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Semler Scientific (SMLR) 5 Aug 24 2024 Q2 Earnings call transcript

AInvestTuesday, Aug 6, 2024 7:19 pm ET
1min read

The recent earnings call by Semler Scientific provided significant insights into the company's financial performance, strategic direction, and future plans. The call, led by CEO Douglas Murphy-Chutorian and Chairman Eric Semler, was marked by a strong focus on the company's bitcoin strategy and its commitment to its core medical products and services business.

Strong Financial Performance and Bitcoin Strategy

Semler Scientific reported a strong interim from operations, with the majority of cash and cash equivalents being used to purchase bitcoin. The company now holds 929 bitcoins, reflecting its belief in the digital asset's potential as a store of value and a hedge against inflation. Eric Semler emphasized the company's strong balance sheet and its decision to hold bitcoin as the best use of cash, citing its potential to generate outsized returns as it gains acceptance as digital gold.

Core Medical Products and Services Business

The company's core business, which includes its flagship product QuantaFlo, a noninvasive point-of-care test for peripheral arterial disease, remains a priority. Semler Scientific's operating focus is on supporting the identification of chronic diseases, particularly cardiovascular diseases, which continue to burden healthcare systems worldwide. The company is committed to research and development, with a vision to expand its reach and encompass additional cardiovascular applications.

Financial Highlights

Renae Cormier, the CFO, provided details of the second quarter 2024 financial results. Total revenues were down 22% compared to the previous year, with the largest customers accounting for a significant portion of quarterly revenues. Operating expenses were down 20% year-over-year, with the company focusing on tight expense control. Net income was nil for the quarter, with a strong cash generation of nearly $5 million.

Looking Ahead

Semler Scientific plans to continue its bitcoin strategy, with a focus on acquiring more bitcoin and maximizing shareholder value. The company also plans to use its cash flow and proceeds from equity capital raises to support its medical products and services business and further establish QuantaFlo as a standard of care for PAD diagnosis.

The earnings call provided a comprehensive overview of Semler Scientific's financial performance, strategic direction, and future plans. The company's commitment to its core medical products and services business, coupled with its innovative bitcoin strategy, positions it well for future growth and success in the healthcare and digital asset sectors.

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