SMLR - Earnings call transcript Q4 2019

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Operator

Good day and welcome to the Semler Scientific Fourth Quarter 2019 Financial Results Conference Call. [Operator Instructions] 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 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 of the date of this presentation and it undertakes no obligation to revise or publicly release the result of any revision to these forward-looking statements in light of new information or future events.

Please refer to Semler Scientific's SEC filings for a more detailed description of the risk factors that may affect Semler Scientific's results and forward-looking statements. is event this note being recorded. Please

now Doug Murphy-Chutorian, would like Please to to over conference the CEO ahead. turn go I of Scientific. Semler

Doug Murphy-Chutorian

Semler year-end everybody, fourth afternoon, and you joining Good thank quarter results financial the and call. for Scientific

Dennis I our Officer presentation Dennis? Chief the Rosenberg, would begin introduce will Marketing to today. like to who

Dennis Rosenberg

Doug. Thanks

and providers. We always strategy. calls to is company a our the Semler technology improve reminder solutions healthcare a like with to efficiency clinical effectiveness that begin Semler of of provides that

Our develop, in products and to mission assist treating that innovative is market and manufacture diseases. our evaluating customers chronic

believe solutions with events report the XXXX company's company’s financial identify appropriate to We income occur. heart technology based our options history. our to that the on and that strokes and to like enable our are pleased in care net preventive software best performance attacks customers and before in revenue intervene year and when We're

results, of fiscal an and resulted for million year. we basic million that year-end quarter benefit was compared share, in released revenue XXXX or the million, annual full and share one that with allowance number to per a tax number Valuation one, highlights XXXX report $X.X number three, in year-ago. to follows. $XX.X Number diluted today's per and XXXX, $X.XX $X.X of two $X.XX million, income annual grew earnings diluted of per basic X.XX compared third Comparing the share the $X.X share compares per cash was Tax to four, $X.XX net were are which million XX% annual at income Please $X.X million, $XX.X as note

company our risk usage increased orders current from During our home assessment the year, from and our and QuantaFlo for customers, product customers. saw we insurance

also orders from new received We customers.

call performance. to improvement Andy the detail, President Finance Vice of in to our I'd describe Andy? ongoing in and over turn financial Accounting Weinstein, Senior to more like Now, the

Andy Weinstein

Dennis. Thanks

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

which year cost increase last XXXX, $XX.X $X annual increase million. compared XXXX, to million, $XX.X million of is an compared compared income includes to the $XX.X expense million Net income million reflecting was $X tax benefit to revenue the For million an of million, which $XX.X of of $XX.X to last year. $XX.X year. Operating million, revenue was amounted to compared

count of annual annual of revenue, X%. increased results XXXX share marketing count XX% for Comparing Sales diluted $X.XX X,XXX,XXX was expense share, and Earnings revenue. XXXX, In XX%. administrative and basic using of XX% basis. per share of cost per shares general a of compared annual categories per and and annual increased Engineering revenue $X.XX and shares. was $X.XX diluted and share increased revenue XX% percent the income a per and was the per income diluted share earnings was annual was last operating the to as revenue XXXX and Analyzing to net development to improved was earnings expense XX% product X,XXX,XXX and XX% as calculated revenue on of expense year. basic pre-tax expense was $X.XX XX%, net share, share a of XXXX,

revenue year. million $X.X or XX% was For Operating million $X in quarter-ended XXXX of million. the was December revenue $X.X an was of last $X.X of with increase XX% cost period to an to includes XX, expense the corresponding million, which compared XXXX, increase $X.X $X.X from million which million

$X.XX per share, the share that million, last $X.X an of increase per per million, period for compares diluted and diluted share, $X.XX million basic basic Net Net $X.XX last $X.X income to year. $X.X XXX% share per year. $X.XX same income was of was and per share

and the fourth count revenue, quarter XX% a X,XXX,XXX December ended cost net of XX% XX, expense XX%, was and quarter quarterly the in of Analyzing expenses the quarterly Engineering X,XXX,XXX. For and as the diluted the percentage was income expense amounted XXXX categories the count share was revenue was of sales XXXX quarterly share general earnings and X%, of of revenue. administrative was revenue revenue. development of to and XX% quarterly and marketing product basic

for the As net XXXX. of $X.X by usage an to used by $XXX,XXX. and compared December cash XX, which by $X.X adjusted from The to net income operations expenditures operations, and XXXX due of cash revenue, cash $X.X and had is change the was net option at offset for of of that accrued also partially of December is $X.X Semler inventory a million purchases receivable to it and with XX, being which by million, purchase the net cash reconciliation which cash had $X.X capital million, and primarily increase amounting usage warrant cash million provided to of million, income accounts million $X.X of expenses deferred cash provided decreased exercises,

items, result a these at $XX.X XXXX. As the our equity is stockholders of now end million of

filed include statement on before discussion of more and of cash will XXXX March cash our our XX on Our liquidity. and flow be report XX-K annual and Form or that will

revenues $XXX,XXX. and XX.X%, Our variable are price other approximately three was equipment revenues major of million annual and approximately sales $X.X and revenues. $XX.X customers million, comprise Fixed XX.X% license license XX.X% price our

on we annual in of we interest are Although and opinion management increase. team, growth, the continuing cash services It continuing formal XXXX. and provide is intent our product to not guidance, customer considering generating do is during revenue profitability

Now I to discussion remarks. the ask and will Dennis continue provide concluding Dennis?

Dennis Rosenberg

the our in grow recurring revenue of result from revenue business. numbers product, installations of will annual of licensing product We a believe more our to and increased of usage XXXX as continue

to the additions intent to expand our anticipated Operating from customer is now accommodate expected existing Semler have and our XX from infrastructure make headcount. to and of In goal are our quarter-to-quarter its employees. It new to orders expanded Our again business. both expand to base XXXX. Expenses XXXX, to infrastructure growth customers. We during future is increase

the to and include may to we lease for inventory. stocking add for components of of purchase continue our key The the for increases be and assets or These to indicative of inventory will in are in on installations, with future March year of of sensors Form XXXX, license sold be product disclosed filed management and optimism XX. customers. amount before XX-K to replacement the During growth purchases or made

opportunity are update We capital often NASDAQ our our is to the not to to changed, There about at listing no we plan has if as as amended. when arises. need we raise the reserve right get our change and asked you financing additional up plans exchange, time, also this position or will plans

to the profitable be as further larger industry. for to XXXX continued is our for are disease testing goals annual care current grow there penetration, believe growth. that is establish room a Our of to revenue than our We vascular market the for standard so in and product QuantaFlo market

goals to with the providing that value continue R&D invest products in future. We enhance customers in our of to new and the now

patients. well We conclusion, being financial tested performance outcomes those the providers, of of the Semler wellness preventive environment the care the record market cost that facilities, Scientific health health believe healthcare diseases. our the our identifying patients benefit deliver an with achievement may and company patients effective because in was in current from improve the and solutions number the is XXXX We chronic both We for we positioned by with the provide of worked for economics In who patients measures. insurance products. government plans, for terms for

Thank you and your the for interest your in company continued support.

your to questions. address Andrew open lines. and be Now I Doug, operator, happy will the please

Operator

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

Brooks O'Neil

around United and of get of business feel you the compelled various we sort hoping you of hire on curious I'm strategy guys kind markets and little to you overview that bit is your going out of extensive investment for grow you that business? about across hope as seek performance. of talk you the what country, States. that representatives a or might Thank to I'm the to in sort infrastructure see what the the why

Dennis Rosenberg

of is we're area. may hiring to not This continued specific going different in may in We're growth. Dennis. or the areas exactly, Brooks. country particular that to in Thanks hiring And support on areas what's the apply

for So support growth more and, continued traveling the increase it's capabilities both a support country, and testing. general those to in locations, throughout installations, of in our people

Brooks O'Neil

significant your Dennis, sales the a hiring it intent as utilization about with with trainers more as and hiring is to support stations, intent of else you the Are Are think growth customers? supporting parameters lot. guys company? they people And two anything product? of the implement customers How you new of the thanks to bringing to think you more in relates do seek you those

Doug Murphy-Chutorian

Dennis?

Dennis Rosenberg

accounts, current in people So primarily as people, of new support both opening increasing which IT as support hiring at trainers, would penetration our we’re include the pursuit well accounts. people, clinical

people hiring. dedicated that support not people sales it's that primarily. we're we're So is hiring It

Brooks O'Neil

then, mentioned new currently bigger iterate revenue? this to sales, into would fast new increase about can in grow do XX% customers in And number you think the bring you customers to that obviously at compose enough total customers your Or three percentage future? that of you least top you perhaps expect the QX of a your

Doug Murphy-Chutorian

we’ve give We are have ordering but don't many products. the the on come customers because stable guidance, number, we future larger we gotten also don't all growth customers customers, years, so more status discuss the time, a

I now. don't So predict predict but changes, I tend to want to

Brooks O'Neil

very That's Okay, Doug, helpful. thanks lot. a

you that Do might As tell And company, for so, the areas line. perhaps you product can have a been one anything or in be speculation if opportunities comments might about some what you they in? you have be any might more second on that? grown there's us

Doug Murphy-Chutorian

of to or extra get shifting or we it may product or resources out definitely sort product, situation we'll develop an partnership person. other with Well, internally we go second a third

development, our have We in network. pride distribution in

to So to before, you want this we our don't than about said because hand many not opportunities going and to have talk I too understand, tip early. we anymore had we're

with So have to answer. you to, to have be full the steer painted us we'll

Brooks O'Neil

very Sure. much All you Thank continued and right, progress. that’s congratulations on great. that

Operator

I any the to conference our to I’m Instructions] showing would no turn closing remarks. for session. Doug back This over [Operator questions. like concludes further question-and-answer Murphy-Chutorian

Doug Murphy-Chutorian

joining on thank look continued our you progress. Okay, you soon today. We us forward updating to for everybody

Okay, good have a again. thank you and day

Operator

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

now You may disconnect.

Semler Scientific (SMLR) 3 Mar 202019 Q4 Earnings call transcript