Semler Scientific® Reports Third Quarter 2024 Financial Results and Additional Bitcoin Purchases
Rhea-AI Summary
Semler Scientific (NASDAQ: SMLR) reported Q3 2024 financial results showing revenues of $13.5M, down 17% year-over-year, and net income of $5.6M ($0.80 per basic share). The company announced additional bitcoin purchases, bringing total holdings to 1,058 bitcoins acquired for $71.0M. Income from operations was $5.1M, a 20% decrease from Q3 2023. The company's two largest customers comprised 44% and 29% of Q3 2024 revenues. Semler continues to focus on bitcoin acquisition while maintaining its healthcare business, utilizing both operating cash flow and ATM program proceeds for purchases.
Positive
- Net income increased 2% to $5.6M compared to $5.5M in Q3 2023
- Unrealized gain of $1.1M from bitcoin holdings in Q3 2024
- Lower effective tax rate of 12% compared to 21% in prior year
Negative
- Revenue decreased 17% to $13.5M from $16.3M in Q3 2023
- Income from operations declined 20% to $5.1M from $6.3M
- High customer concentration with two clients representing 73% of revenue
- Operating expenses increased 4% in cost of revenues
- Cumulative reduction in fair value of bitcoin holdings of $3.9M
News Market Reaction 1 Alert
On the day this news was published, SMLR gained 30.13%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
"We are pleased to report strong performance from our healthcare business with income from operations of
"We are capitalizing on the opportunity to maximize stakeholder value by accumulating bitcoin," said Eric Semler, chairman of Semler Scientific. "We plan to continue to purchase bitcoin with cash from operations and with cash proceeds from our sales under our ATM program. In addition, we are exploring additional financing opportunities that will enable us to acquire even more bitcoin."
FINANCIAL RESULTS
For the third quarter ended September 30, 2024, compared to the corresponding period of 2023, Semler Scientific reported:
- Revenues of
$13.5 million $2.8 million 17% , compared to$16.3 million - Cost of revenues of
$1.2 million $0.1 million 4% , compared to$1.1 million - Total operating expenses, which include cost of revenues, of
$8.4 million $1.6 million 16% , compared to$10.0 million - Income from operations of
$5.1 million $1.2 million 20% , compared to$6.3 million - Pre-tax income of
$6.4 million $1.1 million $0.6 million 9% , compared to$7.0 million - Income tax expense of
$0.8 million 12% , compared to$1.5 million 21% . - Net income of
$5.6 million $0.80 $0.72 $0.1 million 2% , compared to net income of$5.5 million $0.82 $0.71
Semler Scientific's two largest customers (including their affiliates) comprised
BITCOIN HOLDINGS
As of September 30, 2024, Semler Scientific held 1,018 bitcoins with a fair value of
Subsequently through November 4, 2024, Semler Scientific purchased an additional 40 bitcoins for an aggregate cost of
ATM Update
As previously disclosed in Semler Scientific's registration statement on Form S-3 that became effective on August 13, 2024, Semler Scientific entered into a Controlled Equity Offeringsm Sales Agreement (the Sales Agreement) with Cantor Fitzgerald & Co., pursuant to which the Company may issue and sell from time to time up to
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 third quarter ended September 30, 2024, as well as provide a business update on Semler Scientific's strategies for the near-term future. Questions can be submitted prior to the start of the call to ir@semlerscientific.com.
Participants are encouraged to pre-register for the conference call using the following link: https://dpregister.com/sreg/10193272/fda6de9798. 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. Condensed Statements of Income Unaudited (In thousands of | ||||||||||||
For the three months ended September 30, | For the nine months ended September 30, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
Revenues | $ | 13,512 | $ | 16,316 | $ | 43,881 | $ | 53,127 | ||||
Operating expenses: | ||||||||||||
Cost of revenues | 1,156 | 1,111 | 3,657 | 3,599 | ||||||||
Engineering and product development | 1,186 | 1,174 | 3,764 | 4,566 | ||||||||
Sales and marketing | 2,976 | 3,423 | 10,107 | 13,601 | ||||||||
General and administrative | 3,129 | 3,710 | 8,962 | 11,028 | ||||||||
Strategic streamlining | — | 599 | — | 599 | ||||||||
Total operating expenses | 8,447 | 10,017 | 26,490 | 33,393 | ||||||||
Income from operations | 5,065 | 6,299 | 17,391 | 19,734 | ||||||||
Interest and dividend income | 168 | 692 | 1,699 | 1,772 | ||||||||
Change in fair value of notes held for investment | — | — | 128 | (217) | ||||||||
Change in fair value of digital assets | 1,137 | — | (3,918) | — | ||||||||
Other income (expense) | 5 | (3) | 8 | (3) | ||||||||
Other income (expense), net | 1,310 | 689 | (2,083) | 1,552 | ||||||||
Pre-tax income | 6,375 | 6,988 | 15,308 | 21,286 | ||||||||
Income tax provision | 766 | 1,474 | 3,615 | 4,924 | ||||||||
Net income | $ | 5,609 | $ | 5,514 | $ | 11,693 | $ | 16,362 | ||||
Net income per share, basic | $ | 0.80 | $ | 0.82 | $ | 1.68 | $ | 2.44 | ||||
Weighted average number of shares used in computing basic net income per share | 7,045,108 | 6,717,301 | 6,961,095 | 6,708,675 | ||||||||
Net income per share, diluted | $ | 0.72 | $ | 0.71 | $ | 1.50 | $ | 2.09 | ||||
Weighted average number of shares used in computing diluted net income per share | 7,771,088 | 7,818,236 | 7,783,350 | 7,847,390 | ||||||||
Semler Scientific, Inc. Condensed Balance Sheets (In thousands of | ||||||
September 30, | December 31, | |||||
2024 | 2023 | |||||
Unaudited | ||||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents | $ | 6,568 | $ | 57,200 | ||
Restricted cash | 133 | 132 | ||||
Trade accounts receivable, net of allowance for credit losses of | 6,667 | 6,125 | ||||
Short-term notes held for investment | 6,100 | — | ||||
Inventory, net | 380 | 445 | ||||
Prepaid expenses and other current assets | 1,646 | 2,042 | ||||
Total current assets | 21,494 | 65,944 | ||||
Assets for lease, net | 1,737 | 2,285 | ||||
Property and equipment, net | 548 | 720 | ||||
Long-term investments | 512 | 512 | ||||
Notes held for investment | — | 5,372 | ||||
Intangible digital assets | 64,482 | — | ||||
Other non-current assets | 106 | 270 | ||||
Deferred tax assets, net of valuation allowance of | 3,315 | 2,962 | ||||
Total assets | $ | 92,194 | $ | 78,065 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 545 | $ | 402 | ||
Accrued expenses | 5,258 | 4,502 | ||||
Deferred revenue | 805 | 1,120 | ||||
Other short-term liabilities | 231 | 176 | ||||
Total current liabilities | 6,839 | 6,200 | ||||
Long-term liabilities: | ||||||
Other long-term liabilities | — | 70 | ||||
Total long-term liabilities | — | 70 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock, | 7 | 7 | ||||
Additional paid-in capital | 13,852 | 11,985 | ||||
Retained earnings | 71,496 | 59,803 | ||||
Total stockholders' equity | 85,355 | 71,795 | ||||
Total liabilities and stockholders' equity | $ | 92,194 | $ | 78,065 | ||
Semler Scientific, Inc. Condensed Statements of Cash Flows Unaudited (In thousands of | ||||||
Nine months ended September 30, | ||||||
2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | $ | 11,693 | $ | 16,362 | ||
Reconciliation of Net Income to Net Cash Provided by Operating Activities: | ||||||
Depreciation | 480 | 439 | ||||
Deferred tax expense | (353) | (478) | ||||
Loss on disposal of assets for lease | 323 | 355 | ||||
Loss on disposal of inventory | — | 171 | ||||
Gain on short-term investments | — | (307) | ||||
Allowance for credit losses | (21) | 203 | ||||
Change in fair value of notes held for investment | (128) | 217 | ||||
Change in fair value of digital assets | 3,918 | — | ||||
Stock-based compensation | 498 | 907 | ||||
Changes in Operating Assets and Liabilities: | ||||||
Trade accounts receivable | (512) | (2,284) | ||||
Inventory | 65 | 30 | ||||
Prepaid expenses and other current assets | 388 | (478) | ||||
Other non-current assets | 64 | 98 | ||||
Accounts payable | 143 | (535) | ||||
Accrued expenses | 756 | 2,250 | ||||
Other current and non-current liabilities | (16) | (22) | ||||
Deferred revenue | (315) | (40) | ||||
Net Cash Provided by Operating Activities | 16,983 | 16,888 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Additions to property and equipment | (48) | (310) | ||||
Purchase of notes held for investment | (500) | (1,000) | ||||
Purchase of digital assets | (68,400) | — | ||||
Proceeds from maturities of short-term investments | — | 59,719 | ||||
Purchase of short-term investments | — | (57,869) | ||||
Purchase of assets for lease | (35) | (773) | ||||
Net Cash Used in Investing Activities | (68,983) | (233) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Repurchase of warrants | — | (1,949) | ||||
Proceeds from issuance of common stock | 2,536 | — | ||||
Taxes paid related to net settlement of equity awards | (874) | (247) | ||||
Stock issuance expenses | (588) | — | ||||
Proceeds from exercise of stock options | 295 | 24 | ||||
Net Cash Provided by (Used in) Financing Activities | 1,369 | (2,172) | ||||
(DECREASE) INCREASE IN CASH | (50,631) | 14,483 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 57,332 | 23,014 | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ | 6,701 | $ | 37,497 | ||
Semler Scientific, Inc. Digital Assets- Additional Information Rollforward of bitcoin holdings Unaudited | |||||||||||||||
Source of Capital Used to Purchase Bitcoin | Digital Assets at Cost | Change in Fair Value | Digital Assets at Fair Value | Approximate Number of Bitcoin Held | Approximate Average Purchase Price Per Bitcoin | ||||||||||
Balance as of March 31, 2024 | $ | — | $ | — | $ | — | — | $ | — | ||||||
Digital assets purchased | (a) | 60,000 | 60,000 | 877 | 68,436 | ||||||||||
Change in fair value of the digital assets | (5,055) | (5,055) | |||||||||||||
Balance as of June 30, 2024 | $ | 60,000 | $ | (5,055) | $ | 54,945 | 877 | $ | 68,436 | ||||||
Digital assets purchased | (b) | 8,400 | — | 8,400 | 141 | 67,177 | |||||||||
Change in fair value of the digital assets | — | 1,137 | 1,137 | — | — | ||||||||||
Balance as of September 30, 2024 | $ | 68,400 | $ | (3,918) | $ | 64,482 | 1,018 | $ | 67,177 | ||||||
(a) | Cash from operations |
(b) | Cash from operations and proceeds from ATM offering. |
About Semler Scientific, Inc.:
Semler Scientific, Inc. is a pioneer in developing and marketing technology products and services to healthcare providers to combat chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the
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 acquiring and holding bitcoin; as well as innovation and growth in its healthcare business; and sales of securities under the Sales Agreement and other financings to support additional bitcoin purchases; seeking a new 510(k) clearance for QuantaFlo with expanded indications; 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 risks inherent with investing in bitcoin, including bitcoin's volatility; risk of implementing a new bitcoin treasury strategy; risk that insurance plans and other customers will not continue to license its cardiovascular testing products; risk of changes in the reimbursement landscape for its customers including related to the Centers for Medicare and Medicaid Services (CMS) rate announcement; risk of obtaining a new 510(k) clearance for expanded indications; along with those other 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 press release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.
No Offer or Solicitation
This press release does not and shall not constitute an offer to sell or a solicitation of an offer to buy any securities of Semler Scientific, Inc., nor shall there be any offer, solicitation or sale of such securities, in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
INVESTOR CONTACT:
Renae Cormier
Chief Financial Officer
ir@semlerscientific.com
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SOURCE Semler Scientific, Inc.
FAQ
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