SMLR - Earnings call transcript Q1 2024

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Operator

Good afternoon, and welcome to the Semler Scientific 2024 First Quarter Financial Results Conference Call. [Operator Instructions] Please note this event is being recorded.

Before we begin, Semler Scientific needs to remind you that certain comments made during this call may constitute forward-looking statements and are made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. These include statements regarding the expectations for expansion of the business and the development and marketing of additional products, including receipt and time of an additional 501(k) clearance for QuantaFlo and investment in emerging growth opportunities.

Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. are the uncertainties our release and filings. SEC risks described press in and Those made as undertake today of statements forward-looking The are and update forward-looking company to this of the does obligation not any the statements. call, date the

copy have obtain visiting Relations do Investor release, the of by today's a you you of If website, the page not may one semlerscientific.com.

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

Douglas Murphy-Chutorian

on and our achieved everybody. the first XXXX Afternoon, joining Thank highest We growth for results the the the year-over-year with us earnings in history ended you quarter call. position company. quarter cash of

Now I'm pleased provide CFO, to Renae? Renae Cormier, further introduce to our details.

Renae Cormier

first Thank be corporate providing thank Herrington, developments call. quarter you results will you, and today's development. and and market our opportunities. presenting conference COO, everyone, Today of Good Doug. for I'll Jennifer being our an Oliva XXXX information discussing afternoon, financial recent our part be about of overview

Jennifer questions available Doug, be and will have. remarks, may our you Following I any address to

This compared to team, earnings quarter in first market of a in spending As we despite mentioned had achieved of conditions. PAD the accordingly the from adjusted revenues, the who is XXXX regulatory-driven, decline the year-over-year quarter first XXXX. hard growth work decline our in generation achievement quarterly product. testament quarter strong our to in revenue today's of we cash with a the year-over-year very to year-over-year earnings Even release, changes

dysfunction will reaccelerate us FDA a allow our product. we that We obtain the heart new our market revenues expect from to our to successful clearance that if are in XXX(k) efforts would

a first of XXXX quarter XXXX. of quarter were XX% results. compared Now $XX.X Total revenues our the details in first to of to QX decrease million, the

remain XX% driven disease PAD. of to increase an by sales other fee Equipment million, a Our Variable to arterial fee to customers million, were revenues and existing are primarily fee strong Equipment test revenues a historical of sales Fixed revenues X% $X.X revenues of levels. million, decrease decrease or for and year-over-year. $X.X XXX% revenues peripheral QuantaFlo year-over-year. versus $X variable they and were new of year-over-year. are were continued customers,

the the X-year the XXXX relating of In of Medicare complications model. of for the from Medicaid year HCC announced of to economics our phase-in to care XXXX, Centers Advantage Services, Medicare risk the phase-in removal PAD CMS, first customers. code or marks March without and X-year the decreased the managed the adjustment

weighted follow our with we similar For XXXX, the could cadence revenues of HX more remainder versus XXXX, heavily a in anticipate HX. we saw that

PAD, clinical by are the of for testing lead We to can diagnosis continued treatment outcomes improved for encouraged early long-term given and patients. the importance that

including Operating quarter of QX In the cost year-over-year. of X related in XX% XX% affiliates, were revenues, of comprised and expenses largest their XX% of includes XX%, quarterly XXXX, our revenue. million, which XXXX, $X.X first customers, decrease a

percentage a last expense announced to XX% of revenues, XXXX after As streamlining control operating year. to our corporate in decreased to continued XX% compared July strategic due in expenses

in that diligent next leaders slight prepare a hope We could here service which diagnosis the phase discipline use QuantaFlo in clearance, sacrificing other high at FDA we in subject as the in throughout of we achieve half on without second XXXX. the year we the have We is uptick come and as expanded aid expect. to have expenses the for diseases an group experience of remain with customers that to we're ensuring of an employees launching of to outstanding cardiovascular focused anticipate Semler, cost our

share share Net share at income and or $X or compared balance was per diluted per Pretax the March XXXX. XX, $X.XX to XXXX, $X.XX cash in net $X.X We million income million. high in of was basic million per $XX.X had share, fully a fully $X.X record QX million million to $X.XX basic year. and compared diluted $X.XX $X.X per prior

to to market provide over our turn Now discussion opportunities. I'd the Jennifer like call to a and in-depth developments more of

Jennifer Herrington

Renae. you, Thank

enthusiastic of early I'm continues health to chronic disease potential Semler's our top about health concern customers, as cardiac system. which the the by identification support of conditions. need underscoring imperative diseases our care global and ranks a ahead, to Looking expenditures care Cardiovascular in burden for mortality, identification

to additional broaden Our clearance regulatory will recent half this intent offering pursue receive for QuantaFlo, may to customer marked of to diseases. second our milestone, focus clearance FDA to showcase in to of the our Upon January a anticipate strategic We the effectively wider existing cardiovascular enhanced label encompass base. XXX(k) XXXX. expand for array its an achieving our announcement expanded in utility the this we from seeking

In the proactive in positioning the us future and to potential diagnostic dedicated market. selling as a while for QuantaFlo trusted remains providing diagnosis interim, ensures PAD. success This approach in our broader the aid of a of our customers valuable with solution commitment the cardiovascular promotion continuity,

enabling management chronic the initiate that this in Through continue approach potential not but to cardiovascular detection only arterial also disease, expenditures. preventative programs providers to of We care we disease. early hopeful will holds lower care health are save peripheral that lives, health believe

where customers. outcomes to landscape continue delivering substantial healthier our We a in patients envision technology to concurrently role for health assumes our delivering central while value economic care a

QuantaFlo system sales the to opportunities PAD detection on and with conclude from adding our further within markets benefit Our now our the additional early growing and our new preventative will of of fortifying that by And leveraging customer Renae expanding providers, will testing. centers, clinical medical as value-based remarks. reach remain demonstrated PAD goals within benefits establishing VA continue diversifying marketing focused: care care; care in diagnosis; and presence base and the standard for

Renae Cormier

on these PAD. in hold plan, this that base expanding future. achieve believe emerging with and focus exciting growth may our To an we of customer aspect our a company's for represent are We opportunities reinvesting promise opportunities

services the forefront consistently remains research we and of products innovation development and to to commitment and enhancement in unwavering the deliver our cutting-edge prioritize our customers. stay as of solutions to Additionally, data existing

our Our to our to extending applications, expansion. long-term cardiovascular dedication continuous reflecting additional vision includes reach encompass

of our technology settings, A health By play have individuals diverse portability to detection disease. contribute cardiovascular its to down us allowing and early accessibility, providing intervention. in be to actively that that tools inequities utilized role in key in more in prevalent a addressing we ensuring strength can lies barriers, breaking access and

Through our interest are and company our offerings. new appreciation our expand our growth We as part continued to of support and strategy, diversify impact our we to market its initiatives exploring inorganic your As of embark portfolio. opportunities, on partnerships and product we our extend for broaden growth aim the further on strategic we innovation. in for journey your exploring

be you Now happy Doug, address could the and I to Jen line, operator, if will your questions. please open

Operator

And from Brooks question Instructions] Lake our [Operator O'Neil Street of first Capital comes Markets.

Aaron Wukmir

the of This But guys is Obviously, the steps the receive after process and this of the the in taken assuming are Aaron mentioned you sort sort approval, that on interested to XXX(k) second line I'm timing for year. what next Brooks. the clearance. of half process?

Renae Cormier

for Sure. the thanks Aaron, question.

as clearance. on FDA attention for the kind our to announce in out So it's our process. this timing, approval the in XXX(k) hands At did January, we year of of released point, and their the to it's file earlier so we up had

of revenues do that can significant We to do And that start before and that, we take anticipate we said, we this And to customers. it once do year. anticipate that can't our we traction we approval in second it will the don't for we As it marketing half product anticipate we the then. receive will market XXXX. in time gain

We to existing this customers. our will start market to

the same and us. software So and a they've already push It's familiar with have unit. products. with are years It's many our worked for the upgrade our us they're to familiar and with customers just unit,

Aaron Wukmir

is makes bit do what you to on early it in the that color additional XXX And to QuantaFlo sense. clearance? That might then still Okay. little a speak any reference have too conditions that? identify specific regarding Or

Renae Cormier

will so will the once come clearance. get surrounding The And wording we heart it out actual be dysfunction. specific

Aaron Wukmir

And follow-up Got have relation guess I customers of to how PAD then, sort to Understood. Renae, lost product? that, demand just I you classify to current mean, the of would amount Okay. significant a you as customers a environment? And lose you. expect the or, in

Renae Cormier

say our products. demand that for still have I would do we

reaction been the mixed. our from somewhat customers So has

-- the new of XXXX our first managed have of with with the being phase-in year economics changed of rate the year phase-in sorry, XXXX or announcement, being the So CMS the the care of some to customers. first

in to largest the So is for not volume customers And pricing CMS being the of reimbursement but revenues by asymptomatic some were customers, only cut XXXX payments was XX%. about while PAD, tiers. to are linked extra our the additional directly reimbursement our this offered the reduced

see but testing, continued seeing cleanup units. are we we of some did underutilized also So

CMS early and the And customers, value think the new preventative this. not did we getting That better recognize putting detection unfortunate by We it's supports are still testing of benefit remains clinical outcomes. really that measures of same. the clinical

Aaron Wukmir

in Okay. quarter. a this might bit maintained Understood. you And all mentioned you that sheet cash balance developed healthy And little Appreciate and obviously, thoughts cash a guys have had any a uses then with your I'd prepared some color. record have this balance on on here. conversations just remarks, but potential the have year any you as to throughout move of more forward we get love inorganic opportunities?

Renae Cormier

Sure.

is into at First really, our our X back kind we're areas of we're product. at: cash, looking looking So there's when foremost that and reinvesting

heart dysfunction that an XXX(k) so of And the we're clearance this is after. example going

you second, The growth activities. inorganic is mentioned, as

time. We But do pipeline. these you things know, have take a as robust

be we're So very diligent doing we we're what what going looking and are at. to in

with shareholders have. approach in that in a we aligned make has acquisition of capital we are they Board experience that and lot may trying management any allocation, Our closely to and carefully sure

then be share third cash piece potentially our with And buybacks. could the

buyback have do a that's $XX share the by we So authorized million Board.

in We million $XX already, we have authorized million do $X repurchases. share so have bought back

looking something that market obsess the depending allocation capital that's at on will So Board assess circumstances. with will else -- and the

Aaron Wukmir

a And Okay. purposes. for then Understood. helpful. quick modeling one just Super

correctly, I XXXX. sort I you think correctly? but I this cadence caught mentioned cadence, similar it of in catch revenue to follow a that that of Did should terms

Renae Cormier

will it heavily think weighted cadence We HX. where a than similar Yes. will HX more follow be

Operator

This like call the concludes I'd to remarks. session. back Renae turn over any to for closing our Cormier question-and-answer

Renae Cormier

you. Thank

of underscores technology up to of chronic benefits landscape. As care in cardiovascular ongoing The customers diagnosis recognition physicians, value the an facilities approach to clinical through the patients, of by conference role this want our we wrap plays earlier payers call, evolving delivering emphasize and our commitment crucial for we continued this health conditions. our

revenue forward, We chronic Moving strengthen preserve discussion, remains opportunities a with and diseases. thank you primary ongoing current within the your today's cardiovascular on appreciate to profitability in participation focus support. your and and objective space for our our disease

Operator

has disconnect. now now may Thank and you conference presentation, attending today's concluded. The you for

Semler Scientific (SMLR) 7 May 242024 Q1 Earnings call transcript