Semler Scientific® Reports First Quarter 2024 Financial Results

2024 Q1 highlights compared to the corresponding period of 2023:

• First quarter revenues were $15.9 million, a decrease of 13%
• First quarter net income was $6.1 million, an increase of 22%
• Cash, cash equivalents and restricted cash balance increased to $62.9 million

SANTA CLARA, Calif., May 7, 2024 /PRNewswire/ -- Semler Scientific, Inc. (Nasdaq: SMLR), a company that develops, manufactures and markets innovative medical products and services that assist in evaluating and treating chronic diseases, today reported financial results for the first quarter ended March 31, 2024.

"We had a very strong quarter of cash generation despite the regulatory-driven, year-over-year revenue decline from our PAD product," said Doug Murphy-Chutorian, MD, chief executive officer of Semler Scientific. "We expect that our revenues will re-accelerate if we are successful in our effort to obtain a new 510(k) clearance from the FDA that would allow us to market our heart dysfunction product."

FINANCIAL RESULTS

For the first quarter ended March 31, 2024, compared to the corresponding period of 2023, Semler Scientific reported:

• Revenues of $15.9 million, a decrease of $2.3 million, or 13%, compared to $18.2 million.
  • Fixed fee software license revenues of $7.1 million, a decrease of $2.2 million, or 24%, compared to $9.3 million.
  • Variable fee software license revenues of $8.0 million, a decrease of $0.6 million, or 6%, compared to $8.6 million.
  • Sales of other products of $0.8 million, an increase of $0.5 million, or 140%, compared to $0.3 million.
• Cost of revenues of $1.2 million, a decrease of $0.1 million or 2% compared to $1.3 million. As a percentage of revenues, cost of revenues increased to 8%, compared to 7% in the prior year period.
• Total operating expenses of $8.9 million, which includes cost of revenues, a decrease of $3.1 million, or 25%, compared to $12.0 million. As a percentage of revenues, operating expenses decreased to 56% compared to 66%.
• Pre-tax income of $7.8 million, an increase of $1.2 million, or 18%, compared to $6.6 million.
• Income tax expense of $1.7 million, or an effective tax rate of 22%, compared to $1.7 million, or an effective tax rate of 25%.
• Net income of $6.1 million, or $0.88 per basic share and $0.78 per diluted share, an increase of $1.1 million, or 22%, compared to $5.0 million, or $0.74 per basic share and $0.63 per diluted share.

Semler Scientific's three largest customers (including their affiliates) comprised 45%, 25% and 11% of first quarter 2024 revenues and 41%, 34% and less than 10% of first quarter 2023 revenues, respectively.

MAJOR ACCOMPLISHMENTS IN FIRST QUARTER OF 2024

Notice of Conference Call

Semler Scientific will host a conference call today at 4:30 p.m. ET. The call will address results of the first quarter ended March 31, 2024, as well as provide a business update on Semler Scientific's strategies for the near-term future.

Participants are encouraged to pre-register for the conference call using the following link: https://dpregister.com/sreg/10187645/fc081c8059. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time. Those without internet access or who are unable to pre-register may dial in by calling:

Domestic callers: (833) 816–1161
International callers: (412) 317–0717

Please specify to the operator that you would like to join the "Semler Scientific Call." The conference call will be archived on Semler Scientific's website at www.semlerscientific.com.

About Semler Scientific, Inc.:

Semler Scientific, Inc. develops, manufactures and markets innovative products and services that assist in evaluating and treating chronic diseases. Its flagship product, QuantaFlo®, which is patented and cleared by the U.S. Food and Drug Administration (FDA), is a rapid point-of-care test that measures arterial blood flow in the extremities. The QuantaFlo test aids in the diagnosis of cardiovascular diseases, such as peripheral arterial disease (PAD), and Semler Scientific is seeking a new 510(k) clearance for expanded-indications. QuantaFlo is used by healthcare providers to evaluate their patient's risk of mortality and major adverse cardiovascular events (MACE). Semler Scientific has a minority investment in Mellitus, SYNAPS Dx, as well as Monarch Medical Technologies LLC, a privately held company whose product EndoTool® offers a technological solution for inpatient glycemic management. Additional information about Semler Scientific can be found at www.semlerscientific.com.

Forward-Looking Statements

This press release contains "forward-looking" statements. Such statements can be identified by, among other things, the use of forward-looking language such as the words "believe," "goal," "may," "will," "intend," "expect," "anticipate," "estimate," "project," "would," "could" or words with similar meaning or the negatives of these terms or by the discussion of strategy or intentions. The forward-looking statements in this release include express or implied statements regarding seeking a new 510(k) clearance for QuantaFlo with expanded indications for use; and the revenue impact of marketing QuantaFlo for heart dysfunction; among others. Such forward-looking statements are subject to a number of risks and uncertainties that could cause Semler Scientific's actual results to differ materially from those discussed here, such as whether or not insurance plans and other customers will continue to license its cardiovascular testing products, including the risk of changes in the reimbursement landscape for its customers including related to the recent CMS rate announcement; whether or not QuantaFlo can successfully aid in the diagnosis of PAD or obtain a new 510(k) clearance for expanded indications; along with those risk factors detailed in Semler Scientific's filings with the Securities and Exchange Commission. These forward-looking statements involve assumptions, estimates, and uncertainties that reflect current internal projections, expectations or beliefs. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified in their entirety by these cautionary statements and the risk factors described above. Furthermore, all such statements are made as of the date of this release and Semler Scientific assumes no obligation to update or revise these statements unless otherwise required by law.

INVESTORCONTACT:

Renae Cormier
Chief Financial Officer
ir@semlerscientific.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/semler-scientific-reports-first-quarter-2024-financial-results-302138752.html

SOURCE Semler Scientific, Inc.