Semler Scientific(US:SMLR)2021-11-02 02:32Financial Data and Key Metrics Changes - For the nine months ended September 30, 2021, revenues increased by 56% to $41.5 million compared to $26.5 million in the same period of 2020 [10][15] - Pre-tax net income rose by 77% to $17.7 million, while net income increased by 82% to $15.7 million [10][16] - Cash at the end of the quarter was $35.9 million, an increase of $19.1 million from $16.8 million as of September 30, 2020 [10][19] Business Line Data and Key Metrics Changes - Fixed fee software license revenues for Q3 2021 were approximately $7.8 million, a 24% increase from $6.3 million in Q3 2020 [20] - Variable fee software license revenues were approximately $5.8 million, up 43% from $4.1 million [20] - For the nine months ended September 30, 2021, variable fee software license revenues surged by 154% to approximately $18 million from $7.1 million [22] Market Data and Key Metrics Changes - The two largest customers accounted for 40% and 28% of quarterly revenues in Q3 2021 [20] - The company noted that customer interest in its products and services is increasing, leading to growth in staffing and inventory [24] Company Strategy and Development Direction - The company aims to develop, manufacture, and market innovative products that assist in evaluating and treating chronic diseases [7] - Management is focused on expanding the customer base and increasing orders from existing customers, particularly in the vascular disease testing market [30][32] - The company plans to continue investing in R&D to enhance product offerings and commercialize new services [28][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued annual revenue growth in 2021 and 2022, driven by increased installations and usage of products [30] - The company expects operating expenses to rise to support anticipated growth, but aims to grow revenues at a faster rate than expenses [31] - Management acknowledged the impact of COVID-19 on business operations but noted a recovery in testing activities [51][54] Other Important Information - The company uplisted to the NASDAQ market, which is expected to enhance liquidity and expand the shareholder base [9] - The company has signed its first customer for a new software product from a private company, indicating potential future growth opportunities [29] Q&A Session Summary Question: What are the outside investment opportunities targeting metabolic disorders? - Management confirmed they are targeting other HCC codes beyond the current focus [36][38] Question: How many other subscription clients does the company have? - The company is focusing on larger organizations rather than individual physician practices for customer growth [40] Question: Will per-use sales ramp up again as HRAs finish wellness exams? - Management noted that the impact of COVID-19 has varied, and they are uncertain about the seasonality effects on sales [42][43] Question: Is there a shift to virtual visits affecting QuantaFlo usage? - Management indicated that there was a rapid return to in-home visits in 2021, minimizing the impact of virtual visits [66] Question: What is the status of rolling out QuantaFlo in broader settings? - The company is pursuing expansion into other settings but has no specific announcements at this time [70][71]