The following is a summary of the Semler Scientific, Inc. (SMLR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 total revenues were $13.5 million, down approximately 17% from Q3 2023.
Operating expenses decreased by 16% year-over-year to $8.4 million.
Income from operations was $5.1 million, down from $6.3 million in the previous year, and net income was $5.6 million, slightly up from $5.5 million in Q3 2023.
Semler reported earnings per share of $0.80 per basic and $0.72 per fully diluted share.
Business Progress:
Semler is expanding its core medical product offerings and advancing research, particularly with its QuantaFlo device aimed at diagnosing peripheral arterial disease (PAD).
The company is advancing towards obtaining 510(k) clearance for an extension to QuantaFlo, expected in the first half of 2025.
Semler continues to expand its customer base by targeting new medical centers and markets that will benefit from PAD testing.
Opportunities:
Semler is harnessing its strong operating cash flow and equity issuances for an aggressive Bitcoin acquisition strategy, leveraging its balance sheet to target outsized returns.
The company is exploring a wide range of financing options to raise more cash to acquire Bitcoin even more aggressively.
Risks:
An inherent risk associated with high reliance on a small number of customers was noted, with two customers representing 73% of quarterly revenues.
The Bitcoin investment strategy introduces potential volatility in reported net income due to fair value adjustments of Bitcoin holdings.
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