2023 Q4 and full year highlights compared to the
corresponding period of 2022:
- Fourth quarter revenues were $15.1
million, an increase of 9%
- Fourth quarter net income was $4.2
million, an increase of 31%
- Full year revenues were $68.2
million, an increase of 20%
- Full year net income was $20.6
million, an increase of 44%
- Cash balance increased to $57.3
million
SANTA
CLARA, Calif., March 5,
2024 /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
fourth quarter and full year ended December
31, 2023.
"We are pleased to report continued growth in year-over-year
quarterly and full year revenues and net income, predominately from
sales of QuantaFlo® for peripheral arterial disease testing," said
Doug Murphy-Chutorian, MD, chief
executive officer of Semler Scientific. "We remain focused on
continuing to market our product while seeking a new 510(k)
clearance from the FDA with expanded labeling for use as an aid in
the diagnosis of other cardiovascular diseases."
FINANCIAL RESULTS
For the year ended December 31,
2023, compared to the corresponding period of 2022, Semler
Scientific reported:
- Revenues of $68.2 million, an
increase of $11.5 million, or 20%,
compared to $56.7 million.
- Fixed fee software license revenues of $37.3 million, an increase of $3.3 million, or 9%, compared to $34.0 million.
- Variable fee software license revenues of $29.0 million, an increase of $7.7 million, or 36%, compared to $21.3 million.
- Sales of other products of $1.9
million, an increase of $0.5
million, or 42%, compared to $1.4
million.
- Cost of revenues of $7.0 million,
an increase of $2.7 million or 64%
compared to $4.3 million. As a
percentage of revenues, cost of revenues increased to 10%, compared
to 8% in the prior year period.
- Total operating expenses of $45.9
million, which includes cost of revenues, an increase of
$6.4 million, or 16%, compared to
$39.5 million. As a percentage of
revenues, operating expenses decreased to 67% compared to 70%.
- Pre-tax income of $24.1 million,
an increase of $6.4 million, or 36%,
compared to $17.7 million.
- Income tax expense of $3.5
million, or an effective tax rate of 15%, compared to
$3.4 million, or an effective tax
rate of 19%.
- Net income of $20.6 million, or
$3.06 per basic share and
$2.63 per diluted share, an increase
of $6.3 million, or 44%, compared to
$14.3 million, or $2.13 per basic share and $1.79 per diluted share.
Note: Cost of revenues for the full year ended
December 31, 2023 includes a
$2.5 million write-off of prepaid
software licenses for Insulin Insights.
Semler Scientific's two largest customers (including their
affiliates) comprised 36% and 35% of full year revenues in 2023
and 40.4% and 29.0% of annual revenues in 2022.
For the fourth quarter ended December 31,
2023, compared to the corresponding period of 2022, Semler
Scientific reported:
- Revenues of $15.1 million, an
increase of $1.3 million, or 9%,
compared to $13.8 million.
- Fixed fee software license revenues of $8.8 million, a decrease of $0.2 million, or 2%, compared to $9.0 million.
- Variable fee software license revenues of $5.8 million, an increase of $1.3 million, or 28% compared to $4.5 million.
- Sales of other products of $0.5
million, an increase of $0.2
million, or 71%, compared to $0.3
million.
- Cost of revenues of $3.4 million,
an increase of $2.2 million, or 186%,
compared to $1.2 million. As a
percentage of revenues, cost of revenues was 22% compared to
9%.
- Total operating expenses of $12.5
million, which includes cost of revenues, an increase of
$2.3 million, or 23%, compared to
$10.2 million. As a percentage of
revenues, operating expenses increased to 83%, compared to
74%.
- Pre-tax income of $2.8 million, a
decrease of $1.2 million, or 29%,
compared to $4.0 million.
- Income tax benefit of $1.4
million, or an effective tax benefit rate of 50% compared to
income tax expense of $0.7 million,
or an effective tax rate of 19%.
- Net income of $4.2 million, or
$0.62 per basic share and
$0.55 per diluted share, an increase
of $1.0 million, or 31%, compared to
$3.2 million, or $0.48 per basic share and $0.41 per diluted share.
Note: Cost of revenues for the fourth quarter and full
year ended December 31, 2023 includes
a $2.5 million write-off of prepaid
software licenses for Insulin Insights.
Semler Scientific's three largest customers (including their
affiliates) comprised 37%, 32% and 11% of the fourth quarter
revenues in 2023 and two largest customers (including their
affiliates) comprised 43.3% and 25.8% of fourth quarter revenues in
2022.
MAJOR ACCOMPLISHMENTS IN 2023
- Continued year-over-year revenue growth.
- Continued year-over-year net income growth.
- Record balance of cash and cash equivalents.
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 fourth quarter and year ended December 31, 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/10185342/fb4eeec618. 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: (833) 816–1161
International callers: (412) 317–0717
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 December 31,
|
|
For the year ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
15,056
|
|
$
|
13,794
|
|
$
|
68,184
|
|
$
|
56,686
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
3,384
|
|
|
1,182
|
|
|
6,984
|
|
|
4,252
|
|
Engineering and product
development
|
|
|
1,207
|
|
|
1,365
|
|
|
5,773
|
|
|
4,809
|
|
Sales and
marketing
|
|
|
4,546
|
|
|
4,654
|
|
|
18,147
|
|
|
17,685
|
|
General and
administrative
|
|
|
3,262
|
|
|
2,977
|
|
|
14,290
|
|
|
12,737
|
|
Strategic
streamlining
|
|
|
135
|
|
|
—
|
|
|
734
|
|
|
—
|
|
Total operating
expenses
|
|
|
12,534
|
|
|
10,178
|
|
|
45,928
|
|
|
39,483
|
|
Income from
operations
|
|
|
2,522
|
|
|
3,616
|
|
|
22,256
|
|
|
17,203
|
|
Interest and dividend
income
|
|
|
699
|
|
|
343
|
|
|
2,471
|
|
|
494
|
|
Impairment of
investments
|
|
|
(337)
|
|
|
—
|
|
|
(337)
|
|
|
—
|
|
Change in fair value of
notes held for investment
|
|
|
(90)
|
|
|
—
|
|
|
(307)
|
|
|
—
|
|
Other income
(expenses)
|
|
|
20
|
|
|
(3)
|
|
|
17
|
|
|
(5)
|
|
Other income,
net
|
|
|
292
|
|
|
340
|
|
|
1,844
|
|
|
489
|
|
Pre-tax
income
|
|
|
2,814
|
|
|
3,956
|
|
|
24,100
|
|
|
17,692
|
|
Income tax
provision
|
|
|
(1,407)
|
|
|
740
|
|
|
3,517
|
|
|
3,367
|
|
Net income
|
|
$
|
4,221
|
|
$
|
3,216
|
|
$
|
20,583
|
|
$
|
14,325
|
|
Net income per share,
basic
|
|
$
|
0.62
|
|
$
|
0.48
|
|
$
|
3.06
|
|
$
|
2.13
|
|
Weighted average number
of shares used in computing basic net
income per share
|
|
|
6,804,998
|
|
|
6,691,406
|
|
|
6,732,806
|
|
|
6,726,687
|
|
Net income per share,
diluted
|
|
$
|
0.55
|
|
$
|
0.41
|
|
$
|
2.63
|
|
$
|
1.79
|
|
Weighted average number
of shares used in computing diluted
net income per share
|
|
|
7,734,263
|
|
|
7,917,991
|
|
|
7,819,159
|
|
|
7,999,750
|
|
Semler
Scientific, Inc.
|
|
Balance
Sheets
|
|
Unaudited
|
|
(In thousands of
U.S. Dollars, except share and per share data)
|
|
|
|
December 31,
|
|
December 31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
57,200
|
|
$
|
23,014
|
|
Restricted
cash
|
|
|
132
|
|
|
—
|
|
Short-term
investments
|
|
|
—
|
|
|
20,073
|
|
Trade accounts
receivable, net of allowance for credit losses of $287 and $109,
respectively
|
|
|
6,125
|
|
|
3,884
|
|
Inventory,
net
|
|
|
445
|
|
|
469
|
|
Prepaid expenses
and other current assets
|
|
|
2,042
|
|
|
1,468
|
|
Total current
assets
|
|
|
65,944
|
|
|
48,908
|
|
Assets for lease,
net
|
|
|
2,285
|
|
|
2,478
|
|
Property and equipment,
net
|
|
|
720
|
|
|
667
|
|
Long-term
investments
|
|
|
512
|
|
|
821
|
|
Notes held for
investment (includes measured at fair value of $4,372 and $3,679,
respectively)
|
|
|
5,372
|
|
|
4,679
|
|
Other non-current
assets
|
|
|
270
|
|
|
2,842
|
|
Deferred tax
assets
|
|
|
2,962
|
|
|
2,298
|
|
Total
assets
|
|
$
|
78,065
|
|
$
|
62,693
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
402
|
|
$
|
835
|
|
Accrued
expenses
|
|
|
4,502
|
|
|
4,748
|
|
Deferred
revenue
|
|
|
1,120
|
|
|
1,160
|
|
Other short-term
liabilities
|
|
|
176
|
|
|
114
|
|
Total current
liabilities
|
|
|
6,200
|
|
|
6,857
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
|
|
70
|
|
|
160
|
|
Total long-term
liabilities
|
|
|
70
|
|
|
160
|
|
Commitments and
contingencies (Note 13)
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 50,000,000 shares authorized; 7,099,441 and 6,906,544
shares
issued, and 6,885,019 and 6,692,122 shares outstanding (treasury
shares of 214,422 and
214,422), respectively
|
|
|
7
|
|
|
7
|
|
Additional paid-in
capital
|
|
|
11,985
|
|
|
16,449
|
|
Retained
earnings
|
|
|
59,803
|
|
|
39,220
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
|
71,795
|
|
|
55,676
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
78,065
|
|
$
|
62,693
|
|
Semler
Scientific, Inc.
|
|
Statements of Cash
Flows
|
|
Unaudited
|
|
(In thousands of
U.S. Dollars)
|
|
|
|
Year ended December
31,
|
|
|
2023
|
|
2022
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
20,583
|
|
$
|
14,325
|
|
|
|
|
|
|
|
|
Reconciliation of Net
Income to Net Cash Provided by Operating Activities:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
599
|
|
|
589
|
|
Deferred tax
expense
|
|
|
(664)
|
|
|
(351)
|
|
Loss on disposal
of assets for lease
|
|
|
369
|
|
|
463
|
|
Write off of
prepaid software licenses
|
|
|
2,476
|
|
|
—
|
|
Gain on
short-term investments
|
|
|
(151)
|
|
|
(77)
|
|
Allowance for
credit losses
|
|
|
268
|
|
|
103
|
|
Change in fair
value of notes held for investment
|
|
|
307
|
|
|
—
|
|
Stock-based
compensation
|
|
|
944
|
|
|
741
|
|
Impairment of
long term investments
|
|
|
337
|
|
|
—
|
|
Changes in Operating
Assets and Liabilities:
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(2,508)
|
|
|
(367)
|
|
Inventory
|
|
|
24
|
|
|
81
|
|
Prepaid expenses
and other current assets
|
|
|
(603)
|
|
|
2,576
|
|
Other
non-current assets
|
|
|
96
|
|
|
(2,510)
|
|
Accounts
payable
|
|
|
(433)
|
|
|
392
|
|
Accrued
expenses
|
|
|
(246)
|
|
|
1,310
|
|
Other current
and non-current liabilities
|
|
|
(68)
|
|
|
188
|
|
Net Cash Provided
by Operating Activities
|
|
|
21,330
|
|
|
17,463
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Additions to property
and equipment
|
|
|
(345)
|
|
|
(476)
|
|
Purchase of notes held
for investment
|
|
|
(1,000)
|
|
|
—
|
|
Proceeds from
maturities of short-term investments
|
|
|
78,093
|
|
|
(4,679)
|
|
Purchase of short-term
investments
|
|
|
(57,869)
|
|
|
(19,996)
|
|
Purchase of assets for
lease
|
|
|
(483)
|
|
|
(1,684)
|
|
Net Cash Provided
by (Used in) Investing Activities
|
|
|
18,396
|
|
|
(26,835)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Taxes paid related to
net settlement of equity awards
|
|
|
(3,510)
|
|
|
(114)
|
|
Common stock warrants
acquired
|
|
|
(1,949)
|
|
|
—
|
|
Treasury stock
acquired
|
|
|
—
|
|
|
(4,991)
|
|
Proceeds from exercise
of stock options
|
|
|
51
|
|
|
168
|
|
Net Cash Used in
Financing Activities
|
|
|
(5,408)
|
|
|
(4,937)
|
|
INCREASE (DECREASE)
IN CASH
|
|
|
34,318
|
|
|
(14,309)
|
|
CASH AND CASH
EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
23,014
|
|
|
37,323
|
|
CASH, CASH
EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD
|
|
$
|
57,332
|
|
$
|
23,014
|
|
Supplemental Disclosure
of Cash Flow Information:
|
|
|
|
|
|
|
|
Cash paid for
taxes
|
|
$
|
4,060
|
|
$
|
2,400
|
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 Semler Scientific is seeking a new 510(k) clearance for
expanded indications. QuantaFlo® is used by healthcare providers to
evaluate their patient's risk of mortality and major adverse
cardiovascular events (MACE). Semler Scientific has a minority
investment in Mellitus, SYNAPS Dx, 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 seeking a new 510(k)
clearance for QuantaFlo® with expanded indications for use; 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
QuantaFlo® can successfully aid in the diagnosis of PAD
or obtain a new 510(k) clearance for expanded indications; 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.