How did SMLR's Q4 earnings surprise investors?

Semler Scientific's (SMLR) Q4 earnings report exceeded investor expectations in several key areas, leading to a positive market reaction despite a decline in traditional revenue streams.

1. **Earnings Per Share (EPS) and Revenue Surprise**:
- SMLR reported an EPS surprise of $3.21 for Q4, which significantly exceeded expectations.
- The revenue surprise for the quarter was $41.3 million, indicating a robust revenue performance.

2. **Net Income and Sales**:
- Net income for Q4 was reported at $29.21 million, up substantially from the previous year's $4.22 million.
- Sales for the quarter were $12.41 million, which, although slightly down from the previous year's $15.06 million, were still respectable given the overall market conditions.
3. **Bitcoin Strategy's Impact**:
- The company's strategic investment in bitcoin played a significant role in its financial performance. Semler Scientific acquired 3,192 bitcoins valued at approximately $300 million, which has seen a significant rise in value.
- This bitcoin-focused treasury strategy not only boosted market capitalization but also led to a substantial increase in net income.
4. **Market Reaction and Outlook**:
- Despite a drop in traditional revenue streams, the market responded positively to the earnings report, likely due to the strong performance in other areas and the strategic investments made.
- The company's plans to expand its bitcoin holdings and target new product expansions in 2025 are indicative of a forward-looking strategy that investors find promising.

In conclusion, Semler Scientific's Q4 earnings exceeded investor expectations primarily due to strong net income driven by strategic bitcoin investments and effective cost management. Despite a decline in sales and reliance on a few major customers, the company's innovative strategies and commitment to expanding its healthcare technology offerings provide a positive outlook for the future.