium’s products and services as critical to their daily operations and integral to their communications and business infrastructure.
Commercial service revenue was $127.3 million, up 5% from last year’s comparable period due to broad-based growth across all revenue lines.Commercial voice and data: Revenue was $57.1 million, up 3% from the year-ago period. Subscribers grew 2% from the year-ago period to 415,000. Average revenue per user (“ARPU”) was $45 during the fourth quarter, unchanged from last year’s comparable period.Commercial IoT data: Revenue was $41.4 million, up 15% from the year-ago period. Subscribers grew 10% from the year-ago period to 1,887,000 customers, driven by continued growth in consumer personal communications devices. ARPU was $7.29 in the fourth quarter, compared to $7.12 in last year’s comparable period.Commercial broadband: Revenue was $13.4 million, down 9% from $14.6 million in the year-ago period, and subscribers declined modestly from the year-ago period to 16,600. ARPU was $268 during the fourth quarter, compared to $294 in last year’s comparable period, reflecting the increased prevalence of Iridium’s use as a companion service and the conversion of customers to other plans.Hosted payload and other data service: Revenue was $15.4 million, up 2% from $15.2 million in the year-ago period. The year-over-year change primarily reflected strong contributions from Iridium’s growing PNT services, which more than offset a non-recurring benefit from a customer contract recognized in last year’s comparable period.Iridium’s commercial business ended the quarter with 2,319,000 billable subscribers, which is up from 2,134,000 for the prior-year quarter and compares to 2,341,000 for the quarter ended September 30, 2024. The sequential decline in billable subscribers for the quarter was driven by the commencement of phasing out annual plans by a large IoT customer, resulting in higher subscriber seasonality, with no impact on Iridium revenue due to a fixed-price contract with this customer. IoT data subscribers represented 81% of billable commercial subscribers at the end of the quarter, an increase from 80% at the end of the prior-year period.
Service – U.S. Government
Iridium’s voice and data solutions improve situational awareness for military personnel and track critical assets in tough environments around the globe, providing a unique value proposition that is not easily duplicated.
Under Iridium’s Enhanced Mobile Satellite Services contract (the “EMSS Contract”), a seven-year, $738.5 million fixed-price airtime contract with the U.S. Space Force signed in September 2019, Iridium provides specified satellite airtime services, including unlimited global standard and secure voice, paging, fax, Short Burst Data®, Iridium Burst®, RUDICS and Distributed Tactical Communications System services for an unlimited number of Department of Defense and other federal government subscribers. Iridium also provides maintenance and support work for the U.S. government’s dedicated Iridium® gateway under two other contracts with the U.S. Space Force. Iridium Certus® airtime services are not included under these contracts and may be procured separately for an additional fee.
Government service revenue grew 1% to $26.8 million in the fourth quarter reflecting a contractual rate increase in the EMSS Contract.Iridium’s U.S. government business ended the quarter with 141,000 subscribers, which compares to 145,000 for the prior-year quarter and 141,000 for the quarter ended September 30, 2024. Government voice and data subscribers remained flat as of December 31, 2024 at 62,000 compared to the year-ago period. Government IoT data subscribers decreased 5% year-over-year and represented 56% of government subscribers at year-end.
Equipment
Equipment revenue was $21.6 million in the fourth quarter compared to $15.7 million in the prior-year quarter.Equipment revenue totaled $91.4 million in 2024, compared to $105.1 million in 2023. In 2025, the Company expects equipment sales to be in line with 2024.
Engineering & Support
Engineering and support revenue was $37.4 million during the fourth quarter, compared to $31.1 million in the prior-year quarter, primarily due to increasing activity with the U.S. government.Engineering and support revenue totaled $124.4 million in 2024, compared to $101.1 million in 2023. In 2025, the Company expects engineering and support revenue to increase from 2024.
Capital expenditures were $24.3 million for the fourth quarter, including $1.3 million in capitalized interest. The Company ended the fourth quarter with gross debt of $1.8 billion and a cash and cash equivalents balance of $93.5 million, for a net debt balance of $1.7 billion.
Iridium paid its fourth quarter dividend of $0.14 per common share on December 31, 2024. Total dividends paid to stockholders during 2024 totaled $64.7 million.
During the quarter ended December 31, 2024, the Company repurchased approximately 4.1 million shares of its common stock under its previously announced share repurchase program at a total purchase price of $121.9 million. As of December 31, 2024, $430.3 million remained available and authorized for repurchase under this program through 2027.
2025 and Longer-Term Outlook
The Company issued its full-year 2025 outlook and reaffirmed its long-term guidance on cash taxes and net leverage:
Total service revenue growth between 5% and 7% for full-year 2025. Total service revenue for 2024 was $614.9 million.Full-year 2025 OEBITDA between $490 million and $500 million. OEBITDA for 2024 was $470.6 million.Cash taxes of less than $10 million per year through 2026. We expect that the longer-term cash tax rate will move closer to the statutory rate in 2028.Net leverage below 4.0 times OEBITDA through 2026 and falling below 2.0 times OEBITDA by the end of the decade, assuming ongoing execution of the Company’s share repurchase authorization and the payment of expected quarterly dividends. Net leverage was 3.6 times OEBITDA at December 31, 2024.
(1) Non-GAAP Financial Measures & Definitions
In addition to disclosing financial results that are determined in accordance with U.S. GAAP, the Company provides Operational EBITDA, which is a non-GAAP financial measure, as a supplemental measure to help investors evaluate the Company’s fundamental operational performance. Operational EBITDA represents earnings before interest, income taxes, depreciation and amortization, gain (loss) on equity method investments, acquisition and related costs, and share-based compensation expenses. The Company considers the loss on early extinguishment of debt to be financing-related costs associated with interest expense or amortization of financing fees, which by definition are excluded from Operational EBITDA. Management believes such charges are incidental to, but not reflective of, the Company’s day-to-day operating performance. Operational EBITDA does not represent, and should not be considered, an alternative to U.S. GAAP measurements such as net income or loss. In addition, there is no standardized measurement of Operational EBITDA, and the Company’s calculations thereof may not be comparable to similarly titled measures reported by other companies. The Company believes Operational EBITDA is a useful measure across time in evaluating its fundamental core operating performance. Management also uses Operational EBITDA to manage the business, including in preparing its annual operating budget, debt covenant compliance, financial projections and compensation plans. The Company believes that Operational EBITDA is also useful to investors because similar measures are frequently used by securities analysts, investors and other interested parties in their evaluation of companies in similar industries. As indicated, Operational EBITDA does not include interest expense on borrowed money, the payment of income taxes, amortization of the Company’s definite-lived intangible assets, or depreciation expense on the Company’s capital assets, which are necessary elements of the Company’s operations. Since Operational EBITDA does not account for these and other expenses, its utility as a measure of the Company’s operating performance has material limitations. Due to these limitations, the Company’s management does not view Operational EBITDA in isolation, but also uses other measurements, such as net income, revenues and operating profit, to measure operating performance. Please refer to the schedule below for a reconciliation of consolidated GAAP net income to Operational EBITDA and Iridium’s Investor Relations webpage at www.iridium.com for a discussion and reconciliation of this and other non-GAAP financial measures. The Company does not provide a forward-looking reconciliation of expected full-year 2025 Operational EBITDA guidance as the amount and significance of certain items such as share-based compensation, acquisition related costs and gain/loss on equity method investments, that are required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts.
Iridium Communications Inc.
Supplemental Reconciliation of GAAP Net Income to Operational EBITDA
(In thousands)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
2024
2023
GAAP net income
$ 36,341
$ 38,023
$ 112,776
$ 15,415
Interest expense, net
22,428
19,114
91,134
90,387
Income tax (benefit) expense
(6,242)
(9,578)
12,259
(26,251)
Depreciation and amortization
51,447
52,787
203,127
320,000
Share-based compensation
12,431
11,955
63,457
57,455
Acquisition and related costs(1)
289
—
3,074
—
(Gain) loss on equity method investments
413
1,768
(15,251)
6,089
Operational EBITDA
$ 117,107
$ 114,069
$ 470,576
$ 463,095
(1)
Represents direct costs incurred in connection with the negotiation, consummation and integration of acquisition transactions, whether or not actually completed. These costs generally include legal and advisory fees, severance and other related costs.
Conference Call Information
As previously announced, the Company will host a conference call to discuss its results at 8:30 a.m. Eastern Time on Thursday, February 13, 2025. Callers should dial 1-412-902-6740 to access the call. The conference call will also be simultaneously webcast on Iridium’s Investor Relations webpage at www.iridium.com. An archive of the webcast will be available following the live conference call.
About Iridium Communications Inc.
Iridium® is the only mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. Together with its ecosystem of partner companies, Iridium delivers an innovative and rich portfolio of reliable solutions for markets that require truly global communications. In 2019, the company completed a generational upgrade of its satellite network and launched its specialty broadband service, Iridium Certus. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A., and its common stock trades on the Nasdaq Global Select Market under the ticker symbol IRDM. For more information about Iridium products, services and partner solutions, visit www.iridium.com.
Forward-Looking Statements
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding Iridium’s expectations with respect to total service revenue growth, OEBITDA and cash taxes for 2025; net leverage and cash taxes over the longer-term; anticipated equipment sales and engineering and support service revenue for 2025; amount and timing of share repurchases and the payment of dividends, and expected revenues from its EMSS contract with the U.S. government. Forward-looking statements can be identified by the words “anticipates,” “may,” “can,” “believes,” “expects,” “projects,” “intends,” “likely,” “will,” “to be” and other expressions that are predictions or indicate future events, trends or prospects. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Iridium to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, uncertainties regarding customer demand for Iridium’s products and services, including demand from the U.S. government; Iridium’s ability to maintain the health, capacity and content of its satellite constellation, and the development of and market for Iridium’s products and services, as well as general industry and economic conditions, and competitive, legal, governmental and technological factors. Other factors that could cause actual results to differ materially from those indicated by the forward-looking statements include those factors listed under the caption “Risk Factors” in the Company’s Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (“SEC”) on February 13, 2025, as well as other filings Iridium makes with the SEC from time to time. There is no assurance that Iridium’s expectations will be realized. If one or more of these risks or uncertainties materialize, or if Iridium’s underlying assumptions prove incorrect, actual results may vary materially from those expected, estimated or projected. Iridium’s forward-looking statements are based on information available to it as of the date of this press release and speak only as of the date of this press release, and Iridium undertakes no obligation to update forward-looking statements.
Iridium Communications Inc.
Condensed Consolidated Statements of Operations
(In thousands)
Three Months Ended December 31,
2024
2023
Revenue
Service revenue
Commercial
$ 127,265
$ 121,513
Government
26,750
26,500
Total service revenue
154,015
148,013
Subscriber equipment
21,597
15,662
Engineering and support service
37,379
31,065
Total revenue
212,991
194,740
Operating expenses
Cost of services (exclusive of depreciation and amortization)
48,379
45,279
Cost of subscriber equipment sales
11,832
10,335
Research and development
8,523
5,728
Selling, general and administrative
40,695
34,315
Depreciation and amortization
51,447
52,787
Total operating expenses
160,876
148,444
Operating income
52,115
46,296
Other expense, net
Interest expense, net
(22,428)
(19,114)
Other income, net
825
3,031
Total other expense, net
(21,603)
(16,083)
Income before income taxes
30,512
30,213
Income tax benefit
6,242
9,578
Loss on equity method investments
(413)
(1,768)
Net income
$ 36,341
$ 38,023
Operational EBITDA
$ 117,107
$ 114,069
Iridium Communications Inc.
Condensed Consolidated Statements of Operations
(In thousands)
Year Ended December 31,
2024
2023
Revenue
Service revenue
Commercial
$ 508,618
$ 478,454
Government
106,296
106,000
Total service revenue
614,914
584,454
Subscriber equipment
91,416
105,136
Engineering and support service
124,352
101,133
Total revenue
830,682
790,723
Operating expenses
Cost of services (exclusive of depreciation and amortization)
178,140
158,710
Cost of subscriber equipment sales
52,427
66,410
Research and development
28,422
20,269
Selling, general and administrative
168,182
143,706
Depreciation and amortization
203,127
320,000
Total operating expenses
630,298
709,095
Operating income
200,384
81,628
Other expense, net
Interest expense, net
(91,134)
(90,387)
Other income, net
534
4,012
Total other expense, net
(90,600)
(86,375)
Income (loss) before income taxes
109,784
(4,747)
Income tax benefit (expense)
(12,259)
26,251
Gain (loss) on equity method investments
15,251
(6,089)
Net income
$ 112,776
$ 15,415
Operational EBITDA
$ 470,576
$ 463,095
Iridium Communications Inc.
Summary Revenue and OEBITDA Highlights
(In thousands)
Three Months Ended December 31,
Year Ended December 31,
2024
2023
% Change
2024
2023
% Change
Revenue
Service revenue(1)
Commercial service revenue
Voice and data
$ 57,072
$ 55,649
3 %
$ 226,197
$ 219,242
3 %
IoT data(2)
41,407
36,065
15 %
166,166
141,036
18 %
Broadband(3)
13,376
14,620
(9) %
56,095
57,878
(3) %
Hosted payload and other data service(4)
15,410
15,179
2 %
60,160
60,298
— %
Total commercial service revenue
127,265
121,513
5 %
508,618
478,454
6 %
Government service revenue(5)
26,750
26,500
1 %
106,296
106,000
— %
Total service revenue
154,015
148,013
4 %
614,914
584,454
5 %
Subscriber equipment
21,597
15,662
38 %
91,416
105,136
(13) %
Engineering and support(6)
Commercial
2,903
1,746
66 %
7,307
11,050
(34) %
Government
34,476
29,319
18 %
117,045
90,083
30 %
Total engineering and support
37,379
31,065
20 %
124,352
101,133
23 %
Total revenue
$ 212,991
$ 194,740
9 %
$ 830,682
$ 790,723
5 %
Operational EBITDA
Operational EBITDA
$ 117,107
$ 114,069
3 %
$ 470,576
$ 463,095
2 %
Other
Capital expenditures(7)
$ 24,268
$ 16,202
$ 69,890
$ 73,487
Net debt(8)
$ 1,714,219
$ 1,428,130
Cash and cash equivalents
$ 93,526
$ 71,870
Term Loan
$ 1,807,745
$ 1,500,000
Deferred financing costs
(16,860)
(17,510)
Term Loan, net
$ 1,790,885
$ 1,482,490
(1)
Service revenue consists of primarily subscription-based services which often generate a long-term recurring revenue stream from subscribers.
(2)
IoT data service provides a two-way short burst data transmission between Iridium’s network and a telemetry unit, which may be located, for example, on a container in transit or a buoy monitoring oceanographic conditions.
(3)
Broadband is comprised of Iridium OpenPort® and Iridium Certus.
(4)
Hosted payload and other services consist primarily of services that do not have traditional billable subscribers. Hosted payload services consist of hosting and data services to our payload customers, Aireon and Harris. Other services include primarily Iridium’s one-way satellite timing, location, and authentication services (STL) which provides position, navigation and timing technology.
(5)
Government service revenue consists of voice and IoT data subscription-based services provided to agencies of the U.S. government through prime contracts.
(6)
Engineering and support includes maintenance services to the U.S. government’s dedicated gateway and engineering services to assist customers in developing new technologies for use on Iridium’s satellite system.
(7)
Capital expenditures based on cash spent in the respective period.
(8)
Net debt is calculated by taking the sum of the gross Term Loan and gross drawn Revolving Facility, less cash and cash equivalents.
Iridium Communications Inc.
Subscriber Highlights
(In thousands, except ARPU)
As of December 31,
2024
2023
% Change
Billable Subscribers (1) (2)
Commercial
Voice and data, IoT data and Broadband service
Voice and data
415
408
2 %
IoT data
1,887
1,709
10 %
Broadband (3)
16.6
16.7
(1) %
Total commercial voice and data, IoT data
and Broadband service
2,319
2,134
9 %
Government
Voice and data and IoT data service
Voice and data
62
62
— %
IoT data
79
83
(5) %
Total government voice and data and IoT
data service
141
145
(3) %
Total billable subscribers
2,460
2,279
8 %
Three Months Ended December 31,
Year Ended December 31,
2024
2023
% Change
2024
2023
% Change
Net Billable Subscriber Additions
Commercial
Voice and data. IoT data and Broadband service
Voice and data
(7)
(2)
(250) %
7
11
(36) %
IoT data
(15)
42
(136) %
178
261
(32) %
Broadband
(0.1)
0.2
(150) %
(0.1)
1.7
(106) %
Total commercial voice and data, IoT data
and Broadband service
(22)
40
(155) %
185
274
(32) %
Government
Voice and data and IoT data service
Voice and data
(1)
1
(200) %
—
2
(100) %
IoT data
1
2
(50) %
(4)
4
(200) %
Total government voice and data and IoT
data service
—
3
(100) %
(4)
6
(167) %
Total net billable subscriber additions
(22)
43
(151) %
181
280
(35) %
Three Months Ended December 31,
Year Ended December 31,
2024
2023
% Change
2024
2023
% Change
ARPU (2) (4)
Commercial
Voice and data
$ 45
$ 45
— %
$ 46
$ 45
2 %
IoT data
$ 7.29
$ 7.12
2 %
$ 7.70
$ 7.45
3 %
Broadband
$ 268
$ 294
(9) %
$ 282
$ 305
(8) %
(1)
Subscribers as of the end of the respective period.
(2)
Billable subscriber and ARPU data is not applicable for Hosted payload and other data service revenue items and is excluded from presentation above.
(3)
Broadband is comprised of Iridium OpenPort® and Iridium Certus.
(4)
Average monthly revenue per unit, or ARPU, is calculated by dividing revenue in the respective period by the average of the number of billable subscribers at the beginning of the period and the number of billable subscribers at the end of the period and then dividing the result by the number of months in the period.
Investor Contact:
Press Contact:
Kenneth Levy
Jordan Hassin
Iridium Communications Inc.
Iridium Communications Inc.
+1 (703) 287-7570
+1 (703) 287-7421
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SOURCE Iridium Communications Inc.
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For more information on CME Group BRL futures, please visit https://www.cmegroup.com/articles/faqs/latam-fx-futures-frequently-asked-questions.html
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Technology
Vera Health Quietly Became One of the World’s Most Used Clinical Tools. Now It Has Raised $32 Million to Give Every Clinician in the World the Best Medical Knowledge in Seconds
Published
4 minutes agoon
October 27, 2026By
With a team of just 12 employees, the clinical AI company has grown largely through physician referrals, bringing total funding to $32 million
More than 800,000 clinicians across 190 countries use Vera Health, including approximately 1 in 4 physicians in Spain and Italy, with most discovering the platform through recommendations from colleagues.Threshold Ventures led Vera Health’s $28.5 million Series A, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient tripled down, bringing total funding to $32 million.The investment will accelerate Vera Health’s evidence-focused clinical AI platform, expanding its ability to make global medical knowledge locally relevant and deepening partnerships with medical societies, publishers and health systems.
SAN FRANCISCO, Oct. 27, 2026 /PRNewswire/ — A year ago, a few thousand clinicians were using Vera Health. Today, more than 800,000 are, most having discovered the platform through a colleague. Every month since June, Vera has been the most downloaded clinical app in the world across the App Store and Google Play.¹ In September alone, it was downloaded more times than OpenEvidence and Doximity combined, while monthly downloads had more than tripled since February. With a team of just 12 employees, Vera has reached clinicians in 190 countries, including approximately 1 in 4 physicians in Spain and Italy, largely through word of mouth. Vera Health is a clinical AI search engine that reasons like a clinician, helping physicians find and evaluate medical evidence in seconds.
Today, Vera Health announced a $28.5 million Series A led by Threshold Ventures, with participation from Mantis VC and SV Angel. Existing investors Y Combinator and Gradient, tripled down in the round, bringing the company’s total funding to $32 million. The investment will accelerate Vera Health’s mission to close the gap between what medicine knows and what every patient receives.
Only a few months after raising its Series A, Vera already has more daily active users than it had monthly active users at the time of the raise. Clinicians went from asking Vera a few thousand questions a day to asking hundreds of thousands, every single day.
“Clinicians are the best data scientists I’ve ever met. They make the call in seconds, with more evidence than any human could ever read,” said Taieb Bennani, Co-Founder of Vera Health. “The secret to building for them is to live and breathe the problem like no one else. Everyone on our team is a clinician, or the child or sibling of one, like Maxime and me. That passion translates into every detail of the product, and when you build with that kind of obsession, the product speaks for itself, and clinicians share it with their colleagues. We don’t have the biggest team or the most money. We have the people who care the most about getting it right.”
How does Vera Health differ from general-purpose AI tools?
Clinical AI is increasingly being used to help physicians navigate complex medical questions, but the ability to generate an accurate-sounding answer does not necessarily establish whether the underlying research is reliable. Medicine now publishes a new scientific paper roughly every 20 seconds. Chatbots are built to sound confident. Vera is built to be accurate, and honest when the evidence is thin. Physicians are expected to keep up with an expanding body of research while interpreting guidelines, evaluating treatment options and making decisions for individual patients, sometimes within seconds.
Vera Health finds the evidence first, then writes the answer. Its technology searches more than 60 million peer-reviewed publications, clinical guidelines, consensus statements and drug labels, evaluating sources based on study design, level of evidence, cohort size, recency, journal quality and citation impact. Every claim is linked to its supporting research and color-coded to show the strength of the available evidence. Sometimes that color is red. A rare condition may have no large randomized trial or comprehensive guideline behind it, leaving only a small case series or a report involving a single patient. Vera Health surfaces that research while making its limitations visible, allowing physicians to assess how much weight the findings deserve.
“Medical knowledge moves too quickly for any one clinician to read, and general-purpose AI tools can make uncertain evidence sound settled,” said Maxime Allouch, co-founder, Vera Health. “Unlike other tools, we believe there’s value in making uncertainty visible. The grade shapes what Vera retrieves and writes, while the clinician brings the patient, the context and the judgment.”
Vera Health developed its approach alongside physicians who evaluate medical evidence and help write the guidelines other clinicians follow. Through its partnership with the American College of Emergency Physicians (ACEP), the platform integrates ACEP clinical policies with source attribution, bringing medical society guidance directly into clinical research workflows.
“In medicine, not all evidence is equal,” said Scott M. Silvers, MD, FACEP, Chair of the American College of Emergency Physicians’ Clinical Policies Committee and former Chair of Emergency Medicine at Mayo Clinic. “A large, randomized trial and a case report should never carry the same weight, yet most AI tools blend them into the same confident answer. Level of evidence is the foundation of every guideline we write, and Vera Health is built on it.”
For Dr. Bernard P. Chang, Vera Health’s Chief Scientific Advisor and Vice Chair of Research in the Department of Emergency Medicine at Columbia University, the importance of clinical evidence extends to how physicians evaluate patients.
“On a recent emergency-department shift, I saw a young woman with cough and shortness of breath. The symptoms could easily be attributed to a routine respiratory illness,” said Chang. “Vera Health surfaced evidence that raised my concern for pulmonary embolism, a potentially life-threatening blood clot in the lungs, and led me to broaden my evaluation. What interests me isn’t AI simply providing an answer. It’s whether it can reliably surface evidence that challenges our initial assumptions and improves clinical reasoning. That’s what we’re now evaluating rigorously, inside the academic medical centers where medicine is actually practiced.”
Vera Health’s clinical advisors also include Christopher Baugh, MD, MBA, FACEP, Vice Chair of Clinical Affairs in Emergency Medicine at Brigham and Women’s Hospital and Associate Professor of Emergency Medicine at Harvard Medical School. Its clinical council includes physician leaders affiliated with Mayo Clinic, Yale, Harvard, Columbia and Penn.
Why is Vera Health growing so quickly across international markets?
Bennani and Allouch grew up in families of physicians and initially developed Vera Health for their own fathers. What began with two users has since grown into a platform serving hundreds of thousands of clinicians, with physicians asking hundreds of thousands of questions each day. The company’s international growth reflects an approach built around a central reality of medicine. Medical knowledge is global, but clinical practice is local.
An emergency physician in France may follow different treatment guidelines than a physician in the United States. An oncologist reviewing a complex case may need an exhaustive evaluation of the available research, while an emergency physician needs a concise answer within seconds. Even physicians practicing the same specialty may follow different protocols depending on their institution.
Vera Health accounts for those differences by prioritizing locally relevant guidance while drawing on medical research from around the world. Through Vera Spaces, health systems can also integrate their own clinical protocols and pathways alongside national guidelines and international medical literature.
“Medicine is global, yet most tools in our space were built for a single geography,” said Allouch. “We went international from day one, because only a global view reveals what is truly local.”
The approach has helped Vera Health expand across Europe, where approximately 1 in 4 physicians in Spain and Italy and 1 in 7 in France use the platform, according to company data. Vera Health has achieved that international reach with a small team and a product that clinicians have largely discovered through their peers.
What will Vera Health’s Series A funding support next?
The financing will support further development of Vera Health’s clinical evidence infrastructure, expansion into additional healthcare markets and deeper partnerships with medical societies, publishers and health systems. The company will continue investing in locally relevant clinical guidance and tools that allow healthcare institutions to incorporate their own medical knowledge into the platform.
“In healthcare, trust is earned, not bought. Vera’s adoption among clinicians worldwide speaks to what Taieb and Maxime have built. By combining the most rigorous medical evidence with an understanding of each physician’s specialty, protocols and practice context, Vera makes the world’s medical knowledge relevant to how care is actually delivered. We believe that creates an enormous opportunity to improve global health,” said Andrew Brackin, Partner at Gradient.
“Vera is compelling because it starts with the evidence, not just an answer—helping clinicians find and assess the research behind a decision while making its strengths and limitations visible. By bringing that evidence to the point of care, Vera becomes a trusted clinical intelligence layer, not just another AI tool,” said Emily Melton, co-founder and managing partner of Threshold Ventures.
Vera Health will remain free for licensed clinicians and medical trainees worldwide as it expands access to medical evidence and locally relevant clinical guidance.
New medical knowledge takes an estimated 17 years to reach routine clinical practice, according to research published in the Journal of the Royal Society of Medicine. Vera Health aims to reduce the time physicians spend searching for and evaluating that knowledge, bringing relevant evidence closer to the moment clinical decisions are made.
“Our mission is to close the gap between what medicine knows and what every patient receives,” said Bennani. “Today, that gap is measured in years. We want it measured in seconds.”
About Vera Health
Vera Health is the search engine that reasons like a clinician, finding and grading evidence before showing the source, strength and limits behind every answer. More than 800,000 clinicians in 190 countries use Vera, which is free for licensed clinicians and trainees, never trains on clinicians’ questions, and is HIPAA and GDPR compliant and SOC 2 Type II certified. Founded in 2024 at Y Combinator by MIT graduates and sons of physicians Taieb Bennani and Maxime Allouch, Vera is headquartered in San Francisco and backed by Threshold Ventures, Gradient, Y Combinator, SV Angel and Mantis VC.
Learn more at verahealth.ai.
¹ Download data: Appark, worldwide App Store and Google Play downloads, June through [September] 2026.
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