SMLR - Earnings call transcript Q2 2018

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Operator

Good day, ladies and gentlemen, and welcome to the Semler Scientific Second Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions for how to participate will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

Before we begin, Semler Scientific would like to remind you that this conference call may contain forward-looking statements. risks identified or such and results words involve number be expect, may, such to can could a estimate, that those anticipate, with of differ statements materially by Scientific’s discussed as words will, statements cause from Such Semler uncertainties here. actual and similar meaning, to the revise that and revision undertakes presentation these Semler forward-looking or Please of of release these statements note results Scientific’s opinions light information obligation to in date reflect forward-looking only publicly the as of of future or statements no any new events. the SEC forward-looking of these affect Please Semler refer detailed that Scientific’s more Semler for statements. description to risk may factors Scientific’s filings and a result the

Now, CEO like I’d introduce Doug to Murphy-Chutorian, Scientific. of Semler

Doug Murphy-Chutorian

everybody, Scientific healthcare thank the improve solutions XXXX and joining the emerging is half first technology effectiveness morning, second of and results company and for Semler providers. call. financial Semler to clinical growth an you you. Thank provides quarter that Good efficiency

develop, report heart to growth. results and to morning. software events innovative treating to believe technology our and is before which in options products that distributed care Today, chronic enable and release, diseases. described was in and are Please this mission our that revenue like intervene and occur. strokes we refer preventive customers our manufacture appropriate identify to solutions customers evaluating Our financial continued are assist We that profit market attacks when the the press and

$X,XXX,XXX. was of quarterly cost development Operating expense from compared of engineering XXXX, of loss $XXX,XXX. of XX% includes was revenue a $X,XXX,XXX and of $X.XX was an or was XXXX, was as quarterly the increase of in revenue. of increase revenue XX, profit $X,XXX,XXX, basic profit which For $XXX,XXX $X,XXX,XXX quarter expense Earnings was Net $X,XXX,XXX, quarterly XX% quarterly the of quarter Analyzing was second revenue, or $X,XXX,XXX. from earnings was $X,XXX,XXX, share net of XX% X% and revenue, the ended share. were to XX% share marketing of categories and and from an increase revenue, diluted sales the period percentage XXXX, net Cost corresponding and of June revenue, XXX% an of XX% per expense revenue, and general quarterly expense $X.XX of a quarterly per administrative product revenue. of per expense,

of in proceeds. adjusted As accounts XX, of compared provided $X,XXX,XXX, increase exercise collections June by more XXXX, as sequentially which timely, decreased primarily to March options by $XXX,XXX $XXX,XXX and in $X,XXX,XXX, of warrants net items, cash income, Semler certain provided such to were increase as the XXXX from XX, due which cash as had an operations receivables

approximately and In due, on to of accrued reduction inventory addition compensation in was of by expenditures repayment and interest amounting cash the of of $XXX,XXX, $XX,XXX. notes about capital purchase principal partially the offset $XXX,XXX, the about and

came In XXXX, on Our more from include of the quarterly new revenue in growth of and XX-Q report Form second our our statement quarter of cash liquidity. cash and all flow licensing installations. will the discussion

recurring while supplies Some XX% with In quarter customers the supply for of usage per of accounted sales established previous each. of revenue In accounted from to and installations, others the second the licensing the customers usage sales due and these increased numbers accounted usage In fees, revenue. XX% comparison, accounted for XXXX, and business. XX% We first revenue XX% we fees fees more fees XXXX, of continue quarter of of during from customers. for grow revenue expansions field and usage while of fees system. in came report of of more of XXXX, Most to and specific expect installations rates of new from during for to were the were revenue numbers the second revenue quarter higher due usage to the licensing revenue. systems orders the licensing of don’t fees with

We our to and to customer strive base customers. from orders existing to achieve to continue additions expand

increase expect We quarter-to-quarter from in operating XXXX. expenses will

As history. expenses we in operating expect stated to before, able faster our to profitability full-year the profitable. the remain it that grow of fashion, revenue first a If be to at is we will control rate are intent in XXXX than Company’s expenses and we this

XXX% XXXX, first of share grew For of calculated earnings XX, were the X,XXX,XXX. a using from Net XXXX. of the X,XXX,XXX a count per share to a the quarter share count quarter ended basic quarter sequentially and income June diluted second

as not stated do formal we give previously Now, guidance.

change profitability intent However, remaining There during note million. maintaining will generated no Current capital the to and $X.X We revenue XXXX. and other obligations meet operations. interest using continuing anticipated approximately accrued are arises. we that on our repayment this cash indeed or as and debt liabilities growth from plans obligations believe raise reserve financing is total opportunity right plan time, we to additional we

plans, we we and a benefit preventive being healthcare Number that number remarks, will we vascular large goal care to patients for financial testing believe solutions the year tested health by industry. for of questions. support. be a three, prepared We improve believe well-positioned growth. and To health with a patient. number patients for continuing for government two, products. work provide to my our so economics one, conclude relative thank Company wellness with in that current patients measures. your there disease We operator, is those both the of further establish the in in may XXXX performance QuantaFlo is because open and the terms from company And think the the of Our of interest outcomes is anticipated in for standard please you is for cost-effective the now,. market health as room for our I record lines Semler penetration, providers, this we market deliver And your the the insurance the that market, facilities, the care for identifying diseases. chronic Scientific number who

Operator

O'Neil first Our Lake comes Brooks from Instructions] Capital. question [Operator Street

line now Your is open.

Brooks O'Neil

Doug. morning, Good

quarter. figure tremendous to how that. to have going committed But, do. Obviously, working So, go I’m out exactly well on you are to to I ways

Doug Murphy-Chutorian

Great.

Brooks O'Neil

is one. basic guess, So, most I a question general my

it think are customers? asking little As X% you XX% to your of in give or estimate think -- can today? could you you’re of relates do us the penetration talk then, terms mean, customers any I’m just existing you with you bit where you market? maybe penetrated your penetrated existing And overall about your what a of I is,

Doug Murphy-Chutorian

need From we market that in XX be established are Cardiology might basis the There Americans people who of market with to a according that share device in about we that PAD American the Association, basis. every the we to X% need criteria number the patients have terms tested perhaps of that million penetrated. annual on have Well, QuantaFlo guidance. would the testing be are that College of Sure. American the give felt Heart year, are don’t presumably an

-- number million. large. are We large very have who percentage represent customers that a good they number customers X a number of And or of a or of

individual customers in are penetrated with either. we essence, So, very the not

that I because… So, give number I don’t exact on -- can’t you

Brooks O'Neil

get No, it. no, I

Doug Murphy-Chutorian

give this marketplace. think an plenty idea, in to But just go I a of there to is you room

Brooks O'Neil

there. talk I you know where right penetration? And a lot to and QuantaFlo little utilization in but be bit things at now it’s bit probably are a to try York little about What doing I meeting of could we -- incidence a some guys just New think just increase peripheral you phenomenal. a out you’re doing to want about of That’s disease don’t because to artery talk what incredible the it, talk are I test? you to amazing happen talking about are an increase the

Doug Murphy-Chutorian

marketing. of time point, don’t think, I a or lot spend at this actually money we on

used many public, utility good several corporate connections what got is. of have terms with for shares the of have our for which the they and believe products, doing not their of data utility with screening them, we the speaks a data is in outcomes patients. to clinical know the They’ve who customers such clinical which And improving program, years. We

insurance these whom to companies, the health get are that they to them home assessment they get many think bring work or is I we risk asked group, working it it, So, physicians because with driver And of with to the that it. big patients test. that plans forward the they larger that to they’ve going are and/or been

the come see for working growth the is on they patients more customer So, -- publications not better out, believe test are of a expect but we we we do, are sure from predominant there. time to thing is some medical we to that. and them. be recent that journals, the But marketing couple of of some the satisfy understand ones do good, a needs, of economics And a standpoint the spend what to doing and lot if how make then, really will there

Operator

Brian next from And question the Marckx with Research. Zacks comes Investment

is line open. Your now

Brian Marckx

the to it -- PAD you coming from, where Doug, I or versus combination overall of technologies about Is market market, a maybe testing other growth of an share do little a it guess. is is bit is is it wanted I talk see, expansion or it the both?

Doug Murphy-Chutorian

all the from growth think comes I in mostly installations. new Well, revenue licensing of the

each, We having with are of do we but and/or customers customers are customers. have in growth, and as some their within the of others installations current don’t organizations. the both And orders with I our people numbers report new new bringing expansions said expand specific of out previous

during due operational we more their putting and also with field the current rate their those customers. the customers most the from with Now, to -- quarter making higher employees. usage fees of also, seeing from of practitioners other And systems came usage in system established the and are revenue per second those them

I it as clear, are said, home of how expect said exactly or come assessment quarter, seeing have approached Now, identify are established licensing from directions, new have do old the or we as we I would But course a We both and we came -- start from mostly up. new who many. That just But second side, companies. customers. the don’t to those to customers. from it be risk

the a I next customers on If behind years. are within us and growth this a established so force think the you of because in look our that groups may at them of large, couple predominate basis the take longer-term customers be some

Brian Marckx

late benefit, your of the coverage was segment since year. if Doug, implemented HRA benefits the in implemented? the benefit business, much it licensing -- recent benefit or it therapy it more assuming And at to think decision is was did last I the that exercise all, on how PAD a of you, does spring it CMS’s segment?

Doug Murphy-Chutorian

But beneficial testing obviously general direct our support to a is and The linkage. have exercise program for don’t business. I

you. So, we have to that I real no correlation say can

Brian Marckx

headcount, and to expectation to personnel of the nine over terms months? headcount do you next in six have then, And any add

Doug Murphy-Chutorian

June headcount number. total Well, the is Company as few up of XX, which previous only XXth from a is

in as expect future, We staff the in service customer grow a field probably positions will such representatives. that headcount

So not should of there be expecting lot there growth but some. a

Brian Marckx

revenue, Last revenue? of as QX, similar one Do is you mentioned from was which these expect that bit as X% expense, remain is of about up around QX. about engineering right percentage you it about on to levels little a to

Doug Murphy-Chutorian

We new when start goal services projects current the growth. to in and new invest are revenue plan to products And is continue enhance projects the completed. to up the

to for R&D expect X%. spend percentage that’s plan. We to That’s was X%, the we you said, advantage unless as current revenue, arises think about opportunity of of. So, for was quarter which second quarter the now, take the as that range first have we a think we the

Operator

questions you. for the Thank And any turn Murphy-Chutorian to back like further showing remarks. time. this at call I’m over no to closing Doug I’d

Doug Murphy-Chutorian

you Thank also the operator. everybody participating the and you, Thank company in supporting for call.

or we if we Thank interest call are now. Bye. were hopefully very to end the your today. we continued and we an available answer will able asked good call you to questions always, look speak, to to and And a forward or other And year. have Thanks support not you. on As that again.

Operator

a have Ladies does you and Everyone all And this your program. day. may great gentlemen, conclude disconnect.

Semler Scientific (SMLR) 31 Jul 182018 Q2 Earnings call transcript