Semler Scientific (SMLR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 22% year-over-year to $14.5 million, with net income dropping to $11 thousand from $5.9 million in Q2 2023.

• Adopted bitcoin as the primary treasury reserve asset, acquiring 929 bitcoins for $63 million as of August 5, 2024.

• Revenue decline attributed to volume pricing for large customers and CMS Medicare Advantage rate changes.

• Continued commitment to core medical products and services, especially QuantaFlo, alongside the bitcoin strategy.

• Operating expenses fell 20% in Q2, mainly from headcount reductions and lower marketing spend.

Financial highlights

• Q2 2024 total revenues were $14.5 million, down from $18.6 million in Q2 2023.

• Net income was $11 thousand, or $0.00 per share, versus $5.9 million ($0.88 per basic share) in Q2 2023.

• Income from operations was $5.4 million, compared to $7.2 million in Q2 2023.

• Operating expenses were $9.1 million, a 20% decrease year-over-year.

• Cash, cash equivalents, and restricted cash at June 30, 2024, was $7.5 million.

Outlook and guidance

• Revenues for the remainder of 2024 are expected to follow a similar cadence as 2023, with H1 more heavily weighted.

• Plans to continue acquiring bitcoin using cash from operations and proceeds from a $150 million shelf registration statement.

• Focus remains on tight expense control and maximizing operating income.

• Seeking new FDA 510(k) clearance for expanded QuantaFlo use.

• Management believes current liquidity is sufficient for at least the next 12 months.