2023 Q2 highlights:
- Revenue was $18.6 million, an
increase of 25% compared to the corresponding period of 2022
- Net income was $5.9 million, an
increase of 44% compared to the corresponding period of 2022
- Cash, cash equivalents and short-term investments of
$51.8 million
SANTA
CLARA, Calif., Aug. 10,
2023 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq:
SMLR), a company that develops, manufactures and markets innovative
medical products and services that assist in evaluating and
treating chronic diseases, today reported financial results for the
three and six months ended June 30,
2023.
"We are pleased to report once again record quarterly revenues
and pre-tax net income predominately from sales of
QuantaFlo® for peripheral arterial disease testing,"
said Doug Murphy-Chutorian, MD,
chief executive officer of Semler Scientific. "We are encouraged by
our results year to date and are highly focused on developing our
business in heart dysfunction."
FINANCIAL RESULTS
For the quarter ended June 30,
2023, compared to the corresponding period of 2022, Semler
Scientific reported:
- Revenue of $18.6 million, an
increase of $3.8 million, or 25%,
compared to $14.8 million.
-
- Fixed fee software license revenues were $9.6 million, an increase of $1.1 million, or 13%, compared to $8.5 million.
- Variable fee software license revenues were $8.4 million, an increase of $2.4 million, or 39%, compared to $6.0 million.
- Sales of other products were $0.6
million, an increase of $0.3
million, or 128%, compared to $0.3
million.
- Cost of revenues of $1.2 million,
an increase of $0.2 million, or 27%,
compared to $1.0 million. As a
percentage of revenues, cost of revenues was unchanged at 7%.
- Total operating expenses of $11.4
million, which includes cost of revenues, an increase of
$1.8 million, or 18%, compared to
$9.6 million. As a percentage of
revenues, operating expenses decreased to 61% compared to 65%.
- Pre-tax net income of $7.7
million, an increase of $2.5
million, or 48%, compared to $5.2
million.
- Income tax expense of $1.8
million, or an effective tax rate of 23%, compared to
$1.1 million, or an effective tax
rate of 22%.
- Net income of $5.9 million, or
$0.88 per basic share and
$0.75 per diluted share, an increase
of $1.8 million, or 44%, compared to
$4.1 million, or $0.60 per basic share and $0.51 per diluted share.
Semler Scientific's two largest customers (including their
affiliates) comprised 37% and 34% of second quarter revenues in
2023.
For the six months ended June 30,
2023, compared to the corresponding period of 2022, Semler
Scientific reported:
- Revenues of $36.8, an increase of
$8.0 million, or 28%, compared to
$28.8 million.
-
- Fixed fee software license revenues were $18.9 million, an increase of $2.5 million, or 15%, compared to $16.4 million.
- Variable fee software license revenues were $16.9 million, an increase of $5.0 million, or 43% compared to $11.9 million.
- Sales of other products were $1.0
million, an increase of $0.4
million, or 72%, compared to $0.6
million.
- Cost of revenues of $2.5 million,
an increase of $0.5 million, or 29%,
compared to $2.0 million. As a
percentage of revenues, cost of revenues was flat at 7%.
- Total operating expenses, which includes cost of revenues, of
$23.4 million, an increase of
$3.7 million, or 19%, compared to
$19.7 million. As a percentage of
revenues, operating expenses decreased to 64%, compared to
68%.
- Pre-tax net income of $14.3
million, an increase of $5.2
million, or 57%, compared to $9.1
million.
- Income tax expense of $3.5
million, or an effective tax rate of 24% compared to
$1.7 million, or an effective tax
rate of 19%.
- Net income of $10.8 million, or
$1.62 per basic share and
$1.38 per diluted share, an increase
of $3.4 million, or 46%, compared to
$7.4 million, or $1.10 per basic share and $0.92 per diluted share.
SECOND QUARTER 2023 MAJOR ACCOMPLISHMENTS
- Highest quarterly revenues since inception.
- Highest quarterly pre-tax net income since inception.
- Record cash, cash equivalents and short-term investments
balance.
Notice of Conference Call
Semler Scientific will host a conference call today at
4:30 p.m. ET. The call will address
results of the second quarter ended June 30,
2023, as well as provide a business update on Semler
Scientific's strategies for the near-term future.
Participants are encouraged to pre-register for the conference
call using the following link:
https://dpregister.com/sreg/10179834/f9b1852ee8. Callers
who pre-register will be given a conference passcode and unique PIN
to gain immediate access to the call and bypass the live operator.
Participants may pre-register at any time, including up to and
after the call start time. Those without internet access or who are
unable to pre-register may dial in by calling:
Domestic callers: (866) 777–2509
International callers: (412) 317–5413
Please specify to the operator that you would like to join the
"Semler Scientific Call." The conference call will be archived on
Semler Scientific's website at www.semlerscientific.com.
Semler
Scientific, Inc.
Statements of
Income
Unaudited
(In thousands of U.S.
Dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended June 30,
|
|
For the six months
ended June 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
18,605
|
|
$
|
14,828
|
|
$
|
36,811
|
|
$
|
28,845
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
1,219
|
|
|
963
|
|
|
2,488
|
|
|
1,932
|
Engineering and product
development
|
|
|
1,762
|
|
|
1,074
|
|
|
3,392
|
|
|
2,200
|
Sales and
marketing
|
|
|
4,985
|
|
|
4,201
|
|
|
10,177
|
|
|
8,878
|
General and
administrative
|
|
|
3,459
|
|
|
3,412
|
|
|
7,318
|
|
|
6,715
|
Total operating
expenses
|
|
|
11,425
|
|
|
9,650
|
|
|
23,375
|
|
|
19,725
|
Income from
operations
|
|
|
7,180
|
|
|
5,178
|
|
|
13,436
|
|
|
9,120
|
Interest
income
|
|
|
597
|
|
|
13
|
|
|
1,080
|
|
|
14
|
Change in fair value of
notes held for investment
|
|
|
(111)
|
|
|
—
|
|
|
(217)
|
|
|
—
|
Other income,
net
|
|
|
486
|
|
|
13
|
|
|
863
|
|
|
14
|
Pre-tax net
income
|
|
|
7,666
|
|
|
5,191
|
|
|
14,299
|
|
|
9,134
|
Income tax
provision
|
|
|
1,787
|
|
|
1,117
|
|
|
3,451
|
|
|
1,700
|
Net income
|
|
$
|
5,879
|
|
$
|
4,074
|
|
$
|
10,848
|
|
$
|
7,434
|
Net income per share,
basic
|
|
$
|
0.88
|
|
$
|
0.60
|
|
$
|
1.62
|
|
$
|
1.10
|
Weighted average number
of shares used in computing
basic net income per share
|
|
|
6,707,341
|
|
|
6,761,050
|
|
|
6,704,306
|
|
|
6,769,552
|
Net income per share,
diluted
|
|
$
|
0.75
|
|
$
|
0.51
|
|
$
|
1.38
|
|
$
|
0.92
|
Weighted average number
of shares used in computing
diluted net income per share
|
|
|
7,867,001
|
|
|
8,029,302
|
|
|
7,887,584
|
|
|
8,071,509
|
Semler
Scientific, Inc.
Balance
Sheets
Unaudited
(In thousands of
U.S. Dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
39,495
|
|
$
|
23,014
|
Short-term
investments
|
|
|
12,330
|
|
|
20,073
|
Trade accounts
receivable, net of reserves of $154 and $109,
respectively
|
|
|
6,032
|
|
|
3,884
|
Inventory,
net
|
|
|
476
|
|
|
469
|
Prepaid expenses and
other current assets
|
|
|
2,418
|
|
|
1,468
|
Total current
assets
|
|
|
60,751
|
|
|
48,908
|
Assets for lease,
net
|
|
|
2,891
|
|
|
2,478
|
Property and equipment,
net
|
|
|
796
|
|
|
667
|
Long-term
investments
|
|
|
821
|
|
|
821
|
Notes held for
investment (includes measured at fair value of $3,962 and
$3,679,
respectively)
|
|
|
4,962
|
|
|
4,679
|
Other non-current
assets
|
|
|
2,736
|
|
|
2,842
|
Long-term deferred tax
assets
|
|
|
2,505
|
|
|
2,298
|
Total
assets
|
|
$
|
75,462
|
|
$
|
62,693
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
509
|
|
$
|
835
|
Accrued
expenses
|
|
|
8,243
|
|
|
4,748
|
Deferred
revenue
|
|
|
1,188
|
|
|
1,160
|
Other short-term
liabilities
|
|
|
143
|
|
|
114
|
Total current
liabilities
|
|
|
10,083
|
|
|
6,857
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
|
116
|
|
|
160
|
Total long-term
liabilities
|
|
|
116
|
|
|
160
|
Commitments and
contingencies (Note 14)
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
Common stock, $0.001
par value; 50,000,000 shares authorized; 6,923,446, and
6,906,544 shares issued, and 6,709,024 and 6,692,122 shares
outstanding (treasury
shares of 214,422 and 214,422), respectively
|
|
|
7
|
|
|
7
|
Additional paid-in
capital
|
|
|
15,188
|
|
|
16,449
|
Retained
earnings
|
|
|
50,068
|
|
|
39,220
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
65,263
|
|
|
55,676
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
75,462
|
|
$
|
62,693
|
Semler
Scientific, Inc.
Statements of Cash
Flows
Unaudited
(In thousands of
U.S. Dollars)
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
2023
|
|
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
|
$
|
10,848
|
|
$
|
7,434
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
279
|
|
|
309
|
Deferred tax
income
|
|
|
(207)
|
|
|
(160)
|
Loss on disposal of
assets for lease
|
|
|
114
|
|
|
215
|
Allowance for credit
losses
|
|
|
92
|
|
|
38
|
Change in fair value
of notes held for investment
|
|
|
217
|
|
|
—
|
Gain on short-term
investments
|
|
|
(237)
|
|
|
—
|
Stock-based
compensation
|
|
|
860
|
|
|
676
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(2,240)
|
|
|
(1,962)
|
Inventory
|
|
|
(7)
|
|
|
26
|
Prepaid expenses and
other current assets
|
|
|
(950)
|
|
|
1,276
|
Other non-current
assets
|
|
|
106
|
|
|
(1,960)
|
Accounts
payable
|
|
|
(326)
|
|
|
20
|
Accrued
expenses
|
|
|
3,495
|
|
|
1,800
|
Other current and
non-current liabilities
|
|
|
13
|
|
|
20
|
Net Cash Provided
by Operating Activities
|
|
|
12,057
|
|
|
7,732
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(260)
|
|
|
(258)
|
Purchase of notes held
for investment
|
|
|
(500)
|
|
|
(1,179)
|
Proceeds from
maturities of short-term investments
|
|
|
57,707
|
|
|
—
|
Purchase of short-term
investments
|
|
|
(49,728)
|
|
|
—
|
Purchase of assets for
lease
|
|
|
(674)
|
|
|
(600)
|
Net Cash Provided
by (Used in) Investing Activities
|
|
|
6,545
|
|
|
(2,037)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Taxes paid related to
net settlement of equity awards
|
|
|
(172)
|
|
|
(114)
|
Common stock warrants
acquired
|
|
|
(1,949)
|
|
|
—
|
Treasury stock
acquired
|
|
|
—
|
|
|
(2,945)
|
Proceeds from exercise
of stock options
|
|
|
—
|
|
|
72
|
Net Cash Used in
Financing Activities
|
|
|
(2,121)
|
|
|
(2,987)
|
INCREASE IN
CASH
|
|
|
16,481
|
|
|
2,708
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
23,014
|
|
|
37,323
|
CASH AND CASH
EQUIVALENTS, END OF PERIOD
|
|
$
|
39,495
|
|
$
|
40,031
|
About Semler Scientific, Inc.:
Semler Scientific, Inc. develops, manufactures and markets
innovative products and services that assist in evaluating and
treating chronic diseases. Its flagship product,
QuantaFlo®, which is patented and cleared by the U.S.
Food and Drug Administration (FDA), is a rapid point-of-care test
that measures arterial blood flow in the extremities. The
QuantaFlo® test aids in the diagnosis of cardiovascular
diseases, such as peripheral arterial disease (PAD) and heart
dysfunction (HD). QuantaFlo® is used by healthcare
providers to evaluate their patient's risk of mortality and major
adverse cardiovascular events (MACE). In addition, Semler
Scientific has an agreement with Mellitus Health, Inc. (Mellitus)
to exclusively market and distribute Insulin Insights™, an
FDA cleared software product that recommends optimal insulin dosing
for diabetic patients in the United
States, including Puerto
Rico. Semler Scientific has a minority investment in
Mellitus, as well as Monarch Medical Technologies LLC, a privately
held company whose product EndoTool® offers a
technological solution for inpatient glycemic management.
Additional information about Semler Scientific can be found at
www.semlerscientific.com.
Forward-Looking Statements
This press release contains "forward-looking" statements. Such
statements can be identified by, among other things, the use of
forward-looking language such as the words "believe," "goal,"
"may," "will," "intend," "expect," "anticipate," "estimate,"
"project," "would," "could" or words with similar meaning or the
negatives of these terms or by the discussion of strategy or
intentions. The forward-looking statements in this release include
express or implied statements regarding developing business in
heart dysfunction and diabetes; continued testing of asymptomatic
patients; and the benefits of early identification of at-risk
patients; among others. Such forward-looking statements are subject
to a number of risks and uncertainties that could cause Semler
Scientific's actual results to differ materially from those
discussed here, such as whether or not insurance plans and other
customers will continue to license its cardiovascular testing
products, including the risk of changes in the reimbursement
landscape for its customers including related to the recent CMS
rate announcement; whether or not it will be able to successfully
expand its product offering, including into heart dysfunction and
diabetes; whether or not QuantaFlo® can successfully aid
in the diagnosis of heart dysfunction; along with those risk
factors detailed in Semler Scientific's filings with the Securities
and Exchange Commission. These forward-looking statements involve
assumptions, estimates, and uncertainties that reflect current
internal projections, expectations or beliefs. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. All forward-looking statements
contained in this press release are qualified in their entirety by
these cautionary statements and the risk factors described above.
Furthermore, all such statements are made as of the date of this
release and Semler Scientific assumes no obligation to update or
revise these statements unless otherwise required by law.
INVESTOR CONTACT:
Renae Cormier
Chief Financial Officer
ir@semlerscientific.com
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SOURCE Semler Scientific, Inc.