SMLR - Earnings call transcript Q1 2022

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Operator

Good day, and welcome to the Semler Scientific First Quarter 2022 Financial Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [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. of identified estimate, such meanings, actual or statements a be expect, may, and results can that involve intend, uncertainties from anticipate, words number here. to statements differ by Semler those as words will, such could materially Such cause and discussed Scientific’s risks with similar and with more Russian invasion diseases of These risks to distribution due additional the uncertainty it's extension the ongoing QuantaFlo risks business. Insights recently as associated Semler Insulin include continued COVID-XX Scientific’s of pandemic, with as and risks other of Ukraine, Semler cardiovascular well Scientific’s associated the Please the of these to reflect statements date note Semler any undertakes or in statements presentation forward-looking of light this release as it and events. only revise results that of to forward-looking no future revision Scientific’s new these information of obligation opinion publicly or and factors the refer affect Semler Scientific’s description Please Semler to results of forward-looking filings for detailed that may more these a statements. risk SEC Scientific’s

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

Douglas Murphy-Chutorian

you call and Marketing like first I’d our XXXX Good to quarter today. afternoon, us begin for us call. for introduce will the Rosenberg, who joining our results Officer, you Dennis Chief for Dennis? to everyone thank

Dennis Rosenberg

period results This X% XX by grew quarter our health growth more insurance quarter in March $XX We which to XX% slower our $XX.X our for that about with pleased the was plans pattern the parts $XX.X the orders of Comparing the $X.X market to compared consistent testing XXXX peaked seasonality contagious to ended assessment quarterly We're United market rebounded decreasing XXXX the increasing at believe the Doug. highly XXXX, expectations regarding large the are relatively customers. was pandemic Thanks, most Net in in by corresponding increasing home XX, revenues, risk Cash States the during thoughts this was lower of and of timing to the of were of order in the by report company's and in first to XXXX, the performance period-to-period XX% volume which comparison million. million. million XXXX. of of financial with sequential fourth due quarter COVID as follows. specifically in million. variant, was to by income the to of the at least higher the highlights the to Revenues part date. end that Omicron higher

use have due I staff customers higher two experience to so far like which illness, significant year deciding that of can we've being and to effect milestones on said, for to normal our cycle. study sales to our you prospects years and a the employee of than were many slowing we QuantaFlo absence Our achieved you. rate before how there outline some would this Previously, took customers that to described it. That

powerful noted funnel privately all organizations. how and data have the in were. the who clinically customers we in our confidential servers kept within turn manner that and through few Therefore provided actually We to our data data own back their a important the knew testing

we medical thus so CMS cared message extra might for. patients population using QuantaFlo, pays Paper other that asymptomatic published be customers to why peripheral big the risk Now they picture. quantifies the Medicare refer PAD new why and The a the community, Paper the a outcomes. large has to supporting adverse these permeates be When Nevada disease, QuantaFlo. The this customer QuantaFlo. data of as Paper, use death properly patients can screening attracted believe on or Nevada justifies We the underscoring, in arterial advantage use Nevada

underlying would benefit cardiovascular through be disease. as identify for another used now accomplishment an patients further can aid QuantaFlo to our internal second who The evaluation development efforts, from

in to be points regarding submitted review. technology has is key to unserved not for as of While clinical our problem even protected extension uses this the to we PAD base including more to primary sell in the are, the A and Other how others existing believe extension com a is customer specific A disclosing test publication to clinical performs We a our valuable important model. PAD make data this and setting, under upgrade aid peer as as PAD. unity intend advantage may of future, care assist yet, service an medical medical may been it disease secrets. as this reviewed extension are by the this QuantaFlo business Medicare the we providers. similar software one and trade

Andy our financial performance Senior Now in describe Accounting of our Finance Andy? and detail. will Weinstein, more Vice President

Andrew Weinstein

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

million income year. basic million. per from was and $X.X expenses, the Net For million share which $XX.X million, with per of was That the revenue XX% $X.XX decrease of diluted includes million, $X.X revenue $XXX,XXX XXXX, quarter per of XXXX, share million to from during corresponding diluted same compared Operate which share share, period $XX income million. cost $X.XX ended per $X.X an or $XX.X or increase a to March share or was the $X.XX of and period X% $X.X compares from XX, XX% increase an $X.X of million. last basic per $X.XX

X% XX%, product and ended and for XXXX, of the expense percentage of quarter quarterly revenue of were March development XX% XX, expenses XX% of Sales the Analyzing was diluted was quarter quarterly the XXXX, count basic the quarterly was administrative general quarterly income revenue of share in categories marketing revenue, was and cost net and X,XXX,XXX. of revenue. revenue. was as expense X% count revenue. of quarterly and For the share Engineering first expense earnings our was $X,XXX,XXX

As XXXX $XX.X increase compared represents at of March XXXX. cashed $XX.X had million million XX, to which XX, an of million, Semler $XX.X March

to stock XX we this March we $XX are We the because for XX,XXXX. as positive about million. March Semler. program On established year, this up equity is of announced stockholder's the future Our of program $XX.X million repurchase

were XXXX expect cash liquidity, on and pursuant were $XXX,XXX largest home our the quarterly pattern increased believe and purchases approximately of discussion fee the in well XX.X% Variable first our this We two with May revenues plans of $X.X test include $XXX,XXX our other million periods. the QuantaFlo and the quarter our flow health We customers revenue. from as new $XXX,XXX revenues software as cash around with during and an a due this XX.X% more correspondent the fee both will XXXX XXXX, XXXX, XX, market $X.X of stock statement or our when testing customers. on fee software to sales COVID to approximately in and XX%. In increase repurchase file license testing comprised emerged testing seen in our earlier a behavior to of or report program. XXXX, to volume We XX our related risk timing compared of ordering is the X%. respectively. revenues the quarter license or Equipment period insurance In for of first higher believe million, change the of year were assessment FormXX-Q sixth in

$XX Because future to given being pattern observed not to in $XX.X we million million revenue or newly second years. when we annual we'll will in range this believe However, the and expenses, first will to cost the from includes financial is to million what We cost not includes revenue which or $XX.X we guidance million. $XX range or million. range Semler will have and which in to will how guidance, operating be quarter from believe may is listen or continue million $XX decided $XX XXXX XXXX will its and from often to future. million and the range -- the time this for in initial revenue will $XX.X million from may yet [ph] operating expenses, update said, history. and $XX in what That the revenue

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

Dennis Rosenberg

we potential PAD the product of large added, further our and upgrade business they that QuantaFlo a patients. living sales risk all for three-year our Also, XXXX, PAD developed supports licensing XXXX. increased believe product products that software can revenue our services for population QuantaFlo our or results metropolitan continue in In to licensing well an and have positive and Insulin recurring The have of our of in and our a independently are product, usage management we data there believes believe used QuantaFlo smaller numbers conducted drive other for to benefits to and services dosing that morbidity product the risk PAD. brings some continue beta long it cardiovascular level. to and XX by plan they insulin a XXXX the to to risks diabetic XX% short-term installations it base several XX.X% of provider at caused highlights and of value goals for XX,XXX to of associated services term all development increased MACE provide for was morbidity tested adverse patients, and prospectively three and caused commercialize QuantaFlo as new internally included customers the a because businesses. the PAD aged Insights, of distribute in the events, adoption R&D established QX healthcare goes existing screening for. independently February, positive years versus we increased screen PAD Insulin with which the launch, Paper customers. population signed and began grow and product or positive of in to follow-up. major If products, will new study, result or market and patients reported was patients we XX% were Our customers are of prospective to an Semler for use enhanced screening in to of a older undetected, revenue the use we study has increased previously this initial patients and and with which follows. year years. details of annual invoicing XX% to are undetected customers. with negative and distributing. of In to to more customers mortality can to Also, Medicare In for that all mortality new product lower area. plan one Insights Overall, found at Thus, established mortality customers, Scientific and up flow PAD customers. the We Furthermore, of program the to with extremity that individuals advantage optimize author the were with asymptomatic Nevada risk license XX% at is this peer-reviewed we a that may our share study care of from was existing outpatient in a

for compared XXX was our build Our end that employment fourth base, of standard to continued to of establish care to to the at new to from opportunities. our customer larger due and penetration. profitability infrastructure in our desire are orders make from disease continuing cash market of Scientific our expects than first as products pressure QuantaFlo goals be, market XXXX, of XXXX. XXX introduce additions XXXX, expenses believe from product support the additional employees continue existing In current increase generation new Operating a We the is quarter employees to the operating and wage further activities. business Semler in to current the testing headcount expected inflation industry. our market customers, quarter to customers and expand vascular levels to At end

room for is continued there So growth.

your portends enhanced providing our I new customers for Number We future. to further that are for adoption continuing that the for the one, current QuantaFlo call. two, by invest were revenues for significant company Paper, Nevada year proposition goals and for in far and our in cash the The existing value our your R&D Thank future. with customers this on a for cardiovascular QuantaFlo our optimistic milestones customers and of continue in of value terms disease. and to earlier and XXXX of beginning may which two There another year this the achieved of Accordingly, in you interest enhance outlined company support. we you we drive now, position. of innovative record products the so

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

Operator

first question comes go Markets. instructions] [Operator Lake ahead. O’Neil Street Brooks from Our Please with Capital

Brooks O’Neil

the distracted I a confess remarks. Hi prepared a lot some guys. I taking that questions. little was during Thanks have of for bit my to upfront

last So to I'm the this going were the year, it business see patterns seemed or this I'm year that Dennis, markets you thing to possibility and more that did in that modest. already accelerated of I but that that your in curious patterns happened if now to spoken I ask big for characterize customers something is the how big that and or fee what you seems And obviously relates more QX things to about, growth rate maintained from as the your one the apologize. are in be happened you've growth order relative would Doug see retreat. curious be order accelerated I and pattern back COVID normal towards occur test year your

Dennis Rosenberg

for seen continues last in the that. we we seasonality first the that far have about what whether see think to saw year, quarter, or year expected it so the we've is I is

as companies. share in far general there's the market, between HRA market As movement

sometimes is of track exactly our and which seeing market we're with board. are come going, the all we customers new hard it's customers on of to but growth way keep So seeing

a trend We're side. license seeing both the growth that the fee side continuing arenas. and both So HRA fixed on variable in is

that's year. the to So for we're see what I think expecting

think for. rates, we're heard you that's guidance looking the our so I what

Brooks O’Neil

Okay, Dennis, that's very helpful.

would upside your two us also I market, your for fee significant core obviously customers, the to whether your see assume from penetration get core still largest the of long-term help your estimate you. customers quite Would then PAD So percentage sense for in of test significant you for testing achieved Semler you you've significant per in characterize you revenue a business? very the and

Dennis Rosenberg

additional the published number guidelines the tested who the see and level think clinical American the should even indeed that in do by to terms still guidelines, of publication Nevada think market terms of We the been penetration be people penetration of in We impactful the opportunities. others along. of people bringing is will Paper Heart low. in that according have more be We

of Our that's has timing see. for future. of we'll our the penetration the just The a wait to lot adoption have the and and customers of opportunity something question is large

Brooks O’Neil

to Dennis. Sure. makes That sense total me,

year. you guess not -- business, to obviously in to levels would so you to me your be other elevated just one ask expense the question, the maybe for Let the growth spending prepare expense me much but margin operating appears do on this continue that And business your underlying you economics point of the grow that the of think you elevated can some business basic of the, will to require you spending at some fixed achieved metrics to you Or business? kind margin to historically? leverage infrastructure and return would

Andrew Weinstein

that. how preparing more, take will headcount think there has and more And the spending, keeping do are you? do think gone we be that's future. there up I Andy. very up. This some hi, our but, be I is are for bright we're some a why I'll headcount will

be good to things prepared sure So want happening looking to make do infrastructure in you're have the we out, place. flatten it we in all point for are there's we're right. but and a company, I that may the think the

expenses wages we see which Cares there tax those the was of able year, bonus related to QX were was last you So payroll first benefits. also headcount, not to take to take and And one Act advantage in tax in of reasons are able of obviously then there payroll credits mostly the the of of and of that employee of elevated advantage in expenses increased we quarter were XXXX. weren't only

Brooks O’Neil

doesn't it's and a doctors would but things appealed Semler it simpler, unique with more I large about product. me payers groups or question, use beyond know payers, you you try one let to leveraging guess that I me helpful. just you your require to one some think to direct individual the appealed Semler, Okay. of call the has other making doctor and that historically been me things investors simple sale, of deal of think I -- I And if always going to has I guess largely one to will. about then convince the ask a these direct to not dynamic I that That's of

As an you newest channel ramping that products about available attractive over and see year you you you're or most, viable you direct product next two or were as this effort you making still the to evaluate both other develop, to talking as and and do grow company the today, the three,

Dennis Rosenberg

make of to of see the match see sure to an We that as do. approach We one we that market the care part groups to retail leveraged products and types It's bring kind in but any making delegated very we the also as of and we in wanted primary other being of on well, as that the a are expansion mark also viable. we will points payers, mark including future a be medical in are large to not others. to and that up only expand making from large organizations market players

So, market, opportunity we has it's the to to think viable and it we leveraged continue to approach the think this grow.

Brooks O’Neil

And very Thank queue. Perfect. Great. much. you drive in I'll the

Dennis Rosenberg

Thank Brooks. Thank you, you.

Operator

The Riley Please Wiesenberger Marc Securities, Inc. ahead. with from comes B. next question go

Marc Wiesenberger

Thanks. taking questions. afternoon. Good Appreciate you my

some has If specifically Nevada with be and the data specifics of existing talk there the any from you new could kind customers helped or how your helpful. about and that of maybe conversations evolve would Paper

Dennis Rosenberg

data is new, two. Sure. still a month or Well, the the publication of fairly just

this So a on activities disseminate and years. the and but it'll independently take PAD really dramatically benefits study this quite be to marketplace, going that conducted QuantaFlo. that's year sales underscores out focus our important a marketing is into testing future large and to time into the for of with through This of

part early it having with are impact too two it's be we an customers all have the old, only conversations say, a of in prospects certainly the as to going It's it's and or they going forward. but think still we month will So market.

Marc Wiesenberger

Okay, than which to enough. first actually a previously second obviously stronger on half, the of seasonality. different it going half Based than the the the the seems comment heard fair is like we've about guide, recent looks be year little

a you So into wondering talked guide? I'm some then how little should, baked billing unpack about of full you year the is much could if Insulin bit, that that Insights. for and wondering

Douglas Murphy-Chutorian

up. to can of customers by you adoption the would Insights, amount material beta We in things. maybe So of this guidance and but the just pick of that question have specific, and although we Andy, these Insulin cover anticipate progress a could not year, from terms launch revenue see the the

So, have Marc why we progresses. the far we're as just the in the there terms guidance a going to as may It's, what of year. was as asking in specifics see want cover to to the range year Andy, and you then have of

Andrew Weinstein

Yeah. see revenue license do will fee on We think for increase test both continue that it, we to the see do fee year. during We increases.

business, don't it we there agree that will, do anything on will see quarter, as to have both that So there is could not with Also, why the Hopefully baked quarter. first we than be down for new that is the going but again Dennis the the I see range. baked increase. are We I products. future And sides quarters think the being or is of as slowing increases. things to quarters, continue we a better first in and lot good the

Marc Wiesenberger

for company. to be the best pretty Okay. margin best And this or gross the it close like the looks might

year? and those could dynamics is throughout moving you about If level how the sustainable talk this

Andrew Weinstein

that as solid terms we year. things, of We'll feel pretty number. pressure to see have how that's the a anticipate don't for We though in but

Marc Wiesenberger

how used population being should target application thinking PAD? that the patient we're QuantaFlo QuantaFlo, to we for for When Okay. the relative new about think about for

Douglas Murphy-Chutorian

value should market more play lot about an definitely in detail the this but for believe, ultimately. said may Obviously upcoming Well, market as will be a do more we we're in text, application be expanding for discuss can we is proposition important this, QuantaFlo. a a talking significant quarters, the a or easier which once as be role specifically to this in and important this the

market expect. about this. the long should future as things a out as be holds pan major So as we we're enthusiastic what It for

Marc Wiesenberger

Okay.

like the at in then at shares the was doesn't count bought filed actually share was back you the XX-K the the that and any count Looking it of February, look from that was the announced. release buyback end since today,

then want understand to maybe you that the that capital and Just deploying how purpose? view for confirm

Dennis Rosenberg

or And Doug. do you want to take that

Andrew Weinstein

week, significant are not not that Q there you is was filed assumption that in a be Form will correct the accurate. was when XX that this your bit but little there -- addressed Yeah, we repurchases later

Marc Wiesenberger

just, opportune seem said maybe were talk a the Okay. going outlook. considering to kind that look an bright like depressed of it's thought thought to shares that on you to It deploy it's deploy And process about how maybe you just you're would and that. pretty time

Douglas Murphy-Chutorian

But made in to we try We haven't about any decisions the the interest. shareholders make that decisions shareholders’ yet.

Marc Wiesenberger

Understood.

very you it. Appreciate Thank Okay. much.

Operator

This Rosenberg like the closing remarks. concludes turn question-and-answer session. I conference back any for Dennis over would our to to

Dennis Rosenberg

Thank you updating progress. to for joining us you and we continued look our on soon forward

Operator

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

may You now disconnect.

Semler Scientific (SMLR) 3 May 222022 Q1 Earnings call transcript