Semler Scientific(US:SMLR)2023-05-11 00:44Financial Data and Key Metrics Changes - In Q1 2023, the company reported record high quarterly revenues of $18.2 million, an increase of 30% compared to Q1 2022 [40] - Pre-tax net income for Q1 2023 was $6.6 million, reflecting a 68% increase period-over-period [27] - Net income was $5 million, or $0.74 per basic share and $0.63 per fully diluted share, marking a 48% increase period-over-period [27] - Operating expenses, including cost of revenue, were $12 million, an increase of 18% period-over-period due to increased headcount and wage inflation [41] - Cash, cash equivalents, and short-term investments totaled $43 million as of March 31, 2023 [42] Business Line Data and Key Metrics Changes - Fixed fee revenues were $9.3 million, an increase of 18% period-over-period, driven by growth from both existing and new customers [26] - Variable fee revenues reached $8.6 million, representing a 46% increase period-over-period [26] - Equipment and other revenue was $340,000, an increase of 19% period-over-period, indicating strength in the fee per test market [11] Market Data and Key Metrics Changes - The diabetes market in the U.S. includes over 35 million diagnosed individuals, growing at 4% to 5% annually, with 96 million people having pre-diabetes [4] - Heart failure affects approximately 6.5 million adults in the U.S., with over 1 million hospitalizations annually and care costs exceeding $30 billion [1] Company Strategy and Development Direction - The company aims to establish QuantaFlo for PAD as a standard of care and expand its customer base to include hospitals and value-based care providers [15] - Plans to market and install Insulin Insights more broadly are in place, focusing on improving clinical outcomes and reducing total cost of care [18] - The company is also exploring investments to diversify its product pipeline, particularly in the diabetes space [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the clinical benefits of early diagnosis of chronic diseases and the relevance of their mission to stakeholders [18] - The management team is prepared to adjust growth strategies as market conditions evolve, emphasizing the importance of their technology in reducing health inequities [33] - There are concerns regarding the impact of CMS's 2024 final rate announcement on the PAD testing business, as many customers rely on HCC payments [31] Other Important Information - Two new independent directors were appointed to the board, bringing expertise in capital allocation and strategic planning [9] - The company has $15 million remaining under the stock repurchase program [12] Q&A Session Summary Question: No questions were posed during the Q&A session - The operator indicated that there were no questions from participants and encouraged reaching out for any inquiries [49]