SMLR - Earnings call transcript Q1 2019

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Operator

Good afternoon, and welcome to the Semler Scientific First Quarter 2019 Conference Call. [Operator Instructions] Please note, this event is being recorded.

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

Semler introduce Murphy-Chutorian, to like would go ahead. I CEO Now, of Scientific. Please Doug

Doug Murphy-Chutorian

everyone Operator. results clinical for financial joining thank you, technology the providers. is Semler health and an Scientific Thank efficiency company and quarter solutions that improve Semler provides first you effectiveness, of afternoon Good XXXX call. the emerging growth care to

million Company's income of our of one earnings calls. in XX%, And was $X.X million to in and develop, market report and to that previously the as on recent performance ago. call from to grew diluted. quarter of XXXX products the best and customers when quarter information chronic financial intervene our per options revenue XXXX, first provided compared first net of that is enable our believe preventive first events to $X.XX during assist in the and the XXX%, to were the on income XXXX attacks detail mission will Our solutions was are identify $X.XX before net Other quarter than today's manufacture happy revenue XX, and describing treating quarter innovative earnings evaluating customers cash software and technology based heart the in share to performance, and year X.X more care financial improvement Company's basic appropriate our I'm ongoing disease. Comparing that like We strokes March be grew history. retelling occur. results

market press in financial results at was So please refer today. distributed described release the close that the to the

per income Net which compared share increase the of compares from expense from per an For revenue $X.X million ended Earnings cost $X.X $X.X $X.X $X.X million million, of million was million. March $X.X of of was million, and increase diluted. million. XXXX, $X.X to an million. and was of $X.X $X.XX an diluted $X.X or XX% $X.XX increase Operating or XXXX includes basic from revenue were $X.XX million, to the basic share $X.XX XX% which period XX, per corresponding quarter

quarter was For and of quarter general as and product X,XXX,XXX. and diluted of ended XX, XX% revenue, earnings percentage of share positive expense engineering was XX% first XXXX was development and basic administrative of the the a March sales Analyzing count X,XXX,XXX income revenue, net was was categories quarterly revenue, expense revenue, was quarterly of count quarterly XX% share the revenue quarterly quarterly and of of in marketing revenue. X% expense and revenue, expense XX% quarterly XXXX was

of million. of and million, partially of which such adjusted which increase is operations capital provided which expenses $XXX,XXX by expenditures $X.X inventory March from by XX, net to purchases and change by revenue December had cash accounts an As items million XX, to as due by $XXX,XXX as $X.X primarily decreased to This compared deferred accrued Semler XXXX XXXX, by by was compared and cash decreased $X.X $XXX,XXX, of amounting cash income $XXX,XXX. receivable offset increased to

of items, million of XXXX. increased $X.X our equity March has to stockholders these As result now as a XX,

and XX-Q company of more liquidity. and Our common relist some of intent point on stock cash to time the flow It Quarterly discussion Form statement the our its has NASDAQ. Report at include been on in will cash our

for announced the or We process. the timeline yet decided NASDAQ on application not have

from continue our cash not business. to believe installation numbers Although the profitability the formal of of recurring more of we revenue intent to increased are guidance, revenue due generating products, We our revenue during will usage we on grow do increased give annual licensing growth, continuing XXXX. product, and and

goal is anticipated expand future quarter-to-quarter XXXX. are to the both accommodate to business. existing growth from Operating of make It our expenses during infrastructure base increase to Our expected additions our customer to orders to customers. from is and new to intent expand our

is faster or rate There remain our plan plans at revenues a than capital have to raise right this We profitable. increase arises. as aim expenses Our at to time. the to reserve additional to no and financing is opportunity change need

and in is remarks to provide the industry. of QuantaFlo solutions positioned XXXX my identifying for establish we standard number conclude in growth. our I We lines and patients for plans, patient. And product was goals market to questions. tested earnings, support. are Our And cost continuing To revenue, open facilities, Semler relative performance those improve the from your thank who of further the achievement health company. the the diseases. Operator, our of the for patients with by is the care large vascular prepared benefit that company, market may being record for We both care our as an health for market penetration because please continued the disease We you terms increase financial for now XXXX health first and so this of economics the a and the think quarter insurance believe measures. grow the the testing we chronic products, preventive work government providers, well the in of for your deliver outcomes patients interest care for room in is wellness for Scientific there effective with current

Operator

comes with Capital from [Operator Please today Instructions] Markets. Street first Lake go ahead. The Brooks question O'Neil

Brooks O'Neil

operating deployment sure said that means. product. understand I'm completed what your notice not and of X, Can me? QuantaFlo in you help I press I Page release the on another platform for you development

Doug Murphy-Chutorian

house an platforms now iOS a we Yes. platform. flow it by platform. then on the quantum the and the first introduced product was adding When platform, added have completed Windows We android

Brooks O'Neil

think right? about computer every compatible just out makes probably it that I that's with there

Doug Murphy-Chutorian

think so. to Like

Brooks O'Neil

might current seems or around like that as a relate activity? of there's you're that I related noticed own of to activity that hiring QuantaFlo. it that at either as offer deployments give me just United various they your websites to States willing future color Can to looked you around lot any including the

Doug Murphy-Chutorian

about we're Well, clearly anticipation speaking, give hiring that too in see guidance, to giving one me I'd a amount you revenue infrastructure, color on would infrastructure that situation. intending we as if guidance, so say also similar apologize to generally giving growth. increase don't customers much do commenting their can I the of in puts clearly Since and our can't human and I our practices that

we we're guidance. about suffice that but but are So buying making to any we not statements anticipating growth say are inventory,

Brooks O'Neil

your slightly of the couple it perhaps history. mentioned I'll having ago the results supportable that quarters obvious And time based A your was same then of different maybe one just ask you XXX% fact you progress by orders that about a in best way. business at reported making the when what on into wasn't you perhaps results. income Can you some customers that of you whether the at see that additional with some a or statement? comment of Any and two are all we ago quarter might flow won about comment maybe. or And

Doug Murphy-Chutorian

past do then clients. we're we new revenue time orders it we has obtained the mentioned numbers orders once historically. the get also larger the and I again established may have have and as also quantifying take in expect in clients but Well, where time giving from to I that more described size actual has brought spurts sales from team not those in

we Clearly to may placed we shipping is those Sometimes, we timing that but know in it on in customer from they may field the of mini for able when what quarter in field placed version of upon one from will us departments news I.T. year's not to quarter pace shipment do attempt charge change to make this the a that same tablets are now sequential increase. originally can upon see looking can so a take products the larger of deploy the as kind they control. our spurred in said, we are That and represents and that where being usually put time. which their being them us to charge when or them of because scenario, presumably spurts from those that at still year a at even last they last the time we you did from

you see very in comfortable management I used to that's is about confident the feel growth we can expression and think that that the was that do come I I've orders but continued have I express. continued think So and in that will the enthusiastic most past

Brooks O'Neil

We appreciate all that color.

Medicare plans or you're area Advantage plans seeing just Can one helpful? in Just from or from extremely be seeing plans that any you you are more more color commercial Medicaid more. would or operate interest characterize interest whether

Doug Murphy-Chutorian

is but cetera. everyone They're pharmacies et the something we're in the I getting and insurance seeing are plans up seeing our groups setting buying buying business are think anticipated what consolidating, is plans, had practices in physician it, we I that insurance big their are bigger. guess, industry

tested Medicare that as and are that our should extent using to types continue will Advantage, kind Medicare, accounts at criteria of for these that customers provide could American that American So if Association, Heart risk benefit long those we're all is mentioned. comfortable be services ones Cardiology Artery College patients you've to all as who crossing who across of we potentially the larger feel to for you the we Peripheral Disease. of

continue substantial use it's the interventional a place one assume terrific conjunction quantified groups attack. is even of care and what And it. believe avoid we heart a would we that's I what a going other product stent do That's there's preventive if you to of or do So those each economic have to basis do indeed certainty this with when QuantaFlo incentive as our advantage. is said does some benefit and you in - or that can you cases in a care, clinical a to

in different accounts are will of buying seeing types terms we're what us. that quite change no of spectrum a seeing. if We're of from So you

Operator

Company. go The Bauser with Kyle ahead. comes from next Dougherty & Please question

Kyle Bauser

particularly as the describe size becoming kind received materialize you're versus QuantaFlo getting sales as Medicare of past? that is of and large the within to patients. in standard you orders currently recognized you time some being to the know take types care mentioned. orders I Advantage they clearly how before you orders So of compare of the the Can

Doug Murphy-Chutorian

haven't size orders. Well so dealt exactly you into we much know

that is It calls very previous represent hundreds. plans, large that large course in orders substantially into plausible size be the given possible that of would orders we insurance the and also get of hundreds of than going we could that thought larger think customers I in the be and the the mentioned some were health the We who after. thought is we've thousands.

coming of I outcome. more do That's plausible So orders in other think suffice think that we've it's that to start they we came orders I that said a that if like probable in and that could if thousands the routinely get order about we at. size size specified size say the you haven't of certainly terms really or that would kind is more but all of people. exactly in is order gotten to

Kyle Bauser

about about to rollout into out then rolled being cloud And is QuantaFlo up talking to and client, new we're wrapping this account channels particular sort IT how kind your system can this is within how you're if it into of QuantaFlo is you your example, their easier of largest account? talk for becoming

Doug Murphy-Chutorian

may we to. larger having that leverage comes What working them. little I particularly is and to have I question little story. following new we bit see to color who a those health That a a an think to let's - - say in interesting who for The give insurance to could operational plan it's forms. when like is large, Yes, with really this the a try like be customer do

software put our supply Years tablets. on their much For example, take laptop, most and ago a would anymore. will it so we people not

for the words the IT and download in speaking their other in plan. of then software us their provide because call the they're support users any in So our generally they departments first

and of a So they many these their support In the companies get IT similar departments. first IT try train own larger the training therefore department we the department. call have fashion, then to and

visits us, providing trainer make machines the the placing in for e-learning once they're nurse out we leverage And again those remote and materials opportunities very very, are maybe actually practitioners. that's don't going So all operational to have care doctors opportunities, where the training for indeed but helpful we ourselves. or primary with

how two and are how larger the examples those So works. works business of customer the

another XXX and month to that units field. an if to working so on couple into needs them and department wants we're but example when take get their IT say verify someone them is about months and before, training the talking if of a us to So let's get wanted go the everything's the Department from tablets all out

of may if information our first we bill bill that's would and test placement on because You the of get use, we instead in know, our done on only you the than machine shipment bend every to field will servers. we the back accounting

So know started exactly in I point that with we that particularly at I of some know it the the haven't followed a that is may but we who we and useful, help building before. information I the answer those a test for that's to think fit time. start could question? not is Does story hope

Operator

ahead. Marckx question next Brian with go Our comes Investment. from Zacks Please

Brian Marckx

the revenue two grow previous years? in the to XXXX, sequentially on Do as expect quarter. it you Congrats through did

Doug Murphy-Chutorian

be a model. model that recurring think revenue Brian, I Well, our business been up set has to

continuous the installations, therefore a So base installation presumably, we sequential that's growth. would fairly as of we continue and remains new on the have case if or to steady then add

Brian Marckx

fully And that? what's have your you count current diluted share

Doug Murphy-Chutorian

One Yes second. do. I

usually fully count, share the of XX, stock actual you a if XXX,XXX it warrants unvested X, be and options shares, stock diluted on options. that would March X,XXX,XXX reported vested we common XXX,XXX as XXX,XXX the basis call numbers diluted So outstanding

those I to just don't of million shares about to it calculation to me looks here, afraid say but dollars. not I'm right close the million XX up Now $X.X have it eyeballing adding

Operator

call question-and-answer for our turn remarks. back would to the session. to Murphy-Chutorian, concludes Doug This any like I over closing

Doug Murphy-Chutorian

on you for a progress updating I of pleased our day. near July. us the I you, Thank soon Thanks and very again am end forward quarter all questions. continued Thank have Operator. joining see probably to for And today. thank again you look you and obviously. you the your with good

Operator

for Thank The conference is presentation. now concluded. you attending today's

You may now disconnect.

Semler Scientific (SMLR) 29 Apr 192019 Q1 Earnings call transcript